Leadership


LEADING

Fundamentals of Management
Richard Daft (2005)

LEADING


 LEARNING OBJECTIVES:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Define Leadership and explain its importance for organizations
Identify personal characteristics associated with effective leaders
Describe the leader behaviors of initiating structure and consideration and
when they should be used
Describe Hersey and Blanchard’s situational theory and its application to
subordinate participation
Explain the path-goal model of leadership
Discuss how leadership fits the organizational situation and how
organizational characteristics can substitute for leadership behaviors
Describe transformational leadership and when it should be used
Identify the five sources of leader power and how each causes different
subordinate behavior
Explain innovative approaches to leadership in a turbulent environment

I: Nature of Leadership


 “LEADERSHIP is influence… It is not about titles, positions, or
flowcharts. It’s about one life influencing another.”
–John C. Maxwell
 “LEADERSHIP is not wielding authority – it’s empowering
people.”
-Becky Brodin
 “LEADERSHIP is the capacity to translate vision into reality.”
-Warren G. Bennis

I: Nature of Leadership


 Three aspects that stand-out when we talk about
LEADERSHIP:
Leadership occurs among PEOPLE, involves the use of
INFLUENCE, and is used to attain GOALS.

 LEADERSHIP
The ability to influence people toward the attainment of
organizational goals.

II: Leadership versus Management


LEADER QUALITIES

MANAGER QUALITIES

SOUL

MIND

Visionary
Passionate
Creative
Flexible
Inspiring
Innovative
Courageous
Imaginative
Experimental
Initiates change
Personal power

Rational
Consulting
Persistent
Problem-solving
Tough-minded
Analytical
Structured
Deliberate
Authoritative
Stabilizing
Position power



LEADERSHIP

MANAGEMENT

 Promotes vision, creativity,

 Promotes stability, order, and

and change

problem-solving

 A leader takes you to a new

 A manager takes care of

place

where you are

 Good leadership is needed to

 Good management is needed

move the organization into the
future

to help the organization meet
current commitments



“You manage things; you lead people.”
- Grace Murray Hopper, Admiral U.S. Navy (Retired)

III: Leadership Traits


 TRAITS
Distinguishing personal characteristics, such as intelligence,
values, and appearance.
 Early research focused on leaders who had achieved a level of
greatness, referred to as the GREAT MAN approach.
This approach finds out what made people great, and select
future leaders who already exhibited the same traits or could
be trained to develop them.



Personal Characteristics of Leaders
Physical Characteristics Personality

Work-Related Characteristics

Energy
Physical Stamina

Achievement drive, desire to excel
Conscientiousness in pursuit of goals
Persistence against obstacles, tenacity

Self-Confidence
Honesty and Integrity
Enthusiasm
Desire to lead
Independence

Intelligence and Ability Social Characteristics

Social Background

Intelligence cognitive ability
Knowledge
Judgment, decisiveness

Education
Mobility

Sociability, interpersonal skills
Cooperativeness
Ability to enlist cooperation
Tact, diplomacy



The 21 Indispensable Qualities of a Leader
1. CHARACTER

Be a Piece of the Rock

2. CHARISMA

The First Impression Can Seal the Deal

3. COMMITMENT

It Separates Doers from Dreamers

4. COMMUNICATION

Without It You Travel Alone

5. COMPETENCE

If You Build It, They Will Come

6. COURAGE

One Person With Courage Is a Majority

7. DISCERNMENT

Put an End to Unsolved Mysteries



8. FOCUS

The Sharper It Is, The Sharper You are

9. GENEROSITY

Your Candle Loses Nothing When It Lights Another

10. INITIATIVE

You Won’t Leave Home Without It

11. LISTENING

To Connect With Their Hearts, Use Your Ears

12. PASSION

Take This Life and Love It

13. POSITIVE ATTITUDE

If You Believe You Can, You Can

14. PROBLEM SOLVING

You Can’t Let Your Problems Be A Problem



15. RELATIONSHIPS

If You Get Along, They’ll Go Along

16. RESPONSIBILITY

If You Won’t Carry the Ball, You Can’t Lead the Team

17. SECURITY

Competence Never Compensates for Insecurity

18. SELF-DISCIPLINE

The First Person You Lead Is You

19. SERVANTHOOD

To Get Ahead, Put Others First

20. TEACHABILITY

To Keep Leading, Keep Learning

21. VISION

You Can Seize Only What You Can See



“If a leader demonstrates competency,
genuine concern for others, and
admirable character, people will
follow.”
- T. Richard Chase

