University of Batangas

Batangas City
Graduate School

MBBA 515
Executive Leadership

NARRATIVE REPORT
Chapter 2 – Traits , Behavior and Relationships

Prepared by:
Nina Katherina A. Blanca

Submitted to:
Mr. Ferdinand Martinez

First Semester , SY 2018 – 2019

Chapter 2 – Traits , Behavior and Relationships

INTRODUCTION

Entrepreneurial leadership is of great concern in today’s turbulent

environment because entrepreneurial leadership is an important source of
innovation and change. Entrepreneurial leaders take risks to bring new
organizations into being or create novel solutions to competitive challenges
confronting existing organizations.

Leadership has made the world what it is today. It moves us individually, it

moves corporations, and it actually moves the world. We think of leadership we
tend to think of great presidents, generals, scientists, and other great people who
have lead us to a great stage in our life but the reality is leadership is not only a
position someone holds, it is a process and relationship between people. As our
world changes and increases in complexity, we need the knowledge and ability to
anticipate, adapt to and drive change. In order for companies to be successful, our
municipalities to be successful, our government and our entire nation, we need to
have great leaders.

The point of this chapter is to understand the importance of traits and

behaviors in the development of leadership theory and research. Some traits
associated with effective leadership include optimism, self-confidence, honesty,
and drive. Large number of personal traits and abilities have been associated with
successful leaders, but traits themselves are not sufficient to guarantee effective
leadership. Natural traits and behavior patterns can be developed into strengths.
It is important for leaders to recognize their strengths and acknowledge the
interdependence that is a key to effective leadership.

Research suggests that different leader strengths might be better suited to

different types of leadership roles. The chapter describes three types of roles—
operational roles, collaborative roles, and advisory roles. Leaders can be more
effective when they are in positions that best match their natural tendencies. The
behavior approach explored autocratic versus democratic leadership,
consideration versus initiating structure, employee-centered versus job-centered
leadership, and concern for people versus concern for production. The theme of
people versus tasks runs through this research, suggesting these are fundamental
behaviors through which leaders meet followers’ needs. There has been some
disagreement in the research about whether a specific leader is either people- or
task-oriented or whether one can be both. Today, the consensus is that leaders
can achieve a “high-high” leadership style.
 Another approach is the dyad between a leader and each follower.
Followers have different relationships with the leader, and the ability of the leader
to develop a positive relationship with each follower contributes to team
performance. The leader-member exchange theory says that high-quality
relationships have a positive outcome for leaders, followers, work units, and the
organization. Leaders can attempt to build individualized relationships with each
subordinate as a way to meet needs for both consideration and structure.

The historical development of leadership theory presented in this chapter

introduces some important ideas about leadership. Although certain personal
traits and abilities indicate a greater likelihood for success in a leadership role, they
are not in themselves sufficient to guarantee effective leadership. Rather,
behaviors are equally significant.

Therefore, the style of leadership demonstrated by an individual greatly

determines the outcome of the leadership endeavor. Often, a combination of
behavioral styles is most effective. To understand the effects of leadership upon
outcomes, the specific relationship behavior between a leader and each follower
is also an important consideration. Leadership styles vary from person to person
depending on how they provide direction, implement plans, and motivate people.
In every facet of business, from international banking to your local corner store,
leadership styles affect the mood and workflow. Two of the most common
leadership styles are task-oriented and people-oriented (also known as
relationship-oriented). Each of these styles has their pros and cons, and either one
can be perfect for any given situation. We’ll let you decide which is better for your
organization. Now that we know leaders are important and have made the world,
what it is today we need to know what makes a leader, a successful leader!

Objectives:
1. Outline some personal traits and characteristics that are associated with
effective leaders
2. Identify your own traits that you can transform into strengths and bring
to a leadership role.
3. Distinguish among various role leaders play in organizations, including
operations roles, collaborative roles, and advisory roles, and where your
strengths might best fit.
4. Recognize autocratic versus democratic leadership behavior and the
impact of each.
5. Know the distinction between people-oriented and task –oriented
leadership behavior
6. Understand how the theory of individualized leadership has broadened
the understanding of relationships between leaders and followers.
7. Describe some key characteristics of a key leaders
DISCUSSION

Leadership Challenge #1: Outline some personal traits and characteristics

that are associated with effective leaders.

I. The Trait Approach

Traits are the distinguishing personal characteristics of a leader, such as

intelligence, honesty, self-confidence, and appearance. Research early in the
twentieth century examined leaders who had achieved a level of greatness and
hence became known as the Great Man approach. The Great Man approach
sought to identify the traits leaders possessed that distinguished them from people
who were not leaders. Generally, research found only a weak relationship between
personal traits and leader success.

