This document discusses several theories of leadership, including: 1. Blake and Mouton's Managerial Grid theory which identifies five leadership styles based on concern for production and people. 2. House's Path-Goal Theory which proposes that a leader's job is to assist followers in achieving goals and provide direction and support. 3. Likert's Management Systems which identified four systems of management based on extensive research. 4. Transformational and Transactional leadership theories, with transformational leadership inspiring extraordinary outcomes.

1. Leadership Theories &Styles
Dr. Kiruba Nagini R

2. Topics to be covered…
 Theories of Effective Leadership - Introduction - Blake and Mouton’s Managerial
Grid - House’s Path Goal Theory - Great Man Theory - Trait Theory - Leadership-
Member Exchange (LMX) Theory - Transformational Leadership - Transactional
Leadership - Continuum of Leadership Behavior - Likert’s Management System -
Hersey Blanchard Model - Fiedler’s Contingency Model

3. Managerial Grid
 This theory is propounded by Robert R. Blake & Jane S.
Mouton.
 This is one of the behavioral theories of leadership
 Managerial Grid is a graphic model of alternative combinations
of managerial styles or behaviors on a 2 dimensional space.
 The 2 styles are :
1.concern for people
2.concern for production
 According to this theory, leaders are most effective when
they achieve a high & balanced concerned for people and
for task.
 These are shown on vertical and horizontal dimensions of the
Grid on a 1 to 9 scale or degree.

4. The Managerial Grid (Blake and Mouton)
• COUNTRY CLUB MANAGEMENT- (1,9)-
Thoughtful attention to needs of people for satisfying relationship
leads to comfortable, friendly organization, atmosphere and work
tempo.
• TEAM MANAGEMENT –(9,9)-
Work accomplishment is from committed people; interdependence
through a “common stake” in organization purpose leads to
relationships of trust and respect.
• MIDDLE OF MANAGEMENT –(5,5)
Adequate organization performance is possible through balancing
the necessity to get out work with maintaining morale of people at a
satisfactory level.
• IMPOVERISHED MANAGEMENT-(1,1)
Exertion of minimum effort to get required work done is appropriate
to sustain organization membership.
• TASK MANAGEMENT –(9,1)
Efficiency in operations results from arranging conditions of work in
such a way that human elements interfere to a minimum degree.

5. House’s Path-Goal Leadership Theory
 It was developed by Martin Evans &
subsequently refined by Robert House.The
theory extracts key element from the Ohio state
Leadership research & the Expectancy Theory
of Motivation.
 The essence of the theory is that it is the leader’s
job to assist his/her followers in attaining their
goals & to provide necessary directions &
support to ensure that goals are compatible with
the overall objectives of the group or
organization.
 The term Path-Goal is derived from the belief
that effective leaders clarify the path to help
their goals and make the journey along the path

6. The Path-Goal Theory

7. Contd
… Following are the four types of leader
behavior predicted on the basis of
path-goal theory:
I. Directive Leadership
II. Supportive Leadership
III. Participative Leadership
IV. Achievement Oriented Leadership

8. Diagram of Path-Goal
LeadershipTheory
Situati
on
Follower
lacks
self
confidence
Ambiguo
us
Job
Lack of
job
challeng
e
Incorre
ct
reward
Leader
Behavior
Impact
on
Followe
r
Outcom
e
Supportive (Relationship)
•Courteous & friendly
•Concern for well being &
needs
•Open & approachable
•Balance equal treatment with
statusDirective (task)
•Tell what is expected
•How & when to do it
•Schedules & norms
•Procedures & regulations
Achievement (Demanding &
supporting)
•Set challenging goals
•Seek continuous improvement
•Expect highest performance
•Workers assume more responsibility
Participative (consult)
•Share work problems
•Solicit suggestions,
concerns
•Include in decision
Increase
confidence to
achieve work
outcome
Clarity
path to
reward
Set
goal
s
highClarify
followers
needs &
change
More
effort
improved
satisfactio
n &
performan
ce

9. THE OHIO STATE STUDIES
INITIATING STRUCTURE:
• It refers to the extent to which a leader defines and structured his/her role
and the roles of group members in the search of goal attainment.
• It included behaviour that involved attempt to organise work, work
relationships and goal.
CONSIDERATION:
• It refers to the extent to which a leader had job relationships characterized
by mutual trust and respect for group members, ideas and feelings.
• A leader who was high in consideration helped group members with
personal problems, was friendly and approachable, and treated all group
members as equal.
A leader who was high in both initiating structure and considerations achieved high group task
performance and high satisfaction more frequently than who rated low on either dimension or both.

10. Vroom's expectancy theory of motivation
Vroom's expectancy theory. ... assumes that
behavior results from conscious choices among
alternatives whose purpose it is to maximize pleasure
and minimize pain. ...
Vroom realized that an employee's performance is
based on individuals factors such as personality, skills,
knowledge, experience and abilities.

