PA 214 Human Behavior in Organization CM - CAPSU

Chapter 7 Leadership

Content:
- Differences between Leaders and Managers
- Kinds of Leadership
- Theories about Leadership
- Two Distinct Styles of Leadership
- To make the delegation effective, Four Leadership Styles are considered

Learning Outcome:
1. Describe the history of leadership as a topic inside organizational behavior
2. Discuss the pros and cons of leadership styles and topics
3. Describe the history, context, and utility of the distinction between leadership and
management.

Activity:

LA:
“ Create Commercial”
- Students will use their skills in digital design to create an advertisement for the
“Leaders” they dream of working with. They will present it in class to explain the varying
leadership styles they find effective in the digital age.

Definition of Leadership

Leadership is the process of guiding and directing the behavior of people in the
organization to achieve certain objectives. Leadership is the element that convinces
members of an organization to behave in such a manner that will facilitate the
accomplishment of the organization's goals.

The Difference between Leadership and Management

Managers and leaders are different in the following ways:

1. Managers are rational problem solvers, while leaders are intuitive and more visionary.
2. Managers perform other administrative functions such as planning, organizing,
decision-making, and communicating.

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3. Leaders are primarily concerned with results; managers are concerned with the
efficiency of results.
4. Leaders obtain power from below; managers obtain it from above.

Kinds of Leadership

1. Formal Leadership

The process of influencing others to pursue official objectives. Formal leaders are
vested with formal authority and as such, they generally have a measure of legitimate
power. They rely on a practical combination of reward, coercive, referent, and expert
power.

2. Informal Leadership

The process of influencing others to pursue unofficial objectives. Informal leaders

lack formal authority. Informal leaders also rely on a practical combination of reward,
coercive, referent, and expert power.

Power and the Leader

The bases of power that the leader may use to convince subordinates may be classified
as either:

1. Position Power - is a power derived as a consequence of the leader’s position. It

consists of the following types:

2. Legitimate Power – this power emanates from a person’s position in the

organization.

The legitimate power vested in a person is characterized by the following:

● It is invested in a person’s position. Even if the person occupying the position is

replaced, the power remains and the new occupant can exercise it.

● It is accepted by subordinates. The persons working under the supervision of a

manager believe that the manager has the right to tell them what to do and what
to expect from them.

● Authority is used vertically. The flow of authority is from the top level down to the
lower levels.

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3. Reward Power – this power emanates from one’s ability to grant rewards to
those who comply with a command or request.

4. Coercive Power – this power arises from the expectation of subordinates that
they will be punished if they do not conform to the wishes of the leader.

5. Personal Power- results from the leader’s characteristics. It may be any or both
of the following:
- Expert Power – An expert who possesses and can dispense valued
information generally exercises expert power over those in need of such
information.

- Referent Power – this power refers to the ability of leaders to develop

followers from the strength of their personalities. People follow because
their emotions push them to do so. Some religious and political leaders like
Nelson Mandela of Africa, the late Mother Teresa, and the late Michael
Jackson are examples of those who have or had referent power.

Theories about Leadership

Through the years, eminent researchers have forwarded their own theories about
leadership. Their outputs may be classified as follows:
1. Trait theories
2. Behavioral theories
3. Contingency theories

Trait Theories

Trait theories of leadership consider leaders to possess common traits. This theory
emphasizes traits that result in the determination of a wide span of personal attributes
such as physical appearance, intelligence, and self-confidence. A single statement that
best describes trait theories assumes that “leaders are
born than made.”

The person who occupies a position of leadership based on this theory exceeds
the average on the following factors:
1. Sociability
2. Persistence
3. Initiative
4. Knowing how to get things done
5. Self-confidence
6. Alertness to and insight into situations

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7. Cooperativeness
8. Popularity
9. Adaptability
10. Verbal facility

Guided by findings, researchers later on drafted a more general view of what

good leaders have in common. This consists of the following.

1. Extraversion – individuals who like being around people and can assert
themselves.

2. Conscientiousness – individuals who are disciplined and keep commitments

that they make.

3. Openness – individuals who are creative and flexible.

4. Emotional Intelligence – individuals who can understand and manage their

personal feelings and emotions, as well as their emotions towards other individuals,
events, and objects.

Behavioral Theories

These theories propose that specific behaviors differentiate leaders from

non-leaders.

Four theories related to leadership behavior:

The Ohio State University studies Started at Ohio State University during the
late 1940’s in which the researchers sought to identify independent dimensions of leader
behavior. Consideration - The degree to which the leader creates an environment of
emotional support, warmth, friendliness, and trust. The leader’s behavior would be
friendly and approachable, looking out for the personal welfare of the group, keeping the
group informed about new developments, and doing small favors for group members.