Nevertheless, with the advancement of the field of psychology during the 1940s
and 1950s, trait approach researchers expanded their examination of personal
attributes by using aptitude and psychological tests. These early studies looked at:
 Personality traits such as creativity and self-confidence
 Physical traits such as age and energy level
 Abilities such as knowledge and fluency of speech
 Social characteristics such as popularity and sociability
 Work-related characteristics such as the desire to excel and persistence
against obstacles

In a 1948 literature review, Stogdill examined more than 100 studies based on the
trait approach. He uncovered several traits that appeared consistent with effective
leadership:
 General intelligence
 Initiative
 Interpersonal skills
 Self-confidence
 Drive for responsibility
 Personal integrity
However, Stogdill’s findings also indicated that the importance of a particular trait
is often relative to the situation. In recent years, there has been a resurgence of
interest in examining leadership traits. A review by Kirkpatrick and Locke identified
a number of personal traits that distinguish leaders from nonleaders, including
some pinpointed by Stogdill. Other studies have focused on followers’ perceptions
and indicate that certain traits are associated with people’s perceptions of who is
a leader.

Exhibit 2.1: Personal Characteristics of Leaders

Exhibit 2.1 presents some of the traits and their respective categories that have
been identified through trait research over the years. A few traits typically
considered highly important for leadership are optimism, self-confidence, honesty
and integrity, and drive

A. Optimism and Self-confidence

Optimism refers to a tendency to see the positive side of things and expect that
things will turn out well. Numerous surveys indicate that optimism is the single
characteristic most common to top executives.

A related characteristic is a positive attitude about oneself. Leaders who know

themselves develop self-confidence, which is general assurance in one’s own
judgments, decision making, ideas, and capabilities. Self-confidence is related
to self-efficacy, which refers to a person’s strong belief that he or she can
successfully accomplish a specific task or outcome.

Active leaders need self-confidence and optimism. The characteristics of

optimism and self-confidence enable a leader to face challenges.

B. Honesty and Integrity

One aspect of being an ethical leader is being honest with followers, customers,
shareholders, and the public, and maintaining one’s integrity. Honesty refers to
truthfulness and non-deception. It implies an openness that followers welcome.
Integrity means that a leader’s character is whole, integrated, and grounded in
solid ethical principles, and he or she acts in keeping with those principles.
 Leaders who model their ethical convictions through their daily actions
command admiration, respect, and loyalty. Honesty and integrity are the
foundation of trust between leaders and followers.

C. Drive

Drive refers to high motivation that creates a high effort level by a leader.
Leaders with drive seek achievement, have energy and tenacity, and are
frequently perceived as ambitious. A strong drive is also associated with high
energy. Leaders work long hours over many years. They have stamina and are
vigorous and full of life in order to handle the pace, the demands, and the
challenges of leadership.

II. Know Your Strengths

The myth of the “complete leader” can cause stress and frustration for leaders and
followers, as well as damage the organization. Interdependence is the key to
effective leadership. Everyone has strengths, but many leaders fail to recognize
and apply them, often because they are hampered by the idea that they should be
good at everything. Only when leaders understand their strengths can they use
these abilities effectively to make their best contribution.

Discussion Question #1: Why is it important for leaders to know their strengths?
Do you think leaders should spend equal time learning about their weak points?

A. What are Strengths?

A strength arises from a natural talent that has been supported and reinforced
with knowledge and skills. Talents can be thought of as innate traits and
naturally recurring patterns of thought, feeling, and behavior. Once recognized,
talents can be turned into strengths by consciously developing and enhancing
them with learning and practice. When people use their talents and strengths,
they feel good and enjoy their work without extra effort; hence they are effective
and make a positive contribution.
Know Your Strengths

The myth of the “complete leader” can cause stress and frustration for
leaders and followers, as well as damage the organization. Interdependence is the
key to effective leadership. Everyone has strengths, but many leaders fail to
recognize and apply them, often because they are hampered by the idea that they
should be good at everything. Only when leaders understand their strengths can
they use these abilities effectively to make their best contribution.

In this report, we take an in-depth look at some of the important leadership

qualities that separate good leaders from a bad one.

1. Honesty and Integrity

The 34th President of United States, Dwight. D. Eisenhower once said, “The
supreme quality of leadership is unquestionably integrity. Without it, no real
success is possible, no matter whether it is on a section gang, a football field, in
an army, or in an office.” Honesty and integrity are two important ingredients
which make a good leader. How can you expect your followers to be honest when
you lack these qualities yourself? Leaders succeed when they stick to their values
and core beliefs and without ethics, this will not be possible.