11. The Great man theory of leadership states that
some people are born with the necessary
attributes that set them apart from others and
that these traits are responsible for their
assuming positions of power and authority.
A leader is a hero who accomplishes goals
against all odds for his followers
Great Man Theory

12. Examples
Examples are drawn from such great leaders like
Mahatma Gandhi, Mao Tse Tung, Kamal Ataturk,
Abraham Lincoln, General de Gaulle and others. They
were born natural leaders with built-in qualities
of leadership and attained greatness by divine
design.

13. EARLY LEADERSHIP THEORIES
• The trait approach to leadership was one of the
earliest theories of leadership.
• This approach focuses on the personal attributes
characteristics, competencies,
(or traits) of leaders, such as physical and
andpersonality
values.
• Leadership traits are considered to be enduring
characteristics that people are born with and that
remain relatively stable over time.
• Trait theory – assumes the leader is different from
the average person in terms of personality traits
such as intelligence, perseverance, and ambition.
TRAIT THEORY – Kelly, 1974
• “Leaders are born, not made.”
ASSUMPTIONS
• People are born with inherited
traits.
• Some traits are particularly
suited to leadership.
• People who make good leaders
have the right (or sufficient)
combination of traits.

14. LEADERSHIP TRAITS:
• DRIVE
• Desire to lead
• Honesty and integrity
• Self-confidence
• Intelligence
• Job relevant knowledge
• Extraversion
TRAIT THEORY OF LEADERSHIP
 LIMITATIONS:
No universal traits found that predict
leadership in all situations.
Unclear evidence of the cause and effect of
relationship of leadership and traits.
Better predictor of the appearance of
leadership than distinguishing effective and
ineffective leaders.

15. BEHAVIOURAL THEORIES
• Leaders can be made, rather than are born.
leadership is based on definable, learnable• Successful
behaviour.
Description
• Behavioural theories do not seek inborn traits – they look at what
leaders actually do.
• Success can be defined in terms of describable actions.
Implication:
• Leadership capability can be learned.

16. BEHAVIOURAL THEORIES
According to UNIVERSITY OF LOWASTUDIES
• The study was conducted by Kurt Lewin and his
associates
• The three leadership styles which are:-
1. AUTOCRATIC
2. DEMOCRATIC
3. LAISSEZ-FAIRE

17. Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups,
and subordinates with in-group status will
have higher performance ratings, less
turnover, and greater job satisfaction.

18. Leader Member Exchange Theory
 This theory is propounded by George
Graen and his associates.
 The LMX theory argues that because of time
pressures, leaders establish a special
relationship with a small group of their
subordinates.
 There individuals make up ‘in group’.They are
trusted by the leaders.
 Leaders give attention to them & they
receive special privileges.
 Other subordinates fall into the ‘out group’. They
get less of the leader’s time & have superior
subordinate relations based on formal authority.

19. Contd
… Graen & his colleagues emphasizes that LMX
has evolved various stages:
1. The discovery of differentiated dyads.
2. The investigation of characteristics of LMX
relationships & their organizational outcome.
3. The aggregation of differentiated relations to
group.
 The theory and research provide evidence
that leaders do differentiate among sub-
ordinates.
 This is related to the performance of the
employees & their satisfaction.

20. Leader-Member Exchange
Theory

21. CONTEMPORARY VIEWS ON
LEADERSHIP
TRANSFORMATIONAL LEADERSHIP
• Leaders who stimulates and inspire(transforms) followers to achieve extraordinary outcomes.
TRANSACTIONAL LEADERSHIP
• Leaders who guide or motivate followers to work towards established goals by exchanging
rewards for their productivity.
• Transformational leadership is built on the top of transactional leadership.
• It produces levels of employee effort and performance that go beyond what would occur with
a transactional approach alone.
• Transformational leaders were evaluated as more effective, higher performers, more
promotable, than their transactional counterparts, and more interpersonally sensitive.
• Transformational leadership is strongly correlated with lower turnover rates and higher levels
of productivity, employee satisfaction, creativity, goal attainment, and follower well being.

22. MAJOR ISSUES OF LEADERSHIP
• Managing power:- Legitimate, coercive, reward, expert
and referent.
• Developing trust:- Integrity, competence, consistence,
loyalty and openness.
• Providing ethical leadership
• Empowering employees
• Cross cultural leadership
• Gender differences in leadership
• Demise of celebrity leaders
• Substitutes of leadership

23. Activity of the Day
 Transformational and Transactional Leadership Questionnaire
 Transactional and Transformational Leadership

24. Likert’s Management
Systems Rensis Likert of Michigan University USA and his
associates made extensive research on
management and leadership patterns in a large
number of organizations.
 Likert evolved 4 models of management as
systems of management. His system are:
system 1 : Exploitative –
authoritative system 2 :
Benevolent – authoritative
system 3 : Consultative
system 4 : Participative – Democratic
 Likert found that most individual managers and
organization fit into one or the other of his systems
in terms of certain operating characteristics as goal
setting, decision making, motivation, leadership,
communication and control.

