A.

MANAGEMENT AND LEADERSHIP THEORIES

Submitted by: Rubie Yves T. Ignacio

Student No. 20132676
Subject: Methods of Research
Professor: Dr. Jerry V. Manlapaz, RN, MAN

Enumerate and discuss

a. Management theories

CONTENTS:
I. Classical Theories (Classical Era)
A. Henri Fayol
Focus: 14 Principles
B. Frederick Taylor
C. Max Weber
Focus: Bureaucracy
D. Gant Henry
Focus: Efficiency
E. Mooney James-(1884-1957):
Focus:Universal Principles of Management
II. Motivation Theories (Behavioral Era)
A.
Abraham Maslow (1943)
Focus: Hierarchy of Needs
B.
Frederick Herzberg (1923-2000),
Focus: 2 Factor Theories (Motivation-Hygiene Theory)
C.
Victor Vroom
Focus: Expectancy Theory
D.
Alderfer Clayton
E.
Barry Staw
F.
David McClelandFocus: Needs Theory
G.
Adams,Jo Sacy et. Al
Focus: Equity Theory
H.
B.F. Skinner and Edward L. Thorndike
Focus: Operant Conditioning/ Reinforcement theory
III. Neoclassical Organization Theory (Human Relation ERA)
A.
Elton Mayo
Focus: Hawthorne Study- Human Behavior in work Situation
B. CHESTER BERNARD
Focus: Psychosocial aspect of organization and management and function of
executive
C. Douglas McGregor (1906-1964)
Focus: Theory x and Theory y
D. MARY FOLLETT- "the art of getting things done through people."
Focus: Psychological& Sociological Aspect of Management
E. KURT LEWIN
Focus: Field Theory of HR
F. ALVIN TOFFLER

Focus: Future Shock

IV. Contemporary Theories of Management ( Contemporary ERA)
Contingency Theory
A. Chandler (1962)
B. Lawrence and Lorsch (1969)
System Theories
A.
Ludwig von Bertalanffy in 1928/ Kast and Rosenzweig, 1972/ Scott, 1981.
Focus: Sytems theory
B.
Likert Rensis
Focus: Four (4) Leadership Systems
C. Senge (1990)

1. CLASSICAL ERA
During this era, management takes place within a structured organizational setting
with prescribed roles. It is directed towards the achievement of aims and objectives
through influencing the efforts of others.
Characteristics:

Emphasis on Structure

Prescriptive about 'what is good for the firm'

Practical manager (except Weber, sociologist)

A. Henri Fayol (1841 - 1925), France. Father of Management Process

Focus: 14 Principles
1. Division of work

4. Unity of command

6. Subordination of

2. Authority The right

5. Unity of direction

individual interests to

to give an order.
3. Discipline Outward

the general interest

7. Remuneration

8. Centralisation

11. Equity

13. Initiative

9. Scalar chain

12. Stability of tenure

14. Esprit de corps

10. Order

of personnel

Fayol was the first person to actually give a definition of management which is
generally familiar today namely 'forecast and plan, to organize, to command, to
co-ordinate and to control'.

B. Frederick Taylor - (1856 - 1915), USA- The Scientific Management School

Father of Scietific Management
Focus: 6 Steps on Systems of Management

Taylorism involved breaking down the components of manual tasks in

manufacturing environments, timing each movement ('time and motion' studies)
so that there could be a proven best way to perform each task. Thus employees
could be trained to be 'first class' within their job. This type of management was
particularly relevant to performance drives e.g 'Action On' projects.

The scientific management technique has been employed to increase

productivity and efficiency both in private and public services but it has also had
the disadvantages of ignoring many of the human aspects of employment. This
led to the creation of boring repetitive jobs with the introduction of systems for
tight control and the alienation of shop floor employees from their managers

C. Max Weber (1864 - 1924), Germany Father of Organization

Focus: Bureaucracy
The main features of bureaucracy according to Weber were:

a continuous organization or functions bounded by rules

that individuals functioned within the limits of the specialization of the work, the
degree of authority allocated and the rules governing the exercise of authority

a hierarchical structure of offices

appointment to offices made on the grounds of technical competence only

the separation of officials from the ownership of the organization

The authority was vested in the official positions and not in the personalities that
held these posts. Rules, decisions and actions were formulated and recorded in
writing.

Weber presented three types of legitimate authority:

Traditional authority: where acceptance of those in authority arose from

tradition and custom.

Charismatic authority: where acceptance arises from loyalty to, and confidence
in, the personal qualities of the ruler.

Rational-legal authority: where acceptance arises out of the office, or position,

of the person in authority as bounde

D. Gant Henry. (1861 1919) was an American mechanical engineer and

management consultant who is best known for developing the Gantt chart in the
1910s.
Focus: Efficiency

Henry Gantt's legacy to production management is the following:

The Gantt chart: Still accepted as an important management tool today, it

provides a graphic schedule for the planning and controlling of work, and
recording progress towards stages of a project. The chart has a modern
variation, Program Evaluation and Review Technique (PERT).

Industrial Efficiency: Industrial efficiency can only be produced by the application

of scientific analysis to all aspects of the work in progress. The industrial
management role is to improve the system by eliminating chance and accidents.