IV: Behavioral Approaches


 Two basic leadership behaviors that have been identified
as important for leadership:
1. Task-oriented behavior; and
2. People-oriented behavior

 These two categories were also called metacategories.
They have been found to be applicable to effective
leadership in a variety of situations and time periods.



A. OHIO STATE STUDIES: Researchers at the Ohio State University have
identified two major behaviors, called:
1.
2.

Consideration; and
Initiating structure

 Consideration (falls in the category of people-oriented behavior):
Describes the extent to which the leader is sensitive to subordinates,
respects their ideas and feelings, and establishes mutual trust.
 Initiating structure (the degree of task behavior): Describes the
extent to which the leader is task-oriented and directs subordinate
work activities toward goal attainment.




 Consideration and Initiating structure are independent of each other.
 A leader may have any of four styles:
1. High initiating structure-low consideration
2. High initiating structure-high consideration
3. Low initiating structure-low consideration
4. Low initiating structure-high consideration
 Researchers found that the high consideration-high initiating structure
achieve better performance and greater satisfaction as compared to
other style.
 However, new research has found that the “high-high” style is not
necessarily the best.



B.

MICHIGAN STUDIES: Studies at the University of Michigan took a
different approach by comparing the behavior of effective and
ineffective supervisors. According to them:

 The most effective supervisors were those who focused on the
subordinates’ human needs in order to “build effective work groups with
high performance goals”.
 They used the term employee-centered leaders for leaders who
established high-performance goals and displayed supportive behavior
toward their subordinates.
 The less effective leaders were called job-centered leaders; these tended
to be less concerned with goal achievement and human needs in favor of
meeting schedules, keeping costs low, and achieving production
efficiency.



C.

UNIVERSITY OF TEXAS: Blake and Mouton proposed a twodimensional leadership theory called The Leadership Grid (builds on
the work of the Ohio State and Michigan Studies).

 LEADERSHIP GRID: A two-dimensional leadership theory that
measures the leader’s concern for people and for production.



The Leadership Grid® Figure
High

1,9

8

Concern for People

9

Country Club Management
Thoughtful attention to the
needs of the people for
satisfying relationships leads
to a comfortable, friendly
organization atmosphere and
work tempo.

7
6
5
4

9,9

1
Low

2

Impoverished Management
Exertion of minimum effort
to get required work done is
appropriate to sustain
organization membership.

1,1

3

1
Low

2

3

Middle-of-the-road
Management

5,5
Adequate organization
performance is possible
for balancing the
necessity to get out
work with maintaining
morale of people at a
satisfactory level.

4

5

6

Concern for Production

Team Management
Work accomplishment is
from committed people;
interdependence through a
common stake in
organization purpose leads to
relationship of trust and
respect.

Authority Compliance
Efficiency in operations
results from arranging
conditions of work in such a
way that human elements
interfere to a minimum
degree.
9,1

7

8

9
High

V: Contingency Approaches


 Contingency Approach: A model of leadership that describes
the relationship between leadership styles and specific
organizational situations.

1.
2.
3.
4.

Several models of this approach are:
Fiedler’s Contingency Theory
Hersey and Blanchard’s Situational Theory
Evans and House’s Path-Goal Theory
Substitutes-for-Leadership Concept



1. Fiedler’s Contingency Theory: A comprehensive theory of
leadership that combine leadership style and organizational
situation.
 The basic idea: Match the leader’s style with the situation
most favorable for his/her success.
 Leadership Style: The extent to which the leader’s style is
relationship-oriented or task-oriented.
 A relationship-oriented leader is concerned with people.
 A task-oriented leader is motivated by task accomplishment.
 This style is measured with a questionnaire known as Least
Preferred Co-worker or LPC scale.




