TOPIC 6

LEADERSHIP
Definition
Leadership is defined as:-
- the process of directing and influencing
the task related activities of group
members;
- the process of directing human resource
efforts toward organizational objectives.
Who Are Leaders?
People who:
Can influence the
behaviors of others.
Are able to influence
without having to rely
on force.
Are accepted by
others as leaders.
Importance of Leadership
Make contribution to organization
Enhance cooperation
Encourage teamwork
Motivate employees to generate good
work
Traits of Leaders
1. Physical Appearance
- height, facial expression, gestures, age, etc.
2. Charisma
- Vision, self-confidence
3. Mental Ability
- Sharpness, intelligence
4. Behavior / Attitude
- Introvert vs. Extrovert, quiet vs. talkative
5. Personality Factors
- Tendency towards dominance or cooperation
Approaches to Leadership
(Leadership Theories)
1. Trait Theory
2. Behavioral Theory
- University of Iowa Studies
- Michigan Studies
- Ohio State Studies
- Managerial Grid
3. Contingency/Situational Theory
- Path-Goal Theory
- Hersey & Blanchard Life-Cycle Theory
Approaches to Leadership:
Trait Theory
The trait theory assumed that leaders
were born and not made.
Assumed that leaders are born with
certain physical characteristics,
personality that make them successful
leaders.

Six Traits That Differentiate
Leaders from Nonleaders
1. Drive
2. Desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. Job-relevant knowledge
Exhibit 11.1
Source: Reprinted from Leadership: Do Traits Really Matter? by S. A. Kirkpatrick and E. A. Locke by permission of
Academy of Management Executive. May 1991, pp. 4860. 1991 by Academy of Management Executive.
Approaches to Leadership:
Behavioral Theory
The behavioral approach/theory
assumes that effective leadership
behaviors can be learned/trained
Focus on what effective leaders do
rather than what effective leaders are.
Assumption: effective leaders behaved
differently than less-effective leaders.
-i.e. problem solving, leadership skills (task oriented
or employees oriented)

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

No specific style was consistently better for producing
better performance
Employees were more satisfied under a democratic
leader than an autocratic leader.
Behavioral Theory:
Michigan Studies
Introduced by Rensis Likert a
researcher at University of Michigan.
He identified 2 basic forms of leader
behavior:-
1. Job-centered leader behavior
2. Employee-centered leader
behavior
Behavioral Theory:
Michigan Studies
Job-centered leader:
Focus on job
Leader who pays close
attention to subordinates
work, explain work
procedures, interested in
performance.

Employee-centered
leader:
Focus on employee
Leaders who develop
cohesive/organized work
groups and ensure
employee satisfaction.
Behavioral Theory:
Michigan Studies
CONCLUSION:
Researchers favored employee-centered
leader as an effective leader.
Reasons - contribute to higher job
productivity and greater
job satisfaction.
Job-centered leader tend to contribute to low
productivity and lower job satisfaction.
Behavioral Theory:
Ohio State Studies
A research conducted by Ohio State
University.
Identified 2 basic forms of leader
behavior:-
1. Initiating-structure behavior
2. Consideration behavior

Behavioral Theory:
Ohio State Studies
Initiating-structure behavior:
Leaders who define the leader-subordinate
roles so that everyone knows what is
expected, establish formal lines of
communication, and determine how tasks
will be performed.
Consideration behavior:
Leaders who show concern for
subordinates and attempt to establish a
friendly and supportive climate.
Behavioral Theory:
Ohio State Studies
CONCLUSION:
Both initiating structure & consideration
are associated with effective leadership.
Initiating structure lead to high
productivity.
Consideration lead to high job
satisfaction & high motivation.


