CHAPTER 7:

LEADERSHIP
Human Behavior in the Organization
 Objectives

• Define leadership and distinguish between leadership and management.

• Describe the trait approach to leadership.
• Identify the types of behavior that have been most strongly associated with effective
leadership.
• Describe the leader-member exchange model of leadership.
• Differentiate between charismatic leaders and transformational leaders.
• Explain how leading teams differs from leading individuals.
• Describe the basic tenets of LPC contingency theory and how it may be applied.
• Explain the path-goal theory of leadership.
• Describe situational leadership theory.
What is Leadership
Formally, we define leadership as the process
by which an individual influences others in
ways that help attain group or organizational
goals.
 According to
Perry, 2020
An effective leader has a shared vision aligned
with core values and understands what it
will take to reach their team goals. They
inspire, manage, and support their teams to
work creatively and confidently toward that
shared vision.
 The sources of leader power are:

Legitimate
power Reward power Coercive power

Expert power Information Referent power

power
 The skills leaders need include:

Human Conceptualizatio
Communicatio
Flexibility resource n
n
management
 The trait Approach: Are some people really
“BORN LEADERS”?

Common sense leads us to think that some people have

more of "the right stuff' than others, and are just
naturally better leaders. And, if you look at some of the
great leaders throughout history, such as Martin Luther
King, Jr., Alexander the Great, and Abraham Lincoln, to
name just a few, it is clear that such individuals
certainly have characteristics in common that differ
from ordinary folks. The question is "what is it that
makes great leaders so great?”
For years, scientists have explored the idea of
the "great person theory," which asserts that
exceptional leaders possess distinct, unchanging
traits that differentiate them from others.
According to this theory, these traits are
consistent across various contexts and time
periods. However, research findings have not
consistently supported this theory. Some
scientists argue that leaders do not consistently
differ from followers in clear ways, challenging
the notion of universally stable leadership traits.
 Skills of a good leader

DRIVE Leadership motivation

Desire for achievement; Honesty & Integrity Desire to exercise influence
ambition; high energy; Trustworthy; reliable; open over others to reach
tenacity; initiative shared goals

Cognitive ability
Flexibility Intelligence; ability to Knowledge of the
Ability to adapt to needs integrate and interpret business
of followers and large amounts of
Knowledge of industry,
requirements of situation relevant technical matters
Information

Self-confidence Creativity
Originality
Trust in own abilities
 The behavior approach: What do leaders do?

The great person theory implies that effective leadership is an

inherent trait in certain individuals. In contrast, the behavior
approach suggests that anyone can become an effective leader
by adopting the behaviors of successful leaders. This approach
focuses on actions rather than inherent traits, offering hope to
those aspiring to leadership positions.
 Two Critical Leadership Behaviors

The first is showing a concern for people, also The second main type of leadership behavior is
known as consideration. In describing your showing a concern for getting the job done, also
boss, would you say that he or she cares about known as initiating structure. In describing your
you as a person, is friendly, and listens to you boss, would you say that he or she gives you
when you want to talk? If so, he or she may advice, answers your questions, and lets you know
be said to demonstrate a high degree of exactly what is expected of you? If so, he or she
consideration. may be said to have a bent for initiating structure.
 LEADERS AND FOLLOWERS

Thus far we have focused on leaders, ignoring followers.

However, to understand leadership, we must understand
leaders' relations with followers. After all, "Without
followers, leaders cannot lead.” Without followers, even
John Wayne becomes a solitary hero. The importance of
followers, and the complex, reciprocal relationship between
leaders and followers, is widely recognized by
organizational researchers.
Several Major Approaches
to Leadership take this
Approach
The Leader-Member Exchange (LMX) Model: The
Importance of Being in the “In-Group”

The theory suggests that leaders develop different relationships

with their subordinates, creating two distinct groups: the "in-group"
and the "out-group." The in-group receives more attention and
resources from the leader, while the out-group receives fewer
resources and is less favored. Leaders make these distinctions early
in their relationships, often based on limited information, such as
perceived similarity in personal characteristics or a follower's
perceived competence in their role.
Charismatic Leaders: That “Something Special”

World history and the history of organizations are

replete with leaders that have had extraordinary
success in generating profound changes in their
followers. Indeed, it is not extreme to suggest that
some such people (e.g., Napoleon, Bill Gates, and
John Lennon, to name a few) have changed entire
societies through their words and actions. Individuals
who accomplish such feats have been referred to as
charismatic leaders. These are individuals who exert
especially powerful effects on followers by virtue of
their commanding confidence and clearly articulated
visions.
 Characteristic of Charismatic Leader
Self-confidence Vision
1 Charismatic leaders are highly confident
2 A leader is said to have vision to the extent that he or
she proposes a state of affairs that improves upon the
in their ability and judgment. Others status quo. He or she also must be able to clearly
readily become aware of this. articulate that vision, and to show willingness to make
sacrifices to make it come true

Extraordinary behavior Recognized as change agents

3 Charismatic leaders are frequently 4 The status quo is the enemy of
unconventional. Their quirky ways, charismatic leaders. They make
when successful, elicit admiration. things happen.

