PD Lecture 6 leadership

All Rights ReservedOrganizational Behaviour
© Oxford Fajar Sdn. Bhd. (008974-T), 2013 1– 1

Lecture 6
LEADERSHIP

INTRODUCTION
 Leadership entails developing a vision for the unit or
organization or group led, managing their resources
under their direction, providing effective leadership
that enhances productivity and maintaining
important relationships internally and externally.

DEFINITION OF LEADERS AND
LEADERSHIP
 A leader is a person that holds a dominant or
superior position within its field, and is able
to exercise a high degree of control or influence over
others.
 Leadership can be defined as a process by which one
individual influences others toward the attainment of
group or organizational goals.

EARLY THEORIES – TRAITS
THEORY
 Trait theories assume that people inherit certain qualities
and traits that make them better suited to leadership.
Among the core traits identified are:
– Achievement drive
– Leadership motivation
– Honesty and integrity
– Self-confidence
– Cognitive ability
– Knowledge of business
– Emotional maturity
– Others

EARLY THEORIES –
BEHAVIOURAL THEORIES
OHIO STATE STUDIES
Ohio State University identified two distinct leader’s
behaviour which are Consideration (people-oriented
behavioural leaders) and Initiating Structure (task-oriented
leaders).
Two Groups that were strongly correlated
Consideration (people-oriented behaviour
leaders)
Initiating Structure (Task-Oriented leaders)

MICHIGAN STATE STUDIES
The focus of Michigan State studies were to determine the
principles and methods of leadership that led to productivity
and job satisfaction.
The studies resulted in two general leadership behaviours or
orientations:
An employee orientation (concern for interpersonal
relations)
Production orientation ( focus on task or technical aspects
of the job).
EARLY THEORIES –
BEHAVIOURAL THEORIES

EARLY THEORIES –
BEHAVIOURAL THEORIES (cont.)
MANAGERIAL GRID
The Managerial Grid is based on two behavioural
dimensions:
– Concern for People – This is the degree to
which a leader considers the needs of team
members, their interests, and areas of personal
development when deciding how best to
accomplish a task.
– Concern for Production – This is the degree
to which a leader emphasizes concrete
objectives, organizational efficiency and high
productivity when deciding how best to
accomplish a task.

CONTINGENCY APPROACH
FIEDLER CONTINGENCY MODEL
Concentrated on the relationship between
leadership and organizational performance
According to Fiedler, if an organization attempts to achieve
group effectiveness through leadership, then there is a need to
assess the leader according to an underlying trait, assess the
situation faced by the leader, and construct a proper match
between the two.
Fiedler’s ‘least preferred co-worker’ (LPC) scale
Unfriendly1 2 3 4 5 6 7 8Friendly

(cont.)
HERSEY AND BLANCHARD’S SITUATIONAL
THEORY
According to this model, the leader has to
match the leadership style according to the
readiness of subordinates which moves in
stages and has a cycle.
Therefore, this theory is also known as the
life-cycle theory of leadership.

(cont.)
HOUSE’S PATH-GOALTHEORY
According to House’s path-goal theory, a leader’s effectiveness depends on several
employees and environmental contingent factors and certain leadership styles which are:
 Directive
• You communicate goals and expectations, and you assign clear tasks. This style works best when tasks or projects are
unstructured, or when tasks are complex and team members are inexperienced.
 Supportive
• Focus on relationships. You show sensitivity to individual team members' needs, and you consider your team members'
best interests. This leadership style is best when tasks are repetitive or stressful.
 Participative
• With participative leadership, you focus on mutual participation. You consult with your group, and you consider their ideas
and expertise before making a decision. This approach works best when your team members are experienced, when the task
is complex and challenging, and when your team members want to give you their input.
 Achievement-oriented
• you set challenging goals for your team. You have confidence in your team's abilities, so you expect your team to perform
well, and you maintain high standards for everyone. This style works best when team members are unmotivated or
unchallenged in their work.

CONTEMPORARY APPROACH
LEADER-MEMBER EXCHANGE THEORY
The theory states that all relationships
between leaders and subordinates go
through three stages. These are:
Role-taking
Role-making
• In-Group
• Out-Group
Routinization

(cont.)
THEORY Z
Theory Z of Ouchi is Dr. William Ouchi's so-called "Japanese Management" style
popularized during the Asian economic boom of the 1980s. For Ouchi, Theory Z focused
on increasing employee loyalty to the company by providing a job for life with a strong
focus on the well-being of the employee, both on and off the job.
Theory Z management tends to promote stable employment, high productivity and high
employee morale and satisfaction.
CHARISMATIC LEADERSHIP THEORY
Charismatic leaders have a clear vision of where they want to go and how to get there
and they are fantastic at articulating that vision to others.
They are sensitive to their surroundings and to the needs of their followers and potential
followers.

