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Theories of leadership

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Theories of leadership

  1. 1. Theories of Leadership By- Prof. Lovely
  2. 2. Trait theories Trait theories: this theory was described by Kelly 1974. it was an attempt to classify what personal characteristics such as physical, mental and relating to personality are associated with the success of leadership Is there a set of characteristics that determine a good leader?  Personality?  Charisma?  Self confidence?  Achievement?  Ability to formulate a clear vision?
  3. 3. Trait cont… According to this theory, there are certain personal qualities & traits which are essential to be a successful leader. Psychologically better, good judgments and involve in social activities. Share more n more information. This theory believes that leadership traits are inherited and cannot be learned.
  4. 4. Many researchers have suggested these traits in a successful leader: Intelligence Physiological factors Emotional stability Intense inner motivational drive Human relations attitude Vision and foresight Empathy Fairness and objectivity Technical skills Open mind and adaptability Art of communication Social skills
  5. 5.  Trait theories:  Are such characteristics inherently gender biased?  Do such characteristics produce good leaders?  Is leadership more than just bringing about change?  Does this imply that leaders are born not bred?
  6. 6. Criticism of the Trait Theory Various studies prove that the trait theory cannot hold good for all set of circumstances. The list of traits is not uniform and different authors have given different lists of traits. It fails to take into account influence of other factors on leadership. There have been leaders who doesnt have these traits but they are recognized as a good corporate leader and on the other hand the persons with the traits listed in this theory are not the good leaders.
  7. 7. Behavioural Theory The limitations of Trait Theory led to a significant change in the leadership approach. In this theory full focus is on the actual behavior and actions of leaders instead of their personal qualities. This theory emphasis on what the leaders do and how they behave to become effective leaders. According to trait theory leadership is inherited but according to behavior theory leadership can be learned. Several attempts have been made to identify the dimensions of leader behavior. The most systematic and comprehensive studies in this direction were conducted in USA at Ohio State University and University of Michigan during 1945-47.
  8. 8. Ohio State Studies: In 1945 the Bureau of Business Research at Ohio State University initiated a series of studies on leadership. The main objective of the studies was to identify the major dimensions of leadership and to investigate the effect of leader’s behavior on employee behavior and satisfaction. Ultimately, these studies narrowed the description of leader behavior to 2 dimensions: Initiating structure Consideration
  9. 9. Contd… Initiating structure: defines and organizes relationship between himself and members of the group. Establishes well defined patterns of organization Develop channels of communication and methods or procedure. To supervise the activities of employees. Consideration: behavior characterized by: Friendliness Mutual trust Respect Supportiveness Openness Concern for the welfare of employees
  10. 10. Leader Behavior and LeadershipStyles Human Relations High Democratic High Consideration High Consideration Consideration & Low Structure & High Structure Low Structure & High Structure & Low Consideration Low Consideration Low Autocratic Laissez Faire Low High Initiating Structure
  11. 11. Findings of this Study: There is a positive relationship between consideration and regularity of employees and low grievances. But consideration is negatively related to performance. There is a positive relationship between initiating structure and employee performance. But initiating is also structure is also associated with absenteeism and grievances. When both these dimensions are high, performance and satisfaction tended to be high. But in some cases high productivity was accompained by absenteeism and grievances.
  12. 12. Michigan Studies: These empirical studies were conducted slightly after WORLD WAR II by the institute of Social Research at the university of Michigan. The purpose of these studies was to identify styles of leadership behavior that results in higher performance and satisfaction of a group. These studies distinguished between two distinct styles of leadership:1. Production centered Leadership: also known as task oriented leadership. Stressed on certain points:• Rigid work standards, procedures and rules.• Close supervision of the subordinates• Technical aspect of the job• Employees are considered as a tool to accomplish the goal (not treating like a human being).
  13. 13. 2. Employee centered Leadership: (relation oriented leadership) To treat subordinates as a human beings To show concern for the employees needs, welfare etc… To foster employee participation in decision making To motivate employees
