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7-1
LCM
CHAPTER TWO
LEADERSHIP THEORIES AND
STYLES
Abdella K., Department of Entrepreneurship & Bus. Mgt,
Kotebe Metroplitan University
7-2
LEADERSHIP STYLES
Situational
combination of the
above three styles
 Is the behavior exhibited by a leader during supervision and
working with subordinates. It shapes the way that manager
approaches planning, organizing, and controlling.
i. Positive leadership styles: give emphasis to praise and recognition,
monetary rewards, increase in security, and addition of responsibility.
ii. Negative leadership style: Emphasizes penalties, loss of job, suspension,
and public reprimands/critics.
 There are four leadership styles.
7-3
A. Autocratic/directive leadership style
 Centralizes power and decision
making authority
 Complete control over subordinates.
 Shows high concern for the task and
low concern for the people /human
aspect/.
7-4
Autocratic/directive leadership style
 Characteristics of autocratic leaders:
- Make the decisions and closely
supervises employees
- Highly conscious and sensitive of his
/her position
- One-way communication
- Delegate a very little decision making
authority
- Believes that pay is just a reward.
- No questions allowed and no
explanations.
7-5
Activity
What are the pros and cos of
Autocratic leadership style?
_________________________________
_________________________________
_________________________________
_________________________________
7-6
Autocratic/directive leadership style
 Problems of autocratic style:
 Force breeds counter-force: Restriction of output, antagonism, conflict,
frustration, unionism, etc.
 It impairs group moral, creativity and initiative,
 brings high rate of grievance, absenteeism, turnover and dissatisfaction.
 discourage open communication
 Strength of autocratic style:
 It is useful for urgent situations and quick decision-making.
 Keeps from missing important deadlines.
 Prevents from becoming stagnant because of poor organization or lack of
leadership.
7-7
B. Democratic or participative leadership style
 Democratic leadership style is
characterized by participation of the
group and utilization of its opinions.
 A manager shares decision making
authority.
 Encourages participation and
supports the task efforts of
subordinates.
7-8
Democratic or participative leadership style
 Democratic leadership style has the following characteristics:
- Share decision making authority
- Appreciate suggestions and new ideas
from subordinates
- High concern for both task and people
- Not sensitive about their authority
- Develops a feeling of responsibility within group
- Motivates subordinates
- Increases the quality of work and productivity
- Explains his/her reason to the group.
7-9
Activity
What are the pros and cos of
democratic leadership style?
_________________________________
_________________________________
_________________________________
_________________________________
7-10
Democratic or participative leadership style
Advantages
 Improves job satisfaction and morale of the subordinates.
 Reduces resistance to change.
 Absenteeism and turnover are reduced.
 Build mutual trust between labor and management.
 Creativity and innovation increase
Disadvantages
 Time-consuming and result in delays in decision-making
 Not always appropriate in a task-oriented environment.
 Overly dependent on the expertise of subordinates.
7-11
C. Laissez faire/free-rein/ abdicative leadership style
 Act and leave decision making authority to the
subordinates and remain for consultation.
 Free-rein leadership style has the following
features:
- Gives full decision making authority.
- Little control over the group/ subordinates
 Free rein leadership style can apply in
organizations with highly skilled and well-
trained professional.
7-12
Laissez faire/free-rein/ abdicative leadership style
Advantages
 Allows functioning productively and Challenges to take personal
responsibility.
 Motivates people and leads to higher retention of experts
 Positive effect on job satisfaction and moral of subordinates.
 It gives chance to take initiative to the subordinates.
Disadvantages
 Lack of interest, morale, team work and accountability
 Leads to ineffective time management by teams.
 Lack of guidance and support and moving in different directions.
 Favor success-oriented people rather than those who solve
society’s most pressing problems.
7-13
Activity
 In what situations is a type of leadership effective, and in what
situations is it not?
 Generally speaking, what type of leadership do you prefer? Why?
 write the answers to the above questions on the board
in the following format
7-14
D. Situational leadership style
 Leaders can utilize the combination of the above three styles
depending on the situation.
 The style a manger chooses may depend upon the following
situations;
 Forces in the manager such as his value system, his confidence in
subordinates.
 Forces in subordinates, example, subordinates expectations.
