This slide presentation is about theories explaining leadership,styles of leadership and their effects.

1. Effective leadership
I am more afraid of an army of 100 sheep led by a lion
than an army of 100 lion led by a sheep
11/21/2014 DBA 303 1

2. Quick Reflections
What are some typical leadership
behaviors that come to mind?
11/21/2014 DBA 303 2

3. What is leadership
Definition
 Enabling groups of people to face challenges and
achieve results in complex situations
 Involves creating a positive work culture
characterized by strong relationships with your
colleagues, and staff, trust, dedication, hardwork,
and teamwork
11/21/2014 DBA 303 3

4.  When you boil it all down, contemporary leadership
seem to be a matter of aligning people towards
common goals and empowering them to take the
actions needed to reach them ( Fortunes article)
 Being able to create the kind of meaning for people,
the values that make sense to them, where there is
enough trust in the system … (W. Bennis)
11/21/2014 DBA 303 4

5. Leadership (cont..)
 Leadership is about responsibility -leadership
is not a rank, privileges, titles, or money. It is
about responsibility
 Leaders do not start with “ what do I want”
but rather start with “what needs to be done”
Then they ask “what can and should I do to
make a difference”
11/21/2014 DBA 303 5

6. Leadership (cont..)
 Leadership is done with others - Mobilizing
people through out the organization to do
adaptive work
 Leadership happens at all levels – What ever
level you are, whatever your job, you can
bring new insight, new leadership, to your
team or to your group
11/21/2014 DBA 303 6

7.  Leadership is the art of inspiring subordinates or followers to
perform their duties willingly, competently, and
enthusiastically.
 Leadership is a social influence process in which the leader
seeks voluntary participation of the followers in order to
achieve organizational objectives.
 Leadership is both process and property. As a process,
leadership involves the use of noncoercive influence to direct
and coordinate the activities of the members of an organized
group towards the achievement of group objectives.

11/21/2014 DBA 303 7

8.  As a property, leadership is a set of qualities or
characteristics attributed to those who are perceived
to successfully employ such influence. Such
qualities include:
 Ability to inspire the other.
 Ability to understand human behavior.
 Ability of verbal assertiveness.
 Willingness to take risk.
11/21/2014 DBA 303 8

9. Meaning
 The art of influencing others to direct their
will, abilities and effort towards the
achievement of the group goals
 Therefore in organisations, leadership is
influencing individuals and groups effort
towards the optimum achievement of
organizations objectives
11/21/2014 DBA 303 9

10.  Leadership focuses on “people” aspect of
management and is based on the assumptions
that organizational effectiveness significantly
depends on their :
 Motivation
 Effort
 Abilities

11/21/2014 DBA 303 10

11.  In spite of seeming discontent at least with the
traditional approaches to leadership theory
and practice, throughout history, the
differences between success and failure,
whether in a war, a business, a protest
movement, a sports etc have been attributed to
leadership
11/21/2014 DBA 303 11

12.  A recent study by Gallup survey indicates that
most employees believe that it is the leader,
not the company, that guides the culture and
creates situations where workers can be happy
and successful

11/21/2014 DBA 303 12

13.  The manager in his leadership role therefore
stimulates and inspires employees to contribute
willingly to the optimal achievement of
organizational goals
 Leadership is therefore an important
ingredient of managing. Managers cannot
effectively manager unless he can lead his
subordinates effectively
11/21/2014 DBA 303 13

14. Leadership traits and
characteristics
Are leaders born or made?
11/21/2014 DBA 303 14

15. Belief by many modern scholars
 Believes that leadership capacities and
competencies can be acquired but the desire
to learn must be there.
 Leadership is a goal to be pursued, not a gift
to be bestowed only upon a lucky few.
 The best leaders make a personal choice to
continually assess and constantly develop
their leadership capabilities
11/21/2014 DBA 303 15

16. Leaders vs. managers
Who are the Leaders and Who
are the Managers?

11/21/2014 DBA 303 16

17. Leaders Vs Managers
What is Different between Them?
 Researchers seem to agree that the best way to
explain the traits and characteristics of leaders
is to compare their roles, actions, habits and
responsibilities with those of what is regarded
as ‘traditional’ managers.
 The following is a composite of these traits
and characteristics differentiating between
leaders from managers.
11/21/2014 17

18. Leaders Vs Managers cont…d
Leaders…… Managers…..
Do the right thing Do things right
Are interested in effectiveness Are interested in
efficiency
Innovate Administer
Develop Maintain
Focus on people Focus on systems and
structure
Rely on trust Rely on control
11/21/2014 18

