Leadership Theories Definition

Leadership

StoryA group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

DefinitionThe ability to positively influence people and

systems to have a meaningful impact and achieve results.

Leading People

Influencing People

Commanding People

Guiding People

Leadership StoryAnd shouts down to the assembled group below…“Wrong Way!”

(Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster).

“Management is doing things right, leadership is doing the right things”

(Warren Bennis and Peter Drucker)

Characteristics of Leadership1. Leader must have followers2. It is working relationship between leader and

followers3. Purpose is to achieve some common goal or goals4. A leader influences his followers willingly not by

force5. Leadership is exercised in a given situation6. Leadership is a power relationship7. It is a continuous process

A Question…

A leader need not be a manager but a manager

must have many of the qualities of a good

Leader..

Managerial Leadership

Significance1. Setting Goals

2. Motivating Employees

3. Building morale

4. Creating Confidence

5. Discipline

6. Developing Team-work

7. Facilitates Change

8. Representing the group

Leadership Styles

• Leader by the position achieved

• Leader by personality, charisma

• Leader by moral example

• Leader by power held

• Intellectual leader

• Leader because of ability to accomplish things

Leadership ManagementWorking in the system

React

Control risks

Enforce organizational rules

Seek and then follow direction

Control people by pushing them in the right direction

Coordinate effort

Provide instructions

Working on the system

Create opportunities

Seek opportunities

Change organizational rules

Provide a vision to believe in and strategic alignment

Motivate people by satisfying basic human needs

Inspire achievement and energize people

Coach followers, create self-leaders and empower them

Leadership Traits• Intelligence

– More intelligent than non-leaders

– Scholarship– Knowledge– Being able to get

things done• Physical

– Doesn’t seem to be correlated

• Personality – Verbal facility – Honesty – Initiative– Aggressive– Self-confident– Ambitious– Originality– Sociability– Adaptability

Leadership stylesAutocratic:

o Leader makes decisions without reference to anyone else

o High degree of dependency on the leadero Can create de-motivation and alienation

of staffo May be valuable in some types of business where

decisions need to be made quickly and decisively

Democratic:• Encourages decision making from different

perspectives – leadership may be emphasised throughout the organisation

– Consultative: process of consultation before decisions are taken

– Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

Laissez-Faire:

1. ‘Let it be’ – the leadership responsibilities are shared by all

2. Can be very useful in businesses where creative ideas are important

3. Can be highly motivational, as people have control over their working life

4. Can make coordination and decision making time-consuming and lacking in overall direction

5. Relies on good team work6. Relies on good interpersonal relations

Paternalistic:

Leader acts as a ‘father figure’

Paternalistic leader makes decision but may consult

Believes in the need to support staff

Leadership Theories

Trait Theory• Early on, it was thought that leaders were born with

inherent physiological and personality traits– Age– Height– Intelligence– Academic achievements

• Stogdill (1974) – identified several general factors that differentiate leaders from non-leaders…

• Capacity: problem-solving capabilities, making judgments and working hard

• Achievements: accomplishments such as academic record, knowledge and sports

• Responsibility: dependability, reliability, self-drive, perseverance, aggressiveness and self-confidence

• Participation and involvement: highly developed social interaction, popularity, swift adaptation to changing situations, and easier cooperation compared to non-leaders

• Socio-economic status: effective leaders usually belong to higher socio-economic classes

Leadership TheoriesTrait Theory (continued)

Leadership Theories

Behavioral Theories• Ohio State studies focused on task and social behavior of leaders• Identified two dimensions of leader behavior

– Initiating Structure: role of leader in defining his/her role and roles of group members

– Consideration: leader’s mutual trust and respect for group members’ ideas and feelings

• Two different behavioral theories:Role TheoryManagerial Grid

Leadership Theories

Managerial Grid• Developed by Drs. Robert R. Blake and Jane S. Mouton• Believed managers have different leadership styles which led to

two different dimensions of leadership:• Concern for Production: manager who is task-oriented

and focuses on getting results or accomplishing the mission (X-axis of grid)

• Concern for People: manager who avoids conflicts and strives for friendly relations with subordinates (Y-axis of grid)

Leadership TheoriesManagerial Grid (continued)

9

8

7

6

5

4

3

2

1

1 2 3 4 5 6 7 8 9

**manager’s goal is

9,9**

Leadership TheoriesParticipative Theories• Assumes the following

– Involvement in decision-making improves the understanding of the issues involved and the commitment of those who must carry out the decisions.

