Leadership Behaviors::

Early Leadership Theories

Contingency Theories

Emerging Approaches To Leadership

Contemporary Issues in Leadership in the 21st Century

LEARNING OUTLINE

Who Are Leaders and What Is Leadership

• Define leaders and leadership.
• Explain why managers should be leaders.

Early Leadership Theories

• Discuss what research has shown about leadership traits.
• Contrast the findings of the four behavioral leadership
theories.
• Explain the dual nature of a leader’s behavior.

17–2
Contingency Theories of Leadership
• Explain how Fiedler’s theory of leadership is a contingency
model.
• Contrast situational leadership theory and the leader
participation model.
• Discuss how path-goal theory explains leadership.

Emerging Approaches To Leadership

• Differentiate between transactional and transformational
leaders.
• Describe charismatic and visionary leadership.
• Discuss what team leadership involves.

Leadership Issues in the Twenty-First Century

• Tell the five sources of a leader’s power.
• Discuss the issues today’s leaders face.
• Explain why leadership is sometimes irrelevant.
17–3
Leaders and Leadership
• Leader – Someone who can influence others and who has
managerial authority
• Leadership – What leaders do; the process of influencing a
group to achieve goals
• Ideally, all managers should be leaders
• Although groups may have informal leaders who emerge,
those are not the leaders we’re studying

Leadership research has tried to answer: What is an effective

leader?
 Early Leadership Theories

• Trait Theories (1920s-30s)

 Research focused on identifying personal
characteristics that differentiated leaders from
nonleaders was unsuccessful.
 Later research on the leadership process identified
seven traits associated with successful leadership:
 Drive,
the desire to lead, honesty and integrity, self-
confidence, intelligence, job-relevant knowledge,
and extraversion.
Exhibit : Seven Traits Associated with Leadership
 Behavioural theories:

• Three Approaches to Behavioural studies:

1.Studies based on Leadership styles

2.Studies based on leadership Dimensions, and
3.Studies based on Leadership Grid

© 2007 Prentice Hall, Inc. All rights reserved. 17–7

Exhibit : Behavioral Theories of Leadership
Exhibit : Behavioral Theories of Leadership
• 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

 Lewin and his lowa associates wondered which of these 3 leadership

styles was the most effective.

 Research findings: mixed results

– No specific style was consistently better for producing better
performance
– Employees were more satisfied under a democratic leader than an
autocratic leader.
Tannenbaum and Schmidt Continuum of leader Behavior
• Behavioral Theories (cont’d)
 Ohio State Studies
 Identified two dimensions of leader behavior
– Initiating structure: the role of the leader in defining his
or her role and the roles of group members
– Consideration: the leader’s mutual trust and respect for
group members’ ideas and feelings.
 Research findings: mixed results
– High-high leaders generally, but not always, achieved high
group task performance and satisfaction.
– Evidence indicated that situational factors appeared to
strongly influence leadership effectiveness.
• Behavioral Theories (cont’d)
 University of Michigan Studies
 Identified two dimensions of leader behavior
– Employee oriented: emphasizing personal relationships
– Production oriented: emphasizing task accomplishment

 Research findings:
– Leaders who are employee oriented are strongly associated
with high group productivity and high job satisfaction.
The Managerial Grid
 Appraises leadership styles using two dimensions:
 Concern for people
 Concern for production
 Places managerial styles in five categories:
 Impoverished management
 Task management
 Middle-of-the-road management
 Country club management
 Team management
Exhibit :
The
Managerial
Grid
Contingency Theories of Leadership
• The Fiedler Model
 Proposes that effective group performance depends
upon the proper match between the leader’s style of
interacting with followers and the degree to which the
situation allows the leader to control and influence.
 Assumptions:
 A certain leadership style should be most effective
in different types of situations.
 Leaders do not readily change leadership styles.
– Matching the leader to the situation or changing the
situation to make it favorable to the leader is required.
Least-preferred co-worker (LPC) questionnaire
 Determines leadership style by measuring responses to 18 pairs of
contrasting adjectives.
– High score: a relationship-oriented leadership style
– Low score: a task-oriented leadership style
Situational factors in matching leader to the
situation: According to Fiedler, a leader’s behavior is dependent
upon the favorability of the leadership situation. Three factors work
together to determine how favorable a situation is to a leader. These
are:
 Leader-member relations -- the degree of confidence, trust and respect
subordinates have for their leader; rated as either good / bad.
 Task structure -- the degree to which the job assignments are formalized and
procedurised; rated as either high / low.
 Position power -- the degree of influence a leader has over power-based
activity such as hiring, firing, discipline, promotions and salary increases; rated as
either strong / weak.
 Fielder’s Least Preferred Co-worker Scale