19. Leaders Vs Managers cont…d
Challenge the status quo Accept the status quo
Focus on the future Focus on the present
Have their eyes on the horizon Have their eyes on the
bottom line
Develop visions and strategies Develop detailed steps
and timetables
Seek change Seek predictability and
order
Take risks Avoid risks
11/21/2014 19

20. Leaders Vs Managers cont…d
Inspire people to change Motivate people to
comply with standards
Use person-to-person influence Use position-to-position
influence
Inspire others to follow Require others to
comply
Operate outside of organizational
rules, regulations, policies and
procedures
Operate within
organizational rules,
regulations, policies and
procedures
Take initiative to lead Are given a position
11/21/2014 20

21. Leaders Vs Managers cont…d
Align people with a direction Organize and staff
Emphasize philosophy; core
values, and
shared goals
Emphasize tactics,
structure and systems
Have a long-term view Have a short-term view
Ask what and why Ask how and when
11/21/2014 21

22. Approaches to Leadership
 Great man theory
 Traits approach
 Behavioral approach
 Situational
11/21/2014 22
John Adair, 2002, Effective strategic leadership

23. The Great Man theory
 Leaders are born and great leaders will arise
when there is a great need
 In time of need a Great Man would arise –
almost magically
 Based on early research of leadership which
was based on people who are already leaders
 Leaders associated with great man theory –
Eisenhower, Churchill, Jesus, Moses,
Mohammed
11/21/2014 DSM 504 23

24. The Traits approach
 Before 1950s researchers sought to understand
leadership by comparing traits of leaders with
followers and effective leaders with ineffective leaders
 This search for features/traits of a leader was prompted
by a belief that leaders somewhat possess
distinguishing traits that set them apart form other
people
11/21/2014 24

25. The traits approach …..
 This approach analyses leadership by
identifying a number of characteristics that
would distinguish an effective leader from an
ineffective leader.
 It comprise of specific qualities that a leader
should posses in executing his/her roles e.g.
ability to make decisions, loyalty, sense of duty,
etc.
11/21/2014 25

26.  This approach analysis leadership by
identifying a finite number of characteristics
that would distinguish a n effective leader
form an ineffective leader.
 measures of a leaders effectiveness under
traits approach are influenced by traits such
as physical, social psychological or
personality characteristics,
DBA 303 26

27. Some traits
 Intelligence
 Dominance
 Self confidence
 Task relevant knowledge
 Level of energy and activity
 Charismatic
 Enthusiastic
 Courageous
11/21/2014 DBA 303 27

28. Some common attributes of a
leader…
 Traits
 Adaptive to situations
 Alert to social environments
 Ambitious and achievement oriented
 Assertive
 Cooperative
 Decisive
 Dependable
 Dominant desire to influence
11/21/2014 DBA 303 28

29.  persistent
 Self confidence
 Tolerant to stress
 Willing to assume responsibility
 Calmness in crisis
 Energy
 Determination
 Resolute courage
 Sense of justice
 Initiative
 Humor
11/21/2014 DBA 303 29

30.  Physical factors:
 Activity level
 Appearance
 Height
 Weight
 Physical fitness
11/21/2014 DBA 303 30

31.  Skill
 Conceptual skills
 Analytical skills
 Creative
 Diplomatic and friendly
 Effective speaking
 Knowledgeable about group task
 Organised administrative ability
 Persuasive
11/21/2014 DBA 303 31

32. The characteristics
 Ability to inspire others - some leaders are
charismatic, have the qualities of being extra
special, attractive, and interesting
 Ability to understand human behaviour -
successful leaders realize that they get their
job done through people and therefore try to
develop social understand and appropriate
skills
11/21/2014 DBA 303 32

33.  Similarity to the group – those who emerge
as successful leaders are generally not too
different form the group - e.g. a senior
executive would probably not be accepted as
a production foreman because of the wide
differences in his education, viewpoints and
interests
11/21/2014 DBA 303 33

34.  Verbal assertiveness – by nature leaders seem
not to be shy. They are able to present their
views in a confident manner and hold the
passion when attacked. A leader has the
ability to speak up when others feel they
should not because of fear of being ridiculed
 Willingness to communicate honestly - to
tell the truth otherwise a credibility gap will
develop, discuss issues and problems that are
not particularly pleasant but are important
11/21/2014 34

35.  Dedication to organizational goals - how
committed is the leader to the organizational
objectives being sought
 Dedication is demonstrated by hard work, self
sacrifice, believing in the goals
 Ability to set examples to be followed –
displays a behaviour of do as a do
11/21/2014 DBA 303 35

