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 Leadership

CHAPTER

11

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Learning Objectives

In this chapter, you will understand:

 How to contrast leadership and management
 The different theories of leadership.
 The two inspirational approaches to
leadership.
 The link between emotional intelligence and
leadership.
 Contemporary issues pertaining to
leadership.
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11.1 What is Leadership?

Leadership is the process of influencing individuals and groups to achieve

goals.

MANAGER LEADER
Rational Intuitive
 Complexity  Change
 Planning and Budgeting  Setting Direction—Visions
 Targets/Goals  Aligning People
 Organizing and Staffing  Motivating ‘Inspiring/
 Controlling and Problem Moving’
Solving

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11.1.1 Roles of Leadership

 Shares organization’s vision with people.

 Recruits, trains and retains.
 Models positive behaviour.
 Challenges, provokes and stimulates
intellectually.
 Discovers talent.
 Builds the culture of creativity and innovation.
 Instills ownership.
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11.1.2 Leadership Studies
Timeline

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11.2 Trait Theories

 Traits play a central role in differentiating

leaders from non-leaders.
 Seven traits associated with effective
leadership are:
 Drive  Intelligence
 Desire to lead  Job-relevant
 Honesty and integrity  Knowledge and
 Self-confidence extraversion

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11.3 Behavioural Theories

Behavioural theories: Leadership is central to

performance and other outcomes.
 Ohio State Studies: Two dimensions of
leadership behaviour—initiating structure and
consideration.
 University of Michigan Studies: Two
dimensions of leadership behaviour—employee
oriented and production oriented.

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11.3 Behavioural Theories
(cont.)
 Blake and Mouton “managerial grid”:
Two-dimensional grid—concern for people
and concern for production.
 The Scandinavian Studies: Researchers
from Finland and Sweden discovered a third
dimension to leadership behaviour.

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11.3.1 Ohio State Studies

 Initiating structure is the extent to which a

leader defines and structures his/her role as
well as those of his/her followers in order to
accomplish goals.
 Consideration is the extent to which a leader
has work relationships with his/her followers
that are characterized by mutual trust, regard
for followers’ ideas and concern for their
feelings.
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11.3.2 University of Michigan
Studies
 Employee-oriented leader: A leader who
emphasizes interpersonal relations, takes a
personal interest in the needs of employees
and accepts individual differences among
members.
 Production-oriented leader: A leader who
emphasizes technical or task aspects of the
job.

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 11.3.3 The Managerial Grid

 The managerial grid

(also known as the
leadership grid) is
drawn from the Ohio
State and Michigan
studies, for its two
main dimensions—
concern for people
and concern for
production.

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11.3.4 The Scandinavian
Studies
 Development-oriented leader:
A leader who values experimentation,
seeks new ideas, and generates and
implements change.

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11.4 Contingency Theories

Consider other aspects of leadership situation to

predict outcomes:
Fiedler Contingency Model
Hersey and Blanchard Situational Theory
Leader-Member Exchange Theory
Path-Goal Theory
Leader-Participation Model

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11.4.1 Fiedler Contingency
Model
Fiedler contingency model proposes that effective
group performance depends upon the proper match
between a leader’s style of interacting with his/her
followers and the degree to which the situation allowed
the leader to control and influence.
Least-preferred co-worker
(LPC) questionnaire: An instrument that purports to
measure whether a person is task or relationship
oriented.

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11.4.1 Fiedler Contingency
Model (cont.)
 Leader-member relations describe the extent to which
followers have confidence, trust and respect in their
leader.
 Task structure describes the extent to which job
assignments are formalized and are structured/
unstructured.
 Position power describes the amount of influence a
leader had over power-based activities such as hiring,
firing and promotions.

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 11.4.2 Hersey and Blanchard’s
Situational Theory
 Situational leadership
theory focuses on followers.
It echoes the reality that it is
the followers who accept or
reject the leader.

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11.4.3 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.

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11.4.4 Path-Goal Theory

Robert House identified four types of leaders:

 The directive leader informs followers of what is
expected of them, schedules work that needs to
be done and gives clear directions as how to
accomplish tasks.
 The supportive leader is friendly and displays
concern for the needs of followers.

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11.4.4 Path-Goal Theory (cont.)

