This chapter discusses leadership philosophy and styles. It explains that a leader's philosophy is based on assumptions about human nature and work, such as Theory X and Theory Y. Theory X assumes people dislike work while Theory Y assumes work can be natural. The chapter also examines three common leadership styles: authoritarian, democratic, and laissez-faire, and discusses their implications and outcomes. It emphasizes that understanding one's own philosophy and how it influences leadership style is important for becoming a competent leader.

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Chapter 4:Chapter 4:
Understanding Philosophy andUnderstanding Philosophy and
StylesStyles

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Chapter Objectives
• Discuss the formation of a person’s
philosophy of leadership.
• Differentiate between Theory X and Theory Y
of leadership.
• Examine the most commonly observed styles
of leadership
– Authoritarian
– Democratic
– Laissez-faire

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• Are people basically good?
• Is doing work as natural as play?
• Are you an in-charge type of a leader
or a laid-back one?
Discussion Questions

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• Fundamental question of human behavior:
Do people like work or do they try to avoid
it?
• Douglas McGregor believed managers
had two views of human nature with very
different assumptions:
o Theory X
o Theory Y
Leadership Philosophy Explained

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1. People dislike work & will try to
avoid it.
2. People need to be directed &
controlled.
3. People want security, not
responsibility.
Assumptions of Theory X
What implications does Theory X
have for leaders & organizations?

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1. People don’t inherently dislike work;
doing work is as natural as play.
2. People will show responsibility & self-
control toward goals to which they are
committed.
3. People accept & seek responsibility.
Assumptions of Theory Y
What implications does Theory Y
have for leaders & organizations?

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• Lewin, Lippitt, & White (1938) conducted
research on the impact of leadership styles
on small-group behavior.
• Detailed descriptions of three styles
emerged:
o Authoritarian
o Democratic
o Laissez-faire
Leadership Styles Explained

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• Like Theory X, Authoritarian leaders perceive
subordinates as needing direction.
• Authoritarian leaders exert influence & control
over group members.
o Communication is top-down.
o The agenda is set by the leaders.
o Praise/criticism is given freely,
but it is based on personal standards.
Authoritarian Style

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• Positive Outcomes:
o Efficient & productive
o More can be accomplished in a short
period of time
• Negative Outcomes:
o Fosters dependence, submissiveness, &
decreases individuality
o Can create hostility & discontent
Outcomes of Authoritarian Style

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Discuss
• When do you prefer authoritarian leadership
as a group member and why?
• How often do you use this style of
leadership?

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• Resembles assumptions of Theory Y
• Subordinates are capable of working on their
own
• Leader works with subordinates & treats them
in an egalitarian manner
• Leader does not speak down to group
members; rather, they speak on the same
level
Democratic Style

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• Positive Outcomes:
o Greater group member satisfaction,
commitment, & cohesiveness
o More friendliness, mutual praise, & group
mindedness
o Stronger worker motivation & greater
originality
Outcomes of Democratic Style

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• Negative Outcomes:
o It takes more time & commitment
than authoritarian leadership
o Can result in inefficiencies & lower
productivity
Outcomes of Democratic Style

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• Dissimilar to both Theory X & Theory Y—
typically considered to be nonleadership
• The leader is nominal & only engages in
minimal influence
• Literally takes a “hands off” attitude
• The leader does not try to influence or control
the group
Laissez-Faire Style

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• Very few, if any, positive outcomes
• Negative outcomes:
o Very little accomplished
o Group members feel directionless
o Group members become unmotivated &
disheartened
• When, if ever, do you think laissez-faire
leadership is appropriate? Why?
Outcomes of Laissez-Faire Style

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• No one is entirely one style or the other.
• Our styles shift, depending on the situation.
• Leadership lies along a continuum:
o from high leader influence to low leader
influence.
Leadership Styles in Practice

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Leadership Snapshot: Victoria Ransom
• Co-founded social media software company with 400
employees and 21,000 clients.
• Grew up in a farming community in New Zealand where she
learned the values of hard work, leading by example and
humility that she brings to Wildfire
• The company instilled and demonstrated a list of values:
Passion, team player, humility and integrity. Also on the list
were having the courage to speak up and curiosity.
• Ransom believed that “the best way to undermine a
company’s values is to put people in leadership positions who
are not adhering to the values.”
• The company would let employees go who didn’t live up to the
values even if they were high performers.

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Case Study: Many Managers, Different Styles
• Based on the assumptions of Theory X and Theory Y, how
would you describe each manager’s philosophy and style of
leadership? In what way do their attitudes about Vanessa affect
their leadership?
• In this type of customer service setting, which leadership style
would be most effective for the bank to meet its goals? From
the bank’s perspective, which (if any) manager exhibits the
most appropriate leadership? Discuss.
• What advice would you give to each of the managers to
enhance their leadership skills within the bank?
• What do you think Vanessa can do to prepare herself for her 3-
month review?

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Summary
• All of us have a philosophy of leadership
based on our assumptions about human
nature and work.
• Three commonly observed styles of
leadership: authoritarian, democratic, laissez-
faire
• Understanding how our philosophy of
leadership influences our style of leadership
is the first step in becoming a more
competent leader.