36.  Willingness to take risks – risk is the
possibility of loss, injury, disadvantage or
defeat. Generally maintaining the status quo is
not indicated of leadership. People want to
follow somebody who will take them to the
“promised land” even if some risk is involved
 But leaders may not take too great risk
because doing so may make their follower too
fearful, and panic or even dissertation may
result - taking risks in the right proportion
makes the organisation exciting
11/21/2014 DBA 303

37.  Willingness to assume full responsibility –
taking full responsibility when one could shift
it to somebody else is leadership
 Willingness to be supportive of other
personnel – people respect managers who
pass credit to them when an effort is
successful . Being supportive also means
representing them to upper level
management to get the financial and physical
resources needed to do the job ( pay, benefits,
11/21/2014 37

38.  Skill in the art of compromise - settle
difference by arbitration or mediation - helps
people reach intermediate solutions
 Ability to tolerate criticism – since leaders
have radical and unusual ideas, they are
subjected to a lot of criticism from followers
and colleagues. Therefore must be prepared to
accept criticism from those affected by the
plans they make -
11/21/2014 DBA 303 38

39. Criticism of traits approach
 As more studies were done under this approach, the
number of traits of suspected importance began to
grow and the results became increasingly mixed,
with no clear pattern of traits that was strongly and
consistently related to leadership
 Several studies on traits approach seem to disagree
on the required traits of a leader.
 Some say that as far as physical traits are concerned,
leaders tend to be bigger and brighter than those
being led
11/21/2014 DBA 303 39

40. Criticism of traits approach cont…
 Personality of a manager alone does not indicate
leadership ability
 Some effective leaders are brush, loud, aggressive etc
 Others are quiet, soft spoken, mild tempered
 Nor is popularity synonymous with leadership ability–
the most popular person may not be the best leader–
leaders must be more than just nice
 generally, leaders are observed to be outgoing and
socially assertive, yet some outstanding leaders like
Mahatma Gandhi and Abraham Lincoln were relatively
shy and withdrawn
11/21/2014 DBA 303 40

41. Criticism of traits approach cont…
 Education, family status and background of a
person are poor guidelines in predicting a persona
chance of being an effective leader. Leaders may
or may not have university education, come form
a high- profile or low level income families
 Therefore while it is difficult to pin down the
precise quality that make a superior leader,
leaders do seem to personal and behavioral
characteristics
11/21/2014 DBA 303 41

42. Criticism of traits approach cont…
 Political analysis indicates that candidates should not come
out as too intelligent to be electable
 The most intelligent member of a criminal gang is not the
leader
11/21/2014 DBA 303 42

43. THE BEHAVIORAL APPROACH
 Is based on how a leader use of authority in social
situation
 As interest in the early traits approach to leadership
began to decline, researchers focuses their attention
on leaders actions rather than on their attributes
 They tried to identify specific styles of leaders
conduct and attempted to discover where leaders
behaviour was associated with employee attitudes
and performance
11/21/2014 DBA 303 43

44. Leadership styles identified
 University of IOWA Leadership Studies
 Authoritarian
 Democratic
 Laissez –faire
 Likerts systems approach
 The managerial Grid – Robert Blake and Jane Mouton
 Directive vs. Participative Leadership – Tannenbaum and W.
Schmidt
 Charismatic leadership
 Transactional leadership vs. transformational leadership
11/21/2014 DBA 303 44

45. Autocratic/authoritative leader
 Gives definite instructions
 Demands compliance
 Emphasis task performance
 Exercise close supervision
 Permits very little or no subordinate influence
on decisions
 Do not welcome suggestion form
subordinates
11/21/2014 DBA 303 45
 E

46.  Uses coercion, threat and authority to enforce
discipline and ensure performance
 Is leader centred, production centred, directive
leadership styles
11/21/2014 DBA 303 46

47. Democratic/participative
 Involves subordinates as individuals and as
groups in decision making, relating to their
goals and plans
 Permits them to take initiative and judgment
 Emphasis groups efforts
 Exercise broad supervision
 Motivates employees to higher level of
performance
11/21/2014 DBA 303 47

48.  Uses influence rather than authority
 Builds a two way communication
 These leaders are called employee centred,
consultative, permissive, equalitarian
 Laizzes faire
 Takes no interest in production or in people “ lets
things drift”
11/21/2014 DBA 303 48

49. Comments from research done on
each of the styles
 Authoritarian:
 impaired groups morale and initiative
 Generates hostility and fosters aggressive
behaviour
 Leads to high rage of grievance and absenteeism
 Dissatisfaction with work
 Autocratic led groups tend to stop working and
engage in horseplay whenever the leader left the
room
11/21/2014 DBA 303 49

50.  Although there is a tendency for authoritarian
groups to produce more output, the quality of
output tend to be higher in the democratically led
groups
11/21/2014 DBA 303 50

