CHAPTER

6:
Leading
FUNDAMENTALS OF
MANAGEMENT (MGT 162)
 TOPIC OUTLINE
Leadership
Definition Power
Approach

Behavioral Contingency
Leader Leading Leadership Position Personal
Theories Theories

Ohio Life-cycle
Legitimate Referent
Studies Theory

Michigan Path Goal

Information Expert
Studies Theory

Managerial
Grid Coercive

Reward
 DEFINITION
LEADER
• People who can influence the behavior of others
without having to rely on force OR those accepted
by others.

LEADING
• Motivating and directing the members of the
organization so that they contribute to the
achievement of the goals of the organization.

LEADERSHIP
• The process of directing the behavior of others
toward the accomplishment of some objective or
causing individuals to act in a certain way or to
follow a particular course.
Leadership
◦ Leadership involves several activities:-
⮚ Creating a vision of the future.

⮚ Devising strategy to achieve that vision.

⮚ Communicating the vision so that everyone
understands and believes in it.
LEADERSHIP ◦ In The Ohio State University Studies, researchers
studied the behaviors of leaders and found two
APPROACHES critical behaviors called:
◦ ‘Initiating structure’ (task orientation)
leadership behavior

Behavioral ◦ Initiating Structure behavior – establishes

well-defined procedures that the followers
Theories : should adhere to in performing their jobs.
◦ ‘Consideration’ (employee-oriented) leadership
behavior.
The Ohio State ◦ Consideration behavior – reflects friendship,
mutual trust, respect, and warmth in the
University Studies relationship between leader and followers
LEADERSHIP
APPROACHES

Behavioral
Theories :

The Ohio State

University Studies
LEADERSHIP
APPROACHES ◦ In this study, after analyzing information based on
interview with both leaders and followers, the
Michigan University Studies pinpointed two basic
Behavioral types of leader behaviors:
◦ Production-Centered Behavior
Theories : ◦ Employee-Centered Behavior

The Michigan
University Studies
LEADERSHIP
◦ Production-Centered Behavior:
◦ Is leader behavior that focuses primarily on how well

APPROACHES subordinate performing their job.

◦ Managers set rigid work standards, organized tasks
down to the last detail, prescribe work methods to
be followed, and closely supervised employees’
Behavioral work.

Theories : ◦ Employee-Centered Behavior:

◦ Is leader behavior that focuses primarily on
subordinates as people.
The Michigan ◦ Managers encouraged employee participation in goal

University Studies setting and other work decisions and helped ensure
high performance by inspiring trust and respect.
LEADERSHIP There are five styles of leadership in The Managerial Grid
APPROACHES which comprise of:
1. The Indifferent (previously called impoverished) Style (1,1)
2. The Accommodating (previously, country club) Style (1,9)

Behavioral 3. Dictatorial (previously, task management) Style (9,1)

4. The Status Quo (previously, middle-of-the-road) Style (5,5)
Theories : 5. The sound (previously, team management) Style (9,9)

Managerial Grid
 ◦ Managerial Grid (basic diagram)

LEADERSHIP
APPROACHES

Behavioral
Theories :

Managerial Grid
 ◦ Managerial Grid (comprehensive diagram)

LEADERSHIP
APPROACHES

Behavioral
Theories :

Managerial Grid
LEADERSHIP The Indifferent (previously called impoverished) Style (1,1)
◦ Evade and elude.
APPROACHES ◦ In this style, managers have low concern for both people
and production.
◦ Managers use this style to preserve job and job seniority
Behavioral (length of time served in a job), protecting themselves by

Theories : avoiding getting into trouble.

◦ The main concern for the manager is not to be held
responsible for any mistakes, which results in less
innovative decisions.
Managerial Grid
LEADERSHIP The Accommodating (previously, country club) Style (1,9):
◦ Yield and comply.
APPROACHES ◦ This style has a high concern for people and a low concern
for production.
◦ Managers using this style pay much attention to the
Behavioral security and comfort of the employees, in hopes that this
will increase performance.
Theories : ◦ The resulting atmosphere is usually friendly, but not
necessarily very productive.

Managerial Grid
 The Dictatorial (previously, task management) Style (9,1):

LEADERSHIP ◦ Control and dominate.

◦ With a high concern for production, and a low concern
APPROACHES for people.
◦ Managers using this style find employee needs
unimportant; they provide their employees with money and
Behavioral expect performance in return.

Theories : ◦ Managers using this style also pressure their employees

through rules and punishments to achieve the company
goals.
◦ This style is often used in case of crisis management.
Managerial Grid
LEADERSHIP The Status Quo (previously, middle-of-the-road) Style

APPROACHES (5,5):
◦ Balance and compromise.
◦ Managers using this style try to balance between company

Behavioral goals and workers' needs.