2. Confidence

To be an effective leader, you should be confident enough to ensure that

other follow your commands. If you are unsure about your own decisions and
qualities, then your subordinates will never follow you. As a leader, you have to be
oozing with confidence, show some swagger and assertiveness to gain the respect
of your subordinates. This does not mean that you should be overconfident, but
you should at least reflect the degree of confidence required to ensure that your
followers trust you as a leader.
3. Inspire Others

Probably the most difficult job for a leader is to persuade others to follow. It
can only be possible if you inspire your followers by setting a good example. When
the going gets tough, they look up to you and see how you react to the situation. If
you handle it well, they will follow you. As a leader, should think positive and this
positive approach should be visible through your actions. Stay calm under
pressure and keep the motivation level up. As John Quincy Adams puts it, “If your
actions inspire others to dream more, learn more, do more and become more, you
are a leader.” If you are successful in inspiring your subordinates, you can easily
overcome any current and future challenge easily.

4. Commitment and Passion

Your teams look up to you and if you want them to give them their all, you
will have to be passionate about it too. When your teammates see you getting your
hands dirty, they will also give their best shot. It will also help you to gain the
respect of your subordinates and infuse new energy in your team members, which
helps them to perform better. If they feel that you are not fully committed or lacks
passion, then it would be an uphill task for the leader to motivate your followers to
achieve the goal.

5. Delegation and Empowerment

You cannot do everything, right. It is important for a leader to focus on key

responsibilities while leaving the rest to others. By that, I mean empowering your
followers and delegating tasks to them. If you continue to micromanage your
subordinates, it will develop a lack of trust and more importantly, you will not be
able to focus on important matters, as you should be. Delegate tasks to your
subordinates and see how they perform. Provide them with all the resources and
support they need to achieve the objective and give them a chance to bear the
responsibility.

6. Creativity and Innovation

What separates a leader from a follower? Steve Jobs, the greatest visionary
of our time answers this question this way, “Innovation distinguishes between a
leader and a follower.” In order to get ahead in today’s fast-paced world, a leader
must be creative and innovative at the same time. Creative thinking and constant
innovation is what makes you and your team stand out from the crowd. Think out
of the box to come up with unique ideas and turn those ideas and goals into reality.

Leadership Challenge #3: Distinguish among various roles leaders play in

organizations, including operations roles, collaborative roles, and advisory roles,
and where your strengths might best fit.

B. Matching Strengths with Roles

Recent research suggests that different leader strengths might be better suited
to different types of leadership roles.

Exhibit 2.2: Three Types of Leadership Roles

Exhibit 2.2 illustrates three types of leadership roles identified in today’s

organizations by a team of experts at Hay Group. The researchers found that,
although there is a core set of competencies that all leaders need, there is
significant variation in the personal characteristics, behaviors, and skills that
correlate with success in the different roles.

The operational role is the closest to a traditional, vertically oriented

management role, where an executive has direct control over people and
resources to accomplish results. Operational leaders are doggedly focused on
delivering results. Successful operational leaders are typically analytical and
knowledgeable, yet they also have the ability to translate their knowledge into a
vision that others can become passionate about.
 The collaborative role is a horizontal role and includes people such as project
managers, matrix managers, and team leaders in today’s more horizontally
organized companies. Leaders in collaborative roles typically don’t have the
strong position power of the operational role. Collaborative leaders need
excellent people skills in order to network, build relationships, and obtain
agreement through personal influence.

Leaders in an advisory role provide guidance and support to other people and
departments in the organization. Advisory leaders are responsible for
developing broad organizational capabilities rather than accomplishing specific
business results. Advisory leaders need great people skills and the ability to
influence others through communication, knowledge, and personal persuasion.

Leadership Challenge #4: Recognize autocratic versus democratic leadership

behavior and the impact of each.

III. Behavior Approaches

Rather than looking at an individual’s personal traits, diverse research programs

on leadership behavior have sought to uncover the behaviors that effective leaders
engage in. Behaviors can be learned more readily than traits, enabling leadership
to be accessible to all.

A. Autocratic versus Democratic Leadership

One study that served as a precursor to the behavior approach recognized

autocratic and democratic leadership styles. An autocratic leader is one who
tends to centralize authority and derive power from position, control of rewards,
and coercion. A democratic leader delegates authority to others, encourages
participation, relies on subordinates’ knowledge for completion of tasks, and
depends on subordinate respect for influence.