 Forces in the situation, example, type of organization, the nature
of the problems, the pressure of time, etc.
7-15
Situational leadership style
 For example, an autocratic leader may behave
democratically when the success of a change, program,
policy, or decision is critically dependent on employee
acceptance and cooperation.
 A democratic leader may find it wiser to behave
autocratically when a decision is associated with a high
degree of risk and uncertainty, or when he is facing a crisis
or an emergency situation, etc.
7-16
LEADERSHIP THEORIES
Time
1900 1950 1970
Great
Man theory
Leaders
level of
greatness
Trait
theories
personality
characterist
ics
The Evolution of Leadership Research
Behavioral
theories
(task and
people)
how leaders
act
Contingency
theory
how the
environment
affects
leaders and
their
performance
7-17
 Great man theory assumes “great
leaders are born not made”.
 Portray great leaders are heroic,
mythic and destined to rise to
leadership when needed.
 leaders are exceptional people, born
with innate qualities, destined to lead.
 The gender issues were not on the
table
1. GREAT MAN THEORY
7-18
2. TRAIT THEORY OF LEADERSHIP
 Claims that people are born with inherited traits.
 People who make good leaders have the right (sufficient)
combination of traits.
 Assumes that there are distinctive physical and psychological
characteristics accounting for leadership effectiveness.
 Also assumed that a finite number of individual traits-intellectual,
emotional, physical, and other traits- of effective leaders could be
found.
 Focused on ‘what’ an effective leader is, not on ‘how’ to
effectively lead.
Traits
• Adaptable to situations
• Alert to social environment
• Ambitious and achievement orientated
• Assertive
• Cooperative
• Decisive
• Dependable
• Dominant (desire to influence others)
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
Skills
• Clever (intelligent)
• Conceptually skilled
• Creative
• Diplomatic and tactful
• Fluent in speaking
• Knowledgeable about group task
• Organised (administrative ability)
• Persuasive
• Socially skilled
Leadership Traits and Skills
Leaders will also use:
Integrity, Honesty, Compassion,
Humility
TRAIT THEORY OF LEADERSHIP
Abdella K., Department of
Entrepreneurship & Bus. Mgt, Kotebe
Metroplitan University
7-20
TRAIT THEORY OF LEADERSHIP
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Personal Characteristics of Leaders
Physical Characteristics
Energy
Physical stamina
Social Background
Education
Mobility
Intelligence and Ability
Judgment,
decisiveness
Knowledge
Intelligence, cognitive
ability
Personality
Self-confidence
Honesty & integrity
Enthusiasm
Desire to lead
Independence
Work-related Characteristics
Achievement drive
Drive to excel
Conscientiousness in pursuit of goals
Persistence against obstacles, tenacity
Social Characteristics
Sociability, interpersonal skills
Cooperativeness
Ability to enlist cooperation
Tact, diplomacy
Leadership Traits
Group Exercise:
• Choose leaders YOU admire
• What personality traits and skills do they
have?
Activity
Abdella K., Department of
Entrepreneurship & Bus. Mgt, Kotebe
Metroplitan University
7-23
Shortcoming or Criticisms of Trait Theory
Not all leaders possess all of the traits
identified.
List of potentially important traits is endless.
No consistent patterns have been found that
distinguish effective leaders from the
ineffective one.
Difficult to measure traits.
All traits are not equally important for all
situations.
7-24
Shortcoming or Criticisms of Trait Theory
 Some effective leaders do not
possess all of these traits, and some
leaders who do possess them are not
effective in their leadership roles.
 Rather than focusing on what
leaders are like (the traits they
possess), researchers began looking
at what effective leaders actually do-
in.
7-25
3. BEHAVIORAL LEADERSHIP THEORIES
 Assumes that there are distinctive
styles that effective leaders use
consistently
 Assumed leadership capability can
be learned, rather than being
inherent.
TWO DIMENSIONAL LEADERSHIP STYLES
Ohio State University study
 Initiating structure (defining roles).
 spells out ways of getting the job done
 gives instructions, spends time
planning, organizing, and emphasizes
deadlines
 tend to defined patterns and channels
of communication
 Consideration behavior
(concern for feelings).