51.  Democratic
 Promotes high morale and positive attitude
towards the leader and work
 Lowers rate of grievances, turnover and
absenteeism
 Greater acceptance of decisions and greeter
commitment to implement themselves
 High level of performance and productivity
11/21/2014 DBA 303 51

52. Results
 Democratically led groups were more satisfied and
displayed less aggression towards one another than in the
autocratically led groups
11/21/2014 DBA 303 52

53. Is autocratic leadership all bad….
 Autocratic leadership may not always be
inappropriate.
 Some situations may call for urgent action and in
these cases autocratic style of leadership many be the
best
 Most people are familiar with the autocratic
leadership and therefore have less difficult in
adopting that style
 In some situations, subordinates may actually prefer
an autocratic style
11/21/2014 DBA 303 53

54. Likert’s System 1 – 4 approach
 Rensis Likert (New York , 1967) regards
leadership as central and most important
component of management
 In his view, organizational effectiveness
significantly depends on the manner in which
managers provide leadership to their
subordinates.
11/21/2014 DBA 303 54

55.  He proposes the most effective way to lead
people is to:
 Involve them in decision making as a group
 Build an effective communication system
 Create a supportive environment that provides
employees opportunities to seek fulfillment
of their personal goals and group needs and
realize their sense of personal growth
11/21/2014 DBA 303 55

56. Likerts four systems – Leadership
styles
 System 1 – Exploitative -authoritative
 System 2 – Benevolent -authoritative
 System 3 – consultative
 System 4 – participative group leader
11/21/2014 DBA 303 56

57. System 1 – Exploitative-
Authoritative
 Highly production – oriented leaders
 Display no confidence in their subordinates
 Subordinates do not participate in decision
making
 They seldom seek or use subordinates ideas
 Uses fear, threats, punishment and occasional
reward to enforce compliance
 Engage in mainly downward communication
11/21/2014 DBA 303 57

58. System 2 – Benevolent-
Authoritative
 Shows conscious courtesy towards his
subordinates
 Show confidence and trust in the subordinates
 Sometimes seeks and uses their ideas
 reward and sometimes actual and potential
punishment to get out performance
 Allows some delegation in decision making
11/21/2014 DBA 303 58

59.  Exercise close supervision
 Permits some upward communication
 Creates an environment in which subordinates
do not feel quite free with their superior to
talk about their problems
11/21/2014 DBA 303 59

60. System 3: Consultative
 Displays substantial confidence in their
subordinates
 Consults them before making decisions, but
makes decisions themselves
 Usually seeks and uses their ideas
 Motivates them by giving reward and
occasional punishment
11/21/2014 DBA 303 60

61.  Engages in both downwards and upward
communication
 Makes important decisions themselves and
delegates routine ones to the subordinates
11/21/2014 61

62. System 4: participative group
leader
 Advocates work-groups and the leader being
the linking pin between groups
 Advocates supportive relationship – i.e.
creates an environment of mutual support,
trust and confidence
 Advocates high performance group goals – set
high performance goals for them
 Has full confidence in the group
11/21/2014 DBA 303 62

63.  Seeks and uses subordinates ideas
 Gives reward on the basis of group
performance
 Engages in effective up/down/sideways
communication
11/21/2014 63

64.  Strongly proposed by Likert – this system:
 achieves a high level of performance
 builds a healthy supportive and environment
 Enhances morale and satifaion of employees
11/21/2014 DBA 303 64

65. The managerial Grid – Robert
Blake and Jane Mouton
 This approach focuses on various blends of
leadership styles and explains its leadership
styles by use of a grid
 In the Managerial Grid, the various
combinations of a concern for people and a
concern for production defines five major
leadership styles
11/21/2014 DBA 303 65

66. The Managerial Grid
1,9
Country club management
Thoughtful attention needs of people
for satisfying relationships leads to
A comfortable, friendly organization
atmosphere and work tempo
9,9
Team management
Work accomplishment is from
committed people, interdependence
through a “common stake” in organization
purpose leads to relationship
of trust and respect
1,1
Impoverished Management
Exertion of minimum effort to get
required work done is appropriate
to sustain organization membership
5,5
Organization Man Management
Adequate organization performance
possible through balancing the necessity to
get out work with maintaining
morale of the people at a satisfactory level
9,1
Authority-Obedience
Efficiency in operations results
from arranging conditions of
work in such a way that human
elements interfere to a minimal degree
1
9
8
7
6
5
4
2
3 4 5 6 7 8 9
1
2
3
Low Concern for production High
High
Concern for people
Low

67. © 2007 Prentice Hall Inc.
All rights reserved.
The Managerial
Grid
(Blake and Mouton)
E X H I B I T
12–1

