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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Subject PSYCHOLOGY
Paper No and Title Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No and Title Module No 24. Basic Approaches to Leadership
Module Tag PSY_P12_M24
TABLE OF CONTENTS
1. Learning Outcomes
2. Introduction
3. Trait Theories
4. Behavioral Theories
4.1 Ohio State Studies
4.2 University of Michigan Studies
4.3 Managerial Grid
4.4 Scandinavian Studies
4.5 Assessment of Behavioral Theories
5. Contingency Theories
5.1 Fiedler Model
5.2 Cognitive Resource Theory
5.3 Hersey & Blanchard’s Situational Theory
5.4 Path Goal Theory
5.5 Assessment of Contingency Theories
6. Summary
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
1. Learning Outcomes
After studying this module, you shall be able to
Define The term Leadership
Describe the various approaches to leadership
Know the nature of leadership
Analyze the differences between various approaches
Identify the shortcomings of various approaches
2. INTRODUCTION
Leadership is one of the most important topic studied under the field of Organizational Behavior.
This is due to the fact that a leader is central to the growth and development of any organization.
Not only this, the leaders also play a crucial role in shaping the organization in a particular way
which draws upon their leadership style and qualities. The competencies and skills of a leader are
deeply studied and researched upon in literature. In order to allow us to understand the concept of
leadership, a number of theories have been proposed by various researchers. Theories are nothing
but conceptual frameworks propounded to delineate the various aspects of a concept. Leadership
too has been seen and studied from many different perspectives. These are the different
approaches to leadership which are discussed in this module.
Following are the most important approaches to leadership:
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Fig1: Basic Approaches to Leadership
3. TRAIT THEORIES
Trait theories basically focus upon the personal qualities and characteristics of individuals which
differentiate between leaders and non-leaders. Trait theories are called so because they are
primarily concerned with identifying those traits which have been historically seen in leaders. The
basic premise of these theories is that leaders are born and not made. This means effective leaders
can be ‘chosen’ from among available individuals to assume leadership responsibilities if their
traits are identified. They possess certain qualities which set them apart from followers as well as
ineffective leaders. The leaders have been described through terms such as ‘courageous’,
‘enthusiastic’, ‘charismatic’, etc.
However, the major shortcoming of these theories was that a set of traits universally applicable to
all leaders was not identified, although those traits were identified which were regularly
associated with successful and effective leaders. These included qualities like ambition and
energy, a desire to lead, honesty and integrity, self-confidence, intelligence, and job-relevant
knowledge. Another limitation of these theories was that they failed to identify those traits which
would predict leadership in all kinds of situations.
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
4. BEHAVIORAL THEORIES
In contrast to the trait theories, the behavioral theories propose that specific behaviors
differentiate leaders from non-leaders. Whereas the trait theories propose that the leaders can be
‘selected’ based on their traits, the behavioral theories propose that the leaders have to be
‘trained’ in the behaviors which form effective leaders. In other words, the behavioral theories
contend that there are specific behaviors which help in identifying leaders. Some of the most
popular behavioral theories are discussed below:
4.1 Ohio State Studies
The behavioral theories research at Ohio State University was initiated in the late 1940s. The
researchers intended to identify different dimensions of leader behavior as described by
employees. They started with over 1000 dimensions but ultimately narrowed them down to two,
which were:
4.1.1 Initiating Structure
This dimension dealt with the leader’s behavior intended at structuring work as well as inter-
personal relationships at work. It describes the tendency of the leader to place higher importance
upon well-structured roles, work relationships and goals in comparison with personalized
interaction. Attainment of goals is deemed more important by the leader than inter-personal
relationships.
4.1.2 Consideration
This dimension characterizes the leader’s concern for mutual trust, respect and regard for
subordinates’ feelings. A leader high on consideration in comparison with initiating structure is
more likely to be friendly, more personal in his/her interactions with co-workers and subordinates
and to be more supportive in general.
Subsequent research on these lines has revealed that those leaders who score high on both
initiating structure as well as consideration dimensions (also called “high-high” leaders) were
more effective as compared to those who were rated low on either or both of these dimensions.
Thus, Ohio State Studies were the first to point out the importance of both task and human
dimensions in assessing leadership, although these studies failed to include situational factors as
important in the study of leadership.
4.2 University of Michigan Studies
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
At just about the same time as the Ohio State Studies, leadership studies were carried out at the
University of Michigan to identify leader behaviors which were seemingly related to performance
effectiveness. These studies were known as Michigan studies. Just like the Ohio State Studies, the
Michigan studies also came out with two dimensions of leader behavior. They were:
4.2.1 Employee-oriented
This dimension was associated with those leaders who were concerned with inter-personal
relations with the subordinates, their needs and well-being. They brought a component of
compassion in work.
4.2.2 Production-oriented
Another dimension identified was production-oriented. Production-oriented leaders, as the term
itself suggests, were those whose primary concern revolved around attainment of goals, and
getting the job done by the subordinates. They focused upon the work component rather than the
inter-personal component when it came to their approach towards co-workers and subordinates.