 Is mindful of subordinates
 Establishes mutual trust
 Provides open communication
 Develops teamwork Abdella K., Department of Entrepreneurship &
Bus. Mgt, Kotebe Metroplitan University
University of Michigan Studies
 Production-Centered
 Task focused
 Close supervision
 clear work standard
 urge for task accomplishment
 Employee-Centered
 focus on people doing the work
 believe in delegating decision
making and aiding employee
 creating a supportive work
environment.
University of Michigan
Studies
Identified 2 Leadership Behaviors
Employee-
Centered
Production-
Centered
Leaders
interested in their
subordinates as
people,
encourage
worker
participation in
the
organizational
goal-setting
process.
Leaders
emphasized
technical
aspects of
job, set job
standards,
close
supervision of
subordinates.
Abdella K., Department of Entrepreneurship &
Bus. Mgt, Kotebe Metroplitan University
7-28
TWO DIMENSIONAL LEADERSHIP STYLES
 Different combination of the two dimensions of leadership results in four
leadership styles. Note that the managerial grid refers to job centered refers
as concern for production and the managerial grid consideration refers as
concern for people.
High consideration
And
Low structure
High structure
And
High consideration
Low consideration
And
Low structure
High structure
And
low consideration
Consideration
Initiating structure
High
HighLow
High
7-29
II. BASIC LEADERSHIP STYLES
 In the 1930’s, before behavioral theory became popular,
studies at the University of Iowa concentrated on the manner or
style (behavior) of leaders. The studies identified three basic
leadership styles:
Autocratic: the leader makes the decisions and closely supervises
employees.
Democratic: the leader allows participation in decisions and does not
closely supervise employees.
Laissez-faire: the leader takes a leave-the employees-alone approach.
7-30
III. THE LEADERSHIP MANAGERIAL GRID
• (1,1): The leader does the minimum required.
• (9,1): The leader uses position power to coerce
employees.
• (1,9): The leader maintain good relations.
• (5,5)The organized-person manager: The leader
strives to maintain satisfactory middle-of-the-road
performance.
• (9,9)The team manager: Maximum performance
and employee satisfaction. Participation,
commitment, and conflict management are
emphasized. the researchers concluded that managers
performed best when using a 9,9 style.
Blake and Mouton's model
Appraises leadership
styles using two
dimensions
7-31
4. CONTINGENCY/SITUATIONAL THEORY
 According to situational theories,
assume that the appropriate leadership
style varies from situation to situation.
 Contingency theories do not deny the
importance of the leader’s
characteristics or the leader’s
behavior.
 Both must be taken into account in
the context of the situation.
7-32
A. Fiedler's Contingency Model
 Proper match between the leader’s style and situation.
Assumptions:
 a key factor in leadership success was an individual’s
basic leadership style: task oriented or relationship
oriented.
 A certain leadership style should be most effective in
different types of situations.
 Leaders do not readily change leadership styles.
 Matching the leader to the situation or changing the
situation to make it favorable to the leader is
required.
7-33
Fiedler's Contingency Model
 Least-preferred co-worker (LPC) questionnaire
 Determines leadership style by measuring
responses to 18 pairs of contrasting
adjectives
 High score: a relationship-oriented leadership style
 Low score: a task-oriented leadership style
 Fiedler did acknowledge that a small number of
people might fall between these two extremes,
but he also assumed a person’s leadership style
was fixed regardless of the situation.
7-34
Fiedler's Contingency Model
 Fiedler’s research uncovered three contingency
dimensions that defined the key situational factors
in leader effectiveness:
 Leader-member relations
 the degree of confidence, trust, and respect
employees had for their leader
 Task structure
 the degree to which job assignments were formalized
and structured
 Position power
 the degree of influence a leader had over activities
such as hiring, firing, discipline, promotions, and
salary increases
7-35
Fiedler's Contingency Model
 The three contingency variables
shown above, produced eight
possible situations that were either
favorable or unfavorable for the
leader.
 He concluded that task-oriented
leaders performed better in very
favorable and in very unfavorable
situations.
 On the other hand, relationship-
oriented leaders performed better in
moderately favorable situations.
7-36
Fiedler's Contingency Model
7-37
B. LEADERSHIP CONTINUUM
 Robert Tannenbaum and Warren Schemdit stated that
leadership behavior is on a continuum from autocrat (or boss-
centered) to democrat (or employee centered) leadership.
