Leadership

1
Leadership-Outlines
• What are status, power and authority?
• Types of power
• What is leadership?
• Significance of Leadership
• Leadership Styles
• Leadership Approaches
• Improving Leadership

2
Leadership-Introduction
• In order to understand leadership, a clear
understanding about status, power and authority and
their links with leadership is imperative.
• Status is social rank or position in a group. The
sources of status can be formal as well as informal.
• Formal organizational sources-Occupation or Job
(salary)
• Personal Sources-Education, Age, Seniority, Race,
Religion, Parentage, sex, competence,
Associates/linkages
• Status symbols-job titles, pay, clothing, size and
location of desk or office, location of parking space,
type of company car assigned, secretaries, privacy,
furnishings, privileges, ceremonies of induction an
possessions

3
Leadership-Outlines
• Power the is the capacity to influence and determine the
behavior of others.
• There are five types of power according to French and Raven:
• Coercive power -capacity to punish
• Reward power- capacity to provide reward
• Legitimate power -person’s position in organizational hierarchy
• Referent power -the personal characteristics of an individual
that make other people want to associate with him/her
• Expert power -The skill, expertise and knowledge an individual
possesses
• Authority is a right; the right to decide, to command or to
perform. Authority is institutionalized or legitimate power and
constitutes one of the major sources of power. There are three
types of authority: Traditional, charismatic and legal-rational

4
Defining Leadership
• Leadership is the process influencing followers and
subordinates to achieve goals of the organizations
• According to Ralph Stogdill, leadership can be defined
in terms of followers, task, the performance of the
organization, accomplishment of organizational goals
and so on.
• Keith Davis defined leadership as the process of
influencing followers in the accomplishment of the goal
of the organization in a particular situation
• Leadership can be expressed through a equation;
• Leadership= f (lfs) where f=function, l=leader,
f=followers and s= situation

5
Leadership-Significance
• Effective leadership gives direction to the efforts of all
workers in accomplishing the goals of the
organization. It is the human factor that binds a group
together and motivates it toward goal achievement.
• Leadership transforms potential into reality
• Effective leadership in organization provides higher-
quality and more efficient goods and services
• It provides a sense of cohesiveness, personal
development and higher level of satisfaction among
the employees
• It provides an overarching sense of direction and
vision, an alignment with environment, a healthy
mechanism for innovation and creativity and a
resource for invigorating organizational culture

Types of Leadership Style
• Autocratic:
• Leader makes decisions without reference to
anyone else
• High degree of dependency on the leader
• Can create de-motivation and alienation
of staff
• 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

• Democratic:
• May help motivation and involvement
• Workers feel ownership of the firm and its
ideas
• Improves the sharing of ideas
and experiences within the business
• Can delay decision making

• Laissez-Faire:
• ‘Let it be’ – the leadership responsibilities
are shared by all
• Can be very useful in businesses
where creative ideas are important
• Can be highly motivational,
as people have control over their working life
• Can make coordination and decision making
time-consuming and lacking in overall direction
• Relies on good team work
• 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

11
Leadership-Approaches
• Great Man Theories/ Trait Approach (Leaders are born , not
made)
• Behavioral Approach-Leadership traits can be taught
• Situational Approach-Situation determines leadership
effectiveness
Great Man Theories
• It assumes that great men rise to leadership positions because
of their superior abilities attributes
• Keith Davis identified four traits that are related to effective
leadership. These are-intelligence, social maturity and breadth,
inner motivation and achievement
• Main leadership traits and skills identified by Stogdill(1974) are
• Traits - Adaptable to situations - Alert to social environment -
Ambitious and achievement-orientated - Assertive -
Cooperative - Decisive - Dependable - Dominant (desire to
influence others) - Energetic (high activity level) - Persistent -
Self-confident - Tolerant of stress - Willing to assume

12
• Skills - Clever (intelligent) - Conceptually skilled -
Creative - Diplomatic and tactful - Fluent in speaking -
Knowledgeable about group task - Organized
(administrative ability) - Persuasive - Socially skilled
• This approach fell into disfavor because factors
separate from the leader such as the situation or the
subordinates were not take into consideration
• It failed to find one single trait that identified a person
as a leader regardless of the situation
• Leadership turned from personality variables to
looking at the specific behaviors that would
differentiate effective from ineffective leaders