The researchers at Michigan found that the employee-oriented leaders were more successful in
achieving higher group productivity and job satisfaction as compared with the production-
oriented leaders.
4.3 Managerial Grid
Managerial Grid was proposed by R. R. Blake and J. S. Mouton in 1964 as a two-dimensional
nine-by-nine matrix of leadership style. It has also been referred to as the ‘Leadership Grid’.
Blake and Mouton represented leader behavior along the two dimensions of “Concern for
people” on the x-axis and “Concern for production” on y-axis. Scores on each axis range from 1
(Low) to 9 (High). Since it is a nine-by-nine matrix, it created 81 different cells, each
representing a different leadership style.
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Fig2: Managerial Grid
It results in following leadership styles:
Impoverished Style: It is represented by (1, 1) cell. These types of leaders have low concern for
both people and production.
Country Club Style: It is represented by (1, 9) cell. Here, the concern for people is the highest but
the concern for production is very low.
Produce or perish Style: It is represented by (9, 1) cell. It is also called dictatorial style. With a
high concern for production, this type of leaders have a very low concern for people and hence,
end up being too rigid for achieving targets.
Middle-of-the-road-Style: It is represented by (5, 5) cell. Leaders with this style have a balance
approach towards both concern for people and concern for production.
Team Style: It is represented by (9, 9) cell. Here, concern for people and concern for production
are both high.
4.4 Scandinavian Studies
The above mentioned studies were carried out between late 1940s and early 1960s. These studies,
initiated by researchers in Finland and Sweden, have been trying to re-interpret the dimensions
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
delineated by the Ohio and Michigan studies in the context of
present organizational scenario. These studies have reassessed
whether there are only two dimensions which capture leader behavior. Alternatively, they have
proposed a new dimension which focused on development-oriented behavior of the leaders
relevant in today’s world. These leaders have an innovative approach and strive to generate new
and creative ideas. They value experimentation and initiate change when required. The
Scandinavian studies propose that in today’s dynamic world, the leaders have to be development-
oriented in order to be effective.
There has been much support for the development-oriented leader behavior as a separate
dimension.
4.5 Assessment of Behavioral Theories
Behavioral studies were a different class of studies which studied leadership for more than just
traits. These studies included a crucial aspect to the leadership study, i.e. behavioral component.
This was a new development but still these studies were not completely free from limitations and
shortcomings.
The major reason for this has been the fact that the behavioral studies have not found strong and
consistent relationship between leader behavior and the performance of the group. A serious flaw
of the trait theories, i.e. the absence of consideration of situational factors, has been repeated in
these studies.
5. CONTINGENCY THEORIES
Both the trait and behavioral studies failed to capture the influence of situational factors on
leadership effectiveness. This shortcoming was addressed by the contingency theories which
recognized for the first time that assessing leadership effectiveness required more than identifying
leader traits or behaviors. These theories focused upon the situational factors and their influence.
In other words, these theories suggested that the leader’s effectiveness was dependent on how
he/she responds and acts in different kinds of situations. Some leaders are more effective in high-
pressure situations while others are made for more relaxed and stress-free situations. Some of the
leaders are capable of modifying their leadership style according to the changing demands of
situations. Thus, these theories also addressed the leaders’ quality of being flexible.
Five of the most successful and well-accepted contingency theories have been discussed below:
5.1 Fiedler Model
This contingency model for leadership was developed by Fred Fiedler in 1967. The Fiedler
Contingency Model addressed the need to match leader’s style of interaction to the degree of
control and influence given to the leader by the situation. According to Fiedler, the leadership
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
style of an individual is fixed and he developed the Least
Preferred Coworker (LPC) Questionnaire to identify whether a
leader is task-oriented or relationship-oriented.
Fiedler stated that it is required to identify the leadership style of the leader as well as to assess
the situation to understand whether or not it suits that style. If a situation demands a task-oriented
leader, then in order to carry out leader functions effectively, either a task-oriented leader has to
be selected or the situation has to be modified to suit the style of a relationship-oriented leader.
Fiedler presented three contingency dimensions in order to assess how much control a leader has
in a situation. These are:
i. Leader-member relations: These can be either good or bad.
ii. Task Structure: The task structure can be either high or low.
iii. Position Power: It can be either strong or weak.
A leader has maximum control in a situation when the leader-member relations are good, task
structure is high and the position power is strong. These dimensions define a situation, which is
then matched with the leadership style to assess leadership effectiveness.
Fiedler concluded that when the situations are either too favorable (high control situation) or too
unfavorable (low control situation), task-oriented leaders generally performed better. On the
contrary, the relationship-oriented leaders performed well in moderately favorable situations,
which offer moderate control to the leader.
Fig3: Fiedler’s Contingency Model
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Despite being a powerful model, Fiedler’s Contingency Model
was criticized on the grounds that the LPC scores were
unstable and the three contingency dimensions were difficult to assess.