 They identify seven major styles based on the use of boss-
centered versus employee centered.
 As one moves away from the autocratic extreme, the amount
of subordinates participation and involvement in decision
making increases.
7-38
LEADERSHIP CONTINUUM
 Before selecting one of the seven leadership styles, the user must
consider the following three factors, or variables:
- The manager: what is the leader’s preferred style?
- The subordinates: what is the subordinates’ preferred style for
the leader, based on experience, expectation, and son on?
Generally, the more willing and able the subordinates are to
participate, the more freedom to participate should be given.
- The situation: Organization’s size, structure, climate, goals, and
technology?
7-39
LEADERSHIP CONTINUUM
7-40
LEADERSHIP CONTINUUM
 The model does not state which style to use in a situation.
Autocratic/Telling Style: the leader makes the decisions and announces them,
expecting subordinates to carry out without question.
Selling/Persuasive Style: the leader takes the decisions without discussion and
consultation. But the leader does a lot of explanations to overcome any possible
resistance and to persuade that the decisions are good.
Shows: The leader presents his/her decision and invites subordinates to ask
questions about the decision and presents tentative decision subject to change.
Asks: The leader confers with the group members after taking decisions and
asks their feelings and their suggestion.
7-41
LEADERSHIP CONTINUUM
Consultative style: The leader may not always accept the
subordinates’ advice but they (subordinates) are likely to feel
that they can have some influence.
 The decision and the full responsibility for it remain with the leader.
 Appropriate when there is time and when the information needed
lies among the members.
Shares: The leader defines the decision limits and asks groups to
make decision within the limit.
Democratic/Joining Style: leader permits subordinates to
function within limits defined by leader.
7-42
C. HERSEY-BLANCHARD SITUATIONAL
LEADERSHIP MODEL
 Posits that the developmental levels of a leader’s subordinates
play the greatest role in determine which leadership style is
appropriate.
 Employee readiness or maturity: employee’s ability and willingness to
accomplish a task and taking responsibility.
 Ability: follower’s skills and knowledge to perform the task without guidance.
 Willingness: self-motivation and commitments.
 Takes the two dimensional leadership styles and the four
quadrants, and develops four leadership styles.
7-43
HERSEY-BLANCHARD SITUATIONAL
LEADERSHIP MODEL
7-44
HERSEY-BLANCHARD SITUATIONAL
LEADERSHIP MODEL
Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
Hersey-Blanchard’s Situational Leadership
Theory
Links leader’s behavioral style with subordinates’ task readiness
Very High Readiness Level
High Readiness Level
Moderate Readiness Level
Low Readiness Level
Follower Characteristics Appropriate Leader
Style
Telling
Selling
Participating
Delegating
High task behavior and low
support behavior
High task and high supportive
behavior
High supportive behavior
and low task behavior
Low task and low supportive
behavior
Situation
7-46
TRANSFORMATIONAL, TRANSACTIONAL AND
SERVANT PERSPECTIVE OF LEADERSHIP
1. Transformational Leadership
 Creating, communicating, and modeling a vision, and inspiring
employees to strive for that vision.
 Make subordinates aware of the importance of their jobs,
performance and their needs for personal growth and motivates
subordinates to work for the good of the organization.
 Transformational leadership is about change, innovation, and
entrepreneurship.
7-47
Transformational Leadership
Characteristics of transformational leaders are;
- They see themselves as change agents
- They are encourageous individuals who take
risks
- They believe in people and motivate them
- They are value-driven
- They have the ability to deal with complexity,
ambiguity, and uncertainty; and
- They are visionaries.
7-48
Transformational Leadership
 Transformational leaders perform, or take the organization
through, three acts, on an ongoing basis.
7-49
2. Transactional Leadership
 Focuses more on middle and first-line
managers.
 Based on the principle of “you do this
work for me and I will give this reward to
you.”
 Use reward and coercive powers to
encourage high performance.
 They can improve organizational
efficiency.
7-50
3.Servant Leadership
 Arises out of a desire to serve rather than a desire to lead.
 Robert Greenleaf, founder of the Center for Servant Leadership
describes as follows:
 “The servant-leader is servant first… It begins with the natural
feeling that one wants to serve first.
 He or she is sharply different from the person who is leader first.