13
Behavioral Approach
• This approach is focused on the leadership roles and
relationships with the followers
• It involves the behavioral pattern which is used by the
leader to influence the followers to achieve the goals
of the organization
• Two influential studies- Ohio State Studies and
Managerial Grid Studies
• Ohio State Studies- A series of studies on leadership
was conducted at Ohio State University to find out the
most important behavior of leaders. To do this they
developed a questionnaire called Leader Behavior
Description Questionnaire (LBDQ). An analysis of
thousands of identified two major factors in leader
behavior

14
Behavioral Approach
• Consideration-behavior concerned with well-being
and esteem of followers and satisfying their needs.
• It is an indicative of friendship, mutual trust and
respect in the relationship between the leader and the
followers.
• Initiation of Structure -behaviors designed to assign
tasks and roles to groups and to focus on performing
the task.
• Leaders try to establish well defined patterns of
organization, channel of communication and methods
of procedure.

15
Behavioral Approach
• Initiating structure and consideration are two independent
dimensions that give rise to four types of leadership behavior.
They are
1. A leader who is high on structure and low on consideration is
more interested in the task (planning, communication) of the
organization.
2. A leader who is high on consideration and low on structure
tends to encourage superior-subordinate cooperation.
3. A leader who is high on both structure and consideration is
interested in both work and people.
4. A leader who is low on both structure and consideration is
neither interested in work nor in the workers, he is a sleeping
type leader.
Unfortunately the way in which leaders behaved had little to do
with how they performed

16
Behavioral Approach (Managerial Grid)
• The Managerial Grid developed by Robert Blake and
Jane Mouton focuses on task (production) and
employee (people) orientations of managers, as well
as combinations of concerns between the two
extremes.
• A grid with concern for production on the horizontal
axis and concern for people on the vertical axis and
plots five basic leadership styles.
• The first number refers to a leader's production or
task orientation; the second, to people or employee
orientation.
• They identified five types of basic leadership styles
through the managerial grid

18
• (1,1) Impoverished Management-Effective
production is unobtainable because people are lazy,
apathetic and indifferent. Sound and mature
relationships are difficult to achieve. Conflict is
inevitable, leader relies on previous practices
• (9,1)Task Management- management is task
oriented, a leader’s responsibility is to plan, direct
and control the work of those subordinate to him/her.
• (1,9) Country Club Management-voluntary
cooperation is needed to obtain high level of
production (lack of conflict and good fellowship)

19
• (5,5)Middle of the Road-Push for production but do
not go all out. Give some but not all. Be fair and firm(
mgt compromises, finds difficulty in innovation and
change)
• (9,9) Team Management-Production is from
integration of task and human requirements. Tasks
need to be carefully explained and decision agreed
with the subordinates
• Blake and Mouton propose that “Team
Management” - a high concern for both employees
and production - is the most effective type of
leadership behavior. However, (9,1) is the most
popular in organizations.

20
Situational/Contingency Approach
• Whilst behavioral theories may help managers
develop particular leadership behaviors they give
little guidance as to what constitutes effective
leadership in different situations.
• Indeed, most researchers today conclude that no
one leadership style is right for every manager under
all circumstances.
• Instead, contingency-situational theories were
developed to indicate that the style to be used is
contingent upon such factors as the situation, the
people, the task, the organization, and other
environmental variables.
• The major theories contributing towards this school
of thought are described below.

21
Leadership-Contingency Theory
• Fiedler's contingency theory postulates that there is
no single best way for managers to lead.
• Situations will create different leadership style
requirements for a manager. The solution to a
managerial situation is contingent on the factors that
impinge on the situation.
• For example, in a highly routine (mechanistic)
environment where repetitive tasks are the norm, a
relatively directive leadership style may result in the
best performance, however, in a dynamic
environment a more flexible, participative style may
be required.
• Least Preferred Co-Worker (LPC) Questionnaire
• An instrument that purports to measure whether a person is
task- or relationship-oriented.

22
• Fiedler postulates that three important situational
dimensions are assumed to influence the leader’s
effectiveness. They are:
• Leader-member relations: the degree of
confidence the subordinates have in the leader. It
also includes the loyalty shown to the leader and the
leader’s attractiveness.
• Task structure: the degree to which the followers’
jobs are routine as contrasted with non-routine.
• Position power: the power inherent in the
leadership position. It includes the rewards and
punishments typically associated with the position,
the leader’s formal authority (based on ranking in the
managerial hierarchy), and the support that the
leader receives from supervisors and the overall
organization.