(cont.)
A charismatic leader influences his or her followers via a FOUR-step process:
1.The leader articulates an appealing vision.
2.The leader communicates high performance expectations and expresses confidence
that followers can attain them.
3.The leader conveys, through words and actions, a new set of values and set examples
for followers to imitate.
4.The leader makes self-sacrifices and engages in unconventional behaviour to
demonstrate courage and conviction about the vision.
.

What is Transformational Leadership?
 Sullivan and Decker (2001) define transformational leadership as “a
leadership style focused on effecting revolutionary change in organizations
through a commitment to the organization’s vision.“
 Transformational leadership redefines people’s missions and visions,
renews their commitment, and restructures their systems for goal
accomplishment through a relationship of mutual stimulation and elevation
that converts followers into leaders and leaders into moral agents.
 Transformational leadership may be found at all levels of the organization:
teams, departments, divisions, and the organization as a whole.
 Such leaders are visionary, inspiring, daring, risk-takers and thoughtful
thinkers.


TRANSFORMATIONAL LEADERSHIP
For bringing major changes, transformational leaders must exhibit the
following FOUR factors:
1.Idealized Influence
The major characteristics of transformational leadership include engendering trust, admiration,
loyalty, and respect amongst followers through application of charismatic vision and behavior.
Transformational leaders strive towards creating such a state of idealized influence by:
articulating a vision and explaining how to attain the vision in an appealing manner
leading by example
acting confidently and optimistically
sharing risks with followers
emphasizing values and reinforcing them by symbolic actions
displaying a high level of ethical and moral conduct
Leaders who apply idealized influence on their followers gain the trust and confidence of the
followers. The followers admire the leader as a role model and respect the decisions made by him or
her.

For bringing major changes, transformational leaders must exhibit the following
FOUR factors:
2. Inspirational Motivation
The transformational leader inspires followers toward the new ideas or goals through
inspirational motivation. The major characteristics of inspirational motivation leadership include:
Articulation of a clear and appealing view of the future
Development of a shared vision in both economic and ideological terms so that the followers see meaning in their
work
Making sure of each follower’s role in the fulfillment of the shared vision, and setting high standards for the followers
to attain objectives
Encouraging followers to integrate and become part of the overall organizational culture and environment
Transformational leaders elevate people from low levels of need focused on survival by appealing toward their inborn
desire to attain higher levels related to love, learning, leaving a legacy, and the like. The ways adopted to do so are
many, and include:
Making vivid descriptions of a good future that raises one’s imagination
motivational speeches and conversations
public display of optimism and enthusiasm
highlighting positive outcomes
stimulating teamwork

FOUR factors:
2. Inspirational Motivation
The transformational leader inspires followers toward the new ideas or goals through
inspirational motivation. The major characteristics of inspirational motivation leadership include:
Articulation of a clear and appealing view of the future
Development of a shared vision in both economic and ideological terms so that the followers see meaning in their
work
Making sure of each follower’s role in the fulfillment of the shared vision, and setting high standards for the followers
to attain objectives
Encouraging followers to integrate and become part of the overall organizational culture and environment
Transformational leaders elevate people from low levels of need focused on survival by appealing toward their inborn
desire to attain higher levels related to love, learning, leaving a legacy, and the like. The ways adopted to do so are
many, and include:
Making vivid descriptions of a good future that raises one’s imagination
motivational speeches and conversations
public display of optimism and enthusiasm
highlighting positive outcomes
stimulating teamwork

FOUR factors:
3. Intellectual Stimulation
Transformational leadership encourages change through intellectual stimulation aimed at self-
reflective change of values and beliefs.
Transformational leaders raise their followers’ awareness regarding problems and develop their
capability to solve such problems in many ways. Some of these ways are:
Fostering a climate that favors critical examination of commonly held notions, beliefs, and the status
quo
Creating an environment conducive to the creation and sharing of knowledge
Encouraging innovation and creativity
Heightening sensitivity to environmental changes
Encouraging the suggestion of radical and controversial ideas without fear of punishment or ridicule
Empowerment and imposition of the leader's idea only in the absence of viable ideas from the
followers

FOUR factors:
4. Individualized Consideration
Individualized consideration ranks among the major characteristics of transformational leadership.
The transformational leader treats each follower as a “whole" individual rather than as an employee,
and considers the individual’s talents and levels of knowledge to decide what suits him or her to reach
higher levels of attainment.
A transformational leader applies such individual considerations by:
Listening to each follower’s needs and concerns
Expressing words of thanks or praise as a means of motivation
Making public recognition of achievements and initiatives
Making private notes of congratulations to boost self confidence
Ensuring fair workload distribution
Undertaking individualized career counseling and mentoring