 The leader-first and the servant-first are two extreme types.
7-51
Servant Leadership
 The servant-first make sure that other
people’s highest priority needs are being
served.
 The best test, and difficult to
administer, is: do those served grow as
persons; do they, while being served,
become healthier, wiser, freer, more
autonomous, more likely themselves to
become servants?
7-52
Servant Leadership
 Characteristics of Servant Leaders are as follows:
 Lead as a way of expanding service to individuals
and institutions.
 Servant-leaders may or may not hold formal
leadership positions.
 Encourages collaboration, trust, foresight,
listening, and the ethical use of power and
empowerment.”
 The emphasis on serving a higher purpose has
made this model popular within the religious
institutions.
7-53
THANK YOU
FOR
YOUR ATTENTION

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Leadership and Change Management

  • 1. 7-1 LCM CHAPTER TWO LEADERSHIP THEORIES AND STYLES Abdella K., Department of Entrepreneurship & Bus. Mgt, Kotebe Metroplitan University
  • 2. 7-2 LEADERSHIP STYLES Situational combination of the above three styles  Is the behavior exhibited by a leader during supervision and working with subordinates. It shapes the way that manager approaches planning, organizing, and controlling. i. Positive leadership styles: give emphasis to praise and recognition, monetary rewards, increase in security, and addition of responsibility. ii. Negative leadership style: Emphasizes penalties, loss of job, suspension, and public reprimands/critics.  There are four leadership styles.
  • 3. 7-3 A. Autocratic/directive leadership style  Centralizes power and decision making authority  Complete control over subordinates.  Shows high concern for the task and low concern for the people /human aspect/.
  • 4. 7-4 Autocratic/directive leadership style  Characteristics of autocratic leaders: - Make the decisions and closely supervises employees - Highly conscious and sensitive of his /her position - One-way communication - Delegate a very little decision making authority - Believes that pay is just a reward. - No questions allowed and no explanations.
  • 5. 7-5 Activity What are the pros and cos of Autocratic leadership style? _________________________________ _________________________________ _________________________________ _________________________________
  • 6. 7-6 Autocratic/directive leadership style  Problems of autocratic style:  Force breeds counter-force: Restriction of output, antagonism, conflict, frustration, unionism, etc.  It impairs group moral, creativity and initiative,  brings high rate of grievance, absenteeism, turnover and dissatisfaction.  discourage open communication  Strength of autocratic style:  It is useful for urgent situations and quick decision-making.  Keeps from missing important deadlines.  Prevents from becoming stagnant because of poor organization or lack of leadership.
  • 7. 7-7 B. Democratic or participative leadership style  Democratic leadership style is characterized by participation of the group and utilization of its opinions.  A manager shares decision making authority.  Encourages participation and supports the task efforts of subordinates.
  • 8. 7-8 Democratic or participative leadership style  Democratic leadership style has the following characteristics: - Share decision making authority - Appreciate suggestions and new ideas from subordinates - High concern for both task and people - Not sensitive about their authority - Develops a feeling of responsibility within group - Motivates subordinates - Increases the quality of work and productivity - Explains his/her reason to the group.
  • 9. 7-9 Activity What are the pros and cos of democratic leadership style? _________________________________ _________________________________ _________________________________ _________________________________
  • 10. 7-10 Democratic or participative leadership style Advantages  Improves job satisfaction and morale of the subordinates.  Reduces resistance to change.  Absenteeism and turnover are reduced.  Build mutual trust between labor and management.  Creativity and innovation increase Disadvantages  Time-consuming and result in delays in decision-making  Not always appropriate in a task-oriented environment.  Overly dependent on the expertise of subordinates.
  • 11. 7-11 C. Laissez faire/free-rein/ abdicative leadership style  Act and leave decision making authority to the subordinates and remain for consultation.  Free-rein leadership style has the following features: - Gives full decision making authority. - Little control over the group/ subordinates  Free rein leadership style can apply in organizations with highly skilled and well- trained professional.
  • 12. 7-12 Laissez faire/free-rein/ abdicative leadership style Advantages  Allows functioning productively and Challenges to take personal responsibility.  Motivates people and leads to higher retention of experts  Positive effect on job satisfaction and moral of subordinates.  It gives chance to take initiative to the subordinates. Disadvantages  Lack of interest, morale, team work and accountability  Leads to ineffective time management by teams.  Lack of guidance and support and moving in different directions.  Favor success-oriented people rather than those who solve society’s most pressing problems.
