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Page 1: MGT 201- Chapter 6-Leadership

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... ability to influence the behavior of others to influence the behavior of 

others.

³Leadership is the ability to exert interpersonal influence by means of 

communication toward achievement of goal.´

- Koontz and O¶Doneel 

³Leadership is the process of influencing the activities of an organized

group in its efforts toward good setting and goal achievement.´ - R.M.

Stogdill 

Thus leadership is the art or process of influencing people so that they will

strive willingly and enthusiastically toward the achievement of group

goals.

Leadership......

2Mgt 201- A J Haque

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Mgt 201- A J Haque 3

Exhibit 12.1 Distinguishing Managership from

Leadership

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Activity Management Leadership

Creating an agenda. Planning andbudgeting.

Establishing direction.

Developing a human

net-work for achievingthe agenda.

Organizing and

staffing.

Aligning people.

Executing Plans. Controlling andproblem solving

Motivating andinspiring.

Outcomes For customer alwaysbeing on time, for

stock holder being onbudget

New product thatcustomer want, new

approach to laborrelation that help tomake a firm morecompetitive

Management Vs Leadership

4Mgt 201- A J Haque

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Mgt 201- A J Haque 5

The Place of Leadership

� Can Anyone Be a Leader?

± Some people don¶t have what it takes to be a

leader 

± Some people are more motivated to lead than

others

� Is Leadership Always Necessary?

± Some people don¶t need leaders± Leaders need to be aware of followers¶ needs

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Mgt 201- A J Haque 6

Early Leadership Theories

� Trait Theories (1920s±30s)

± Research that focused on identifying personal

characteristics that differentiated leaders from

nonleaders was unsuccessful± Later research on the leadership process

identified seven traits associated with successful

leadership:

� Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and

extraversion

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Mgt 201- A J Haque 7

Exhibit 12.2 Seven Traits Associated

with Leadership

� Drive

� Desire to lead

� Honesty and integrity

� Self-confidence

� Intelligence

� Job-relevant knowledge

� Extraversion

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Mgt 201- A J Haque 8

Behavioural Theories

� University of Iowa Studies (Kurt Lewin)

± Identified three leadership styles:

� Autocratic style: centralized authority, low participation

� Democratic style: involvement, high participation,feedback 

� Laissez-faire style: hands-off management

± Research findings: mixed results

� No specific style was consistently better for producing

better performance

� Employees were more satisfied under a democratic

leader than an autocratic leader 

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Mgt 201- A J Haque 9

Behavioural Theories (cont¶d)

� Ohio State Studies

±  Identified two dimensions of leader behaviour

� Initiating structure: the role of the leader in defining his

or her role and the roles of group members

� Consideration: the leader¶s mutual trust and respect for 

group members¶ ideas and feelings

±  Research findings: mixed results

� High-high leaders generally, but not always, achieved

high group task performance and satisfaction� Evidence indicated that situational factors appeared to

strongly influence leadership effectiveness

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Mgt 201- A J Haque 10

Behavioural Theories (cont¶d)

� University of Michigan Studies

±  Identified two dimensions of leader behaviour

� Employee oriented: emphasizing personal relationships

� Production oriented: emphasizing task accomplishment

±  Research findings:

� Leaders who are employee oriented are strongly

associated with high group productivity and high job

satisfaction

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Mgt 201- A J Haque 12

Behavioural Theories (cont¶d)

� Managerial Grid

± Appraises leadership styles using two

dimensions:

� Concern for people

� Concern for production

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Mgt 201- A J Haque 13

Exhibit 12.4The

Managerial

Grid

Source: Reprinted by permission of 

H arvard Business Review . An exhibit

from ³Breakthrough in Organization

Development´ by Robert R. Blake,

Jane S. Mouton, Louis B. Barnes,

and LarryE

. Greiner, November±December 1964, p. 136. Copyright ©

1964 by the President and Fellows of 

Harvard College. All rights reserved.