The Task and Bonus System: He linked the bonus paid to managers to how well
they taught their employees to improve performance.

The social responsibility of business: He believed that businesses have

obligations to the welfare of the society in which they operate.

E. Mooney James-(1884-1957):
Focus: Universal Principles of Management

Mooney studied mechanical engineering and eventually became a key member

of General Motor's top management team. In 1931, he wrote Onward Industry!
The book is considered by many scholars to be a significant contribution to
administrative management theory.

According to him, Management id the technique of managing people.

II. Motivation Theories (Behavioral Era)

A. Abraham Maslow (1943)
Focus: Hierarchy of Needs

This study proposed a hierarchy of human needs building from basic

needs at the base to higher needs.

Maslow made assumptions that people need to satisfy each level of need,
before elevating their needs to the next higher level e.g. a hungry person's
need is dominated by a need to eat (i.e survival), but not to be loved, until
he/she is no longer hungry.

B. Frederick Herzberg (1923-2000), clinical psychologist and pioneer of 'job

enrichment', is regarded as one of the great original thinkers in management and
motivational theory
Focus: 2 Factor Theories (Motivation-Hygiene Theory)
1. Motivators
2. Hygiene Factors
Herzberg's two-factor theory states that certain factors cause job
satisfaction, and a separate set of factors cause dissatisfaction
Satisfaction and dissatisfaction are not on a continuum with one
increasing as the other diminishes, but are independent phenomena.
To ensure a satisfied and productive workforce, managers must give
attention to both sets of job factors.

C. Victor Vroom
Focus: Expectancy Theory
This theory assumes that behavior results from conscious choices among
alternatives whose purpose it is to maximize pleasure and minimize pain.
Vroom realized that an employee's performance is based on individuals
factors such as personality, skills, knowledge, experience and abilities.

 The theory suggests that although individuals may have different sets of
goals, they can be motivated if they believe that:
There is a positive correlation between efforts and performance,
Favorable performance will result in a desirable reward,
The reward will satisfy an important need,
The desire to satisfy the need is strong enough to make the effort
worthwhile.
Motivation= Expectancy (E) x Valence (V) x Instrumentality (I)
M= E x V x I

D. Alderfer Clayton
Focus: ERG (Existence, Relatedness and Growth) Theory
Alderfer, expanding on Maslow's hierarchy of needs, created the ERG
theory. This theory posits that there are three groups of core needsexistence,
relatedness, and growthhence the label: ERG theory.
The existence group is concerned with providing our basic material
existence requirements.
The second group of needs are those of relatedness, the desire we have for
maintaining important interpersonal relationships.
These social and status desires require interaction with others if they are to
be satisfied, and they align with Maslow's social need and the external
component of Maslow's esteem classification.
E. Barry Staw
Focus: Intrinsic and extrinsic Motivation

Motivations are commonly separated into different types based on the nature of
the motivating element (i.e., the motivator): intrinsic (from within) or extrinsic
(from outside).

An example of an intrinsic motivator would be pleasure, success, or fear - the

motivation comes from within the individual. Intrinsically motivated behaviors are
defined as those for which the reward is the satisfaction associated with the
activity itself.

Extrinsic motivation is defined as "engaging in an activity to obtain an outcome

that is separable from the activity itself." Examples include a promotion, praise,
candy, money, or attention.

Studies have shown intrinsic motivation decreases over time when

extrinsic incentives are used for behaviors that an individual already finds
motivating without external reinforcement.

The effectiveness of extrinsic motivators varies depending on factors like selfesteem, locus of control, self-efficacy, and neuroticism.

F.

David McClelandFocus: Needs Theory

He identified three motivators that he believed we all have: a need for
achievement, a need for affiliation, and a need for power. People will have
different characteristics depending on their dominant motivator.
According to McClelland, these motivators are learned (which is why this
theory is sometimes called the Learned Needs Theory). McClelland says that,
regardless of our gender, culture, or age, we all have three motivating drivers,
and one of these will be our dominant motivating driver. This dominant motivator
is largely dependent on our culture and life experiences.

G. Adams,Jo Sacy et. Al

Focus: Equity Theory
Equity theory explains the relational satisfaction in terms of fair/unfair
distributions of resources within interpersonal relationships.

Equity theory proposes that individuals who perceive themselves as either

under-rewarded or over-rewarded will experience distress, and that this
distress leads to efforts to restore equity within the relationship.

If an employee feels underpaid then it will result in the employee feeling

hostile towards the organization and perhaps their co-workers, which may
result in the employee not performing well at work anymore.

When individuals find themselves participating in inequitable relationships,

they become distressed.

H. B.F. Skinner and Edward L. Thorndike

Focus: Operant Conditioning/ Reinforcement theory

Operant conditioning is a segment of behaviorism, or the learning theory that

states that human behavior is the result of positive or negative consequences
in a given situation.

The two famous psychologists responsible for developing our current

understanding of operant conditioning are Thorndike and Skinner.

Thorndikes law of effect and principles of operant conditioning informed

Skinners later and more progressive work in the subject.