  • 13. 7-13 Activity  In what situations is a type of leadership effective, and in what situations is it not?  Generally speaking, what type of leadership do you prefer? Why?  write the answers to the above questions on the board in the following format
  • 14. 7-14 D. Situational leadership style  Leaders can utilize the combination of the above three styles depending on the situation.  The style a manger chooses may depend upon the following situations;  Forces in the manager such as his value system, his confidence in subordinates.  Forces in subordinates, example, subordinates expectations.  Forces in the situation, example, type of organization, the nature of the problems, the pressure of time, etc.
  • 15. 7-15 Situational leadership style  For example, an autocratic leader may behave democratically when the success of a change, program, policy, or decision is critically dependent on employee acceptance and cooperation.  A democratic leader may find it wiser to behave autocratically when a decision is associated with a high degree of risk and uncertainty, or when he is facing a crisis or an emergency situation, etc.
  • 16. 7-16 LEADERSHIP THEORIES Time 1900 1950 1970 Great Man theory Leaders level of greatness Trait theories personality characterist ics The Evolution of Leadership Research Behavioral theories (task and people) how leaders act Contingency theory how the environment affects leaders and their performance
  • 17. 7-17  Great man theory assumes “great leaders are born not made”.  Portray great leaders are heroic, mythic and destined to rise to leadership when needed.  leaders are exceptional people, born with innate qualities, destined to lead.  The gender issues were not on the table 1. GREAT MAN THEORY
  • 18. 7-18 2. TRAIT THEORY OF LEADERSHIP  Claims that people are born with inherited traits.  People who make good leaders have the right (sufficient) combination of traits.  Assumes that there are distinctive physical and psychological characteristics accounting for leadership effectiveness.  Also assumed that a finite number of individual traits-intellectual, emotional, physical, and other traits- of effective leaders could be found.  Focused on ‘what’ an effective leader is, not on ‘how’ to effectively lead.
  • 19. Traits • Adaptable to situations • Alert to social environment • Ambitious and achievement orientated • Assertive • Cooperative • Decisive • Dependable • Dominant (desire to influence others) • Energetic (high activity level) • Persistent • Self-confident • Tolerant of stress • Willing to assume responsibility Skills • Clever (intelligent) • Conceptually skilled • Creative • Diplomatic and tactful • Fluent in speaking • Knowledgeable about group task • Organised (administrative ability) • Persuasive • Socially skilled Leadership Traits and Skills Leaders will also use: Integrity, Honesty, Compassion, Humility TRAIT THEORY OF LEADERSHIP Abdella K., Department of Entrepreneurship & Bus. Mgt, Kotebe Metroplitan University
  • 20. 7-20 TRAIT THEORY OF LEADERSHIP
  • 21. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Social Background Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy
  • 22. Leadership Traits Group Exercise: • Choose leaders YOU admire • What personality traits and skills do they have? Activity Abdella K., Department of Entrepreneurship & Bus. Mgt, Kotebe Metroplitan University
  • 23. 7-23 Shortcoming or Criticisms of Trait Theory Not all leaders possess all of the traits identified. List of potentially important traits is endless. No consistent patterns have been found that distinguish effective leaders from the ineffective one. Difficult to measure traits. All traits are not equally important for all situations.
  • 24. 7-24 Shortcoming or Criticisms of Trait Theory  Some effective leaders do not possess all of these traits, and some leaders who do possess them are not effective in their leadership roles.  Rather than focusing on what leaders are like (the traits they possess), researchers began looking at what effective leaders actually do- in.
  • 25. 7-25 3. BEHAVIORAL LEADERSHIP THEORIES  Assumes that there are distinctive styles that effective leaders use consistently  Assumed leadership capability can be learned, rather than being inherent.
