Leadership

Leadership?
• Leadership is defined as “the ability to influence a group

towards the achievement of a vision or a set of goals”

• Management is the use of authority inherent in the designated

formal rank to obtain compliance from organizational members

Management is about coping with complexity (vs.) Leadership

which is about managing ‘what’s next’ (change) -It is about

developing a vision for the future

 Leadership?
Organizations need both – strong leadership and strong
management for maximum effectiveness

– We need leaders to challenge the status-quo, to create

future vision, to inspire organizational members to want to
achieve the vision

– Simultaneously, we also need managers to formulate

detailed plans, create efficient organizational structures,
and to oversee everyday operations

Manager does things right & Leader does the right thing-
Peter Drucker
 Theories of Leadership

• Trait Theory
• Behavioural Theories
• Contingency Theories
• Contemporary Theories
 How would you describe a LEADER?

Mahatma Gandhi… as leader

Generally described with terms as confident, iron-willed,
determined, and decisive

Explanation of leadership in OB began ‘similarly’ with trait

theories

Trait approach of Leadership:

Differentiating leaders from non-leaders
– By focusing on personal qualities and characteristics
 Trait Theories of Leadership
• Personality traits to differentiate Leaders from
Nonleaders
• Popular before 1940s
• Recently research has highlighted its importance- Big
Five Personality Framework, Emotional intelligence
• Better at predicting leader emergence than
effectiveness
 BIG FIVE and LEADERSHIP
Research has suggested that individuals who are
considered leaders typically exhibit
• Lower amounts of neuroticism
• Maintain higher levels of openness (envisioning
success)
• Balanced levels of conscientiousness (well-
organized)
• Balanced levels of extraversion (outgoing, but
not excessive)
• Agreeableness is negatively related to leadership
 EI & Leadership
When you think of a “perfect leader’’
• Emotion regulation
• Complete trust of the staff
• Good listener
• Approachable
• Careful and informed decision maker
• Sensitive to needs of followers
 Trait Theories of Leadership
Leadership research…
six traits differentiates a leader from non-leader
1. Ambition & energy
2. Desire to lead
3. Honesty & integrity
4. Self confidence
5. Intelligence
6. Job-relevant knowledge
• In addition, recent studies suggest that, individuals who are
high self-monitors (highly flexible in adjusting their behavior
to situations) are likely to emerge as leaders
 Trait Theories of Leadership

• Research studies have tried isolating such leadership traits,

however, with little success
– For instance, 20 different studies identified 80 leadership
traits, but only five were common
– Perhaps, possibly its difficult to identify consistent and
unique traits that would apply universally
• Subsequently, when no satisfying answer was found with the
trait approach to analyzing a leader, researchers switched to
looking at something unique in the way that effective leaders
behave

Q. What should have Rishi (or Phil) done as a leader? Where did
he fail?
Behavioral Theories of Leadership

Leadership is a skill set and can be taught to

anyone, so we must identify the proper
behaviors to teach potential leaders
 Important Behavioral Studies

• Initiating structure
Ohio • Consideration

Michigan • Employee-oriented
• Production-oriented
 The Ohio State/ Michigan Studies

Identified two categories that accounts for most of the leadership

behavior described by the employees

1. Initiating Structure/ Production oriented: the extent to which a

leader is likely to define and structure his or her role and those of
subordinates in the search of goal attainment

2. Consideration Structure/ Employee oriented: the extent to which

a leader is likely to have job relationships characterized by mutual
trust, respect for subordinates’ ideas, and regard for their feelings
 Managerial Grid
1,9 9,9
• Based on Blake & Mouton’s
findings, managers were found
to perform best under 9,9 style –
as opposed to 9,1 (authority
Concern for people

type) or 1,9 (laissez-faire) style

– Although, this is an objective
framework
 However, there is no
substantial evidence that
9,9 is the most effective
style in all situations
1,1 9,1
Concern for production

– Concern for people and concern for

production/task
– 9x9 grid
 Do you see any limitation of the
behavioral approach?

What about the situational factors?

 Contingency Theories

– Fiedler’s Model of Leadership

– Hersey and Blanchard’s Situational

Leadership Theory
– Robert House’s Path-Goal Theory
 Fiedler Model
• Effective group performance- proper match between
leadership style and the degree to which the situation gives the
leader control
– Assumes that leadership style is fixed
• Three Situational Factors:
– Leader-member relations: degree of confidence and trust
in the leader
– Task structure: degree of structure in the jobs
– Position power: leader’s ability to hire, fire, and reward
Fiedler’s contingency Model
Situational Favorability = f (LM relations,
Position power, Task structure)
 Assessment of Fiedler’s Model

Problems
– LPC scores are not stable
– Leadership style is fixed
– Contingency variables are complex and
hard to determine
 Situational Leadership Theory

• A model that focuses on follower “readiness”

– “Readiness” is the extent to which people have

– the ability and willingness to accomplish a

specific task
Situational Leadership Theory

DELEGATING DIRECTIVE
STYLE STYLE
HIGH MOTIVATION LOW COMPETENCE
HIGH COMPETENCE HIGH MOTIVATION

CONSULTING SUPPORTIVE
STYLE STYLE
LOW MOTIVATION LOW COMPETENCE
HIGH COMPETENCE LOW MOTIVATION
 House’s Path-Goal Theory
Directive: focuses on the work to be done
Supportive: focuses on the well-being of
the worker
Participative: consults with employees in
decision making
Achievement Oriented: sets challenging
goals

Leaders help clarify the “path” to the

worker’s goals
Leaders can display multiple leadership
types
 Vroom and Yetton’s Leader-
Participation Model
The model that talks about how leaders make
decisions by involving their followers
• Five leadership styles
• Contingency variables
decision quality
Acceptance
timeliness
Five leadership styles
Leader-Member Exchange (LMX) Theory
 Leader-Member Exchange (LMX)
Theory
In Groups Out Groups
• Members are similar • Managed by formal rules
to leader and policies
• In the leader’s inner • Receive less of the
circle of leader’s attention / fewer
communication exchanges
• Receives more time • More likely to retaliate
and attention against the organization
• Gives greater
responsibility and
rewards
Contemporary Theories
Charismatic Leadership

Dark Side of
Charismatic
Leadership
V
i
s
i Personal Risk
o Unconventional
Sensitivity to Followers
Behavior
n (self sacrifice)

(
a
r
t
i
c
u
l
 Transformational Leaders
Inspire followers to transcend their self-interests for the
good of the organization
• Contingent Reward: effort reward exchange
• Management by Exception (active):

Transactional searches deviation from rules

• Management by Exception (passive):
intervenes only when standards not met
• Laissez-Faire: avoids making decisions

• Idealized Influence: provides vision, gains

respect and trust
Transformationa • Inspirational Motivation: communicates
high expectations
l • Intellectual Stimulation: promotes
intelligence, problem solving
• Individualized Consideration: personal
attention, equal treatment
 Nurturant-Task Style Leadership
• A NT leader cares for his/her

subordinates, shows affection, takes

Autocratic Participative
personal interest in their well being and

committed to their growth

Nurturant-task
• Transitory approach, once subordinates style

mature and are ready and assuming

control of their own work and goals, the

effective NT leader will shift to a

participatory style
 Nurturant-Task Style Leadership

• The NT approach creates a sense of belonging and family

spirit that fosters team orientation, otherwise alienated co-
worker and creating a culture for learning does not work

• NT is contingent on subordinate’s task accomplishment,

successful for those who want to maintain dependency, a
personalized relationship
 Good to great:
Why some
companies make
the leap?