68.  1,1 impoverished manager
 Puts minimum effort to get the required work done
 Shows very little concern for people or production.
 Very much like Laissez Faire leader who just lets
things drift.
 He is neither close to production requirements or
employee needs.
 Has minimal standards.
11/21/2014 DBA 303 68

69.  1,9 Country Club Manager
 This just aims at keeping the boys happy and has little
concern for production
 Involves thoughtful attention to the needs of the people
 He thinks that if he takes care of employees production will
take of itself.
 Unfortunately, happy workers are not necessarily productive
 Gives careful attention to people to create a meaningful
relationship and friendly atmosphere.
11/21/2014 DBA 303 69

70.  9,1 authority/obedience manager
 Emphasize efficiently in operations that result from arranging work
conditions in such a way that human element can only interfere to a small
degree
 Shows maximum concern for production and minimum concern for
people
 He is authoritarian
 Demands compliance by using mainly threats and coercion
 Exercises close supervision
 Allows employees little or no chance for decision making.
 He causes employees alienation from the organization by frustrating their
needs.
11/21/2014 DBA 303 70

71.  5,5 middle-of-the-road manager
 Emphasizes both production as well as employee need
satisfaction but not maximizing.
 Obtains adequate but not optimal performance
 Involve people in decision making
 Uses and seek their ideas
 Engage in up and down communication.
 Providing an environment for employee need satisfaction
 Though they do not optimize on any of these dimensions.
11/21/2014 DBA 303 71

72.  9,9 Team manager
 Places maximum emphasis on production as well as
people
 They are team managers.
 They integrate the individual and group such with
organizational goals, thus optimize on both
dimensions-employees involvement and need
satisfaction as well as production.
 This is the most effective leadership style.
11/21/2014 DBA 303 72

73.  The managerial grid model assumes that there
is one best or most effective style of
management – the team management style.
 Managers who emphasize both concern for
people and production are presumed to be
more successful
11/21/2014 DBA 303 73

74. Directive vs. participative
leadership
 This focus attention on incorporating power sharing
into leadership
 It says power-sharing can occur to varying degree:
from -
 Genuine control over decisions that are made,
 to providing input to the final decision,
 to consultation,
 to mere tokenism and the misuse of the term participative
to manipulate other
11/21/2014 DBA 303 74

75.  Tannenbaum and Schmidt have suggested that
participation is based on the amount of authority
used by the supervisor in relation to the amount of
freedom permitted to subordinates
 Their views are presented in a continuum ranging
from boss-centred leadership to subordinate centred
leadership
 The use of the authority by manager diminishes in
the continuum
11/21/2014 DBA 303 75

76. Results of the studies
 Studies on the cost and benefit of participative Vs
directive style of leadership have not shown
convincingly that either style is more commonly
superior
 In some instance, the cost of employee participation
may offset the benefits
 In other instances, however, participation is favour
over directive leadership especially where
employee loyalty, job satisfaction and commitment
is high
11/21/2014 DBA 303 76

77. From the lowest to the highest level
of the continuum
 Manager makes decisions and announces it
 Manager sells decision
 Manager presents ideas and invites questions
 Manager presents tentative decision subject to change
 Manager presents problem, get suggestion, and makes
decisions
 Manager defines limits ask group to make decisions
 Manager permits subordinates to function within limits
defined by supervisor,
11/21/2014 DBA 303 77

78. 11/21/2014 DSM 504 78

79. 11/21/2014 DBA 303 79

80. 11/21/2014 DBA 303 80

81. 11/21/2014 DBA 303 81

82. Contingency Theory of leadership
 post-World War II development
 Mere qualities alone are no longer valid
 The previous approaches concentrated on
only leaders themselves and fell short of
being an of addressing the various intervening
determinants of leadership
11/21/2014 DBA 303 82

83. The Theorist supporting
Contingency approach
 Fred Fiedler Contingency Theory (1961)
 Path-Goal Leadership Theory ( Martin Evans
and Robert House (1971)
11/21/2014 DBA 303 83

84.  Contingency theory turns its attention to:
 The group being led
 The exchange relationship between the leader and
the group
 The situational aspect of leadership
11/21/2014 DBA 303 84

85.  It is believed that there are situational variables that
affect:
 Leadership roles
 Leadership Skills
 Leadership Behaviours
 Followers performance and satisfactions
 These variables have been identified by Fred Fielder
in his Contingency Model of Leadership
effectiveness
11/21/2014 DBA 303 85

86. Fiedler’s Contingency Model of
Leadership Effectiveness
 This model contains the relationship between
leadership style and the favourableness of the
situation
 It says that a leaders behaviour required for
effective group performance depends on the
favourableness or unfavourableness of the
situation
11/21/2014 DBA 303 86