Findings from Fiedler
Model
E X H I B I T 11–2
E X H I B I T 11–2

24
• Managers were rated as to whether they were
relationship oriented or task oriented.
• Task oriented managers tend to do better in
situations that have good leader-member
relationships, structured tasks, and either weak or
strong position power. They do well when the task is
unstructured but position power is strong. Also, they
did well at the other end of the spectrum when the
leader member relations were moderate to poor and
the task was unstructured.
• Relationship oriented managers do better in all other
situations. Thus, a given situation might call for a
manager with a different style or a manager who
could take on a different style for a different situation.

25
• These environmental variables are combined in a
weighted sum that is termed "favorable" at one end and
"unfavorable" at the other. Task oriented style is
preferable at the clearly defined extremes of "favourable"
and "unfavorable" environments, but relationship
orientation excels in the middle ground. Managers could
attempt to reshape the environment variables to match
their style.
• Another aspect of the contingency model theory is that
the leader-member relations, task structure, and position
power dictate a leader's situational control. In a favorable
relationship the manager has a high task structure and is
able to reward and or punish employees without any
problems. In an unfavorable relationship the task is
usually unstructured and the leader possesses limited
authority. The spelling out in detail (favorable) of what is
required of subordinates affects task structure.

Path-Goal Theory of
Leadership

• Path-Goal Theory Perspective
• Conditions of Leadership Motivation
• Leader Behaviors & Subordinate
Characteristics
• Task Characteristics
• How Does the PGT Approach Work?
Overview

Path-Goal Theory (House, 1971) Description
Path-goal theory centers on how leaders
motivate subordinates to accomplish
designated goals
Emphasizes the relationship between
the leaders style
the characteristics of the subordinates
the work setting
DefinitionDefinition

Path-Goal Theory (House, 1971) Description
• Goal - To enhance employee performance and satisfaction by
focusing on employee motivation
• Motivational Principles (based on Expectancy Theory) -
Subordinates will be motivated if they believe:
• they are capable of performing their work
• that their efforts will result in a certain outcome
• that the payoffs for doing their work are worthwhile
PerspectivePerspective

Challenge to Leader
• Use a Leadership Style that best meets subordinates
motivational needs
• choose behaviors that complement or supplement
what is missing in the work setting
• enhance goal attainment by providing information or
rewards
• provide subordinates with the elements they need to
reach their goals

Conditions of Leadership Motivation
• It increases the number and kinds of payoffs
subordinates receive from their work
• Makes the path to the goal clear and easy to
travel through with coaching and direction
• Removes obstacles and roadblocks to
attaining the goal
• Makes the work itself more personally
satisfying
Leadership generates motivation when:

Major Components of Path-Goal Theory
Path-Goal Theory Suggests:
Each type of leader behavior has a
different kind of impact on
subordinates motivation
Whether or not a particular leader
behavior is motivating is contingent on
– subordinate characteristics
– task characteristics

Leader Behaviors
Directive Leadership
• Leader who gives subordinates task instruction
including:
• What is expected of them
• How task is to be done
• Timeline for task completion
• Leader -
• sets clear standards of performance
• makes rules & regulations clear to subordinates

Leader Behaviors
Supportive Leadership
• Refers to being friendly and approachable as a leader
and includes:
• Attending to well-being & human needs of
subordinates’
• Using supportive behavior to make work environment
pleasant
• Treating subordinates as equals & give them respect
for their status

Leader Behaviors
Participative Leadership
• Leader who invites subordinates to share in the
decision-making
• A participative leader:
• Consults with subordinates
• Seeks their ideas & opinions
• Integrates their input into group/organizational
decisions

Leader Behaviors
Achievement Oriented Leadership
• Leader who challenges subordinates to perform work at
the highest level possible
• An achievement oriented leader:
• Establishes a high standard of excellence for
subordinates
• Seeks continuous improvement
• Demonstrates a high degree of confidence in
subordinates’ ability to establish & achieve challenging
goals

Subordinate Characteristics
• Determine how a leader’s behavior will be interpreted
by subordinates in a given work context
• Researchers focus on subordinates’
• Need for affiliation
• Preferences for structure (less uncertainty)
• Desires for control (Locus of Control)
• Self-perceived level of task ability