25. Contd
…Likert’s systems of management may be
described in brief as follows:
 System 1 management : Managers and
organizations in the system are highly
autocratic. They believe in determining goals
and the means of achieving them.
Communication is highly formal.
 System 2 management : in this system a
master-servant relationship exists between the
manager and employee. Some times manager
adopt paternalistic attitudes here is & at other
times harsh attitude towards subordinate.
Centralization is there. One way communication.
Organization environment is stress-full.

26. Contd
… System 3 management : in this system,
management shows some interest in employees and
their contributions.They are consulted and their
views are taken into account by managers. Some
operational decisions are allowed to be made at lower
levels of management.There is a open
communication between superiors and subordinates.
No such control.Trust and confidence between each
other. Rewards for motivation.
 System 4 management : this is an ideal system of
management. The relationship between managers
and subordinates are cordial and frankly.
Subordinates are closely involved in decision-making
process and goal setting process. Superiors are very

27. Findings of this
theory System 1 oriented organizations scored very
poorly while the performance of System 4
oriented organizations was very creditable.
 He concluded that participative leadership is
only the valid approach to make optimum
utilization of resources.
 For System 2 & 3 he suggested extensive and
intensive leadership training at all levels of
management to move them into system 4.

28. Hersey & Blanchard’s Situational Theo
 This model is developed by Paul Hersey & Ken
Blanchard.This theory has been used by nearly 500
companies. It has been widely accepted in all the
military services.
 This theory focuses on the followers. Successful
leadership is achieved by selecting the right
leadership style, which is contingent on the level
of followers readiness or maturity.
 Situational leadership uses the same two leadership
dimensions
that Fiedler identified:Task and relationship behavior.
 However Hersey & Balanchard go a step further by
considering each as either high or low and then

29. b. Hersey and Blanchard’s Situationa
Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Leader: decreasing need
for support and supervision
Follower readiness:
ability and willingness
Unable and
Unwilling
Unable but
Willing
Able and
Willing
Directive High Task and Relationship
Orientations
Supportive
Participative
Able and
Unwilling
Monitoring

30. Leadership Styles and Follower Readiness
(Hersey and Blanchard)
WillingUnwilling
Able
Unable
Follower
Readiness
Supportive
Participative Monitoring
Leadership
Styles
Directive
High Task
and
Relationship
Orientations

31. SITUATIONAL LEADERSHIP THEORY
• Telling – (high task and low relationship)- leader defines roles.
• Selling-(high task and high relationship)- the leader provides both directive and
supportive behaviour.
• Participating-( low task and high relationship)- the leader and follower share in
decision making. Main role of leader is facilitating and communicating.
• Delegating- (low task and low relationship)- the leader provides little direction
and support.
Four specific leadership styles.
• R1- People are both unable and unwilling to take responsibility for doing something
• R2-People are unable but willing to the job tasks.
• R3- People are able but unwilling to do the what the leader wants.
• R4- People are both able and willing to what is asked of them.
Four stages of follower readiness

32. Fiedler’s Contingency Model of Leadership
 After a long and painstaking research Fiedler argued
that effectiveness of leadership depends on the
combination of a leader’s personality and the
situation in which he functions. Situational variables
are described by Fiedler in terms of following three
dimensions:
1. Leader Member Relationship: the extent to which
the leader is accepted, respected and trusted by
members of his work group.
2. Task Structure: the extent to which the jobs of
members of the work group are defined and
known.
3. Position Power: the extent of formal authority
commanded by the leader and also the rewards
and penalties he can dispense to members.

33. Contd
… Leader-member relations may be good or poor, task
structure of work group may be high or low and
position power of the leader may be strong or weak.
Such characteristics of situational variables may
exists in different combinations.
 Situations are favourable to the leader if all 3 of
these dimensions are high and visa versa.
 Fiedler generalized that task oriented leaders are
effective. Good performance by leaders.
 According to Fiedler, the group performance can be
improved in 2 ways. One is leadership training to
modify the personality and values. Second is the
modification or improvement of the situation.

34. Contd
… Fiedler’s model is considered as a significant
contribution to knowledge on leadership.
 It emphasizes that a leader’s effectiveness is
neither purely a matter of qualities nor that of
situation.
 It is the result of interaction between the two.

35. a. Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
The degree to which the job assignments are
procedurized.
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to
hire, fire, discipline, promote, and give salary
increases.

36. Findings from Fiedler
Model

37. Meet you in the next session with the
other types and styles …