Experiments within the study of operant conditioning utilize

shaping, reinforcement, and reinforcement schedules to prove the connection
between action and consequence, and to learn effective ways to harness this
powerful connection to influence human behavior.

Thorndike realized that not only were stimuli and responses associated, but
also that behavior could be modified by its consequences. He used these

findings to publish his now famous law of effect: the notion that pleasing aftereffects strengthen the action that produced it, whereas displeasing after-effects
weaken the likelihood it will be performed again, given the same situation.

Skinner theorized that if a behavior is followed by reinforcement, the behavior

will be repeated, but if it is followed by punishment, the behavior will not be

repeated. He also believed that this learned association could end, or become
extinct, if the reinforcement or punishment was removed

III. Neoclassical Organization Theory (Human Relation ERA)

The human relations movement evolved as a reaction to the tough, authoritarian
structure of classical theory. It addressed many of the problems inherent in classical
theory. The most serious objections to classical theory are that it created over
conformity and rigidity, thus squelching creativity, individual growth, and motivation.
Neoclassical theory displayed genuine concern for human needs.
A. Elton Mayo
Focus: Hawthorne Study- Human Behavior in work Situation

The Hawthorne studies were conducted with the workers at the Hawthorne plant
of the Western Electric Company by Elton Mayo and Fritz Roethlisberger in the
1920s. The Hawthorne studies were a part of an emphasis on sociopsychological aspects of human behaviors in organizations.

The Hawthorne studies found that monetary incentives and good working
conditions are generally less important in improving employee productivity than

the individual need and desire to belong to a group and be included in decision
making and work.

The emphasis on the human relations movement is concerned with morale,

leadership and factors that aid in the cooperation of workers. The studies
suggested that employees have social and psychological needs along with
economic and financial needs in order to be motivated to complete their assigned
tasks. This theory of management was a product of the opposition to the
classical and scientific management theories.

B. CHESTER BERNARD, he was best known as the author of The Functions of the
Executive, perhaps the 20thcenturys most influential book on management and
leadership
Focus: Psychosocial aspect of organization and management and function of
executive

Barnard offers a systems approach to the study of organization, which

contains a psychological theory of motivation and behavior, a sociological
theory of cooperation and complex interdependencies, and an ideology
based on a meritocracy.

Barnard sensed that the central challenge of management was balancing

both the technological and human dimensions of organization.The
challenge for the executive was to communicate organizational goals and
to win the cooperation of both the formal and the informal organization; but
he cautioned against relying exclusively on incentive schemes to win that

cooperation.

C. Douglas McGregor (1906-1964)

Focus: Theory x and Theory y

Provided one of the finest contributions to the human relations movement. He

came up with two theories namely Theory X and Theory Y assumptions made
by managers.

Theory X assumes that workers are idle and that they have to be forced to do
their work. Therefore, the management will come up with systems and rules
that will guarantee that their workers will work efficiently and diligently. These
may sometimes result to harsh and threatening methods.

Theory Y, on the other hand, presumes that employees have the ability to
maximize their potential as well as their productivity rate, as long as they are
provided with sufficient facilities and benefits. Managers are expected to
provide support and a helping hand so that all their workers are assured,
guided and continuously motivated. McGregor is convinced that the Theory Y
should and must be adopted in working places for it is more practical and its
method is far more superior than that of Theory X

D. MARY FOLLETT- "the art of getting things done through people."

Focus: Psychological& Sociological Aspect of Management

Management is the act of getting people together to accomplish desired goals

and objectives using available resources efficiently and effectively

Management comprises planning, organizing, staffing, leading or directing,

and controlling an organization (a group of one or more people or entities) or
effort for the purpose of accomplishing a goal.

In for-profit work, the primary function of management is the satisfaction of a

range of stakeholders.

In the public sector of countries constituted as representative democracies,

voters elect politicians to public office, who then hire managers and
administrators.

Since organizations can be viewed as systems, management can also be

defined as human action, including design, to facilitate the production of
useful outcomes from a system.

E. KURT LEWIN
Focus: Field Theory of HR

An interest in intergroup conflict, and in conflict between individual and group

wishes.

FIELD THEORY. Its basic statements are that:

Behavior must be derived from a totality of coexisting facts

These coexisting facts make up a "dynamic field," which means that the state
of any part of the field depends on every other part of it

Behavior depends on the present field rather than on the past or the future.
"This is in contrast both to the belief of teleology that the future is the cause of
behavior, and that of asociationism that the past is the cause of behavior."

F. ALVIN TOFFLER
Focus: Future Shock

Future Shock is a book written by the futurist Alvin Toffler in 1970. In the book,
Toffler defines the term "future shock" as a certain psychological state of
individuals and entire societies. His shortest definition for the term is a
personal perception of "too much change in too short a period of time"

Toffler argued that society is undergoing an enormous structural change, a

revolution from an industrial society to a "super-industrial society". This change
overwhelms people. He believed the accelerated rate of technological and social
change left people disconnected and suffering from "shattering stress and
disorientation"future shocked. Toffler stated that the majority of social problems
are symptoms of future shock. In his discussion of the components of such
shock, he popularized the term "information overload."

To minimize Future Shock is develop the mechanism and techniques to guide the
direction of change and to the pressure of change.