  14. 14. Following are the findings: Both styles led to increase in production, but it was slightly more in production oriented style. But production oriented style led to decrease satisfaction and increase turnover and absenteeism Whereas employee centered style increases satisfaction and decreases absenteeism
  15. 15. Following are 2 behavioral theories basedon the above dimensions of leaderbehavior:1. Managerial Grid2. Likert’s Management Systems
  16. 16. Managerial Grid This theory is propounded by Robert R. black & Jane S. Mouton. 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.
  17. 17. Managerial Grid Diagram 9 1,9 9,9 8 Concern for People 7 6 5 5,5 4 3 2 1 1,1 9,1 1 2 3 4 5 6 7 8 9 Concern for Production
  18. 18. Contd…Although there can be 81 possible combinations (9*9), but for illustrative purposes they have identified 5 combinations of styles. These are as follows: Impoverished leadership: 1,1 low concern for production as well as for people. Country club leadership: 1,9 low concern for production and high concern for people. Task leadership : 9,1 high concern for production and low concern for people. Middle of the row leadership: 5,5 moderate concern for production and people. Team Leadership: 9,9 high concern for production and people.
  19. 19. 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.
  20. 20. 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.
  21. 21. 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 supportive in nature.
  22. 22. 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.
  23. 23. Contingency theories The personality and behavior theories of leadership ignore situational factors in determining the success or effectiveness of leader. They hold the view that a leader can be successful or effective if he possess certain in-born qualities or if he behaves in a particular manner. Such a view is criticized by later theorists who assert that the success or effectiveness of a leader is determined by various situational factors apart from the qualities and behavior of the leader himself. A moderate situational view is that leadership should be viewed in terms of a dynamic interaction between the leader, the group of followers, the task situation and the environment. Some theories considered under this theory:1. Fiedler model2. Leader-member exchange theory3. Hersey & Balanchard’s4. Path goal theory
  24. 24. Fiedler’s Contingency Model ofLeadership 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.
  25. 25. 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.
  26. 26. 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 2.
  27. 27. 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 by reducing road blocks.
  28. 28. Contd… Following are the four types of leader behavior predicted on the basis of path-goal theory:I. Directive LeadershipII. Supportive LeadershipIII. Participative LeadershipIV. Achievement Oriented Leadership
  29. 29. Diagram of Path-Goal Leadership Theory Impact on Situation Leader Behavior Follower Outcome Supportive (Relationship) Increase confidence •Courteous & friendlyFollower lacks •Concern for well being & needs to achieve workself confidence •Open & approachable outcome •Balance equal treatment with status Directive (task) •Tell what is expected More effortAmbiguous •How & when to do it Clarity pathJob •Schedules & norms improved •Procedures & regulations to reward satisfaction & Achievement (Demanding & supporting) performance Lack of job •Set challenging goals •Seek continuous improvement Set goals challenge •Expect highest performance high •Workers assume more responsibility Participative (consult) Clarify followersIncorrect •Share work problemsreward needs & change •Solicit suggestions, concerns •Include in decision making rewards
  30. 30. Hersey & Balanchard’s Situational Theory 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 combining them into 4 specific leader behaviors; telling, selling, participating, delegating.
  31. 31. Contd…1. Telling (high-task-low relationship): the leader defines roles and tells people what, how, when, and where to do various tasks. It emphasizes direct behavior.2. Selling (high-task high relationship): the leader provides both supportive as well as directive behavior.3. Participating (low-task-high relationship): the leader and follower share in decision making, with the main role of the leader being facilitating and communicating.4. Delegating (low-task-low relationship): the leader provides little direction and support.
  32. 32. Contd…The final component in Hersey & Balanchard’s theory is defining 4 stages of follower readiness:1. R1: people are both unable and unwilling to take responsibility to do something. They are neither competent nor confident.2. R2: people are unable but willing to do the necessary job tasks. They are motivated but currently lack the apropriate skills.3. R3: people are able but unwilling to do what the leader wnts.4. R4: people are both able and willing to do what is asked of them.
  33. 33. Hersey & Balanchard’s Situational Model (High) High High task Relationship &High & low task(Supportive Behavior) Relationship Relationship Behavior Low Low Relationship Relationship & low task & High task (Low) Task Behavior (High) (Directive Behavior) High Moderates Low Mature Immature R4 R3 R2 R1
  34. 34. 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.
  35. 35. 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.

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