 The transactional style of leadership was first described by Max Weber in 1947 and then by
Bernard Bass in 1981. This style is most often used by the managers. It focuses on the basic
management process of controlling, organizing, and short-term planning. The famous examples
of leaders who have used transactional technique include McCarthy and de Gaulle.
 Transactional leadership involves motivating and directing followers primarily through
appealing to their own self-interest. The power of transactional leaders comes from their
formal authority and responsibility in the organization. The main goal of the follower is to obey
the instructions of the leader. The style can also be mentioned as a ‘telling style’.
 The leader believes in motivating through a system of rewards and punishment. If a subordinate
does what is desired, a reward will follow, and if he does not go as per the wishes of the leader,
a punishment will follow. Here, the exchange between leader and follower takes place to
achieve routine performance goals.
TRANSACTIONAL LEADERSHIP

These exchanges involve FOUR dimensions:
1. Contingent Rewards:
Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set
mutually agreed upon goals, and provide various kinds of rewards for successful performance. They
set SMART (specific, measurable, attainable, realistic, and timely) goals for their subordinates.
2. Active Management by Exception:
Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules
and standards and taking corrective action to prevent mistakes.
3. Passive Management by Exception:
Transactional leaders intervene only when standards are not met or when the performance is not as
per the expectations. They may even use punishment as a response to unacceptable performance.
4. Laissez-faire:
The leader provides an environment where the subordinates get many opportunities to make
decisions. The leader himself abdicates responsibilities and avoids making decisions and therefore
the group often lacks direction.
TRANSACTIONAL LEADERSHIP

Transactional leadership Transformational Leadership
leadership is responsive Leadership is proactive
Works within the organizational culture Work to change the organizational
culture by implementing new ideas
Transactional leaders make employees
achieve organizational objectives
through rewards and punishment
Transformational leaders motivate and
empower employees to achieve
company’s objectives by appealing to
higher ideals and moral values
Motivates followers by appealing to
their own self-interest
Motivates followers by encouraging
them to transcend their own interests
for those of the group or unit
Difference between Transactional and
Transformational Leaders

TRUST AND ETHICS IN
LEADERSHIP
 Ethics refer to the desirable and appropriate values and morals according to an
individual or the society at large. Ethics deal with the purity of individuals and their
intentions. Ethics serve as guidelines for analyzing “what is good or bad” in a
specific scenario.
 Ethical theories on leadership talk about two main things: (a) The actions and
behaviour of leaders; and (b) the personality and character of leaders. It is essential
to note that “Ethics are an essential to leadership”.
 A leader drives and influences the subordinates / followers to achieve a common
goal, be it in case of team work, organizational quest, or any project. It is an ethical
job of the leader to treat his subordinates with respect as each of them has unique
personality.
 The ethical environment in an organization is built and developed by a leader as
they have an influential role in the organization and due to the fact that leaders have
an influence in developing the organizational values.

TRUST AND ETHICS IN
LEADERSHIP
An effective and ethical leader has the following traits / characteristics:
1. Dignity and respectfulness
He respects others. An ethical leader should not use his followers as a medium to achieve his personal goals.
He should respect their feelings, decision and values. Respecting the followers implies listening effectively to
them, being compassionate to them, as well as being liberal in hearing opposing viewpoints. In short, it implies
treating the followers in a manner that authenticate their values and beliefs.
2. Serving others
He serves others. An ethical leader should place his follower’s interests ahead of his interests. He should be
humane. He must act in a manner that is always fruitful for his followers.Justice: He is fair and just. An ethical
leader must treat all his followers equally. There should be no personal bias. Wherever some followers are
treated differently, the ground for differential treatment should be fair, clear, and built on morality.
3. Community building
He develops community. An ethical leader considers his own purpose as well as his followers’ purpose, while
making efforts to achieve the goals suitable to both of them. He is considerate to the community interests. He
does not overlook the followers’ intentions. He works harder for the community goals.
4. Honesty
He is loyal and honest. Honesty is essential to be an ethical and effective leader. Honest leaders can be always
relied upon and depended upon. They always earn respect of their followers. An honest leader presents the fact
and circumstances truly and completely, no matter how critical and harmful the fact may be. He does not
misrepresent any fact.

CREATING EFFECTIVE
LEADERS
 Earn respect by giving respect.
 Ensure everyone knows exactly what their roles are.
 Human beings crave appreciation.
 Set followers’ expectations high.
 Develop successes from failures.
 Challenge followers daily to achieve more.
 Lead followers by example.
 Great leaders are masters of communication.
 Create a fun and enjoyable but extremely serious
workplace.
 Great leaders have the reputation of high integrity.

PD Lecture 6 leadership

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