 LPC Scale: A questionnaire designed to measure
relationship-oriented versus task-oriented leadership
style according to the leader’s choice of adjectives for
describing the “least preferred co-worker”.
 This scale has a set of 16 bipolar adjectives along an 8point scale. For example:
Open

- - - - - - - -

Guarded

Quarrelsome

- - - - - - - -

Harmonious

Efficient

- - - - - - - -

Inefficient

Self-Assured

- - - - - - - -

Hesitant

Gloomy

- - - - - - - -

Cheerful



 SITUATION - Leadership situations can be analyzed in
terms of three elements:

1. Leader-member relations: refers to group atmosphere
and members attitude toward and acceptance of the
leader.
2. Task structure: refers to the extent to which tasks
performed by the group are defined, involve specific
procedures, and have clear, explicit goals.
3. Position power: the extent to which the leader has the
formal authority over subordinates.



2. Hersey and Blanchard’s Situational Theory: A contingency
approach to leadership that links the leader’s behavioral style
with the task readiness of subordinates.

 This theory focuses greatly on the characteristics of employees
in determining appropriate leadership behavior.
 A leader can adopt one or four leadership styles based on a
combination of relationship (concern with people) and task
(concern for production) behavior.
 The four styles are: telling, selling, participating, and
delegating.



2.1 Telling style reflects a high concern for tasks and a low
concern for people.

2.2 Selling style is based on a high concern for both people and
tasks.
2.3 Participating style is based on a combination on high concern
for people and relationships and low concern for production
tasks.
2.4 Selling style reflects a low concern for both relationships and
tasks.




Hersey and Blanchard’s Situational Theory
Follower Characteristics
Low readiness level

Moderate readiness level

High readiness level

Very high readiness level

Appropriate Leader Style
Telling (high task – low relationship)

Selling (high task - high relationship)

Participating (low task – high relationship)

Delegating (low task – low relationship)



3. Evans and House’s Path-Goal Theory: A contingency
approach to leadership specifying that the leader’s
responsibility is to increase subordinates’ motivation by
clarifying the behaviors necessary for task accomplishment
and rewards.
 In this theory, leaders switch their behaviors to match the
situation.
 This model has three sets of contingencies – leader behavior,
situational contingencies, and use of rewards to meet the
subordinates’ needs.



3.1 Leader Behavior: The path-goal theory suggests a
fourfold classification of leader behaviors…
 Supportive leadership involves leader behavior that shows
concern for subordinates’ well-being and personal needs.
 Directive leadership occurs when the leader tells
subordinates exactly what they are supposed to do.
 Participative leadership means that the leader consults
with his/her subordinates about decisions.
 Achievement-oriented leadership occurs when the leader
sets clear and challenging goals for subordinates



3.2 Situational Contingencies: There are two important
situational contingencies in path-goal theory:
1.
2.

The Personal Characteristics of the Group Member, include
such factors as ability, skills, needs, and motivation.
The Work Environment, include the degree of task structure,
the nature of the formal authority system, and the work
group itself.

3.3 Use of Rewards: Leaders responsibility is to clarify the
path to rewards for subordinates or to increase the
value of rewards to enhance satisfaction and job
performance.



4. Substitutes for Leadership: This approach suggests that
situational variables can be so powerful that they
actually substitute for or neutralize the need for
leadership.
 Substitute: A situational variable that makes a leadership
style unnecessary or redundant.
 Neutralizer: A situational variable that counteracts a
leadership style and prevents the leader from displaying
certain behavior.



Substitutes and Neutralizers for Leadership
Variable

Task-Oriented People-Oriented
Leadership
Leadership

Organizational Variables

Group cohesiveness
Formality
Inflexibility
Low position power
Physical separation

Substitutes for
Substitutes for
Neutralizes
Neutralizes
Neutralizes

Substitutes for
No effect on
No effect on
Neutralizes
Neutralizes

Task Characteristics

Highly structured task
Automatic feedback
Intrinsic satisfaction

Substitutes for
Substitutes for
No effect on

No effect on
No effect on
Substitutes for

Group Characteristics

Professionalism
Training/Experience

Substitutes for
Substitutes for

Substitutes for
No effect on

VI: Leading Change



 Recent work on leadership has begun to distinguish leadership
as something more: a quality that inspires and motivates
people beyond their normal levels of performance.
 Some leadership approaches are more effective than others for
bringing change in the organizations. Two types of leadership
that can have a substantial impact: Charismatic and
Transformational.
 These types of leadership are best understood in comparison
with Transactional Leadership.