  • 26. TWO DIMENSIONAL LEADERSHIP STYLES Ohio State University study  Initiating structure (defining roles).  spells out ways of getting the job done  gives instructions, spends time planning, organizing, and emphasizes deadlines  tend to defined patterns and channels of communication  Consideration behavior (concern for feelings).  Is mindful of subordinates  Establishes mutual trust  Provides open communication  Develops teamwork Abdella K., Department of Entrepreneurship & Bus. Mgt, Kotebe Metroplitan University
  • 27. University of Michigan Studies  Production-Centered  Task focused  Close supervision  clear work standard  urge for task accomplishment  Employee-Centered  focus on people doing the work  believe in delegating decision making and aiding employee  creating a supportive work environment. University of Michigan Studies Identified 2 Leadership Behaviors Employee- Centered Production- Centered Leaders interested in their subordinates as people, encourage worker participation in the organizational goal-setting process. Leaders emphasized technical aspects of job, set job standards, close supervision of subordinates. Abdella K., Department of Entrepreneurship & Bus. Mgt, Kotebe Metroplitan University
  • 28. 7-28 TWO DIMENSIONAL LEADERSHIP STYLES  Different combination of the two dimensions of leadership results in four leadership styles. Note that the managerial grid refers to job centered refers as concern for production and the managerial grid consideration refers as concern for people. High consideration And Low structure High structure And High consideration Low consideration And Low structure High structure And low consideration Consideration Initiating structure High HighLow High
  • 29. 7-29 II. BASIC LEADERSHIP STYLES  In the 1930’s, before behavioral theory became popular, studies at the University of Iowa concentrated on the manner or style (behavior) of leaders. The studies identified three basic leadership styles: Autocratic: the leader makes the decisions and closely supervises employees. Democratic: the leader allows participation in decisions and does not closely supervise employees. Laissez-faire: the leader takes a leave-the employees-alone approach.
  • 30. 7-30 III. THE LEADERSHIP MANAGERIAL GRID • (1,1): The leader does the minimum required. • (9,1): The leader uses position power to coerce employees. • (1,9): The leader maintain good relations. • (5,5)The organized-person manager: The leader strives to maintain satisfactory middle-of-the-road performance. • (9,9)The team manager: Maximum performance and employee satisfaction. Participation, commitment, and conflict management are emphasized. the researchers concluded that managers performed best when using a 9,9 style. Blake and Mouton's model Appraises leadership styles using two dimensions
  • 31. 7-31 4. CONTINGENCY/SITUATIONAL THEORY  According to situational theories, assume that the appropriate leadership style varies from situation to situation.  Contingency theories do not deny the importance of the leader’s characteristics or the leader’s behavior.  Both must be taken into account in the context of the situation.
  • 32. 7-32 A. Fiedler's Contingency Model  Proper match between the leader’s style and situation. Assumptions:  a key factor in leadership success was an individual’s basic leadership style: task oriented or relationship oriented.  A certain leadership style should be most effective in different types of situations.  Leaders do not readily change leadership styles.  Matching the leader to the situation or changing the situation to make it favorable to the leader is required.
  • 33. 7-33 Fiedler's Contingency Model  Least-preferred co-worker (LPC) questionnaire  Determines leadership style by measuring responses to 18 pairs of contrasting adjectives  High score: a relationship-oriented leadership style  Low score: a task-oriented leadership style  Fiedler did acknowledge that a small number of people might fall between these two extremes, but he also assumed a person’s leadership style was fixed regardless of the situation.
  • 34. 7-34 Fiedler's Contingency Model  Fiedler’s research uncovered three contingency dimensions that defined the key situational factors in leader effectiveness:  Leader-member relations  the degree of confidence, trust, and respect employees had for their leader  Task structure  the degree to which job assignments were formalized and structured  Position power  the degree of influence a leader had over activities such as hiring, firing, discipline, promotions, and salary increases
  • 35. 7-35 Fiedler's Contingency Model  The three contingency variables shown above, produced eight possible situations that were either favorable or unfavorable for the leader.  He concluded that task-oriented leaders performed better in very favorable and in very unfavorable situations.  On the other hand, relationship- oriented leaders performed better in moderately favorable situations.
  • 37. 7-37 B. LEADERSHIP CONTINUUM  Robert Tannenbaum and Warren Schemdit stated that leadership behavior is on a continuum from autocrat (or boss- centered) to democrat (or employee centered) leadership.  They identify seven major styles based on the use of boss- centered versus employee centered.  As one moves away from the autocratic extreme, the amount of subordinates participation and involvement in decision making increases.
