BBA2102

Organization and Management

Lecture 12: Leadership in
Dynamic Era
Learning Outcomes

• Define leader and leadership.

• Compare and contrast early leadership theories.
• Describe the four major contingency leadership theories.
• Describe modern views of leadership and the issues
facing today’s leaders.
• Discuss trust as the essence of leadership.
 Leaders and Leadership

Leader Leadership
Someone who can influence The process of leading a
others and who has group and influencing that
managerial authority. group to achieve its goals.

Are all members leaders???

 Early Leadership Theories
Researchers began studying leadership in the early part of
the twentieth century and focused on the:
1. The person (Trait Theories)

2. The behaviors (Behavioral Theories of Leadership)

2.1. University of Iowa

2.2. Ohio State Studies
2.3. University of Michigan Study
2.4. Managerial Grid
1. Trait Theories of Leadership
• Theories that isolate characteristics (traits) that
differentiate leaders from nonleaders.
• Despite the best efforts of researchers, they have yet to
find a set of traits that would always differentiate a
leader (the person) from a nonleader.
Traits Associated with Leadership

Honesty and
Drive Desire to Lead
Integrity

Job-relevant
Self-confidence Intelligence
Knowledge

Proneness to
Extraversion
Guilt
2. Behavioral Theories of Leadership
• Theories that isolate behaviors that differentiate
effective leaders from ineffective leaders.
• If behavioral theories could identify critical behavioral
determinants of leadership, people could actually be
trained to be leaders.
• Predicting leadership success involves something more
complex than isolating a few leader traits or preferable
behaviors.
2.1. University of Iowa

Behavioral Dimensions

Democratic style: involving subordinates, delegating authority,

and encouraging participation.
Autocratic style: dictating work methods, centralizing decision
making, and limiting participation.
Laissez-faire style: giving group freedom to make decisions
and complete work.

Conclusion: Democratic style of leadership was most effective,

although later studies showed mixed results.
2.2. Ohio State Studies
Behavioral Dimension

Consideration: being considerate of followers’ ideas and

feelings.
Initiating structure: structuring work and work relationships to
meet job goals.

Conclusion: High–high leader (high in consideration and high in

initiating structure) achieved high subordinate performance and
satisfaction, but not in all situations.
2.3. University of Michigan Study

Behavioral Dimension

Employee oriented: emphasized interpersonal relationships and

taking care of employees’ needs.
Production oriented: emphasized technical or task aspects of
job.

Conclusion: Employee-oriented leaders were associated with

high group productivity and higher job satisfaction.
2.4. Managerial Grid

Behavioral Dimension

Concern for people: measured leader’s concern for

subordinates on a scale of 1 to 9 (low to high).
Concern for production: measured leader’s concern for getting
job done on a scale 1 to 9 (low to high).

Conclusion: Leaders performed best with a 9,9 style (high

concern for production and high concern for people).
Contingency Theories of Leadership

1. Fiedler 2. Situational
Contingency Model Leadership Theory

3. Leader-
4. Path-goal Theory
Participation Model
1. Fiedler Contingency Model
• Leadership theory proposing that effective group
performance depends on the proper match between a
leader’s style and the degree to which the situation allowed
the leader to control and influence.
• Least-preferred coworker (LPC) questionnaire: A questionnaire
that measures whether a leader was task or relationship
oriented.
Three Contingency Dimensions
• Fiedler’s research uncovered three contingency
dimensions that defined the key situational factors in
leader effectiveness as:

Leader-member relations: The degree of confidence, trust, and respect

employees had for their leader; rated as either good or poor.

Task structure: The degree to which job assignments were formalized

and structured; rated as either high or low.

Position power: The degree of influence a leader had over activities

such as hiring, firing, discipline, promotions, and salary increases; rated
as either strong or weak.
Fiedler’s Model
2. Situational Leadership
• A leadership contingency theory that focuses on
followers’ readiness.
• Readiness: The extent to which people have the ability
and willingness to accomplish a specific task.
Leadership Styles

Telling Selling Participating Delegating

(high task–low (high task–high (low task–high (low task–low
relationship) relationship) relationship) relationship)

•The leader •The leader •The leader and •The leader

defines roles and provides both followers share in provides little
tells people directive and decision making; direction or
what, how, supportive the main role of support.
when, and behavior. the leader is
where to do facilitating and
various tasks. communicating.
Four Stages of Readiness and Suitable Leadership Styles

R1 R2 R3 R4

•Both unable and •Unable but •Able but •Both able and
unwilling to take willing to do the unwilling to do willing to do
responsibility. necessary job what the leader what is asked of
•Followers are not tasks. wants. them.
competent or •Followers are •Followers are
confident. motivated but competent, but
lack the do not want to
appropriate skills. do something.