VI: Leading Change


 Transactional Leadership: A leader who clarifies subordinate’s
role and task requirements, initiates structure, provides
rewards, and display consideration for subordinates.
 Transactional leaders excel at management functions.
 Their ability to satisfy subordinates may improve productivity.
 They have a sense of commitment to the organization and
conform to its norms and values.
 This is important to all organizations, but leading change
requires a different approach. . .

VI: Leading Change


 Charismatic Leadership: A leader who has the ability to
motivate subordinates to transcend their expected
performance.
 The impact of charismatic leaders is normally from:
1.

2.
3.

Stating a lofty vision of an imagined future that employees
identify with
Shaping a corporate value system for which everyone stands
Trusting subordinates and earning their complete trust in return

VI: Leading Change


 Charismatic Leaders are often skilled in the art of Visionary
Leadership.
 Visionary leaders speak to the hearts of employees, letting them be
part of something bigger than themselves.
 Vision is an attractive, ideal future that is credible yet not readily
attainable. This is an important component of both charismatic and
transformational leadership.

 Charismatic leaders include: Alexander the Great, Michael Dell,
Mother Theresa, Adolf Hitler, Ronald Reagan, Martin Luther King Jr.,
and Osama Bin Laden.

VI: Leading Change


 TRANSFORMATIONAL LEADER: A leader distinguished by a special ability to
bring about innovation and change.
 This type of leader inspire followers not just to believe in their own potential
but to imagine and create a better future for the organization.

 Focuses on intangible qualities such as vision, shared values, and ideas to
build relationships, give larger meaning to diverse activities, and find
common ground to enlist followers in the change process.
 A good example of transformational leader is Richard Kovacevich, who
steered mid-sized Norwest Corp. (now Wells Fargo & Co.) through numerous
acquisitions to make it one of the largest and most powerful banking
companies in the United States.

VII: Using Power and Influence


 POWER: The potential ability to influence other’s behavior
(the capacity to cause a change in a person).
 INFLUENCE: The effect a person’s actions have on the
attitudes, values, beliefs, or behavior of others (this may be
thought of as the degree of actual change).

 There are two types of power:
1.
2.

Position Power
Personal Power



1. POSITION POWER: The manager’s position gives him or her
the power to reward or punish subordinates in order to
influence their behavior.
 Forms of Position Power:
1.
2.
3.

Legitimate Power: Power that stems from a formal
management position in an organization and the authority
granted to it.
Reward Power: Power that results from the authority to bestow
rewards on other people.
Coercive Power: Power that stems from the authority to punish
or recommend punishment.

 Legitimate Power and Reward Power are most likely to generate
follower compliance. Coercive Power often generates resistance.



1. PERSONAL POWER: This power most often comes from
internal sources, such as person’s special knowledge or
personal characteristics.
 Two types of Personal Power:
1.
2.

Expert Power: Power that stems from special knowledge of or
skill in the task performed by subordinates.
Referent Power: Power that results from characteristics that
command subordinates’ identification with, respect and
admiration for, and desire to emulate the leader.

 The follower reaction most often generated by these is
commitment.
 Leaders can increase their referent power when they share
power and authority with their followers. They should empower
lower employees.



BECOMING A PERSON OF INFLUENCE
I

Integrity with People

N

Nurtures Other People

F

Faith in People

L

Listens to People

U

Understands People

E

Enlarges People

N

Navigates for Other People

C

Connects with People

E

Empowers People

R

Reproduces Other Influencers

VIII: Post-Heroic Leadership for
Turbulent Times



 A significant influence on leadership styles in recent times is
the turbulence and uncertainty of the environment in which
most organizations are operating.
 Five approaches:






Servant Leadership
Level 5 Leadership
Interactive Leadership
E-leadership
Moral Leadership

Turbulent Times



1. Servant Leadership: A leader who works to fulfill subordinates’
needs and goals as well as to achieve the organization’s larger
mission.
 They give things away – power, ideas, information, recognition,
credit for accomplishments, even money.
 People always come before profits.
 Most of them work in a non-profit world.