◦ By giving some concern to both people and production,
Theories : managers who use this style hope to achieve suitable
performance but doing so gives away a bit of each concern
so that neither production nor people needs are met.
Managerial Grid
LEADERSHIP The Sound (previously, team management) Style (9,9):
◦ Contribute and commit.
APPROACHES ◦ In this style, high concern is paid both to people and
production.
◦ As suggested by the propositions of Theory Y, managers
Behavioral choosing to use this style encourage teamwork and
commitment among employees.
Theories : ◦ This method relies heavily on making employees feel
themselves to be constructive parts of the company.

Managerial Grid
LEADERSHIP
APPROACHES
The Hersey Blanchard Life Cycle describes how leaders
should adjust their leadership style in response to their
Contingency subordinates’ situation that evolving desire for
achievement, experience, ability and willingness to accept
Theories : responsibility

Hersey Blanchard
Life Cycle
LEADERSHIP
APPROACHES

Contingency
Theories :

Hersey Blanchard
Life Cycle
 There are four phases of leadership styles under this theory.
◦ 1st Phase (Telling/ Directing)

LEADERSHIP
◦ Followers must be instructed on what, how, when and where to do various
tasks.
◦ The manager initiates decision-making.
APPROACHES ◦ 2nd Phase (Selling/ Coaching)
◦ Leader still provides a great deal of direction but attempts to hear
followers’ feelings about decision, ideas and suggestions.

Contingency ◦ Control over decision-making remains with the leader.

◦ 3rd Phase (Participating/Supporting)

Theories : ◦ Employees have more ability and achievement motivation.
◦ Actively seeking greater responsibility.
◦ Leaders provide recognition and actively listen and facilitate problem

Hersey Blanchard solving.

◦ Decision-making and problem solving shifts from leader to follower.

Life Cycle ◦ 4th Phase (Delegating)

◦ Followers no longer need direction from managers.
◦ Leaders can reduce the amount of support and encouragement.
◦ Decision making totally delegated to the follower.
 The Path-Goal Theory emphasizing on the leader’s role in
clarifying for subordinates how they can achieve high
LEADERSHIP performance and its associated rewards.

APPROACHES ◦ Developed by Martin G. Evans and Robert J. House.

◦ Individual’s motivation depends on his/her
expectation of rewards and the attractiveness of the
rewards.
Contingency ◦ Leaders clarify paths through which followers can

Theories : achieve both task-related and personal goals.

◦ The most effective leadership style in motivating
followers depends on the types of rewards they most
desire.
Path Goal Theory
 ◦ Directive Behavior
◦ leader behavior aimed at telling followers what to do and how
to do it. The leader indicates what performance goals exist
LEADERSHIP and precisely what must be done to achieve them.
◦ Supportive Behavior
APPROACHES ◦ leader behavior aimed at being friendly with followers and
showing interest in them as human being. Through supportive
behavior, the leaders show sensitivity to the personal needs of

Contingency followers.
◦ Participative Behavior
Theories : ◦ leader behavior in which suggestions from the follower are
sought regarding business operations with the result that are
involved in making important organizational decision.

Path Goal Theory ◦ Achievement Behavior

◦ leader behavior aimed at setting challenging goals for
followers to reach and expressing and demonstrating
confidence that followers will meet the challenge
 Definition of Power
◦ Ability to marshal human, information, or
material resources to get something done.
POWER
◦ An individual’s capacity to influence
decisions.
 Two major types (sources)of power:
◦ Position Power
◦ is inherent in the formal position that the
leader holds which includes:
◦ Legitimate
◦ Information
◦ Coercive
Types (Sources) ◦ Reward
of Power ◦ Personal Power
◦ is derived from interpersonal relationship
between a leader and his follower that
comprises of:
◦ Referent
◦ Expert
 Position Power Personal Power

Legitimate Referent
• Power from formal authority due • Ability to influence others based
to his/her position in the on the person’s personality --

Types (Sources)
organization e.g. security guard personal liking, charisma &
reputation e.g. politicians,
Information
entertainers or sport figures

of Power
• Control over information e.g.
librarian Expert
Coercive • Power to influence another person
• Power to discipline, punish & because of his/her expertise--
knowledge and competence e.g.
withhold rewards e.g. lecturers-
doctor, engineer or lawyer
students
Reward
• Control over tangible benefits
example promotion, work
schedule e.g. Rector UiTM
If your actions inspire others to
dream more, learn more, do
more
and become more,
you are a leader.

– John Quincy Adams -