87. Situational factor in Fiedler’s
Contingency Model
 Leader-member relationship ( with group
members)
1. Degree of task structure ( nature of task)
2. The leaders position power (arising from the
organisation structure)
11/21/2014 DBA 303 87

88. Situation is favourable to the
leader if ….
 All the three dimensions are high i.e.
 The leader is generally accepted, respected, gets support
from the followers and the group is ready to be directed (
high first dimension)
 The extent to which the task is structured is clearly
defined so that it can be delegated, controlled and
evaluated ( high second dimension)
 If a great deal of authority and power are formally
attributed to the leaders position ( high third dimension)
11/21/2014 DBA 303 88

89. The situation is unfavourable if…
 The tasks are very ambiguous
 The leader position authority is weak
 The group relationship with the leader is poor –
no respect, support or acceptance
 Fiedler concluded through his research that
the favourableness of the situation in
combination of the leadership style
determines leadership effectiveness
11/21/2014 DBA 303 89

90.  Based on the analysis of Fiedler findings from
all types of situations, Fielder discovered that:
 Under very favourable and very
unfavorable situation … the task- directed,
hard-nosed and authoritarian, type of a
leader was most effective
11/21/2014 DBA 303 90

91.  However, when the situation is moderately
favourable or unfavourable ( the
intermediate range of favourableness),……
the human oriented or democratic type of
leader was most effective
11/21/2014 DBA 303 91

92. Findings of the Fiedler Model
Performance
• Category
• Leader-Member
Relations
• Task Structure
• Position Power
I
Good
High
Strong
II
Good
High
Weak
III
Good
Low
Strong
IV
Good
Low
Weak
V
Poor
High
Strong
VI
Poor
High
Weak
VII
Poor
Low
Strong
Task-Oriented
VIII
Poor
Low
Weak
Good
Poor
Relationship
-Oriented
Favorable Moderate Unfavorable

93. Why is the tasks- directed leader
successful in very favourable
situations….
 In very favourable situations in which the
leader has power, informal backing and
relatively well structured task, the group is
ready to be directed, and the group expect to
be told what to do
11/21/2014 DBA 303 93

94. Why tasks- directed leader is
successful in very unfavourable
situations….
 In this situation, the effective leader will take
charge and make the direction that need to be
made to accomplish a task without asking for
input and trying to keep everyone happy,
otherwise nothing will be done
11/21/2014 DBA 303 94

95. When human oriented, democratic
leader is effective..
 Will be effective in the intermediate range of
favourableness
 E.g. In a committee where the leader may not be
wholly accepted by other members, and the task is
not completely structured, and some authority or
power is granted to the leader
 The same moderate favourable situation applies
often managers and supervisors
11/21/2014 DBA 303 95

96. Path- Goal Leadership Theory
 The path Goal Theory attempts to explain the impact
that leader behaviour has on subordinate motivation ,
satisfaction, and performance
 It emphasizes that leaders can optimize
organizational effectiveness by influencing the path-goal
perception of subordinates and their need
satisfaction
11/21/2014 DBA 303 96

97. Path-Goal Theory Premise
• Leader must help followers
attaining goals and reduce
roadblocks to success
•Leaders must change behaviors to
fit the situation (environmental
contingencies & subordinate
contingencies)
© 2007 Prentice Hall Inc.
All rights reserved.

98. Path-Goal Theory
Leader is seen as important in providing a path
for employees to attain desired goals
Leadership Behaviors (must be able to use all four types when
necessary. Use varies with such factors as employee ability,
work environment, group size)
• Directive [leader tells subordinates how to perform tasks; provides
guidelines and structure]
• Supportive [leader shows caring and concern for subordinates’ well-being]
• Participative [leader involves subordinates in decision-making]
• Achievement-oriented [leader sets specific and challenging goals;
promotes high work-related aspirations and goal attainment]

99. Path- Goal theory situational factors
 The path-goal theory suggests that these various
styles can be and actually are used by the same
leader in different situations ( differs from Fiedler’s
model in this respect)
 Two situational factors that have been identified are:
 The personal characteristics of the subordinates
(subordinate contingency factors)
 The environmental pressures and demands facing the
subordinates ( environmental contingency factors
11/21/2014 DBA 303 99

100. Four Major styles of leadership – R.
House
1. Directive leadership: subordinates know exactly
what is expected of them, and the leader gives
specific direction. There is not participation by
subordinates
2. Supportive leadership: the leader is friendly and
approachable and shows a genuine concern for
subordinates
3. Participative leadership: The leader asks for and
uses suggestions form subordinates but still makes
the decision
11/21/2014 DBA 303 100