5.2 Cognitive Resource Theory
The Contingency model proposed by Fiedler was further extended by him along with Joe Garcia
in 1987. This was called the Cognitive Resource Theory. This theory focused on the role of stress
in situational unfavorableness, as well as addressed the influence of leader’s intelligence and
experience on his/her reaction to stress on job. It is difficult for the leaders to think rationally
when under stress. Fiedler and Garcia found that a leader’s intellectual abilities correlate
positively with performance under low stress but negatively under high stress. On the other hand,
the experience of a leader showed negative correlation with performance under low stress but a
positive correlation under high stress. In other words, the cognitive resource theory suggested that
intelligent leaders were found to be more effective in low stress situations while highly
experienced leaders were found to be more effective in high stress situations.
Cognitive Resource Theory has received strong research support in its favor.
5.3 Hersey & Blanchard’s Situational Leadership Theory (SLT)
This theory was developed by Paul Hersey and Ken Blanchard (1969). Keeping in line with the
very basic fact of leadership that it is the followers who accept or reject a leader, Situational
Leadership Theory has focused upon the role of followers in leadership effectiveness.
Hersey and Blanchard have argued that the right leadership style is contingent or dependent on
the level of followers’ readiness. They argue that the leader should match his/her style with the
ability and willingness of the subordinates. This theory is also called as the life cycle theory of
leadership because the needs of maturity of subordinates move in stages in the form of a cycle.
Willingness refers to the psychological maturity of the subordinates which can vary from person
to person.
Based on this premise, four situations may arise and SLT has identified four different leader-
behaviors for each of them:
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Fig4: Hersey and Blanchard’s Situational Leadership Theory
Telling Style
It focuses on directive leadership style. This is appropriate for the situations where subordinates
have low maturity level, i.e. they neither willing nor able to perform.
Selling Style
Here, the leader behavior is both supportive and directive. It is appropriate for the subordinates
who are willing to perform but are unable to do so.
Participating Style
In this leadership style, the leader is more supportive than directive. It is suitable when the
subordinates are able but unwilling to perform.
Delegating Style
This style is low on both supportive and directive behavior. When subordinates are both willing
and able to perform, they hardly require any leadership support.
5.4 Path-Goal Theory
This theory was proposed by Robert House (1971). According to this theory, the leader should
assume the responsibility to guide his/her subordinates on the path to their goals. In other words,
the leader should provide the subordinates with all the necessary information, support, and other
resources which are required by the followers to achieve their goals. Therefore, the two major
roles of the leader are to create a goal orientation and to improve the path towards the goal so as
to facilitate attainment of goals.
The path-goal theory outlines two types of situational or contingency variables:
Environmental Contingency factors: These are those factors which are associated with the
characteristics of work environment and are beyond the control of employees. These primarily
include task structure, formal authority system, and work group.
Personal Characteristics of Employees: These factors are associated with the employees
themselves and partially determine how they respond to leader’s behavior. These include locus of
control, experience, and perceived ability.
This theory identifies four leadership behaviors in order to highlight which leadership behaviors
should be assumed by the leaders in response to changing situations so as to maximize
effectiveness. They are as follows:
Directive: This leadership behavior is aimed at giving specific guidance and clarifying
performance expectations. It is more successful in situations where tasks are ambiguous or
stressful.
Supportive: Supportive leaders are friendly, show concern for subordinates as people and for the
needs of followers. This leadership style produces effective results when the tasks are well-
structured.
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Participative: Participative leader behavior includes
consultation with followers and uses their suggestions for
making decisions. This style is more successful when the followers have an internal locus of
control.
Achievement-oriented: This kind of leader behavior emphasizes excellence in subordinates.
These leaders set challenging goals.
This theory suggests that leaders are flexible and that the same leaders can display any or all of
these leadership styles.
[Source: P. Robbins, S; Judge, T.A. and Sanghi, S. (2010) Essentials of Organizational
Behaviour. 10th Edition. Pearson Prentice Hall]
Fig5: Path-Goal Theory
5.5 Assessment of Contingency Theories
The contingency theories addressed a major lacuna which was left behind by trait and behavioral
theories, that of the influence of situational factors on leadership effectiveness. But these theories
too have certain shortcomings which should be taken care of. For e.g. contingency theories over-
emphasize the importance of situational factors without giving due consideration to the followers.
Also, these theories have not addressed the issue of differential treatment meted out to different
followers by the same leader. In other words, it is assumed that the leaders treat all their followers
equally, which is not always true in practical situations.
6. Summary
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PSYCHOLOGY Paper No 12. ORGANIZATIONAL BEHAVIOR
Module No 24. Basic Approaches to Leadership
Different theories have been propounded by different
researchers in order to understand the concept of
leadership. They can primarily be classified as Trait theories, Behavioral theories, and
Contingency theories.
Trait theories focus upon the personal traits and qualities of individuals which deem them
fit or unfit to be leaders.
Behavioral theories identified types of leader behaviors in order to assess leadership
effectiveness. Major behavioral theories are Ohio State Studies, Michigan Studies,
Managerial Grid and Scandinavian Studies.
Contingency theories focused upon the influence of situational factors on leadership
effectiveness. Major contingency theories are Fiedler Contingency Model, Cognitive
Resource Theory, Hersey & Blanchard’s Situational Leadership Theory (SLT), and
House’s Path-Goal Theory.
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