The first studies on these leadership behaviors were conducted at the University
of Iowa by Kurt Lewin and his associates. The research included groups of
children, each with its own designated adult leader who was instructed to act in
either an autocratic or democratic style. The groups with autocratic leaders
performed highly so long as the leader was present to supervise them. However,
 group members were displeased with the close, autocratic style of leadership,
and feelings of hostility frequently arose. The performance of groups who were
assigned democratic leaders was almost as good, and these groups were
characterized by positive feelings rather than hostility. In addition, under the
democratic style of leadership, group members performed well even when the
leader was absent. These characteristics of democratic leadership may partly
explain why the empowerment of employees is a popular trend in companies
today.

Consider This: Minimal Leader ship

 When the Master governs, the people are hardly aware that he [she] exists.
 Next best is a leader who is loved.
 Next, one who is feared.
 The worst is one who is despised.
 If you don’t trust the people, you make them untrustworthy.
 The Master doesn’t talk, he [she] acts.
 When his [her] work is done, the people say, “Amazing: we did it all by
ourselves.”

Further work by Tannenbaum and Schmidt indicated that leadership behavior

could exist on a continuum reflecting different amounts of employee
participation. Thus, one leader might be autocratic (boss-centered), another
democratic (subordinate-centered), and a third a mix of the two styles.

Exhibit 2.3: Leadership Continuum

Exhibit 2.3 illustrates the leadership continuum. Tannenbaum and Schmidt also
suggested that the extent to which leaders should be boss-centered or
subordinate-centered depended on organizational circumstances and that
leaders might adjust their behaviors to fit the circumstances. The findings about
autocratic and democratic leadership in the original University of Iowa studies
indicated that leadership behavior had a definite effect on outcomes such as
follower performance and satisfaction.
 Exhibit 2.4: The Leadership Grid® Figure

Exhibit 2.4 depicts the two-dimensional model and five of the seven major
leadership styles.
 Team Management (9,9) is often considered the most effective style and
is recommended because organization members work together to
accomplish tasks.
 Country club management (1,9) occurs when emphasis is given to people
rather than to work outputs.
 Authority-compliance management (9, 1) occurs when efficiency in
operations is the dominant orientation.
 Middle-of-the-road management (5,5) reflects a moderate amount of
concern for both people and production.
 Impoverished management (1,1) means the absence of a leadership
philosophy; leaders exert little effort toward interpersonal relationships or
work accomplishment.

Exhibit 2.5: Themes of Leader Behavior Research

The findings about two underlying dimensions and the possibility of leaders
rated high on both dimensions raise three questions to think about:
 The first question is whether these two dimensions are the most important
behaviors of leadership. A review of 50 years of leadership research, for
example, identified task-oriented behavior and people-oriented behavior
as primary categories related to effective leadership in numerous studies.
 The second question is whether people orientation and task orientation
exist together in the same leader, and how. The grid theory argues that
yes, both are present when people work with or through others to
accomplish an activity. Although leaders may be high on either style, there
is considerable belief that the best leaders are high on both behaviors.
 The third question concerns whether people can actually change
themselves into leaders high on people- or task-orientation. In the 1950s
and 1960s, when the Ohio State and Michigan studies were underway, the
assumption of researchers was that the behaviors of effective leaders
could be emulated by anyone wishing to become an effective leader.
Although “high-high” leadership is not the only effective style, researchers
 have looked to this kind of leader as a candidate for success in a wide
variety of situations

Leadership Challenge #6: Understand how the theory of individualized

leadership has broadened the understanding of relationships between leaders and
followers.

IV. Individualized Leadership

Traditional trait and behavior theories assume that a leader adopts a general
leadership style that is used with all group members. A more recent approach to
leadership behavior research, individualized leadership, looks instead at the
specific relationship between a leader and each individual follower. Individualized
leadership is based on the notion that a leader develops a unique relationship
with each subordinate or group member, which determines how the leader
behaves toward the member and how the member responds to the leader. In this
view, leadership is a series of dyads, or a series of two-person interactions. The
dynamic view focuses on the concept exchange, what each party gives to and
receives from the other.

Exhibit 2.6: Stages of Development of Individualized Leadership

Exhibit 2.6 illustrates the development of research in this area:

 The first stage was the awareness of a relationship between a leader and
each individual rather than between a leader and a group of followers.
 The second stage examined specific attributes of the exchange relationship.
 The third stage explored whether leaders could intentionally develop
partnerships with each group member.