  • 38. 7-38 LEADERSHIP CONTINUUM  Before selecting one of the seven leadership styles, the user must consider the following three factors, or variables: - The manager: what is the leader’s preferred style? - The subordinates: what is the subordinates’ preferred style for the leader, based on experience, expectation, and son on? Generally, the more willing and able the subordinates are to participate, the more freedom to participate should be given. - The situation: Organization’s size, structure, climate, goals, and technology?
  • 40. 7-40 LEADERSHIP CONTINUUM  The model does not state which style to use in a situation. Autocratic/Telling Style: the leader makes the decisions and announces them, expecting subordinates to carry out without question. Selling/Persuasive Style: the leader takes the decisions without discussion and consultation. But the leader does a lot of explanations to overcome any possible resistance and to persuade that the decisions are good. Shows: The leader presents his/her decision and invites subordinates to ask questions about the decision and presents tentative decision subject to change. Asks: The leader confers with the group members after taking decisions and asks their feelings and their suggestion.
  • 41. 7-41 LEADERSHIP CONTINUUM Consultative style: The leader may not always accept the subordinates’ advice but they (subordinates) are likely to feel that they can have some influence.  The decision and the full responsibility for it remain with the leader.  Appropriate when there is time and when the information needed lies among the members. Shares: The leader defines the decision limits and asks groups to make decision within the limit. Democratic/Joining Style: leader permits subordinates to function within limits defined by leader.
  • 42. 7-42 C. HERSEY-BLANCHARD SITUATIONAL LEADERSHIP MODEL  Posits that the developmental levels of a leader’s subordinates play the greatest role in determine which leadership style is appropriate.  Employee readiness or maturity: employee’s ability and willingness to accomplish a task and taking responsibility.  Ability: follower’s skills and knowledge to perform the task without guidance.  Willingness: self-motivation and commitments.  Takes the two dimensional leadership styles and the four quadrants, and develops four leadership styles.
  • 45. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. Hersey-Blanchard’s Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Very High Readiness Level High Readiness Level Moderate Readiness Level Low Readiness Level Follower Characteristics Appropriate Leader Style Telling Selling Participating Delegating High task behavior and low support behavior High task and high supportive behavior High supportive behavior and low task behavior Low task and low supportive behavior Situation
  • 46. 7-46 TRANSFORMATIONAL, TRANSACTIONAL AND SERVANT PERSPECTIVE OF LEADERSHIP 1. Transformational Leadership  Creating, communicating, and modeling a vision, and inspiring employees to strive for that vision.  Make subordinates aware of the importance of their jobs, performance and their needs for personal growth and motivates subordinates to work for the good of the organization.  Transformational leadership is about change, innovation, and entrepreneurship.
  • 47. 7-47 Transformational Leadership Characteristics of transformational leaders are; - They see themselves as change agents - They are encourageous individuals who take risks - They believe in people and motivate them - They are value-driven - They have the ability to deal with complexity, ambiguity, and uncertainty; and - They are visionaries.
  • 48. 7-48 Transformational Leadership  Transformational leaders perform, or take the organization through, three acts, on an ongoing basis.
  • 49. 7-49 2. Transactional Leadership  Focuses more on middle and first-line managers.  Based on the principle of “you do this work for me and I will give this reward to you.”  Use reward and coercive powers to encourage high performance.  They can improve organizational efficiency.
  • 50. 7-50 3.Servant Leadership  Arises out of a desire to serve rather than a desire to lead.  Robert Greenleaf, founder of the Center for Servant Leadership describes as follows:  “The servant-leader is servant first… It begins with the natural feeling that one wants to serve first.  He or she is sharply different from the person who is leader first.  The leader-first and the servant-first are two extreme types.
  • 51. 7-51 Servant Leadership  The servant-first make sure that other people’s highest priority needs are being served.  The best test, and difficult to administer, is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants?
  • 52. 7-52 Servant Leadership  Characteristics of Servant Leaders are as follows:  Lead as a way of expanding service to individuals and institutions.  Servant-leaders may or may not hold formal leadership positions.  Encourages collaboration, trust, foresight, listening, and the ethical use of power and empowerment.”  The emphasis on serving a higher purpose has made this model popular within the religious institutions.