Strong need for affiliation
– Friendly and concerned leadership is a source
of satisfaction
– Supportive Leadership
Preference for Structure
– Dogmatic & authoritarian
 Leadership provides psychological structure, task
clarity & greater sense of certainty in work setting
– Directive Leadership

Desire for Control
– Internal locus of control
 Leadership that allows subordinates to feel in
charge of their work & makes them an integral part
of the decision-making process
 Participative Leadership
– External locus of control
 Leadership that parallels subordinates feelings that
outside forces control their circumstances
 Directive Leadership

Perception of their own ability –
specific task
– As perception of ability and competence
goes up need for highly directive
leadership goes down.
– Directive leadership may become
redundant – possibly excessively
controlling

Task Characteristics
ComponentsComponents
Task Characteristics:
– Design of subordinates’ task
– Organization’s formal authority system
– Primary work group of subordinates

• Unclear and ambiguous - Leader needs to
provide structure
• Highly repetitive - Leader needs to provide
support to maintain subordinate motivation
• Weak formal authority - If formal authority
system is weak, the leader needs to assist
subordinates by making rules and work
requirements clear
• Nonsupportive/weak group norms - Leader
needs to help build cohesiveness and role
responsibility
Task Situations Requiring Leader InvolvementTask Situations Requiring Leader Involvement

ObstaclesObstaclesObstaclesObstacles
• Anything in the work setting that gets in the way of
subordinates
• They create excessive uncertainties, frustrations,
or threats for subordinates
• Leaders responsibility is to help subordinates by –
• Removing the obstacles
• Helping subordinates around them
• Assisting with obstacles will increase
• Subordinates’ expectations to complete the task
• Their sense of job satisfaction

How Does the Path-Goal Theory
Approach Work?
• Focus of Path-Goal Theory
• Strengths
• Criticisms
• Application

How Does Path-Goal Theory Work?
• The leader’s job is to help subordinates reach their goals
by directing, guiding, and coaching them along the way
• Leaders must evaluate task and subordinate
characteristics and adapt leadership style to these
• The theory suggests which style is most appropriate for
specific characteristics

Path-Goal Theory Approach
• Path-goal theory is a
complex but also
pragmatic approach
• Leaders should choose
a leadership style that
best fits the needs of
subordinates and their
work
• Path-goal theory
provides a set of
assumptions about how
different leadership
styles will interact with
subordinate
characteristics and the
work situation to affect
employee motivation
FocusFocusFocusFocus Overall ScopeOverall ScopeOverall ScopeOverall Scope

Strengths
• Useful theoretical framework. Path-goal theory is
a useful theoretical framework for understanding
how various leadership behaviors affect the
satisfaction of subordinates and their work
performance.
• Integrates motivation. Path-goal theory attempts
to integrate the motivation principles of expectancy
theory into a theory of leadership.
• Practical model. Path-goal theory provides a
practical model that underscores and highlights the
important ways leaders help subordinates.

Criticisms
• Interpreting the meaning of the theory can be
confusing because it is so complex and
incorporates so many different aspects of
leadership; consequently, it is difficult to implement.
• Empirical research studies have demonstrated only
partial support for path-goal theory.
• It fails to adequately explain the relationship
between leadership behavior and worker motivation.
• The path-goal theory approach treats leadership as
a one-way event in which the leader affects the
subordinate.

Application
• PGT offers valuable insights that can be
applied in ongoing settings to improve one’s
leadership.
• Informs leaders about when to be directive,
supportive, participative, or achievement
oriented
• The principles of PGT can be employed by
leaders at all organizational levels and for all
types of tasks

53
Improving Leadership
Selection and Placement-
• To match leader with job
• Job description/analysis to know the characteristics of the
leader
• Personality traits, Skills, knowledge and behavior (cv.
Interviews and assessment center-role playing, work samples)
Situational Engineering- one alternative to matching leaders
and positions is changing the situation to make it more
favorable for the leader. The only program for doing so is
Leader Match.
• It is difficult to change leadership style over night
• It is easier to diagnose situations in which leaders are likely to
perform best and to modify situations so they match the
leader’s style (by applying LPC-Least preferred coworker)
Leadership Training -change the leader to fit the requirement
of the position to train the leader (innovative techniques-case
analysis, role modeling, simulations, higher education,
courses) and so on

Leadership

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