A. Vertical Dyad Linkage Model

The vertical dyad linkage model (VDL) argues for the importance of the dyad
formed by a leader with each member of the group. Initial findings indicated that
followers provided very different descriptions of the same leader. These high-
quality relationships might be characterized as high on both people and task
orientation.
 Based on these two extreme behavior patterns, subordinates were found to
exist in either an in-group or an out-group in relation to the leader.

Exhibit 2.7: Leader Behavior toward In-Group versus Out-Group Members

Exhibit 2.7 delineates the differences in leader behavior toward in-group versus
out-group members. Most of us who have had experience with any kind of group
recognize that some leaders may spend a disproportionate amount of time with
certain people and that these “insiders” are often highly trusted and may obtain
special privileges. In the terminology of the VDL model, these people would be
considered to participate in an in-group relationship with the leader, whereas
other members of the group who did not experience a sense of trust and extra
consideration would participate in an out-group relationship. In-group members,
those who rated the leader highly, had developed close relationships with the
leader and often became assistants who played key roles in the functioning of
the work unit. Out-group members were not key players in the work unit.

Discussion question #6: The vertical dyad linkage model suggests that followers
respond individually to the leader. If this is so, what advice would you give leaders
about displaying people-oriented versus task-oriented behavior?

B. Leader-Member Exchange

Stage two in the development of the individualized leadership theory explored

the leader-member exchange (LMX) in more detail, discovering that the
impact on outcomes depends on how the LMX process develops over time.
Studies evaluating characteristics of the LMX relationship explored such things
as communication frequency, value agreement, characteristics of followers, job
satisfaction, performance, job climate, and commitment.

Overall, studies have found that the quality of the LMX relationship is
substantially higher for in-group members. LMX theory proposes that this
higher-quality relationship will lead to higher performance and greater job
satisfaction for in-group members. For followers, a high-quality exchange
relationship may mean more interesting assignments, greater responsibility and
authority, and tangible rewards such as pay increases and promotions.
V. Entrepreneurial Traits and Behaviors

Entrepreneurship refers to initiating a business venture, organizing the necessary

resources, and assuming the associated risks and rewards. An entrepreneur
recognizes a viable idea for a business product or service and carries it out by
finding and assembling the necessary resources—money, people, machinery,
location—to undertake the business venture.

Entrepreneurial leaders display many of the same characteristics as other

leaders, but some traits are particularly important for entrepreneurs. These leaders
need strong drive, enthusiasm, and future vision. They tend to be persistent,
independent, and action oriented. They are drawn to new opportunities and are
more concerned with innovation, creativity, and creating new processes than with
maintaining the status quo. They are typically highly self-motivated and are willing
to stretch themselves and take risks for improvement.

These leaders take risks to create novel solutions to competitive challenges

confronting a business, especially the development or enhancement of products
and services. Entrepreneurial leadership is a source of innovation and change for
established companies.

Learnings and Insights

Leaders face challenges that go beyond any individual’s capabilities.

Therefore, the best leaders recognize and hone their strengths, while trusting and
collaborating with others to make up for their weak points. Becoming an effective
leader requires discovering one’s own unique strengths and capabilities and
learning how to make the most of them. Leaders should also learn about their weak
points so that they can rely on others to compensate for their weaknesses. For
example, a leader who struggles with managing his or her time effectively can get
assistance from a follower who excels in time-management. Many leaders are
hampered by the idea that they should be good at everything.

Other than that, there is also another way to define a leader that has strong
leadership. A characteristic of effective leaders is that they give a clear direction to
their employees, and also lead their employees to commit to their jobs and to work
as a group to achieve the organization’s goals and objectives. This also tells us
that good leaders usually have a clear vision for the company and therefore can
easily identify the problems and obstacles that currently stand between them and
the aims of the organization.
 Effective leadership plays an important role in managing a business in the
current business environment, for the old ways of business management are not
enough to sustain a company in the modern market. Although leadership and
management are two completely different systems, an organization might be
surprised to find that there is no one system that completely suits their needs, so
it advisable that they focus on the skills that are suitable for their organization.

Entrepreneurial leaders are important to an organization because they take

risks to create novel solutions to competitive challenges confronting a business,
especially the development or enhancement of products and services. Unlike other
leader roles, entrepreneurial leadership is a source of innovation and change for
established companies. Entrepreneurial leaders proactively pursue new
opportunities and translate new ideas into practice. Entrepreneurial leaders display
creativity, drive, enthusiasm, and future vision. They tend to be persistent and
independent. Entrepreneurial leaders are more concerned with innovation and
creating new processes than with maintaining the status quo.