IV. Contemporary Theories of Management ( Contemporary ERA)

Contingency Theory
Classical and neoclassical theorists viewed conflict as something to be avoided
because it interfered with equilibrium. Contingency theorists view conflict as
inescapable, but manageable.
Basically, contingency theory asserts that when managers make a decision, they
must take into account all aspects of the current situation and act on those aspects that

are key to the situation at hand. Basically, its the approach that it depends. For
example, the continuing effort to identify the best leadership or management style might
now conclude that the best style depends on the situation. If one is leading troops in the
Persian Gulf, an autocratic style is probably best (of course, many might argue here,
too). If one is leading a hospital or university, a more participative and facilitative
leadership style is probably best.
A. Chandler (1962)

Studied four large United States corporations and proposed that an

organization would naturally evolve to meet the needs of its strategy -- that
form follows function.

Implicit in Chandler's ideas was that organizations would act in a rational,

sequential, and linear manner to adapt to changes in the environment.

Effectiveness was a function of management's ability to adapt to
environmental changes.
B. Lawrence and Lorsch (1969)

Studied how organizations adjusted to fit their environment. In

highly volatile industries, they noted the importance of giving managers at all
levels the authority to make decisions over their domain. Managers would be
free to make decisions contingent on the current situation.
System Theories
Attention began to focus on organisations as 'systems' with a number of interrelated sub-systems. The 'systems approach' attempted to synthesize the classical
approaches ( 'organizations without people') with the later human relations

approaches that focused on the psychological and social aspects, emphasized

human needs - almost 'people without organizations.
Systems theory focuses on complexity and interdependence of relationships.
Systems theories took much more of a holistic view of organizations, focusing on the
total work organization and the inter-relationships between structures and human
behaviors producing a wide range of variables within organizations. They help us
understand the interactions between individuals, groups, organizations, communities,
larger social systems, & their environments and help us enhance our understanding
of how human behavior operates in a context.
A central theme of systems theory is that nonlinear relationships might exist
between variables. Small changes in one variable can cause huge changes in
another, and large changes in a variable might have only a nominal effect on another.
The concept of nonlinearity adds enormous complexity to our understanding of
organizations. In fact, one of the most salient argument against systems theory is that
the complexity introduced by nonlinearity makes it difficult or impossible to fully
understand the relationships between variables.

A. Ludwig von Bertalanffy in 1928/ Kast and Rosenzweig, 1972/ Scott, 1981.
Focus: Sytems theory

Systems theory was originally proposed by Hungarian biologist, although it

has not been applied to organizations until recently (Kast and Rosenzweig,
1972; Scott, 1981).

The foundation of systems theory is that all the components of an

organization are interrelated, and that changing one variable might impact
many others. Organizations are viewed as open systems, continually
interacting with their environment. They are in a state of dynamic equilibrium
as they adapt to environmental changes.

B. Likert Rensis
Focus: Four (4) Leadership Systems

Rensis Likert identified four main styles of leadership, in particular around

decision-making and the degree to which people are involved in the decision.
a.)Exploitive authoritative
In this style, the leader has a low concern for people and uses such methods as
threats and other fear-based methods to achieve conformance. Communication is
almost entirely downwards and the psychologically distant concerns of people are
ignored.
b.) Benevolent authoritative
When the leader adds concern for people to an authoritative position, a 'benevolent
dictatorship' is formed. The leader now uses rewards to encourage appropriate
performance and listens more to concerns lower down the organization, although
what they hear is often rose-tinted, being limited to what their subordinates think that

the boss wants to hear. Although there may be some delegation of decisions, almost
all major decisions are still made centrally.
c.) Consultative
The upward flow of information here is still cautious and rose-tinted to some degree,
although the leader is making genuine efforts to listen carefully to ideas.
Nevertheless, major decisions are still largely centrally made.

d.) Participative
At this level, the leader makes maximum use of participative methods, engaging
people lower down the organization in decision-making. People across the
organization are psychologically closer together and work well together at all levels.

B. Senge (1990)

Described systems thinking as: understanding how our actions shape our
reality. If I believe that my current state was created by somebody else, or by
forces outside my control, why should I hold a vision? The central premise
behind holding a vision is that somehow I can shape my future, Systems
thinking helps us see how our own actions have shaped our current reality,
thereby giving us confidence that we can create a different reality in the future

Enumerate and discuss Leadership Theories

CONTENTS: LEADERSHIP THEORIES

Great Man Theory

Trait Theory

Behavioral Theories

Role Theory

The Managerial Grid

Participative Leadership
o

Lewin's leadership styles

Likert's leadership styles

Situational Leadership
o

Hersey and Blanchard's Situational Leadership

Vroom and Yetton's Normative Model

House's Path-Goal Theory of Leadership

Contingency Theories
o

Fiedler's Least Preferred Co-worker (LPC) Theory

Cognitive Resource Theory

Strategic Contingencies Theory

Transactional/ Relationship Theories

o

Leader-Member Exchange (LMX) Theory

Transformational Leadership

Bass' Transformational Leadership Theory

Burns' Transformational Leadership Theory

Kouzes and Posner's Leadership Participation Inventory

LEADERSHIP THEORIES
Interest in leadership increased during the early part of the twentieth century. Early
leadership theories focused on what qualities distinguished between leaders and
followers, while subsequent theories looked at other variables such as situational
factors and skill levels. While many different leadership theories have emerged, most
can be classified as one of eight major types:

1. "Great Man" Theories:

Assumptions

Leaders are born and not made.

