CHAPTER FOUR

MANAGERS AS A LEADER
I am more afraid of an army of 100 sheep led
by a lion than an army of 100 lions led by a
sheep.

Talleyrand
 Who are leaders and what is Leadership?
 Leadership is the process by which a person exerts influence over other
people and inspires, motivates, and directs their activities to help achieve
group or organizational goals.
 When leaders are effective, the influence they exert over others helps a
group or organization achieve its performance goals.
 When leaders are ineffective, their influence does not contribute to, and
often detracts from, goal attainment.
 Leader is one who knows the way, goes the way, and shows the way
 L= f (L, F, S)

Where
L -Leadership
F- The Function of
L- Leader,
F- Followers
S - Situation

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Leadership Theories
Great Man- Behavioral
Theory Theory

Trait
Theory Contingency
Theory
Early leadership theories
1. Great mana Theory
• Great leaders are born, not made
 Great leaders are born with internal characteristics such as
 Charisma
 Confidence
 Intelligence, and Social skills
 Great man” theories (Gandhi, Lincoln, Napoleon) born with traits.
 2 TRAIT THEORIES(1920-1930)
• Identified seven characteristics of leader Leadership Traits:
• Sought to identify, personality, social,
physical, or intellectual traits to differentiate
leaders from non-leaders. 1. Ambition and energy
2. The desire to lead
3. Honest and integrity
4. Self confidence
5. Intelligence
6. Job relevant knowledge
7. Extraversion
3. Behavioral Theories(1940-1960)
 Theories proposing that specific behaviors differentiate leaders form non
leaders.

TRAIT THEORY
Leaders are born, not made

BEHAVIORAL THEORY
Leadership traits can be taught.
 Categories of Behavioral Theories
1.University of Iowa Studies
2.Ohio State Studies
3.University of Michigan Studies
1. University of Iowa Studies
 Identified three leadership styles:
1. Autocratic style: centralized authority, low participation and unilateral decisions
2. Democratic style: involvement, high participation, feedback
3. Laissez faire style: hands-off management
 Research findings: Mixed results
1. No specific style was consistently better for producing better performance.
2. Employees were more satisfied under a democratic leader than under an autocratic
leader.
 2. University of Michigan Studies

Identified two dimensions of leader behavior:

1. Employee oriented: Emphasizing personal relationships
Focused on people and their personal success
2. Production oriented: Emphasizing task accomplishment
• Task focused
• Little concern for people
• Close supervision
3. THE OHIO STATE STUDIES

1. Initiating structure- a leader defined his or her role and the roles of
group members in attaining goals.
 Task-oriented
• Make individual task assignments
• Set deadlines
2. Consideration (people-oriented)

• Concern for members of their group

• Empathic and interpersonally warm
• Accept and carry out suggestions
• THE MANAGERIAL GRID.
• Appraises leadership styles using two dimensions:
1. Concern for people
2. Concern for production
Places managerial styles in five categories:
1. Impoverished management (low concern for production, low
concern for people)
2. Task management (high concern for production, low concern for
people)
3. Middle-of-the-road management ( medium concern for production,
medium concern for people)
4. Country club management (low concern for production, high
concern for people)
5. Team management ( high concern for production, high concern for
people)
• Three contingency theories are:
1. Fiedler Model
2. Hersey-Blanchard
3. Path-goal
1. The Fiedler Model
Proposes that effective group performance depends upon the
proper match between the
1. Leader’s style of interacting with followers
2. Degree to which the situation allows the leader to control
and influence.
2. Situational Leadership Theory (SLT)
• Hersey and Blanchard’s Situational Leadership
– Argues that successful leadership is achieved by selecting
 Right leadership style which is contingent on the level of the followers’
readiness

• Why a leadership theory focuses on the followers, and what is

meant by the term readiness.
1. Acceptance: leadership effectiveness depends on whether followers
accept or reject a leader
2. The extent to which followers have the ability and willingness to
accomplish a specific task
3- Path-Goal Model
• States that the leader’s job is to assist his or her followers in attaining
their goals
• Provide direction or support to ensure that their goals are
compatible with those of the organization
• Depending on the situation, leaders assume different leadership styles
at different times:
1. Directive leader
2. Supportive leader
3. Participative leader
4. Achievement oriented leader
• Path-goal theory proposes two situational or contingency variables that moderate the
leadership behavior–outcome relationship
1. Environmental contingency factors
2. Subordinate contingency factors
Path-Goal Model
Contemporary Views of leadership
• The latest views of leadership-
1- Leader–member exchange theory (LMX)
2- Transformational-transactional leadership
3- Charismatic -visionary Leadership
4- Team leadership
1. Leader–member exchange theory

• Stated that leaders create in-groups and outgroups

• Those in the in-group will have higher performance ratings, less turnover,
and greater job satisfaction.
Role of in-group follower
• Work hard
• Be loyal
• Support the leader
• Work beyond their formally prescribed job duties
• Increase their commitment to their goals
• High performance, high satisfaction and low stress levels.
• Positive work relationship may extend to social networks.
Role of out groups
• Leader perceive out groups as less motivated and less competent
• Leader interact with them less
• Provide them with few opportunities to perform
• Promotes them less
• Out groups normally perform poorly and experience more stress.
• They file for grievances more often, are more likely to take the retaliatory actions
against the organisation.
WEAKNESSES OF THE THEORY
• It supports the development of privileged groups thus
promoting inequality.
• Input from out groups is not recognised.
• It demotivates members in the out group which may lead high
turnover.
2.Transactional -Transformational leadership
Transactional leadership style
 Leaders lead primarily by using social exchanges (or transactions).

 Use reward and punishment as a form of motivational medium.

• Transformational leader—stimulates and inspires (transforms) followers to achieve
extraordinary outcomes
• Inspire and energize subordinates to solve problems and improve performance.
Based on
1. Idealized influence- role model
2. Inspirational motivation- Inspire followers
3. Individual consideration- genuine concern for the people
4. Intellectual simulation- innovative and creative
Transactional Vs. Transformational Leaders
Transactional leadership  Transformational Leadership

• Leadership is responsive. • Leadership is proactive.

• Works within the organizational • Work to change the organizational

culture by implementing new ideas
culture.
• Transformational leaders motivate
and empower employees to achieve
• Transactional leaders make employees company’s objectives by appealing
achieve organizational objectives to higher ideals and moral values
through rewards and punishment. • Motivates followers by encouraging
them to transcend their own interests
• Motivates followers by appealing to for those of the group or unit
their own self-interest.

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3- Charismatic -visionary Leadership
 Charismatic Leadership
 Charisma in Greek word-Divinenly inspired gift
• 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
Are sensitive 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
The D/c between charismatic and Visionary leader

Charismatic leadership Visionary leadership

Reactive Proactive and strategic
Often rely heavily on their personal visionary leaders focus more on inspiring
charisma to get things done others with their vision
More concerned with the here and now visionary leaders are more focused on the
long-term.
With charismatic leaders, the ―glue‖ is the visionary leaders, the ―glue‖ is the shared
force of their personality and their own vision
personal vision
4- Team leadership.
 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
1. Managing the team’s external boundary
2. Facilitating the team process: Includes:
• Coaching,
• Facilitating,
• Handling disciplinary problems
• Reviewing team and individual performance
• Training, and communication
Team Leadership Roles
Thank You!