Environmental sensitivity
5 Charismatic leaders are highly realistic about the constraints
imposed upon them and the resources needed to change things.
Consequently, they know what they can and cannot do.
 Transformational leadership: Beyond Charisma

A transformational leader is a catalyst for change,

inspiring individuals in an organization to achieve
beyond their perceived limits. This leadership style
focuses on vision, personal development, empowerment,
and challenging established norms. Transformational
leaders possess charisma, motivate others, stimulate
intellectual growth, and offer individualized attention to
their workers.
 Leading Teams: Special Considerations

Traditional leadership involves making strategic

decisions that followers implement. In modern self-
managed teams, leaders are less about giving orders
and more about providing resources. Team leaders
empower groups to execute their own missions
autonomously. They facilitate and support,
encouraging subordinates to take responsibility for
their work rather than dictating every action.
 Guidelines to
Achieve Success
 "if it ain't broke, don't fix it"

Team leaders prioritize trust and

teamwork over direct orders. They foster
interaction within the team, as well as
with customers and suppliers. Taking
proactive steps for improvement, rather
than a reactive approach, is key.
Effective leaders set examples for
enhancing the team's quality, driving the
team toward success.
 “Expand”

Effective team leaders go beyond individual

training and aim to enhance the overall
team's capabilities. They primarily act as
coaches, equipping team members with
necessary skills, eliminating obstacles, and
securing resources for task completion.
Additionally, they focus on building the
confidence and unlocking the potential of
team members.
“Team Identity”
Instead of managing one-on-one, team
leaders attempt to create a team identity. In
other words, leaders must help teams
understand their missions and recognize
what they're doing to help fulfil it. In this
connection, team leaders may help the
group set goals - pointing out ways they
may adjust their performance when they do
not meet them, and planning celebrations
when team goals are attained.
 “Diverse”
Traditional leaders often mitigate conflict by
minimizing differences among individuals,
while team leaders are encouraged to embrace
and utilize these differences. The challenge lies
in transforming a diverse group into a highly
committed and productive team. This can be
achieved by fostering respect for various
perspectives, encouraging open
communication, and respecting and valuing the
ideas presented by all team members.
“Adaptability”

Team leaders are proactive in foreseeing and

influencing change, unlike traditional leaders who
react to it. They understand the inevitability of
change and prepare their teams to adapt effectively.
Effective team leaders continuously monitor the
business environment, anticipate potential changes,
and guide their teams in how to respond to these
changes efficiently.
 Contingency Theories of Leader Effecetiveness

Attributes of the
leader
“In a 1995 paper, Roya Ayman,
Martin M. Chemers, and Fred
Fiedler write that two main factors
contribute to effective leadership:” The degree to which
the situation gives
- Shonk, 2023 (Harvard Law School) the leader power,
control, & influence
 Contingency Theories of Leader Efecetiveness

Leadership is influenced by two main factors—the characteristics of the

individuals involved, and the nature of the situations they face. This basic
point lies at the heart of several approaches to leadership known as
contingency theories of leader effectiveness. According to this approach,
there is no one best style of leadership. Instead, they suggest that certain
leadership styles may prove most effective under certain conditions.
 Fiedler’s Contingency Theory:
Matching Leaders and Tasks

Fiedler’s Contingency Theory defines that no one possess the great style of
leadership. It depends on the capabilities/styles of the leader how the leader
can match the environment.
Three Factors
Relationship
The nature of the leader's relations with group members
(the extent to which he or she enjoys their support and
loyalty)

Performance
The degree of structure in the task being performed
(the extent to which task goals and subordinates' roles
are clearly defined)

Authority
The leader's position power
 LPC Contingency Model

Least-Preferred Co-worker
(LPC) model was developed by
Fiedler. Fiedler believe that
leadership style match certain
situation and measurable.
 Applying LPC Contingency Theory

LPC utilize to determine and suggest different

technique and ways to enhance leaders’ effectiveness.
As the lesson stated and Fiedler highlight that the
leader are effective in specific situations.
 Path Goal Theory: Leaders as Guides to
Valued Goals

“The theory was developed by professor Robert J. House and published

in Administrative Science Quarterly in 1971 and later updated in Leadership
Quarterly in 1996. The path-goal theory, also known as the path-goal of
leadership effectiveness, defines the success of a leader by their ability to
promote the goals, abilities, and overall satisfaction of their employees. This
theory prizes flexibility, and path goal leaders change their approach to meet
the diverse follower characteristics of subordinates.”

- Master Class, 2022

 Four Basic Styles
Instrumental Supportive
focused on providing focused on establishing
specific guidance, 1 good relations with
establishing work schedules subordinates and
and rules. 4 2 satisfying their needs.

Achievement-oriented Participativ
3
e
a pattern in which the leader a pattern in which the leader
consults with subordinates, consults with subordinates,
permitting them to participate in permitting them to
decision making. participate in decision
making.
 Situational Leadership Theory:
Adjusting Leadership Style on the Situation

Considered as a contingency theory where it

is focus the fittest style of the leadership to a
particular situation. Developed by Hersey and
Blanchard argues that leaders are effective
when they select the right leadership style for
the situation they face. Essentially, this
depends on the maturity of followers, or, their
readiness to take responsibility for their own
behavior.
 Two variables under Situational Leadership

Task Relationship
Behavior Behavior
the degree to which
the degree to which
followers have the
followers are willing to
appropriate job
work without taking
knowledge and skills
direction from others
 The Vroom and Yetton Model:
Determining the level of Subordinate Participation
in Decision Making

It is stating that leaders should involve the subordinates to participate the

decision making and problem solving. It intends to enhance and develop
the leadership skills of the leader by considering the participation of the
subordinates. In this model, the leader would examine the need for
subordinate involvement, how much involvement, and who to involve.
Who are you as
a Leader?
Does anyone have any questions?
Feel free to read the module for better
understanding.

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