Great leaders will arise when there is a great need

Great man theories assume that the capacity for leadership is inherent that great
leaders are born not made. These theories often portray great leaders as heroic, mythic
and destined to rise to leadership when needed. The term "Great Man" was used
because, at the time, leadership was thought of primarily as a male quality, especially in
terms of military leadership.

Early research on leadership was based on the study of people who were
already great leaders. These people were often from the aristocracy, as few from lower
classes had the opportunity to lead. This contributed to the notion that leadership had
something to do with breeding.
The idea of the Great Man also strayed into the mythic domain, with notions that in
times of need, a Great Man would arise, almost by magic. This was easy to verify, by
pointing to people such as Eisenhower and Churchill, let alone those further back along
the timeline, even to Jesus, Moses, Mohammed and the Buddah.

2. Trait Theories:
Assumptions

People are born with inherited traits.

Some traits are particularly suited to leadership.

People who make good leaders have the right (or sufficient) combination of traits

Similar in some ways to "Great Man" theories, trait theories assume that people inherit
certain qualities and traits that make them better suited to leadership. Trait theories
often identify particular personality or behavioral characteristics shared by leaders. If
particular traits are key features of leadership, then how do we explain people who
possess those qualities but are not leaders? This question is one of the difficulties in
using trait theories to explain leadership.
Early research on leadership was based on the psychological focus of the day, which
was of people having inherited characteristics or traits. Attention was thus put on

discovering these traits, often by studying successful leaders, but with the underlying
assumption that if other people could also be found with these traits, then they, too,
could also become great leaders.

McCall and Lombardo (1983)

Researched both success and failure identified four primary traits by which leaders
could succeed or 'derail':

Emotional stability and composure: Calm, confident and predictable, particularly

when under stress.

Admitting error: Owning up to mistakes, rather than putting energy into covering
up.

Good interpersonal skills: Able to communicate and persuade others without

resort to negative or coercive tactics.

Intellectual breadth: Able to understand a wide range of areas, rather than having
a narrow (and narrow-minded) area of expertise.

3.

Contingency Theories:

Contingency theories of leadership focus on particular variables related to the

environment that might determine which particular style of leadership is best suited for
the situation. According to this theory, no leadership style is best in all situations.

Success depends upon a number of variables, including the leadership style, qualities
of the followers and aspects of the situation.
A. Fiedler's Least Preferred Co-worker (LPC) Theory
Assumptions

Leaders prioritize between task-focus and people-focus.

Relationships, power and task structure are the three key factors that drive
effective styles.

Fiedler identified the a Least Preferred Co-Worker scoring for leaders by asking
them first to think of a person with which they worked that they would like least to work
with again, and then to score the person on a range of scales between positive factors
(friendly, helpful, cheerful, etc.) and negative factors (unfriendly, unhelpful, gloomy,
etc.). A high LPC leader generally scores the other person as positive and a low LPC
leader scores them as negative.
High LPC leaders tend to have close and positive relationships and act in a
supportive way, even prioritizing the relationship before the task. Low LPC leaders put
the task first and will turn to relationships only when they are satisfied with how the
work is going.
Three factors are then identified about the leader, member and the task, as follows:

Leader-Member Relations: The extent to which the leader has the support and
loyalties of followers and relations with them are friendly and cooperative.

Task structure: The extent to which tasks are standardised, documented and
controlled.

Leader's Position-power: The extent to which the leader has authority to assess
follower performance and give reward or punishment.

B. Strategic Contingencies Theory

Intraorganizational power depends on three factors: problem skills, actor

centrality and uniqueness of skill.

If you have the skills and expertise to resolve important problems, then you are
going to be in demand. And by the law of supply and demand, that gives your the
upper hand in negotiations. It also gives you power from the reciprocity created.
If you work in a central part of the workflow of the organization, then what you do is
very important. This gives you many opportunities to be noticed. It also means you
are on the critical path, such that if your part of the company fails, the whole show
stops. Again creating attention and giving you bargaining power.

C. Cognitive Resource Theory

Assumptions

Intelligence and experience and other cognitive resources are factors in

leadership success.

Cognitive capabilities, although significant are not enough to predict leadership

success.

Stress impacts the ability to make decisions.

Cognitive Resource Theory predicts that:

1. A leader's cognitive ability contributes to the performance of the team only when the
leader's approach is directive.
2. Stress affects the relationship between intelligence and decision quality.
3. Experience is positively related to decision quality under high stress.
4. For simple tasks, leader intelligence and experience is irrelevant.

4. Situational Theories:
Assumptions

The best action of the leader depends on a range of situational factors.

