This document provides an overview of leadership theories for a university course. It discusses: 1) Different perspectives on leadership such as trait, behavioural, contingency and transformational theories. It explains theorists like Fiedler, Hersey and Blanchard. 2) The differences between leadership and management, and how leadership involves vision and change while management focuses on efficiency. 3) Contemporary theories like charismatic, distributed and shared leadership. It also discusses issues of power, gender and cross-cultural leadership. 4) Whether leadership is important and the challenges of linking it directly to organizational performance given cultural and stakeholder influences.

1. Leadership
BUS651: Work, Organisation and Management
Dr Sarah Bankins

2. What is my prep for this seminar?
Please:
 Read textbook chapter 12
 Read through the lecture slides
 Read those materials listed under ‘Additional Readings’ on
iLearn for this week

3. Learning outcomes
 Explain the meaning of leadership and how it differs from
management
 Explain the different perspectives on studying organisational
leadership (e.g. trait, behavioural, contingency, etc.)
 Explain whether effective leadership has positive performance
outcomes

4. The Nature of Organisational Leadership
A process whereby an individual exerts an influence upon
others in an organisational context.
The: ‘ability of an individual to influence, motivate and
enable others to contribute toward the effectiveness and
success of the organisation’ House et al. (1999, p. 184).
‘Leadership is the process of influencing others to
understand and agree about what needs to be done and
how to do it, and the process of facilitating individual and
collective efforts to accomplish shared objectives’ Yukl
(2013, p. 23).
Critical accounts of leadership tend to focus on the
hierarchical forms to which it gives rise: power relationships
and gender dominance.
p. 315-317

5. Leadership as a Process
p. 317

6. Leadership vs. Management
 Management - status quo, consistency, order and efficiency.
Planning, organising, commanding, coordinating, and controlling.
 Leadership - vision, strategy, communications and change.
 Leadership is about direction and pulling together towards a
common goal; management is about implementing those plans and
managing resources to execute them effectively and efficiently.
 Leadership seen as:
- an interpersonal process between leaders and followers (dyadic)
- a value-laden activity (Apps, 1994)
 People can be both leaders and managers, but ‘a person can be a
leader without being a manager, and a person can be a manager
without leading’ (Yukl, 2013, p. 6).
p. 318-320,
317

7. Theories of Leadership
 Theories can be concerned with what leaders should do and what
leaders actually do (theories for leaders vs. theories of leadership)
 Two broad categories: classical and modern
p. 320

8. Trait Perspective
 Early research on leadership focused on how those in leadership positions
possess ‘superior qualities or attributes compared with the traits possessed by
non-leaders’
 Great Man Theories – what about diverse leaders, female leaders?
 Stogdill (1948; 1974) associates a cluster of traits with leadership: positive
physical characteristics (stamina); SES factors (‘class position’); intelligence,
fluency in speech; task-related (desire to excel); social attributes (tact,
diplomacy).
 Yukl (1998) argued for a mix of traits linked to leadership: energy, internal
locus of control, self-confidence, emotional maturity, integrity, power
motivation, achievement orientation, low need for affiliation.
 Weaknesses:
- A neglect of context
- Failure to recognise the role of national culture (are there really
universally positive traits?)
- What about the role of followers?
p. 321

9. Behaviour Perspective
 Focus on leaders’ behaviours, rather than their personal
characteristics
 Michigan and Ohio programs of research:
 Task-orientated vs. people-orientated/relationship behaviours
(Michigan)
 Initiating behaviour and consideration (Ohio)
Essentially a focus on goals/tasks/standards/role structures vs. a
focus on trust/nurturing relationships/employee welfare/respect.
 What leadership style is most effective?
 High initiating structure = greater effectiveness
 High consideration = higher employee satisfaction
 Ohio – high on both = most effective leaders
 Research has tended to confirm these frameworks
p. 321-323

10. Leadership Behavior - Consideration
 This leader is friendly, approachable, looks out for the personal welfare of the
group, keeps the group abreast of new developments, and does small favours
 The degree to which one is trusting and supportive; the leader creates an
environment of friendliness
 Proven to improve job satisfaction, satisfaction with the leader, worker motivation,
and leader effectiveness
Relationship-oriented leadership
Process-focused
Concern for People