2.

Level 5 Leadership: Transforming companies from merely good to
truly great organizations.
 Key characteristic is an almost complete lack of ego.
 They are often seem shy and unpretentious but they accept full
responsibility for mistakes, poor results, or failures.

Turbulent Times



The Level 5 Leadership Hierarchy
Level 5: The Level 5 Leader
Builds an enduring great organization through a
combination of personal humility and professional resolve.

Level 4: The Effective Executive
Builds widespread commitment to a clear and compelling
vision; stimulates people to high performance.

Level 3: Competent Manager
Set plans and organizes people for the efficient and effective
pursuit of objectives.

Level 2: Contributing Team Member
Contributes to the achievement of team goals; works
effectively with others group.

Level 1: Highly Capable Individual
Productive contributor; offers talent, knowledge, skills,
and good work habits as an individual employee.

Turbulent Times



3. Interactive Leadership: A leadership style characterized by values such
as inclusion, collaboration, relationship building, and caring.
 Focus on minimizing personal ambition and developing others is also a
hallmark of this style (which has been found to be common among female
leaders).
 This means that the leader favors a consensual and collaborative process,
and influence derives from relationships rather than position power and
formal authority.

4.

E-Leadership: In today’s workplace, many people work from home or
other remote locations, connected to the office and another via
information technology.




Effective e-leaders set clear goals and timelines are very explicit about how
people will communicate and coordinate their work.
They are open-minded and flexible; exhibits positive attitudes focsing on
solutions rather than problems.
They recognized that work is accomplished through people, not technology.

Turbulent Times



5. Moral Leadership: Distinguishing right from wrong and
choosing to do right in the practice of leadership.
 Moral leaders remember that business is about values, not just
economic performance.
 They strive to find the moral answer or compromise, rather than
taking the easy way out.
 This requires courage - the ability to step forward through fear
and act on one’s values and conscience.

The Way of the Shepherd:


7 Ancient Secrets to Managing Productive People
1. Know the Condition of
Your Flock






2. Discover the Shape of
your Sheep

 Your choice of sheep can make flock management easier and
harder.
 Start with healthy sheep or your inherit someone else’s problems.
 Know the SHAPE of your sheep to make sure they are in the right
fold.

3. Help Your Sheep Identify
with You

 Build trust with your followers by modeling authenticity, integrity,
and compassion.
 Set high standards of performance.
 Relentlessly communicate your values and sense of mission.
 Define the cause for your people and tell them where they fit in.
 Remember that great leadership isn’t just professional; it’s personal.

Follow the status of your people as well as the status of the work.
Get to know your flock, one sheep at a time.
Engage your people on a regular basis.
Keep your eyes and ears open, question, and follow through.



4. Make Your Pasture a
Safe Place








5. The Staff of Direction

 Know where you’re going, get out in front, and keep your flock on
the move.
 When directing, use persuasion rather than coercion.
 Give your people a freedom of movement, but make sure they
know where the fence line is. Don’t confuse boundaries with
bridles.
 When your people get in trouble, go and get them out.
 Remind your people that failure isn’t fatal.

Keep your people well-informed.
Infuse every position with importance.
Cull chronic instigators from the flock.
Regularly rotate the sheep to fresh pastures.
Reassure the sheep by staying visible.
Don’t give problems time to fester.



6. The Rod of Correction

 PROTECT: Stand in the gap an fight for your sheep.
 CORRECT: Approach discipline as a teaching opportunity.
 INSPECT: Regularly inquire about your people’s progress.

5. The Heart of the
Shepherd

 Great leadership is a lifestyle.
 Everyday you have to decide who’s going to pay for your
leadership – you or your people.
 Most of all, have a heart for your sheep.

“Leadership development is a
lifetime journey – not a quick trip.”
-Dr. John C. Maxwell




To be great means to serve…
THANK YOU! Ü

For MM201 Presentation
Prepared by:
Miamarie Gerona-Estrada

Leadership

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