Situational theories propose that leaders choose the best course of action based upon
situational variables. Different styles of leadership may be more appropriate for certain
types of decision-making.
When a decision is needed, an effective leader does not just fall into a single
preferred style, such as using transactional or transformational methods. In practice, as
they say, things are not that simple.
Factors that affect situational decisions include motivation and capability of
followers. This, in turn, is affected by factors within the particular situation. The
relationship between followers and the leader may be another factor that affects leader
behavior as much as it does follower behavior.
The leaders' perception of the follower and the situation will affect what they do
rather than the truth of the situation. The leader's perception of themselves and other
factors such as stress and mood will also modify the leaders' behavior.

Yukl (1989) seeks to combine other approaches and identifies six variables:

Subordinate effort: the motivation and actual effort expended.

Subordinate ability and role clarity: followers knowing what to do and how to do it.

Organization of the work: the structure of the work and utilization of resources.

Cooperation and cohesiveness: of the group in working together.

Resources and support: the availability of tools, materials, people, etc.

External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships, acquisition of resources,

managing demands on the group and managing the structures and culture of the group

Hersey and Blanchard's approach

Hersey and Blanchard (1999) and other books suggest leaders should adapt
their style to follower development style (or 'maturity'), based on how ready and
willing the follower is to perform required tasks (that is, their competence and
motivation).

There are four leadership styles (S1 to S4) that match the development levels
(D1 to D4) of the followers. The four styles suggest that leaders should put
greater or less focus on the task in question and/or the relationship between the
leader and the follower, depending on the development level of the follower

The Hersey-Blanchard Leadership Model also takes a situational perspective of

leadership. This model posits that the developmental levels of a leader's
subordinates play the greatest role in determining which leadership styles
(leader behaviors) are most appropriate. Their theory is based on the amount of

direction (task behavior) and socio-emotional support (relationship behavior) a

leader must provide given the situation and the "level of maturity" of the
followers.

Tannenbaum & Schmidts Leadership Continuum

They suggested the idea that leadership behavior varies along a continuum and
that as one moves away from the autocratic extreme the amount of subordinate
participation and involvement in decision taking increases. They also suggested that the
kind of leadership represented by the democratic extreme of the continuum will be
rarely encountered in formal organizations.
Four main leadership styles can be located at points along such a continuum:
Autocratic: The leader takes the decisions and announces them, expecting
subordinates to carry them out without question (the Telling style).
Persuasive: At this point on the scale the leader also takes all the decisions for the
group without discussion or consultation but believes that people will be better
motivated if they are persuaded that the decisions are good ones. He or she does a lot
of explaining and 'selling' in order to overcome any possible resistance to what he or
she wants to do. The leader also puts a lot of energy into creating enthusiasm for the
goals he or she has set for the group (the Selling style).
Consultative: In this style the leader confers with the group members before taking
decisions and, in fact, considers their advice and their feelings when framing decisions.
He or she may, of course, not always accept the subordinates' advice but they are likely

to feel that they can have some influence. Under this leadership style the decision and
the full responsibility for it remain with the leader but the degree of involvement by
subordinates in decision taking is very much greater than telling or selling styles (the
Consulting style).
Democratic: Using this style the leader would characteristically lay the problem before
his or her subordinates and invite discussion. The leader's role is that of conference
leader, or chair, rather than that of decision taker. He or she will allow the decision to
emerge out of the process of group discussion, instead of imposing it on the group as
its boss (the Joining style).

Robert House (Path-Goal Theory of Leadership)

The Path-Goal Theory of Leadership was developed to describe the way that leaders
encourage and support their followers in achieving the goals they have been set by
making the path that they should take clear and easy.
In particular, leaders:

Clarify the path so subordinates know which way to go.

Remove roadblocks that are stopping them going there.

Increasing the rewards along the route.

House and Mitchell (1974) described four styles of leadership:

Supportive leadership- Considering the needs of the follower, showing concern

for their welfare and creating a friendly working environment. This includes

increasing the follower's self-esteem and making the job more interesting. This
approach is best when the work is stressful, boring or hazardous.

Directive leadership- Telling followers what needs to be done and giving

appropriate guidance along the way. This includes giving them schedules of
specific work to be done at specific times. Rewards may also be increased as
needed and role ambiguity decreased (by telling them what they should be
doing).

Participative leadership- Consulting with followers and taking their ideas into
account when making decisions and taking particular actions. This approach is
best when the followers are expert and their advice is both needed and they
expect to be able to give it.

Achievement-oriented leadership- Setting challenging goals, both in work and in

self-improvement (and often together). High standards are demonstrated and
expected. The leader shows faith in the capabilities of the follower to succeed.
This approach is best when the task is complex.

Vroom and Yettons Normative Model

Assumptions

Decision acceptance increases commitment and effectiveness of action.

Participation increases decision acceptance.

Decision quality is the selection of the best alternative, and is particularly

important when there are many alternatives. It is also important when

there are serious implications for selecting (or failing to select) the best
alternative.

Decision acceptance is the degree to which a follower accepts a decision

made by a leader. Leaders focus more on decision acceptance when
decision quality is more important.

Vroom and Yetton defined five different decision procedures. Two are autocratic, two are
consultative and one is Group based

5. Behavioral Theories:

Behavioral theories of leadership are based upon the belief that great leaders are

made, not born.

Rooted in behaviorism, this leadership theory focuses on the actions of leaders
not on mental qualities or internal states. According to this theory, people can
learn to become leaders through teaching and observation.