 The participative leader discusses with

followers and considers their suggestions in
making a decision.
 The achievement-oriented leader
establishes challenging goals and expects
followers to perform their best.

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11.4.4 Path-Goal Theory (cont.)
 This theory states that it is the leader’s duty to support his or
her followers in reaching their goals and to offer the direction
or support needed to ensure that their goals are congruent to
the organization’s overall objectives.
Leader Behaviour
• Directive Follower Outcomes
• Supportive •Performance
• Participative •Satisfaction
• Achievement oriented

Environmental Contingency Factors Follower Contingency Factors

•Task structure •Locus of control
•Formal authority system •Experience
•Work group •Perceived ability

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11.4.5 Leader-Participation
Model
 It is a contingency model theory by
Vroom and Yetton that linked leadership
behaviour and participation in decision
making.

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11.5 Inspirational Theories

 11.5.1 Charismatic Leadership

 11.5.2 Transformational Leadership
 11.5.3 Emotional Intelligence and
Leadership Effectiveness

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11.5.1 Charismatic Leadership

 The charismatic leadership theory is based on the

assertion that followers make attributions of heroic
or exceptional leadership abilities when they
observe certain behaviours.
 Qualities that differentiate charismatic leaders from
non-charismatic ones:
 They have a vision.
 They are willing to take risks to realize that vision.
 They are perceptive to both constraints within the
environment and needs of the follower.
 They display behaviours that are atypical.
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11.5.2 Transformational
Leadership
Transactional leaders: Transformational leaders:
These types of leaders direct These leaders take notice of the
or motivate their followers by concerns and developmental
clarifying role and task needs of individual followers;
requirements for achieving they change followers’
the organization’s awareness of issues by
established goals. helping them look at old
problems in new ways; and
they are able to excite,
arouse and inspire followers
to exert extra effort to attain
group goals.
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11.5.3 Emotional Intelligence and
Leadership Effectiveness
 Recent studies have shown that emotional intelligence
(EI), more than IQ, or any other single factor, is the best
predictor of who will come out as a leader.
Great leaders demonstrate their EI by exhibiting all five of it
key components:
• Self-awareness
• Self-management
• Self-motivation
• Empathy
• Social skills
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11.6 Neuroleadership
Theories
 Neuroleadership is the study of leadership
through the lens of neuroscience (Rock and
Schwartz, 2006).
 Neuroleadership explores the central elements
of leadership such as:
 Self-awareness
 Awareness of others
 Insight
 Influencing
 Decision making
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11.6 Neuroleadership
Theories
(cont.)
 Transactional neuroleadership suggests that
transactional leaders make decisions based on
contingent rewards.
 They clarify the options and outcomes to their
followers so that they maximize gains or
benefits and perform in order to meet
expectations.
 Transactional leaders interact with their
followers to make decision to suit self-interests.
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11.6 Neuroleadership Theories
(cont.)
 Transformational neuroleadership suggests
that for the transformational leaders, decision
making is based on cognitive rewards.
 In creating a climate of trust for their followers,
they are able to draw on their followers’ higher-
order needs and get them to perform beyond
expectations.
 Transformational leaders inspire their followers
to make decisions that transcend self-interests.
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11.7 Trust

Trust: A belief or hope that another will neither

through words, actions or decisions, act
opportunistically.
Five key dimensions:
 Integrity—refers to truthfulness.
 Competence—covers an individual’s technical
knowledge and interpersonal skills.
 Consistency—concerns a person’s reliability,
predictability and good judgement in handling
situations.
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11.7 Trust (cont.)

 Loyalty—the willingness to protect and save face for

another person.
 Openness—the ability to rely on another to give you the
full truth.
 Deterrence-based trust: This form of trust is founded on
fear of retaliation if the trust is violated.
 Knowledge-based trust: It is based on the behavioural
predictability that comes from past interactions.
 Identification-based trust: Trust is built because the
individuals understand each other’s intentions and value
the other’s wants and desires.
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 Review Questions

1. What is leadership?
2. What are trait theories?
3. List and describe the various behavioural theories.
4. List and describe the various contingency theories.
5. Describe the two inspirational approaches to
leadership (charismatic and transformational
leadership).
6. What is neuroleadership?

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