11. Leadership Behavior - Initiating Structure
 This leader assigns specific tasks, specifies procedures to be followed, schedules
work, and clarifies expectations for team members
 The degree to which one is task-oriented
 Proven to increase job performance, group performance, and organisation
performance, as well as satisfaction.
Task-oriented leadership
Results-focused
Concern for production

12. The Leadership Grid
 For leadership training - allows trainees to assess
current levels of task-oriented and people-oriented
leadership styles.
 Two core dimensions parallel McGregor’s Theories X
and Y.
 Blake and McCanse identify five basic combinations
of concern for production and concern for people.
 The styles are: authority-compliance style; country-
club; impoverished management; middle-of-the-road
management; and team management.
p. 322-323

13. Leadership Grid Styles
Source: Blake & McCanse. (1991). Leadership dilemmas - Grid solutions. Houston: Gulf Pub. Co.
Limitations:
 Behaviour-performance
outcome relationship is
tenuous
 Effectiveness of ‘high-high’
style has been questioned
 There is no ‘one best way
to lead’ – we need to look
to situational
characteristics
p. 323

14. Contingency Theory
 Based on the notion that the most effective style depends
on contextual factors (leader + follower + situation)
 Whether a set of traits or behaviours will result in leadership
success is contingent (it depends) upon situational variables
 Most contingency theories assume effective leaders must
be flexible and adapt their behaviours and styles to match
the situation
 There are three types of contingency theory:
Fiedler’s Leadership Contingency Theory
Path-Goal Theory
Situational Leadership (Hersey and Blanchard, 1969)
p. 323-324

15. Fiedler’s Contingency Theory
 Fit between the leader’s need structure and the favourableness of the
leader’s situation determines team effectiveness in accomplishing their
work.
 Assumes leaders are either task-oriented (tasks, getting work done) or
relationship-oriented (interpersonal relationships), and that leaders
can’t change their orientations.
 Least Preferred Co-Worker (LPC) Scale
 Suggests that leadership style is dependent on three inter-related
factors (is situation favourable or unfavourable for the leader?):
 Leader-member relations – does the leader have the respect/support of
employees?
 Task structure – amount of structure in tasks (high vs. low)
 Position power – does the leader have formal authority?
 Research suggests better supported in laboratory studies than in field
studies
p. 324-325

16. Fiedler’s Contingency Theory p. 325

17. Path-Goal Theory
p. 325-327
Draws on the <what> theory of
motivation????
 Leaders can, by their actions,
affect the motivation, job
satisfaction and performance of
their work group.
 E->P; P->Reward
 Main aim is to smooth the
follower’s path to the goal – four
leader behavioural styles.
 What will best help followers
achieve their goals?
 Leaders can adapt their styles
depending on the situational
variables (rather than have one
dominant style as per Feidler)

18.  Hersey and Blanchard
 Focuses on followers’ readiness – choosing the right leadership
style depends on this
 Why focus on the follower? They either accept (make) or reject
(break) the leader
 Readiness = the extent to which people have the ability and
willingness to accomplish a specific task
 Focuses on task (directive/giving guidance) and relationship
(supportive) behaviours - sound familiar?!
Adjustment of managerial behaviour depends on development
of employees
Situational Leadership Theory
p. 327

19. Situational Leadership Theory
 Directing (telling) – if followers are unable and unwilling –
clear and specific directions are needed.
 Coaching (selling) – if followers are unable but willing, then
need ↑ task and r/ship orientation to compensate for ability
and get ‘buy-in’ for what they’re doing.
 Supporting (participating) – if followers are able but unwilling,
then need to focus on participative style to increase
commitment.
 Delegating – if followers are willing and able, can turn over
some decisions/implementation to them.
p. 327

20. High
Low
Relationship
Behaviour
Task Behaviour
Low High
Supporting (Participating) Coaching (Selling)
Directing (Telling)
Delegating
S3 S2
S1
S4
R1: Low competence; Low commitment
(unable, unwilling, insecure)
R4: High competence; High commitment
(willing and able)
Developmental Level
R1 R2 R3 R4
Low Developmental Level (leader-directed) High Developmental Level (follower-directed)
Hersey & Blanchard’s Situational Model
of Leadership
R2: Some competence; High commitment
(unable, but motivated, willing)
R3: High competence; Variable/low commitment
(able, but unwilling/insecure)
See Du Brin, A. (2010 or 2013). Leadership:
Research Findings, Practice and Skills,
Cengage: OH. (Chapter 5)