Kurt Lewin et. al

Did leadership decision experiments in 1939 and identified three different styles

of leadership, in particular around decision-making.

1. Autocratic
In the autocratic style, the leader takes decisions without consulting with others.
The decision is made without any form of consultation. In Lewin's experiments, he
found that this caused the most level of discontent.

An autocratic style works when there is no need for input on the decision, where
the decision would not change as a result of input, and where the motivation of
people to carry out subsequent actions would not be affected whether they were or
were not involved in the decision-making.

2. Democratic
In the democratic style, the leader involves the people in the decision-making,
although the process for the final decision may vary from the leader having the final
say to them facilitating consensus in the group.
Democratic decision-making is usually appreciated by the people, especially if they
have been used to autocratic decisions with which they disagreed. It can be
problematic when there are a wide range of opinions and there is no clear way of
reaching an equitable final decision.
3. Laissez-Faire
The laissez-faire style is to minimize the leader's involvement in decision-making,
and hence allowing people to make their own decisions, although they may still be
responsible for the outcome.
Laissez-faire works best when people are capable and motivated in making their
own decisions, and where there is no requirement for a central coordination, for
example in sharing resources across a range of different people and groups.

Rensis Likert et al

Rensis Likert identified four main styles of leadership, in particular around decisionmaking and the degree to which people are involved in the decision
1. Task-oriented behavior
Effective managers studied did not do the same kind work as their subordinates.
Their tasks were different, and included planning and scheduling work, coordinating
activities and providing necessary resources.
They also spent time guiding subordinates in setting task goals that were both
challenging and achievable.
2. Relationship-oriented behavior
Effective managers not only concentrated on the task, but also on their relationship
with their subordinates. They were more considerate, helpful and supportive of
subordinates, including helping them with their career and personal problems. They
recognized effort with intrinsic as well as extrinsic reward, thanking people for effort.
Overall, the effective preferred a general and hands-off form of supervision rather
than close control. They set goals and provided guidelines, but then gave their
subordinates plenty of leeway as to how the goals would be achieved.
3. Participative leadership
Effective leaders use a participative style, managing at the group level as well as
individually, for example using team meetings to share ideas and involve the team in
group decisions and problem-solving. By their actions, such leaders model good
team-oriented behavior.
The role of the manager is more facilitative than directive, guiding the
conversation and helping to resolve differences. The manager, however, is

responsible for results and is not absolved of responsibility. As such, they may make
final decisions that take recommendations from the team into account.
The effect of participative leadership is to build a cohesive team which works
together rather than a set of individuals.

Blake and Mouton Managerial Grid

The Blake-Mouton Managerial Grid was published in 1964, and it highlights the
best leadership style to use, based on your concern for your people and your concern
for production/tasks.This participatory style encourages good teamwork and creative
collaboration.
With task-oriented leadership, you focus on getting the job done. You define the
work and the roles required, put structures in place, and plan, organize, and monitor
work.
According to this model, the best leadership style to use is one that has both a
high concern for people and a high concern for the task it argues that you should aim
for both, rather than trying to offset one against the other.

6. Participative Theories:
Assumptions

Involvement in decision-making improves the understanding of the issues

involved by those who must carry out the decisions.

People are more committed to actions where they have involved in the relevant
decision-making.

People are less competitive and more collaborative when they are working on

joint goals.
When people make decisions together, the social commitment to one another is

greater and thus increases their commitment to the decision.

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

Participative leadership theories suggest that the ideal leadership style is

one that takes the input of others into account. These leaders encourage
participation and contributions from group members and help group members
feel more relevant and committed to the decision-making process. In participative
theories, however, the leader retains the right to allow the input of others.

7. Management Theories/ Transactional theories

Assumptions

People are motivated by reward and punishment.

Social systems work best with a clear chain of command.

When people have agreed to do a job, a part of the deal is that they cede all
authority to their manager.

The prime purpose of a subordinate is to do what their manager tells them to do.

Focus on the role of supervision, organization and group performance. These

theories base leadership on a system of rewards and punishments. Managerial theories
are often used in business; when employees are successful, they
are rewarded; when they fail, they are reprimanded or punished.

The transactional leader works through creating clear structures whereby it is

clear what is required of their subordinates, and the rewards that they get for following
orders. Punishments are not always mentioned, but they are also well-understood and
formal systems of discipline are usually in place.
The transactional leader often uses management by exception, working on the
principle that if something is operating to defined (and hence expected) performance
then it does not need attention. Exceptions to expectation require praise and reward for
exceeding expectation, whilst some kind of corrective action is applied for performance
below expectation.

Leader-Member Exchange (LMX) Theory

Leader-Member Exchange Theory, also called LMX or Vertical Dyad Linkage
Theory, describes how leaders in groups maintain their position through a series of tacit
exchange agreements with their members.
In particular, leaders often have a special relationship with an inner circle of
trusted lieutenants, assistants and advisors, to whom they give high levels of
responsibility, decision influence, and access to resources. This in-group pays for their
position. They work harder, are more committed to task objectives, and share more
administrative duties. They are also expected to be fully committed and loyal to their
leader. The out-group, on the other hand, are given low levels of choice or influence.
This also puts constraints upon the leader. They have to nurture the relationship with
their inner circle whilst balancing giving them power with ensuring they do not have
enough to strike out on their own.