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Mgt 201- A J Haque 14

Contingency Theories of Leadership

� The Fiedler Model

±  Effective group performance depends upon the match

between the leader¶s style of interacting with

followers and the degree to which the situation

allows the leader to control and influence

± Assumptions:

� Different situations require different leadership styles

� Leaders do not readily change leadership styles

± Matching the leader to the situation or changing the situation tomake it favourable to the leader is required

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Mgt 201- A J Haque 15

Contingency Theories« (cont¶d)

� The Fiedler Model (cont¶d)

±  Least-preferred co-worker (LPC) questionnaire

� Determines leadership style by measuring responses to 18 pairs

of contrasting adjectives

± High score: a relationship-oriented leadership style

± Low score: a task-oriented leadership style

±  Situational factors in matching leader to the situation:

� Leader-member relations

� Task structure

� Position power 

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Mgt 201- A J Haque 16

Exhibit 12.5 Fiedler¶s Least-Preferred

Co-worker Questionnaire

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Mgt 201- A J Haque 17

Exhibit 12.6 Findings of the

Fiedler Model

Poor 

Good

Highly FavourableSituation Favourableness: Moderate Highly Unfavourable

IGood

High

Good

High

Strong Weak

Good

Low

Weak

Poor 

High

Strong

Poor 

High

Weak

Poor 

Low

Strong

Poor 

Low

Weak

Good

Low

Strong

II III IV V VI VII VIIICategoryLeader± Member 

Relations

Task Structure

Position Power 

RelationshipOriented

TaskOriented

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Mgt 201- A J Haque 18

Contingency Theories« (cont¶d)

� Hersey and Blanchard¶s Situational LeadershipTheory (SLT)

± Successful leadership is achieved by selecting

a leadership style that matches the level of the followers¶ readiness

� Acceptance: do followers accept or reject a leader?

� Readiness: do followers have the ability andwillingness to accomplish a specific task?

± Leaders must give up control as followersbecome more competent

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Mgt 201- A J Haque 19

Contingency Theories« (cont¶d)

� Hersey and Blanchard¶s Situational Leadership

Theory (SLT) (cont¶d)

± Creates four specific leadership styles

incorporating Fiedler¶s two leadershipdimensions:

� Telling: high task±low relationship leadership

� Selling: high task±high relationship leadership

� Participating: low task±high relationship leadership� Delegating: low task±low relationship leadership

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Mgt 201- A J Haque 20

Contingency Theories« (cont¶d)

� Hersey and Blanchard¶s Situational Leadership

Theory (SLT) (cont¶d)

± Identifies four stages of follower readiness:

� R1: followers are unable and unwilling� R2: followers are unable but willing

� R3: followers are able but unwilling

� R4: followers are able and willing

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Mgt 201- A J Haque 21

Exhibit 12.7 Hersey and Blanchard¶s

Situational Leadership Model

Source: Reprinted with permission from the Center for Leadership

Studies. Situational Leadership® is a registered trademark of the Center 

for Leadership Studies. Escondido, California. All rights reserved.

S3 S2

S4 S1

STYLE OF LEADER

Task Behaviour 

High

Low High

High relationshipand low task

High task andhigh relationship

Low relationshipand low task

Moderate

Follower Readiness

LowHigh

Able

andwilling

Able

andunwilling

Unable

andwilling

Unable

andunwilling

R4 R3 R2 R1

High task andlow relationship

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Mgt 201- A J Haque 22

ContingencyT

heories« (cont¶d)� Leader Participation Model (Vroom and

Yetton)

± Leader behaviour must be adjusted to reflect the

task structure

± Suggests appropriate participation level in

decision making

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Mgt 201- A J Haque 23

Contingency Theories« (cont¶d)

� Leader Participation Model Contingencies:

± Decision significance

± Importance of commitment

± Leader expertise

± Likelihood of commitment

± Group support

± Group expertise± Team competence

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Mgt 201- A J Haque 25

Exhibit 12.8Time-Driven

Model

Source: Adapted from V. Vroom, ³Leadership and

the Decision-Making Process,´ Organizational 

Dynamics, vol. 28, no. 4 (2000), p. 87.