Note: The findings of the Ohio studies indicate that successful leaders are those who are
engaged not in one of the two behaviors but in both.

The University of Michigan studies University of Michigan. Researchers attempt to

locate behavioral characteristics of leaders that appear to be related to measures of
performance effectiveness.

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The researchers identified two distinct styles of leadership

1. Job-centered
Job-centered managers set tight work standards, organize tasks carefully,
prescribe the work methods to be followed and supervise closely.

2. Employee-centered
Employee-centered managers encouraged group members to participate in
goal setting and other work decisions and helped to ensure high
performance by engendering trust and mutual respect.

Note: The researchers found out that the most productive work groups tended to have
leaders who were employee-centered rather than job-centered

The Yukl studies - Gary M. Yukl and his colleagues tried to seek answers to
specific behavior of leaders for varying situations. They were able to isolate nineteen
behaviors consisting of the following:
- Performance emphasis - The extent, to which a leader emphasizes the
importance of subordinate performance, tries to improve productivity and
efficiency, tries to keep subordinates working up to their capacity, and
checks on their performance.
- Consideration - The extent to which a leader is friendly, supportive, and
considerate in his or her behavior toward subordinates and tries to be fair
and objective.
- Praise-Recognition - The extent to which a leader provides praise and
recognition to subordinates with effective performance, shows appreciation
for their special efforts and contributions, and makes sure they get credit
for their helpful ideas and suggestions.
- Decision-Participation - The extent to which a leader consults with
subordinates and otherwise allows them to influence his or her decisions.
- Training-Coaching - The extent to which a leader determines training
needs for subordinates and provides any necessary training and coaching.
- Problem Solving - The extent to which a leader takes the initiative in
proposing solutions to serious work-related problems and acts decisively to
deal with such problems when a prompt solution is needed.
- Work Facilitation - The extent to which a leader obtains for subordinates
any necessary supplies, equipment, support services, or other resources,
eliminates problems in the work environment, and removes other obstacles
that interfere with the work.
- Inspiration -
- Structuring Reward Contingencies
- Autonomy-Delegation
- Role Clarification
- Goal Setting

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- Information Dissemination
- Planning
- Coordinating
- Representation
- Interaction Facilitation
- Conflict Management
- Criticism-Discipline

The Managerial Grid was Developed by Robert Blake and Jane Mouton. It is an
approach to understanding a manager’s concern for production and concern for people.
A brief description of selected styles in the grid is provided as follows:

- Impoverished Managers - also referred to as laissez-faire leaders. Leaders

have little concern for people or productivity, avoid taking sides, and
stay out of conflicts. They do just enough to get by. This leadership style
is a form of abdication of responsibility.

- Country Club Manager - Leaders have great concern for people and
little concern for production. They try to avoid conflicts and concentrate
on being well-liked. To them, no task is more important than good
interpersonal relations. Their goal is to keep people happy.

- Authority-Obedience Manager - Leaders have great concern for

production and little concern for people. They desire tight control to get
tasks done efficiently. They consider creativity and human relations
unnecessary.

- Organizations’ Man Managers also called Middle-of-the-Road Managers

- Leaders have medium concern for people and production. They attempt
to balance their concern for people and production but are not
committed to either.

- Team manager - The ideal leadership style of a manager Leader has

great concern for both people and production. He works to motivate
people to reach their highest levels of accomplishment.

Contingency Theories

The various theories related to the situational approach to leadership consist of

the
Following:

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1. Continuum of Leadership Behavior - Robert Tannenbaum and Warren H. Schmidt.

This model consists of seven alternative ways for managers to approach
decision-making, depending on how much participation they want to allow subordinates
in the decision-making process.

Alternative Behaviors of the Leader

1 Manager makes a decision and announces it.

2 Manager “sells” decision
3 Manager presents ideas and invites questions
4 Manager presents tentative decision subject to change
5 Manager presents problems, gets suggestions, makes
6 Manager defines limits and asks the group to make
7 Manager permits subordinates to function within limits defined by decision
superior.

The leader’

The leader’s choices depend on three factors:

1. Forces in the manager;
2. Forces in subordinates; and
3. Forces in the situation

The leadership style of greater participation and freedom can be exercised by the
manager if the subordinates;

1. Are having independence and freedom of action;

2. Want to have decision-making responsibility;
3. Identify the organization’s goals;
4. Are knowledgeable and experienced enough to deal with the problem
efficiently;
5. Have experience with previous managers that lead them to expect participative
management.