Unfriendly 1 2 3 4 5 6 7 8 Friendly
Unpleasant 1 2 3 4 5 6 7 8 Pleasant
Rejecting 1 2 3 4 5 6 7 8 Accepting
Tense 1 2 3 4 5 6 7 8 Relaxed
Cold 1 2 3 4 5 6 7 8 Warm
Boring 1 2 3 4 5 6 7 8 Interesting
Backbiting 1 2 3 4 5 6 7 8 Loyal
Uncooperative 1 2 3 4 5 6 7 8 Cooperative
Hostile 1 2 3 4 5 6 7 8 Supportive
Guarded 1 2 3 4 5 6 7 8 Open
Insincere 1 2 3 4 5 6 7 8 Sincere
Unkind 1 2 3 4 5 6 7 8 Kind
Inconsiderate 1 2 3 4 5 6 7 8 Considerate
Untrustworthy 1 2 3 4 5 6 7 8 Trustworthy
Gloomy 1 2 3 4 5 6 7 8 Cheerful
Quarrelsome 1 2 3 4 5 6 7 8 Harmonious
Exhibit : Findings of the Fiedler Model
• Hersey and Blanchard’s Situational
Leadership Theory (SLT)
 Argues that successful leadership is achieved by selecting
the right leadership style which is contingent on the level of
the followers’ readiness.

 Acceptance: leadership effectiveness depends on

whether followers accept or reject a leader.

 Readiness: the extent to which followers have the ability

and willingness to accomplish a specific task.

 Leaders must relinquish control over and contact with

followers as they become more competent.
 Creates four specific leadership styles incorporating
Fiedler’s two leadership dimensions:
 Directing /Telling: (high task-low relationship leadership) : the leader defines
the roles and tells people what, how, when and where to do various tasks.

 Coaching /Selling: (high task-high relationship leadership) : the leader

provides both directive behaviour and supportive behaviour.

 Supporting /Participating: (low task-high relationship leadership) : the

leader and follower share in decision-making ; the main role of the leader is
facilitating and communicating.

 Delegating: (low task-low relationship leadership) : the leader provides little

direction or support.
 The final component in Hersey and
Blanchard’s theory is defining four
stages follower readiness:
 R1: Unable and Insecure or Unwilling –
Follower is unable and insecure and lacks
confidence or the follower lacks
commitment and motivation to complete
tasks.

 R2: Unable but Confident or Willing –

Follower is unable to complete tasks but
has the confidence as long as the leader
provides guidance or the follower lacks the
ability but is motivated and making an
effort.

 R3: Able but Insecure or Unwilling –

Follower has the ability to complete tasks
but is apprehensive about doing it alone or
the follower is not willing to use that ability.

 R4: Able and Confident and Willing –

Follower has the ability to perform and is
confident about doing so and is committed.
• Leader Participation Model (Victor Vroom and Phillip Yetton)
 Posits that leader behavior must be adjusted to reflect the task structure—whether it is
routine, non-routine, or in between—based on a sequential set of rules (contingencies)
for determining the form and amount of follower participation in decision making in a
given situation.
1. Leadership Styles in the Vroom Leader Participation Model
2. Leader Participation Model Contingencies/ Situation time driver decision model and
followers development driven decision model
2) Leader Participation Model Contingencies:
 Decision significance
 Importance of commitment
 Leader expertise
 Likelihood of commitment
 Group support
 Group expertise
 Team competence
Exhibit : 1) Leadership Styles in the Vroom Leader Participation Model

• Decide: Leader makes the decision alone and either announces or

sells it to group.
• Consult Individually: Leader presents the problem to group
members individually, gets their suggestions, and then makes the
decision.
• Consult Group: Leader presents the problem to group members in
a meeting, gets their suggestions, and then makes the decision.
• Facilitate: Leader presents the problem to the group in a meeting
and, acting as facilitator, defines the problem and the boundaries
within which a decision must be made.
• Delegate: Leader permits the group to make the decision within
prescribed limits.
Exhibit :
Time-Driven
Model
• Path-Goal Model
 States that “the leader’s job is to assist his or her followers in
attaining their goals and to provide direction or support to ensure their
goals are compatible with organizational goals.”
 Leaders assume different leadership styles at different times
depending on the situation:
1) Directive Leadership: The leader explains the performance goal and provides
specific rules and regulations to guide subordinates toward achieving it.