Telling Selling Participating Delegating

(high task–low (high task–high (low task–high (low task–low
relationship) relationship) relationship) relationship)
 3.Leader-Participation Model
• A leadership contingency theory that is based on a sequential
set of rules for determining how much participation a leader
uses in decision making according to different types of
situations.

Contingency Variables in the Revised Leader-Participation Model

1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make a good decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers over solution alternatives
8. Whether followers have the necessary information to make a good decision
9. Time constraints on the leader that may limit follower involvement
10. Whether costs to bring geographically dispersed members together are justified
11. Importance to the leader of minimizing the time it takes to make the decision
12. Importance of using participation as a tool for developing follower decision skills
4. Path-Goal Theory
• A leadership theory that says the leader’s job is to assist
followers in attaining their goals and to provide direction
or support needed to ensure that their goals are
compatible with the organization’s or group’s goals.
• Four leadership behaviors:
1. Directive leader
2. Supportive leader
3. Participative leader
4. Achievement-oriented leader
The Path-Goal Model
Contemporary Views of Leadership

2. Transactional
1. Leader-member Leaders Vs
Exchange Theory Transformational
Leaders

3. Charismatic
4. Leaders and
Leaders Vs
Teams
Visionary Leaders
1. Leader-Member Exchange Theory
• A leadership theory that says leaders create in-groups
and out-groups and those in the in-group will have higher
performance ratings, less turnover, and greater job
satisfaction.
2. Transactional vs. Transformational Leaders

Transactional Leaders
Lead primarily by using social exchanges (or
transactions).

Transformational Leaders
Stimulate and inspire (transform) followers to
achieve extraordinary outcomes.
3. Charismatic Leaders and Visionary Leadership
Charismatic leaders: Enthusiastic, self-confident leaders whose
personalities and actions influence people to behave in certain
ways.
Visionary leadership: The ability to create and articulate a
realistic, credible, and attractive vision of the future that improves
on the present situation.
4. Leaders and Teams
 Contemporary Issues in Leadership

Employee Empowerment National Culture

Emotional Intelligence Toxic Bosses

Employee Empowerment

• Managers are increasingly leading by not leading; that is,

by empowering their employees.
• Empowerment involves increasing the decision-making
discretion of workers.

Say What? Lead by NOT Leading

 National Culture and Leaderships

Arab leaders
Korean leaders Show kindness or Japanese leaders
generosity without
Paternalistic toward Humble and speak
being asked to do so
employees. frequently.
are seen by other
Arabs as weak.

Scandinavian German leaders

& Dutch leaders Malaysian Leaders High performance
orientation, low
Single out individuals Show compassion while
compassion, low self-
with public praise are using more of an
protection, low team
likely to embarrass, not autocratic than a
orientation, high
energize, those participative style.
autonomy, and high
individuals. participation.
Emotional Intelligence (EI)
• EI, more than any other single factor, is the best predictor of
who will emerge as a leader.
• While technical skills are necessary, they are not sufficient for
leadership.
• Possession of the five components of emotional intelligence—
self-awareness, self-management, self-motivation, empathy,
and social skills—allows an individual to become a star
performer.

Becoming a STAR ★ leader

 Trust in Leadership

• Credibility: The degree to which followers perceive someone

as honest, competent, and able to inspire.
• Trust: The belief in the integrity, character, and ability of a
leader.
• Research has identified five dimensions that make up the
concept of trust:
1. Integrity
2. Competence
3. Consistency
4. Loyalty
5. Openness
Building Trust in Leadership

Practice Speak your

Be fair
openness feelings

Fulfill your
Tell the truth Be consistent
promises

Maintain Demonstrate
confidences confidence
End of Lecture 12…