LEADERSHIP

Chapter 18
WHO ARE LEADERS AND
WHAT IS LEADERSHIP?
 Leader- Someone who can influence others
and who has managerial authority.
 Leadership- is what leaders do. It’s a process
of leading a group and influencing that group
to achieve its goals
 Ideally, all managers should be leaders
EARLY LEADERSHIP THEORIES
 Trait Theories (1920s–30s)
 Research that focused on identifying personal
characteristics that differentiated leaders from
nonleaders was unsuccessful
 Later research on the leadership process
identified seven traits associated with successful
leadership:
 Drive, the desire to lead, honesty and integrity, self-
confidence, intelligence, job-relevant knowledge, and
extraversion

3
EARLY LEADERSHIP THEORIES:
BEHAVIORAL THEORIES
 University of Iowa Studies (Kurt Lewin)
 Identified three leadership styles:
 Autocratic style: centralized authority, low
participation
 Democratic style: involvement, high participation,
feedback
 Laissez-faire style: hands-off management
 Research findings: mixed results
 No specific style was consistently better for producing
better performance
 Employees were more satisfied under a democratic
leader than an autocratic leader

4
EARLY LEADERSHIP THEORIES:
BEHAVIORAL THEORIES
 THE OHIO STATE STUDIES
Identified two important dimensions of leader
behavior:
-Initiating structure- role of the leader in
defining his or her role and the roles of group
members.
- Consideration- the leader’s mutual trust and
respect for group members’ ideas and feelings
EARLY LEADERSHIP THEORIES:
BEHAVIORAL THEORIES
 University of Michigan Studies
Identified two dimensions of leadership behavior
 Employee oriented- emphasizing interpersonal
relationships
 Production-oriented- tended to emphasize the
task accomplishment.
Research findings- Leaders who were employee
oriented were able to get high group productivity
and high group member satisfaction.
 EARLY LEADERSHIP THEORIES:
BEHAVIORAL THEORIES
 Managerial grid
 Two-dimensional grid for appraising leadership
styles:
 Concern for people
 Concern for production
 Places managerial styles in 5 categories:
 Impoverished management
 Task management
 Middle-of-the-road management
 Country club management
 Team management
MANAGERIAL GRID NET
CONTINGENCY THEORIES OF LEADERSHIP

 The Fiedler Model

 Proposes that effective group performance
depended upon properly matching the
leader’s style and the amount of control and
influence in the situation
 Assumptions:
 A certain leadership style would be most
effective in different types of situations
CONTINGENCY THEORIES OF
LEADERSHIP
 Least-preferred coworker (LPC) questionnaire
 This questionnaire contained 18 pairs of
contrasting adjectives to determine leadership
style
 High score: a relationship-oriented leadership
style
 Low score: a task oriented leadership style
 Key situational factors in leader effectiveness.

 Leader–member relations
 Task structure
 Position power
EXHIBIT 18-3 FIELDLER MODEL
CONTINGENCY THEORIES…
(CONT’D)
 Hersey and Blanchard’s Situational
Leadership Theory (SLT)
Successful leadership is achieved by
selecting a leadership style that matches
the level of the followers’ readiness
 Acceptance: do followers accept or reject a
leader?
 Readiness: do followers have the ability and

willingness to accomplish a specific task?

Leaders must give up control as
followers become more competent

12
CONTINGENCY THEORIES…
(CONT’D)
 Hersey and Blanchard’s Situational
Leadership Theory (SLT) (cont’d)
 Createsfour specific leadership styles
incorporating Fiedler’s two leadership
dimensions:
 Telling: high task–low relationship leadership
 Selling: high task–high relationship leadership
 Participating: low task–high relationship leadership
 Delegating: low task–low relationship leadership

13
CONTINGENCY THEORIES…
(CONT’D)
 Hersey and Blanchard’s Situational
Leadership Theory (SLT) (cont’d)
 Identifies four stages of follower readiness:
 R1: followers are unable and unwilling
 R2: followers are unable but willing
 R3: followers are able but unwilling
 R4: followers are able and willing