Behavioral Theory:
Managerial/Leadership Grid

Introduced by Blake and Mouton.
The grid reflects the concern for:
Concern for production/job/task:
Deals with the job aspects of leader behavior.
Concern for people:
Deals with the people aspects of leader behavior.
The grid identifies 5 leadership behaviors
based on task & employee-oriented styles.
The
Leadership/
Managerial
Grid

Managerial/Leadership Grid

Different leadership styles that are practiced in LG/MG

Point (1,1) Impoverished Management
The management has little concern for people and production.
Point (1,9) Country Club Management
Highly concern for individual personal needs and interests as well
as interpersonal relationship, but he has a low concern for
production
Point (5,5) Middle of the Road/Organization Man Management
Moderate concern for people and production.
Point (9,1) Authority/Autocratic/Task Management
High concern for production and low concern for people. Stress on
operating efficiently through controls.
Point (9,9) Team/Participative/Democratic/Supportive Mgt
Has high concern for people and production. Work accomplishment
is from committed people and managers must also concerned for
the feelings and interests of the people

Managerial/Leadership Grid

Among the five leadership styles, Point 9,9 is the best
leadership style.
- leaders have high concern for people and production
- employees are highly satisfied, less absenteeism, less
turnover, high productivity

Exhibit 172 Behavioral Theories of Leadership
Exhibit 172 (contd) Behavioral Theories of Leadership
Approaches to Leadership:
Situational/Contingency Theory
This approach focuses on situational
factors influencing managerial style.
Assumes that appropriate leader
behavior varies from one situation to
another.
Identify factors that contribute to
effectiveness of leadership styles in
each situation.
Situational Approach :
The Path-Goal Theory (by Robert House)
This theory suggests that:-

The primary functions of a leader are to make valued or
desired rewards available in the workplace.
Clarify to the subordinate the kinds of behavior that will
lead to rewards (the leader should clarify the paths to
goal attainment).
A leaders behavior will contribute to employees
satisfaction.
A leader/manager is the sources for rewards.
A leaders job is to create a work environment through
structure (organizing), rules and procedures , plans and
goals, supports and rewards (motivation) and to act as
a facilitator to help employees reach goals.
Satisfaction & High Performance
The Path-Goal Framework
Employees
Characteristics
Ability
Open-minded
Self-control
Experience

Leader Behavior
Directive
Supportive
Participative
Achievement
oriented
Environmental
Characteristics
Task structure
Work group
The Path-Goal Framework
The framework:-
- Suggests that managers can use four types of
leader behavior to clarify employees paths to
goal attainment. Personal characteristics of
the employees and environmental
characteristics within the organization must
be taken into account when determining
which style of leadership will work best for a
particular situation.
The Path-Goal Framework
Leader Behavior:-
1. Directive lets employees know what is expected of them,
gives guidance and directions, schedules work.
2. Supportive - friendly and approachable, concern for
employees welfare, treating members as
equals.
3. Participative consulting with employees, soliciting
suggestions, allowing participation in decision
making.
4. Achievement-oriented setting challenging goals,
expecting employees to perform at high
levels, encouraging employees,
confident in employees abilities.

Situational Approach :
Hershey Blanchard Life Cycle Theory
The theory suggests that:-
- A leader should change his style of leadership
according to the level of maturity (desire for
achievement, willingness and ability to accept
responsibility, education/ experience and skills
relevant to particular tasks) of his employee and
the demands of the situation.
- effective leader behavior depends on the match
between the readiness of the subordinate and the
behavior of the leader.


The Hershey Blanchard Life Cycle Theory

Relationship Behavior
(the amount of relation
behavior the leader provides ie
providing consideration and
level of emotional support)
Task Behavior
(the amount of task behavior that the leader shows ie providing
direction, guidelines, controlling and monitoring)
High
Low
Low
High
PHASE 3

High
Relationship

Low Task
PHASE 4

Low
Relationship

Low Task
PHASE 1

Low
Relationship

High Task
PHASE 2

High
Relationship

High Task
The Hershey Blanchard Life Cycle Theory
Phase 1 (HT/LR) Telling
Leaders use one-way communication
He defines goals and roles of employees
Appropriate when dealing with employees who lack task
relevant maturity i.e. employee is new and
inexperienced
Phase 2 (HT/HR) Selling
Employee are learning to do the job
HT relationship is needed because employees lack
experience and skills
HR is due to managers providing high level of
support/encouragement
Phase 3 (LT/HR) Participating
Employees who show maturity in performing tasks are
more experienced and skilled
The manager reduces the need for task relationship but
continues to give emotional support and consideration
Phase 4 (LT/LR) Delegating
Is meant for the highest level of employees maturity.
The employees possess a high level of task maturity
(employees are self-directed)
Employee no longer need high level of supportive and
task behavior from their leaders/managers