– People are less competitive and more collaborative when they are working on joint goals.

– Several people deciding together make better decisions than one person alone.

• Two different participative theories: Lewin’s leadership styles Likert’s leadership styles

Likert’s system of Leadership

• Rensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems.

1. The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the performance characteristics of different types of organizations.

2. The four systems of management system or the four leadership styles identified by Likert are:

• System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats.

• System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards.

• System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job.

• System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation.

Conclusion

• According to Rensis Likert, the nearer the behavioral characteristics of an organization approach System 4 (Participative), the more likely this will lead to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings, if an organization wants to achieve optimum effectiveness, then this is the ideal system

Leadership Continuum

• A simple model which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager. As the team's freedom is increased, so the manager's authority decreases. This is a positive way for both teams and managers to develop.

Contingency Theory• Assumptions:

– No one best way of leading– Ability to lead contingent upon various situational

factors:• Leader’s preferred style• Capabilities and behaviors of followers• Various other situational factors

• Effect:– Leaders who are successful in one situation may

become unsuccessful if the factors around them change

Leadership Theories

Contingency Theory: Fiedler’s Least Preferred Co-Worker (LPC) Theory

• Assumptions:– Leaders prioritize between task-focus and people-focus– Leaders don’t readily change their style

• Key situational factor in matching leader to situation:• Relationships• Power • Task structure

• LPC Questionnaire– Determines leadership style by measuring responses to 18 pairs of

contrasting adjectives.– High score: a relationship-oriented leadership style– Low score: a task-oriented leadership style

• Tries to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC).

Leadership Theories

Exhibit 17.4

Findings of the Fiedler Model

Leadership Theories

Situational Leadership• Situational factors (motivation, capability of followers,

relationship between followers and leader) determine the best action of leader

• Leader must be flexible to diagnosis leadership style appropriate for situation and be able to apply style

• No one best leadership style for all situations

Leadership Theories

Hersey & Blanchard’s Situational Leadership (1977)

Identified 4 different leadership styles based on readiness of followersR1. Telling (high task/low relationship behavior)

• Giving considerable attention to defining roles and goals• Recommended for new staff, repetitive work, work needed in a short time span• Used when people are unable and unwilling

R2. Selling (high task/high relationship behavior)• Most direction given by leader encouraging people to ‘buy into’ task• Used when people are willing but unable

R3. Participating (high relationship/low task behavior)• Decision making shared between leaders and followers, role of leader to facilitate

and communicate• Used when people are able but unwilling

R4. Delegating (low relationship/low task behavior)• Leader identifies problem but followers are responsible for carrying out response• Used if people are able and willing

Leadership Theories

Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership® is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.

Leadership TheoriesHersey & Blanchard’s Model

Summary of Leadership TheoriesTheory Leadership Based On…Trait Theory Leaders born with leadership traits

Behavioral Theory Initial structure and consideration

- Role Theory Shaped by culture, training, modeling

- Managerial Grid Concern for production and concern for people

Participative Leadership More people involved = better collaboration

- Lewin’s Style Autocratic, democratic, laissez-faire

- Likert’s Style Task oriented, relationship oriented, participative style

Contingency Theories No one best leadership style

- Fiedler’s LPC Theory Task focus v. relationship focus

- Cognitive Resource Theory Intelligence and experience make a difference

- House’s Path Goal Theory Help followers make their goals compatible with organizational goals

Situational Leadership Similar to contingency theory

- Hersey and Blanchard Based on relationship between leader and follower and task behavior

- Vroom & Yetton Decision quality and decision acceptance

Transactional Vs. TransformationalLeadership

Basis of Distinction Transactional Transformational

Basis Based on exchange relationship between leader and followers.

Based on leaders values, beliefs and needs of followers

Method of inspiration Rewards and recognition for good performance

Leaders charisma, vision and energy

Orientation Task Orientaion Goal Orienatation

Approach Passive and stable Active and dynamic

Main functions of leader Determination of objectives, clarifying tasks, helping

subordinates in achieving objectives

Providing vision and sense of mission, instilling pride, gaining respect and trust,

inspiring people, giving personal attention.

Queries…????