14
CONTINGENCY THEORIES OF
LEADERSHIP
 Path-Goal Model
 States that the leader’s job is to assist followers in
attaining their goals and to provide direction or
support needed to ensure that their goals are
compatible with the goals of the group or
organization
 Leaders assume different leadership styles at
different times depending on the situation:
 Directive leader
 Supportive leader
 Participative leader
 Achievement oriented leader
EXHIBIT 18-4 PATH-GOAL MODEL
CONTEMPORARY VIEWS OF
LEADERSHIP
 Transactional Leadership
 Leaderswho guide or motivate their followers in
the direction of established goals by clarifying
role and task requirements
 Transformational Leadership
 Leaders who inspire followers to go beyond their
own self-interests for the good of the
organization
 Leaders who have a profound and extraordinary
effect on their followers

17
EXHIBIT 18-5 TEAM LEADERSHIP
ROLES
CONTEMPORARY VIEWS OF
LEADERSHIP (CONT’D)
 Charismatic Leadership
 An enthusiastic, self-confident leader whose
personality and actions influence people to
behave in certain ways
 Characteristics of charismatic leaders:
 Have a vision
 Are able to articulate the vision
 Are willing to take risks to achieve the vision
 Are sensitive to the environment and to follower
needs
 Exhibit behaviours that are out of the ordinary

19
CONTEMPORARY VIEWS OF
LEADERSHIP (CONT’D)

 Charismatic Leadership (cont’d)

 Effects of Charismatic Leadership
 Increased motivation, greater satisfaction
 More profitable companies
 Charismatic leadership may have a downside:
 After recent ethics scandals, some agreement that
CEOs with less vision, and more ethical and
corporate responsibility, might be more desirable

20
CONTEMPORARY VIEWS OF
LEADERSHIP (CONT’D)
 Visionary Leadership
A leader who creates and articulates a realistic,
credible, and attractive vision of the future that
improves upon the present situation
 Visionary leaders have the ability to:
 Explain the vision to others
 Express the vision not just verbally but through
behaviour
 Extend or apply the vision to different leadership
contexts

21
CONTEMPORARY VIEWS OF
LEADERSHIP (CONT’D)
 Team Leadership Characteristics
 Having patience to share information
 Being able to trust others and to give up
authority
 Understanding when to intervene
 Team Leader’s Job
 Managing the team’s external boundary
 Facilitating the team process
 Coaching, facilitating, handling disciplinary problems,
reviewing team and individual performance, training,
and communicating

22
 LEADERSHIP ISSUES IN THE 21ST
CENTURY
 Managing Power
 Expert power
 Legitimate power  The influence a leader
 The power a leader has
as a result of his or her can exert as a result
position of his or her
 Coercive
expertise, skills, or
power knowledge
 The power a leader has  Referent
to punish or control power
 Reward power
 The power of a leader
that arises because of
 The power to give
a person’s desirable
positive benefits or
rewards resources or admired
personal traits

23
LEADERSHIP ISSUES IN THE 21ST CENTURY
(CONT’D):
DEVELOPING TRUST
 Credibility (of a leader)
 Assessment of a leader’s honesty,
competence, and ability to inspire by his or
her followers
 Trust

 Is defined as the belief in the integrity,

character, and ability of a leader
 Dimensions of trust: Integrity, Competence:
Consistency, Loyalty and Openness
LEADERSHIP ISSUES IN THE 21ST
CENTURY (CONT’D):
EMPOWERING EMPLOYEES
 Empowerment
 Involves increasing the decision-making
discretion of workers such that employee teams
can make key operating decisions in developing
budgets, scheduling workloads, controlling
inventories, solving quality problems
 Why empower employees?
 Quicker responses problems and faster decisions
 Addresses the problem of increased spans of
control in relieving managers to work on other
problems
LEADERSHIP ISSUES IN THE 21ST CENTURY
(CONT’D):
LEADING ACROSS CULTURES
 Universal elements of effective leadership
 Vision
 Foresight
 Providing encouragement
 Trustworthiness
 Dynamism
 Positiveness,
 Proactiveness