Decide

Delegate

Consult (Group)

P

ROBLEM

STATEME

NT

Facilitate

Consult (Individually)

Facilitate

Consult (Group)

Decide

Facilitate

Consult (Individually)

Decide

Delegate

Facilitate

Decide

H

L

H

H

L

L

±

±

L

±

H

H ± ± ± ±

L

H

HH

L

±

±

±

±±±

H

L

±

±

±

H

L

±

±

±

H

H

HH H

L

H

L

H

L

H

L

H

L

H

± ±

± ± ±

± ± ±

L

L

L

L

L ±

± ±

H

L

L

L ±

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Mgt 201- A J Haque 26

Contingency Theories« (cont¶d)

� Path-Goal Model

± Leader¶s job is to assist his or her followers in

achieving organizational goals

± Leader¶s style depends on the situation:� Directive

� Supportive

� Participative

� Achievement-oriented

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Mgt 201- A J Haque 27

Exhibit 12.9 Path-Goal Theory

EnvironmentalContingency Factors

� Task Structure

� Formal Authority System

� Work Group

Subordinate

Contingency Factors

� Locusof Control

� Experience

� Perceived Ability

Leader Behaviour 

� Directive

� Supportive

� Participative

� Achievement Oriented

Outcomes

� Performance

� Satisfaction

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Mgt 201- A J Haque 28

Cutting-Edge Approaches to Leadership

� Transactional Leadership

± Leaders who guide or motivate their followers inthe direction of established goals by clarifyingrole and task requirements

� Transformational Leadership

± Leaders who inspire followers to go beyond their own self-interests for the good of theorganization

± Leaders who have a profound and extraordinaryeffect on their followers

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Mgt 201- A J Haque 29

Cutting-Edge Approaches to Leadership

(cont¶d)

� Charismatic Leadership

± An enthusiastic, self-confident leader whose

personality and actions influence people tobehave in certain ways

± Characteristics of charismatic leaders:

� Have a vision

� Are able to articulate the vision� Are willing to take risks to achieve the vision

� Are sensitive to the environment and to follower needs

� Exhibit behaviours that are out of the ordinary

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Mgt 201- A J Haque 30

Cutting-Edge Approaches to Leadership

(cont¶d)

� Charismatic Leadership (cont¶d)

± Effects of Charismatic Leadership

� Increased motivation, greater satisfaction� More profitable companies

� Charismatic leadership may have a downside:

± After recent ethics scandals, some agreement that CEOs

with less vision, and more ethical and corporate

responsibility, might be more desirable

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Mgt 201- A J Haque 31

Cutting-Edge Approaches to Leadership

(cont¶d)� Visionary Leadership

± A leader who creates and articulates a realistic,

credible, and attractive vision of the future that

improves upon the present situation

± Visionary leaders have the ability to:

� Explain the vision to others

� Express the vision not just verbally but through

behaviour 

� Extend or apply the vision to different leadership

contexts

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Mgt 201- A J Haque 32

Cutting-Edge Approaches to Leadership

(cont¶d)� Team Leadership Characteristics

± Having patience to share information

± Being able to trust others and to give up authority

±  Understanding when to intervene

� Team Leader¶s Job

± Managing the team¶s external boundary

± Facilitating the team process

� Coaching, facilitating, handling disciplinary problems,

reviewing team and individual performance, training, and

communicating

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Mgt 201- A J Haque 33

Exhibit 12.10 Specific Team

Leadership Roles

Team Leader 

Roles

Liaison with

ExternalConstituenciesCoach

Conflict

Manager 

Troubleshooter 

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Mgt 201- A J Haque 34

Current Leadership Issues

� Managing Power 

±  Legitimate power

� The power a leader hasas a result of his or her 

position

±  Coercive power

� The power a leader hasto punish or control

±  Reward power

� The power to givepositive benefits or rewards

±  Expert power

� The influence a leader 

can exert as a result of 

his or her expertise,

skills, or knowledge

±  Referent power

� The power of a leader 

that arises because of a

person¶s desirable

resources or admired

personal traits

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Mgt 201- A J Haque 35

Developing Trust

� Credibility (of a Leader)