101. Styles of leadership – R. House (cont..)
 4. Achievement- oriented leadership: The
leader sets challenging goals for subordinates
and show confidence that they will attain
these goals and perform well
11/21/2014 DBA 303 101

102. Path Goal Theory
Environmental Contingency Factors
• Task Structure
• Formal authority system
• Work Group
Outcomes
•Performance
•Satisfaction
Subordinate contingency factors
•Locus of control
•Experience
•Perceived ability
Leader Behavior
•Directive
•Supportive
•Participative
•Achievement -oriented

103.  Using one of the four styles contingent on the
situational factors outlines, the leader attempts
to influence subordinates’ perceptions and
motivate them, which in turn lead to their role
clarity, goal expectancies, satisfaction , and
performance.

11/21/2014 DBA 303 103

104. How can leaders accomplish
effectiveness under this theory?
1. Recognizing and/or arousing the subordinates
needs for outcome/reward over which the
leader has some control
2. Increase his personal payoff for goal
attainment
3. Making the path for those pay-offs easier to
travel by coaching and directing
4. Helping subordinate clarify his expectations
11/21/2014 DBA 303 104

105. How can leaders accomplish
effectiveness under this theory?
 5. Reduce frustrating barriers
 6. Increase opportunities for personal satisfaction
contingent on effective performance
 In other words, by doing the above, the leader attempts to
make the path to subordinates goal as smooth as possible
 But to accomplish the path-goal facilitation, the leader
must use the appropriate style contingent on the situation
variables present
11/21/2014 DBA 303 105

106. Modern theoretical processes of
leadership
 The contingency and path goal theories have
a relative degree of acceptance. But despite
this scholars feel that much more research on
leadership needs to be conducted and a
number of other theories have recently
emerged.
 These include:
 The charismatic
 Transformational leadership
11/21/2014 DBA 303 106

107. Charismatic leadership theories
 Charismatic leaders are persons “ who by the
force of their personal abilities are capable of
having profound and extraordinary effect on
followers”
 Studies of identifiable charismatic individuals
indicate that charismatic types are often
rejecting of formal authority and are willing
to take personal risk because of their strong
convictions
11/21/2014 DBA 303 107

108.  Bernard Bass and Bruce in their study of
charismatic leaders found that they are rated
more highly on their effectiveness as leaders
and have subordinates who are more highly
satisfied with their leadership
11/21/2014 DBA 303 108

109. Charismatic leadership (cont…)
 The modern development of charismatic
leadership is attributed to the work of Robert
House
 He suggests that charismatic leaders are
characterized by self confidence and
confidence in subordinates, high expectations
for subordinates, ideological vision and the
use of personal example
11/21/2014 DBA 303 109

110. Charismatic leadership (cont…)
 Followers of charismatic leaders identify with
the leader and the mission of the leader,
exhibit extreme loyalty to and confidence in
the leader, emulate the leaders values and
behaviour and derive self esteem form their
relationship with the leader
11/21/2014 DBA 303 110

111. Charismatic leadership (cont…)
 Another author Bass Bernard has extended
the profile of charismatic leaders to include
superior debating and persuasive skills as well
as technical expertise and fostering of
attitudinal, behavioral, and emotional changes
in their followers
11/21/2014 DBA 303 111

112. Charismatic leadership (cont…)
 Because of the effects the charismatic leaders
have on followers, the theory predicts that
charismatic leaders will produce in followers
performance beyond expectations as well as
strong commitment to the leader and his/her
mission
11/21/2014 DBA 303 112

113. Charismatic leadership (cont…)
 Research indicates that the impact of such a
charismatic leader will be enhanced when the
followers exhibit higher levels of self
awareness and self-monitoring, especially
when observing the charismatic leaders’
behaviours and activities and when operating
in a social network
11/21/2014 DBA 303 113

114. Types of charismatic leadership styles
Envisioning
 To create a picture for the future – or a desire end
future state - with which people can identify and
can generate excitement
 For example articulating a compelling vision and/or
setting high expectations
Energizing
 Directing the generation of energy, the motivation
to act, among members of the organisation
 For example demonstrating person excitement and
confidence and seeking, finding and using success
11/21/2014 DBA 303 114

115. Enabling
 Psychologically helping people act or
performing in the face of challenging goals
 For example expressing personal support and
empathizing
11/21/2014 DBA 303 115

116. Charismatic Leadership – Key characteristics
 Self Confidence- They have complete confidence in
their judgment and ability.
 A vision- This is an idealized goal that proposes a
future better than the status quo. The greater the
disparity between idealized goal and the status quo,
the more likely that followers will attribute
extraordinary vision to the leader.
 Ability to articulate the vision- They are able to
clarify and state the vision in terms that are
understandable to others. This articulation
demonstrates an understanding of the followers’ needs
and, hence acts as a motivating force.