High
Low
Low
High
PHASE 3

High
Relationship

Low Task
PHASE 4

Low
Relationship

Low Task
PHASE 1

Low
Relationship

High Task
PHASE 2

High
Relationship

High Task
Other Related Perspectives on Leadership
Charismatic leadership

Transformational Leadership
Charismatic Leadership theory
What is charismatic leadership theory?
Robert House followers make attributions of heroic or
extraordinary leadership abilities when they observe
certain behaviors

Key characteristic of charismatic leader
1. Vision and articulation
2. Personal risk
3. Sensitivity to followers needs
4. Unconventional behavior
Charismatic Leadership (cont)
A charismatic leader influences followers by:
Stating a vision that provides a sense of community by
linking the present with a better future.
Communicating high expectations and expressing
confidence that followers can attain them.
Conveying, through words and actions, a new set of
values, and by his or her behavior setting an example for
followers to imitate. (Leadership by example)
Making self-sacrifices and engaging in unconventional
behavior to demonstrate courage and convictions about
the vision.
Transformational vs Transactional
Transformational leaders:
inspire followers to transcend their own self-
interest for the good of the organization.
are capable of having a profound and
extraordinary effect on their followers.
Transactional leaders:
Leaders who guide their followers directions
and tasks to achieve goals.
Transformational leadership (cont)
Characteristic of transformational leader:
1.Idealize influence
2.Inspirational motivation
3.Intellectual Stimulation
4.Individual Consideration

How does transformational leaders work?
They encourage followers to be more innovation
and creative
Leadership and Management
(both are related with some distinction)







ACTIVITY MANAGEMENT (managers) LEADERSHIP (leaders)
Creating an
Agenda
Planning and budgeting.
Establishing details steps
and allocating resources
Establishing direction.
Developing vision of the
future and strategies to
achieve the vision
Developing a
human network to
achieve agenda
Organizing and staffing.
Establishing structure and
delegation
Aligning people.
Communicating by words and
actions
Executing Plans

Controlling and problem
solving. Monitoring result vs.
planning
Motivating and inspiring.
Energize people to overcome
barriers
Outcome Producing a degree of
predictability and order and
able to produce consistently
major results.
Producing change, often to a
dramatic degree, and has
potential to produce
extremely useful change i.e.
developing new products
POWER
Is the potential ability to influence
others behavior.
The ability to exert/use influence.

There are 2 types of power a leader
holds in an organization:-
1. Position power
2. Personal power
POWER
Position power
a power that a manager has due to his
position in an organization. The position that
a manager holds, gives him the power to
reward or punish subordinates in order to
influence their behavior.
POSITION POWER
4 sources of position power (forms of position
power)
1. Legitimate power
- Power granted through organizational hierarchy.
i.e. Company guard has the power to require even the
company president to present an identification card
before entering the premise.

2. Reward power
- The power to give or withhold rewards such as salary
increase, bonuses, promotion.

3. Coercive power
- The power to punish or recommend punishment
i.e. written or verbal warning, fines

4. Information power
- Power based on control of information.
- Leaders power to access and distribute information that
is desired by others, which other people dont have
access.


POWER
Personal power
a power that a manager has due to his
special knowledge or personal
characteristics.
PERSONAL POWER
2 sources of personal power:
1. Expert power
- The personal power that accrues to someone based on
the information or expertise that they possess
i.e. a scientist who is capable of achieving an important
breakthrough .

2. Referent power
- The personal power that accrues to someone based on
identification, loyalty or charisma
i.e. Tun Dr. Mahathir the charisma that he has.
i.e. workers admire a supervisor because of the way he
deals with employees.