2) Supportive Leadership: The leader displays personal concern for

subordinates. This includes being friendly to subordinates and sensitive to their
needs.

3) Participative Leadership: The leader consults with subordinates about work,

task goals, and paths to resolve goals. This leadership style involves sharing
information as well as consulting with subordinates before making decisions.

4) Achievement-oriented Leadership: The leader emphasises the

achievement of difficult tasks and the importance of excellent performance and
simultaneously displays confidence that subordinates will perform well.
• Path-goal theory assumes that leaders are flexible and that they can
change their style, as situations require.
• The theory proposes two contingency variables, such as environment and
follower characteristics, that moderate the leader behavior-outcome
relationship.
 Environment is outside the control of the follower-task structure, authority
system, and work group.
 Environmental factors determine the type of leader behavior required if the
follower outcomes are to be maximized.
 Follower characteristics are the locus of control, experience, and perceived
ability.
 Personal characteristics of subordinates determine how the environment and
leader are interpreted.
 Effective leaders clarify the path to help their followers achieve goals and make
the journey easier by reducing roadblocks and pitfalls.
 Research demonstrates that employee performance and satisfaction are
positively influenced when the leader compensates for the shortcomings in either
the employee or the work setting.
• In contrast to the Fiedler contingency model, the path-goal model states that
the four leadership styles are fluid, and that leaders can adopt any of the
four depending on what the situation demands.
Exhibit: Path-Goal Theory
Emerging approaches to Leadership
• Transactional Leadership
 Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and
task requirements.
• Transformational Leadership
 Leaders who inspire followers to transcend their own
self-interests for the good of the organization by
clarifying role and task requirements.
 Leaders who also are capable of having a profound
and extraordinary effect on their followers.
 Transactional vs Transformational leaders
Characteristics of Transactional and transformational leaders
Transactional Leaders
• Contingent Reward: Contracts exchange of rewards for effort, promises rewards for
good performance, recognizes accomplishment
• Management by exception (active): Watches and searches for deviations from rules
and standards, takes corrective action.
• Management by exception (passive): Intervenes only if standards are not met
• Laissez faire: Abdicates responsibilities, avoids making decisions

Transformational Leaders
• Charisma : Provides vision and sense of mission, instills pride, gains respect trust.
• Inspiration: Communicates high expectations, uses symbols to focus efforts,
expresses important purposes in simple ways.
• Intellectual Stimulations: Promotes intelligence, rationality, and careful problem
solving.
• Individualized consideration: Gives personal attention, treats each employee
individually, coaches, advises.
Transformational Leadership

• The transformational leader influences the group

by transforming the group

 giving it a new vision

 energizing the culture

 giving the group a new structure

Transformational Leadership

• Peter Senge’s rules in

transformational
leadership

 Build a shared vision

 Challenge existing ways

of thinking

 Be a system thinker
Transformational Leadership

• The transformational
leader is unique
because of the ability
to paint a picture of the
future for the group
members
Transformational Leadership

• Establish quality
interpersonal relationships
with each other
- Provide inspiration
- Motivation
- Intellectual
stimulation
•Charismatic Leadership
 An enthusiastic, self-confident leader whose
personality and actions influence people to behave in
certain ways.
 Characteristics of charismatic leaders:
 Have a vision.
 Are able to articulate the vision.
 Are willing to take risks to achieve the vision.
 Aresensitive to the environment and follower
needs.
 Exhibit behaviors that are out of the ordinary.
• Visionary Leadership
 A leader who creates and articulates a realistic,
credible, and attractive vision of the future that
improves upon the present situation.