21. Substitutes for Leadership
 Is leadership even necessary????!!!!
 Situational variables substitute for or neutralise formal
leadership, making a leader’s behaviour unnecessary.
 These situational variables are termed ‘substitutes for
leadership’
 Leadership neutraliser – when any type of leadership is
negated
 Suggests managers should be attentive to potential
substitutes as these can impact directly on motivators.
 Research on the approach mixed
p. 328-329

22. Substitutes for Leadership
p. 328-329

23. Contemporary Leadership Theories
Transactional Leadership - classical leadership concerned with transactions. Leaders:
• Clarify expectations and establish the rewards for meeting these expectations;
• Monitor subordinates’ behaviour, anticipate problems and take corrective actions before the
behaviour creates serious difficulties;
• Wait until the behaviour has created problems before taking action.
• Start by using contingent rewards to motivate, then exert corrective action and possible
punishment when employees don’t reach performance expectations.
Transformational leadership - emphasises symbolic behaviour, visionary and inspirational appeal to
values and self-sacrifice. Leaders:
• Display conviction, take stands, appeal to others on an emotional level
• Communicate optimism about future goal attainment, provide meaning and provide
challenge with high standards
• Stimulate creativity and risk-taking
• Coach/mentor, listen to employees’ concerns and attend to employees’ needs.
Times of stress vs. times of stability
p. 329-331

24. Transformational leadership
p. 329-331

25. Charisma Defined
Extension of trait theory – charismatic and transformational leaders THINK BIG:
 In leadership, charisma is a special quality of leaders whose purposes, powers, and
extraordinary determination differentiate them from others
 In general use, charisma is having a charming and colorful personality
Charisma = a positive and compelling quality of a person that makes many others
want to be led by that person

26. The effects of charisma – where does it come
from?
Halpert’s Dimensions of Charisma
Halpert, 1990
Do we like you? Comes from a
person’s desirable traits, their
perceived attractiveness,
people’s admiration/respect for
them.
Do you know stuff? Based on a
person's specialised or high level
knowledge, skill and ability
Do you make me interested in
my job? Ability to get group
members excited about their
work = job satisfaction = org
commitment

27. Types of Charismatic Leaders
1. Socialised charismatics restrain the use of power in the interests of others – use
their power for the good of others.
 Formulates and pursues goals that fulfill the needs of group members
 Followers are autonomous, empowered and responsible
 Socialised charismatics impart positive values to group members
2. Personalised charismatics use power to serve their own interests.
 Impose self-serving goals, offer support only when it suits their ends
 Followers have an obedient, submissive, and
dependent work style
 Can lead followers down an unethical path
Howell, 1988

28. Distributed (Shared) Leadership
• Gifted leaders empower their subordinates by acting as a
teacher or coach rather than an ‘all-knowing commandant’.
• Leader as ‘designer, steward, teacher’ (Senge, p. 340)
• Heterarchy, not hierarchy – leadership is shared throughout
the organisation. Any person at any level can be a leader.
• Leaders can have more power and control if they share
power with others.
• Research has shown it can reduce indirect costs and free up
time for top execs to engage in strategic behaviours.
p. 331-332

29. Power, Gender and Cross-Cultural Issues
Critical analysts emphasise that leadership is
intrinsically rooted in power.
Power-influence approach – understanding the
amount and type of power of a leader and how it is
exercised.
Gender theory has led to diverse research:
 Whether women lead differently to men
 Whether women have a more interactive style
 Whether feminist leadership characteristics can be identified: consensus building/shared
power/diversity
 Whether there is a female leadership style and whether jobs are gendered
p. 335-336

30. Is Leadership Important?
Difficult to show causal links between leadership and
performance
Different stakeholders will evaluate effectiveness in
different ways – e.g. employees, government, shareholders,
etc.
Influence on group, innovation, learning – explorative vs.
exploitative innovation (transformational vs. transactional
leadership style).
Role of organisational and national culture in ‘filtering’ and
guiding leadership behaviours.
Sometimes leaders appear of little importance.
p. 337-339

31. Next week …
Week 11 – Organisational Structure
Source: https://www.alexandrina.sa.gov.au/page.aspx?u=2506