2. The Contingency Leadership Model - Fred Fiedler - This leadership model proposes
that effective group performance depends on the proper match between the leader’s
style and the degree to which the situation favors the leader.

Fiedler measures leadership style through the use of the Least Preferred Coworker
(LPC) Scale which is an instrument that assesses the degree of positive or negative
feelings held by a person toward someone with whom he or she least prefers to work.
Low scores on the LPC is a reflection of a leader who is task-oriented, or controlling, and
with a structured leadership style. High scores reflect a leadership style that is
relationship-oriented or one that is passive and considerate.

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To determine how favorable the leadership environment is, Fiedler maintains that
it
will depend on three factors:
1. Leader-member relations;
2. Task structure;
3. Position power

The three factors determine how favorable the situation is for the leader. The
most favorable situation exists when good leader-member relations, high task structure,
and strong position power. The least favorable situation happens when there are poor
relations, a low degree of structure, and weak position power.

3. The Path-Goal Model -Robert House and Terrence Mitchell - This leadership model
states that the leader’s job is to create a work environment through structure, support,
and rewards that help employees reach the organization’s goals.

The two major roles involved are:

1. The creation of a good orientation; and
2. The improvement of the path toward the goals so that they will be attained.
House and Mitchell identified four leadership behaviors:
- The directive leader
- The supportive leader
- The participative leader
- The achievement-oriented leader

4. The Hershey-Blanchard Situational Leadership Theories - Paul Hershey and

Kenneth Blanchard - The leader must know the follower’s readiness and then use a
leadership style that fits the level.
Readiness refers to the ability and willingness of subordinates to take
responsibility for directing their behavior.

Readiness consists of two concerns:

1. Job readiness (or task competence); and
2. Psychological readiness (or commitment)

Based on the foregoing, subordinates may be classified as follows:

1. Those with low competence and low commitment (D-1);
2. Those with low competence but with high commitment (D-2);
3. Those with high competence but with low commitment (D-3); and

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4. Those with high competence and high commitment (D-4)

To match the various states of readiness by subordinates, Hershey and Blanchard

devised four leadership styles available to leaders:
1. A “directing” style that is best for low follower readiness.
2. A “coaching” style that is best for low to moderate follower readiness.
3. A “supporting” style that is best for moderate to high follower readiness.
4. A “delegating” style that is best for high readiness.
5. The Leader-Member Exchange Approach - George Graen and his
associates. This leadership theory recognizes that leaders develop unique working
relationships with each group member. Leaders and their followers exchange
information, resources, and role expectations that determine the quality of their
interpersonal relationships.

6. The Normative Decision Model

-developed by Victor and Philip Yetton
-revised by Vroom and Arthur Jago

Also known as “the leader-participation model” and “decision-making model of

leadership”, this model views leadership as a decision-making process in which the
leader examines certain factors within the situation to determine which decision-making
style will be most effective.

Five decision-making styles are presented by the normative model, each reflecting
a different degree of participation by group members:
1. Autocratic I – the leader individually solves the problem using the information
already available.

2. Autocratic II – the leader obtains data from subordinates and then decides.
3. Consultative I – the leader explains the problem to individual subordinates and
obtains ideas from each before deciding.
4. Consultative II – the leader meets with a group of subordinates to share the
problem obtain inputs, and then decide.
5. Group II – the leader shares a problem with the group and facilitates a
discussion of alternatives aiming to reach a group agreement on a solution.

The normative decision model is based on the following assumptions:

1. The leader can accurately classify problems according to the criteria offered.
2. The leader is able and willing to adapt his or her leadership style to fit the
contingency condition he or she faces.
3. The leader is willing to use a rather complex model.
4. The employees will accept the legitimacy of different styles being used for
different problems, as well as the validity of the leader’s classification of the situation at
hand.

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7. The Muczyk-Reimann Model - Jan P. Muczyk and Bernard C. Reimann - This

model suggests that “participation” behaviour is concerned with the degree to which
subordinates are allowed to be involved in decision-making. It is separated from
“direction” which is viewed as the degree of supervision exercised in the execution of the
tasks associated with carrying out the decision.

To make the delegation effective, four leadership styles are considered:

1. The Directive Autocrat. The leader makes decisions unilaterally and closely
supervises the activities of subordinates.
2. The Permissive Autocrat. This leader makes decisions unilaterally but allows
3. subordinates a great deal of latitude in execution.
4. The Directive Democrat. This leader wants full participation but closely
supervises subordinate activity.
5. The Permissive Democrat. This leader allows high participation in
decision-making and execution.

Resources: Medina, R. G. (2011). Human Behavior in Organization. Manila, Philippines:

Rex Book Store, Inc

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