 Visionary leaders have the ability to:

– Explain the vision to others.
– Express the vision not just verbally but through behavior.
– Extend or apply the vision to different leadership contexts.
• Team Leadership Characteristics
 Having patience to share information
 Being able to trust others and to give up authority
 Understanding when to intervene

 Team Leader’s Job

– Managing the team’s external boundary
– Facilitating the team process
• Coaching, facilitating, handling disciplinary problems,
reviewing team and individual performance, training, and
communication
Exhibit : Specific Team Leadership Roles
 Contemporary Issues in Leadership in the
21st Century
 Reward power
1. Leaders and Power:  The power to give positive
benefits or rewards.
• Managing Power
 Expert power
 Legitimate power  The influence a leader can
 The power a leader has as a exert as a result of his or
result of his or her position. her expertise, skills, or
knowledge.
 Coercive power
 The power a leader has to  Referent power
punish or control.  The power of a leader that
arise because of a person’s
desirable resources or
admired personal traits.
2. Developing Credibility and Trust
• Credibility (of a Leader)
 The assessment of a leader’s honesty, competence,
and ability to inspire by his or her followers
• Trust
 Is the belief of followers and others in the integrity,
character, and ability of a leader.
 Dimensions of trust: integrity, competence,
consistency, loyalty, and openness.
 Is related to increases in job performance,
organizational citizenship behaviors, job satisfaction,
and organization commitment.
Exhibit: Suggestions for Building Trust

Practice openness.
Be fair.
Speak your feelings.
Tell the truth.
Show consistency.
Fulfill your promises.
Maintain confidences.
Demonstrate competence.
3. Providing Ethical Leadership
• Ethics are part of leadership when leaders
attempt to:
 Foster moral virtue through changes in attitudes and
behaviors.
 Use their charisma in socially constructive ways.
 Promote ethical behavior by exhibiting their personal
traits of honesty and integrity.
• Moral Leadership
 Involves addressing the means that a leader uses to
achieve goals as well as the moral content of those
goals.
4. Empowering Employees
 Empowerment: Involves increasing the decision-
making discretion of workers such that teams can
make key operating decisions in develop budgets,
scheduling workloads, controlling inventories, and
solving quality problems.

 Why empower employees?

 Quicker responses problems and faster decisions.
 Addresses the problem of increased spans of control in relieving
managers to work on other problems.
5. Cross-Cultural Leadership
• Universal Elements of
Effective Leadership
 Vision
 Foresight
 Providing encouragement
 Trustworthiness
 Dynamism
 Positiveness
 Proactiveness
Exhibit: Selected Cross-Cultural Leadership Findings

• Korean leaders are expected to be paternalistic toward employees.

• Arab leaders who show kindness or generosity without being
asked to do so are seen by other Arabs as weak.
• Japanese leaders are expected to be humble and speak frequently.
• Scandinavian and Dutch leaders who single out individuals with
public praise are likely to embarrass, not energize, those
individuals.
• Effective leaders in Malaysia are expected to show compassion
while using more of an autocratic than a participative style.
• Effective German leaders are characterized by high performance
orientation, low compassion, low self-protection, low team
orientation, high autonomy, and high participation.
 6. Gender Differences and Leadership
• Research Findings:
 Males and females use different styles:
 Women tend to adopt a more democratic or participative style unless in a male-
dominated job.
 Women tend to use transformational leadership.
 Men tend to use transactional leadership.
Exhibit : Where Female Managers Do Better: A Scorecard
7. Basics of Leadership
 Give people a reason to come to work.

 Be loyal to the organization’s people

 Spend time with people who do the real work of the

organization.

 Be more open and more candid about what business

practices are acceptable and proper and how the
unacceptable ones should be fixed.
8. Leadership Can Be Irrelevant!
 Substitutes for Leadership
 Follower characteristics
– Experience, training, professional orientation, or the need
for independence

 Job characteristics
– Routine, unambiguous, and satisfying jobs

 Organization characteristics
– Explicit formalized goals, rigid rules and procedures, or
cohesive work groups
 Terms to Know
• leader • readiness
• leadership • leader participation model
• behavioral theories • path-goal theory
• autocratic style • transactional leaders
• democratic style • transformational leaders
• laissez-faire style • charismatic leader
• initiating structure • visionary leadership
• consideration • legitimate power
• high-high leader • coercive power
• managerial grid • reward power
• Fiedler contingency model
• expert power
• least-preferred co-worker (LPC)
• referent power
questionnaire
• leader-member relations
• credibility
• task structure • trust
• position power • empowerment
• situational leadership theory (SLT)