8. Relationship Theories/ Transformational theories

Assumptions

People will follow a person who inspires them.

A person with vision and passion can achieve great things.

The way to get things done is by injecting enthusiasm and energy.

Focus upon the connections formed between leaders and followers. Transformational
leaders motivate and inspire people by helping group members see the importance and
higher good of the task. These leaders are focused on the performance of group
members, but also want each person to fulfill his or her potential. Leaders with this style
often have high ethical and moral standards.
Working for a Transformational Leader can be a wonderful and uplifting experience.
They put passion and energy into everything. They care about you and want you to
succeed.

Bass' Transformational Leadership Theory

Awareness of task importance motivates people.

A focus on the team or organization produces better work.

Bass defined transformational leadership in terms of how the leader affects followers,
who are intended to trust, admire and respect the transformational leader.
He identified three ways in which leaders transform followers:

Increasing their awareness of task importance and value.

Getting them to focus first on team or organizational goals, rather than their own
interests.

Activating their higher-order needs.

Burns' Transformational Leadership Theory

Assumptions

Association with a higher moral position is motivating and will result in people
following a leader who promotes this.

Working collaboratively is better than working individually.

Burns defined transformational leadership as a process where leaders and followers

engage in a mutual process of 'raising one another to higher levels of morality and
motivation.'
Transformational leaders raise the bar by appealing to higher ideals and values of
followers. In doing so, they may model the values themselves and use
charismatic methods to attract people to the values and to the leader.
Burns' view is that transformational leadership is more effective than transactional
leadership, where the appeal is to more selfish concerns. An appeal to social values
thus encourages people to collaborate, rather than working as individuals (and

potentially competitively with one another). He also views transformational leadership

as an ongoing process rather than the discrete exchanges of the transactional
approach.

James Kouzes and Barry Posner

Developed a survey (The Leadership Practices Inventory) that asked people
which, of a list of common characteristics of leaders, were, in their experiences of being
led by others, the seven top things they look for, admire and would willingly follow. And
over twenty years, they managed ask this of seventy five thousand people.
The results of the study identified various characteristics which people preferred
The main part of the book discusses the five actions that Kouzes and Posner
identify as being key for successful leadership:

Model the way

Inspire a shared vision

Challenge the process

Enable others to act

Encourage the heart

Illustrate using a table a comparison of the ff leadership style:

a.

Democratic, Authoritarian, and Laissez-faire

b.

Transformational and Transactional

COMPARISON BETWEEN TRANSFORMATION AND TRANSACTIONAL

LEADERSHIP STYLE

CRITERIA
TRANSACTIONAL
BASIS OF RELATIONSHIP Exchange-based and

TRANSFORMATIVE
Focus on ends beyond

utilitarian
Satisfaction with exchange

utilitarian
Mutual increase in

PURPOSE

Satisfaction of immediate

aspirations
Arouses needs to create

ROLES PLAYED BY

needs
Managers

larger meaning
Leaders

PARTNER
BOUNDARIES

Accept institutional goals

Examines institutional

SUPPORT OF EXISTING

Works with systems to

goals
Transcends self-interests

INSTITUIONAL GOALS

satisfy interests and

to create larger meaning

PARTNER IDENTITY

partners
Maintain institutional

Changes group identity

identity

and larger definition of

END GOAL

SCOPE OF COMMITMENT Limited time, resources

the community
Engaged whole

and personnel to specific

institution and potentially

exchanges

unlimited exchanges.

DIFFERENCES OF DEMOCRATIC, AUTHOCRATIC AND LAISSEZ-FAIRE

STYLE OF LEADERSHIP

DEMOCRATIC

AUTHOCRATIC

LAISSEZ-FAIRE

DEFINITION

Democratic
leadership, also
known as
participative
leadership, is a
type of leadership
style in which
members of the
group take a more
participative role in
the decisionmaking process

Autocratic
leadership provide
clear expectations
for what needs to
be done, when it
should be done,
and how it should
be done. There is
also a clear division
between the leader
and the followers

A laissez-faire leader
lacks direct supervision
of employees and fails
to provide regular
feedback to those under
his supervision.

BEHAVIOR
OF LEADER

TEAM LEADER

DIRECTIVE/
DECIDES ALONE

PERMISSIVE/ ABSTAIN
FROM
LEADING/DELEGATIVE

FOCUS

ON PEOPLE

ON TASK

ON INITIATIVE AND
EXPERTISE

BEHAVIOR
OF
FOLLOWER

CONTRIBUTE TO
DECISION
MAKING

FOLLOW ORDER

HAS POWER TO MAKE

DECISION

WHEN TO
USE IT

CAN BE USED TO
EMPLOYEES
WHO HAS SOME
PERIOD OF
WORK
EXPERIENCE
AND EXPERTISE.

CAN BE USED TO THE EMPLOYEES ARE

NEW EMPLOYEES EXPERTS IN THE
OR TO NEW
FIELD.
INDUSTRY

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