117.  Strong convictions about vision- Charismatic
leaders are perceived as being strongly committed,
and willing to take on high personal risk, incur high
costs, and engage in self-sacrifice to achieve their
vision.
 Behavior that is out of the ordinary- Those with
charisma engage in behavior that is perceived as
being novel, unconventional, and counter to norms.
When successful , these behaviors evoke surprise
and admiration in followers.
11/21/2014 DBA 303 117

118.  Perceived as being a change agent-
Charismatic leaders are perceived as agents
of radical change rather than as caretakers of
the status quo.
 Environmental sensitivity- These leaders
are able to make realistic assessments of the
environmental constraints and resources
needed to bring about change.
11/21/2014 DBA 303 118

119. Dark side of charismatic leadership
 Charismatic leadership has been seen to have its
bright and dark side
 Franklin Roosevelt, John F. Kennedy, Mahatma
Gandhi, Nelson Mandela have shown the bright side
 Adolph Hitler, and the like have shown the dark
side – where these leaders have encouraged
followers to be devoted to them rather than
commitment ideological principles
11/21/2014 DBA 303 119

120. The dark side of charismatic leadership
 Charismatic leaders tend to be portrayed as
wonderful heroes,
 But there can also be unethical characteristics
associated with charismatic leaders as noted
by Jane Howell an Bruce Avolio (1992)
11/21/2014 DBA 303 120

121. Ethical and unethical characteristics of
charismatic leaders
Ethical charismatic leader
 Aligns vision with
followers needs and
aspirations
 Considers and learns
from criticism
 Stimulates followers to
think independently
and to question the
leaders view
Unethical charismatic
leader
 Uses power only for
personal gain or impact
 Promotes own personal
vision
 Censures critical or
opposing views
11/21/2014 DBA 303 121

122. Ethical and unethical characteristics
(cont..)
 Open two-way
communication
 Coaches, develops, and
supports follower;
shares recognition with
others
 Relies on internal
moral standards to
satisfy organizational
and societal interests
 One way
communication
 Insensitive to followers
needs
 Relies on convenient,
external moral
standards to satisfy self
interests
11/21/2014 DBA 303 122

123. Transformational leadership theory
 Transformational leadership is based more on
leaders shifting the values, beliefs and needs of their
followers unlike the transactional leadership which
involves exchange relationship between leaders and
followers
 Transactional leadership refers to the everyday
exchanges that takes place between leaders and
subordinates as they routinely perform their duties
 Transformational leadership , is a more broader
concept than charismatic and implies reshaping
entire strategies of an organisation
11/21/2014 DBA 303 123

124.  Transformational leaderships elevates the
goals of subordinates and enhances their self
confidence to strive for higher goals
 According to Bernard Bass, in their approach,
transformational leaders differ from
transactional leaders in the following ways:
11/21/2014 DBA 303 124

125. Transformational vs. transactional
leadership
Transactional leaders:
 Contingent rewards:
Contracts the exchange
of reward for effort;
promises reward for
good performance;
recognizes
accomplishment
 Transformational
leaders
 Charisma: provides
vision and sense of
mission, instill pride,
gains respect and trust
11/21/2014 DBA 303 125

126. Transformational vs. transactional
leadership (cont..)
 Management by
exception (active):
watches and searches
for deviations form
rule and standards;
taken corrective action
 Inspirational:
communicates high
expectations ; uses
symbols to focus effort,
expresses important
purposes in a simple
way
11/21/2014 DBA 303 126

127. Transformational vs. transactional
leadership (cont..)
 Management by exception
(passive): Intervenes only
if standards are not met
 Laissez-faire: abdicates
responsibility and avoids
making decisions
 Intellectual stimulation:
promotes intelligence;
rationality, and careful
problem solving
 Individual consideration;
Gives personal attention,
treats each employee
individually ; coaches and
advises
11/21/2014 DBA 303 127

128. Transformational vs. transactional
leadership (cont..)
 Bass concludes that in many instances (such
as relying on passive management by
exception), transactional leadership is a
prescription for mediocrity and the
transformational leadership leads to superior
performance in organisations facing demand
for renewal and changes
11/21/2014 DBA 303 128

129. Characteristics of transformational
leaders
 They identify themselves as change agents
 Courageous
 Believe in people
 Are value driven
 They are lifelong learners
 Have the ability to deal with complexity,
ambiguity and uncertainty
 Are visionary

11/21/2014 DBA 303 129

130.  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.
11/21/2014 DBA 303 130