±  The assessment, by a leader¶s followers, of theleader¶s honesty, competence, and ability to inspire

� Trust

±  The belief of followers and others in the integrity,character, and ability of a leader 

� Dimensions of trust: integrity, competence, consistency,loyalty, and openness

±  Trust is related to increases in job performance,organizational citizenship behaviours, jobsatisfaction, and organization commitment

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Mgt 201- A J Haque 36

Tips for Managers:Suggestions for Building Trust

Practise openness

Be fair

Speak your feelings

Tell the truth

Show consistency

Fulfill your promises

Maintain confidencesDemonstrate competence

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Mgt 201- A J Haque 37

Providing Moral Leadership

� Addressess both the moral content of a leader¶s

goals and  the means used to achieve those

goals� Ethical leadership is more than being ethical

± Includes reinforcing ethics through

organizational mechanisms

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Mgt 201- A J Haque 38

Providing On-line Leadership

� Challenges of On-line Leadership

± Communication

� Choosing the right words, structure, tone, and style for 

digital communications

± Performance management

� Defining, facilitating, and encouraging performance

± Trust

� Creating a culture where trust is expected, encouraged,

and required

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Mgt 201- A J Haque 39

Empowering Employees

� Empowerment

± Involves increasing the decision-making

discretion of workers

± Why empower employees?� Quicker responses to problems and faster decisions

� Relieves managers to work on other problems

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Mgt 201- A J Haque 40

Empowerment: Cautions

� The following conditions should be met for

empowerment to be introduced:

± Clear definition of company¶s values and mission

± Employees have relevant skills

± Employees need to be supported, not criticized,

when performing

± Employees need to be recognized for their efforts

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Mgt 201- A J Haque 41

Exhibit 12.11 Selected

Cross-Cultural Leadership Findings

� Korean leaders are expected to be paternalistic toward employees.

� Arab leaders who show kindness or generosity without being askedto do so are seen by other Arabs as weak.

� Japanese leaders are expected to be humble and speak frequently.

� Scandinavian and Dutch leaders who single out individuals withpublic praise are likely to embarrass, not energize, thoseindividuals.

� Malaysian leaders are expected to show compassion while usingmore of an autocratic than a participative style.

� Effective German leaders are characterized by high performanceorientation, low compassion, low self-protection, low teamorientation, high autonomy, and high participation

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Mgt 201- A J Haque 42

Cross-Cultural Leadership

� Universal Elements of Effective Leadership

± Vision

± Foresight

± Providing encouragement± Trustworthiness

± Dynamism

± Positiveness

± Proactiveness

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Mgt 201- A J Haque 43

Gender Differences and Leadership

� Research Findings

± Males and females use different

styles:

� Women tend to adopt a more

democratic or participative style unless

in a male-dominated job

� Women tend to use transformational

leadership

� Men tend to use transactional leadership

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Mgt 201- A J Haque 44

Exhibit 12.12 Where Female

Managers Do Better: A Scorecard

Source: R. Sharpe, ³As Leaders, Women Rule,´ BusinessWeek, November 20. 2000, p. 75.

None of the five studies set out to find gender differences. They stumbled on them whilecompiling and analyzing performance evaluations.

Skill (Each check mark denotes which group

scored higher on the respective studies)

* In one study, women¶s and men¶s scores in these categories were statistically even.

MEN WOMEN

Motivating Others

Fostering Communication

Producing High-Quality Work

Strategic Planning

Listening to Others

Analyzing Issues

*

*

*

Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, PersonnelDecisions International Inc., AdvancedTeamware Inc.