BM 100: Principles of Management and
Administration
LEADERSHIP FUNCTION
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UNIVERSITY OF DAR ES SALAAM
BUSINESS SCHOOL
www.udsm.ac.tz
“Innovative Business Management for
Inclusive Industrialization”
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Leadership
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Leadership
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What is Leadership?
There are many accepted definitions
 However, supervisory leadership can be defined as the
process or ability or skill of influencing and supporting groupmembers to willingly work towards the achievement of group or
organizational goals.
 It involves persuading, inspiring and motivating followers to
perform their work.
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Leadership is the ability of winning employees’ willingness
and enthusiastic commitment
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Video
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Forms of Leadership
A formal leader is the one who is
appointed, thus holding a particular
position to which s/he has been
elected or selected by some process
in a bureaucratic organization.
 The formal leader draws the power
and authority from the formal
position and the ability to allocate
rewards.
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Forms of leadership…
The informal leader is an organizational
member with no formal authority to
influence others but has special skills and
talents to influence others.
 It is common for a work group to have an
informal leader in addition to the
formally appointed leader.
 The informal leader draws the power
and authority from his/her individual
characteristics.
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Forms of leadership…
A good manager is the one who tries as much as a possible to
become both formal and informal leader or learn to work
through informal leaders
 To be successful as a leader, the manager must effectively
satisfy the following demands

 Considering the needs of the tasks he/she is required to achieve e.g
departmental objectives
 Considering the needs of the group as a whole e.g morale and
wellbeing of the group
 Considering individual needs as when they arise
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Leadership vs management …
A leader can be a manager, but a manager is not necessarily
a leader
 Management is the process of setting and achieving the goals
of the organization through the functions of management
 Generally, leadership deals with the interpersonal aspects of a
manager's job, whereas planning, organizing, and controlling
deal with the administrative aspects

 Leadership deals with change, inspiration, motivation, and influence.
 The other functions deal more with carrying out the organization's
goals and maintaining equilibrium
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Leadership vs management …
The key point in differentiating between leadership and
management is the idea that employees willingly follow leaders
because they want to, not because they have to.
 Leaders may not possess the formal power to reward or sanction
performance.
 However, employees give the leader power by complying with
what he/she requests.
 On the other hand, managers may have to rely on formal
authority to get employees to accomplish goals
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Video
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Power in Leadership

Power is defined as the potential ability to influence others’
behavior
 Position power: the Manager’s position give him/her the power to
reward or punish the subordinates in order to influence their
behavior
◼ Legitimate power, Reward power, & Coercive power
 Personal power” Comes from internal sources such as personal
knowledge, personality characteristics
◼ Expert power & Referent power
Others books add Connection power & Information power
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Examples Power in leadership…
Legitimate power e.g CEO, Presidents,
 Reward power e.g supervisor recording employee time or
performance for incentives
 Coercive power e.g VP sales threatens sales rep to meet
goals or replaced
 Expert power e.g project manager
 Referent power e.g HR associate who is known for
ensuring employees are treated fairly
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Leadership theories and styles
A number of theories has been established and a number of
research has been conducted to answer the question who is an
effective leader?
 For convenience, three groups of theories, namely the traits,
behavioral and contingency theories are discussed

 These make up seven leadership theories
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Trait Theories

Traits include personal characteristics such as
 self-awareness,
 self confidence,
 intelligence,
 ability of expression,
 ability to relate to people,
 etc.

Research results indicated that there were no traits that
will differentiate leaders from non-leaders universally
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TRAITS
FORMATION
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Trait theories…
Conclusion, there are core traits that is associated with effective
leadership as a process such as: Drive Desire for achievement, being ambitious and ability to take
initiative
 The desire to lead - Desire to influence others and willingness to
take responsibility;
 Honesty and integrity - Being truthful and showing high consistency
between words and deed;
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Trait theories…
Self-confidence - Absence of self-doubt, ability to stand by
one’s opinion/views;
 Intelligence (cognitive ability) - Ability to gather, synthesize
and interpret information,
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Knowledge of the business - so that one may be able to make
informed decisions;
Extraversion - Being energetic, sociable and assertive.
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Behavioral Theories
Under the behavioral approach the focus was on what
leaders/managers do and how do they behave in trying to
influence followers/subordinates
 Several studies were conducted including the following:

 Power Orientation (Use of authority)
◼ Under this the question was how do leaders/managers apply their
authority against their subordinates
◼ As a result, three leadership styles namely, autocratic, democratic and
laissez-fare were emanated
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Power Orientation
Autocratic leader: In this style a leader tends to centralize
authority, dictates work methods and relies on the legitimate,
reward and coercive power.
 Participative (Democratic) leader: Delegates authority to
others and relies on expert and referent power.
 Laissez-faire/Free rein: This describes a leader, who gave
team members complete freedom to make decisions and
complete their work in whatever way they saw fit.
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Leadership Continuum Model


Developed by Tannenbaum & Schmidt indicated that
leadership could be a continuum reflecting different amount
of employee participation.
Their argument was that leadership styles vary with the
degree of freedom granted to subordinates by a manager.
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This approach offers a range of styles between autocratic
and democratic
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Leadership Continuum Model…
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Conclusion on Power orientation…
Research on this model showed mixed results, thus leadership
theories to be used depends on situations
 Autocratic leadership style would be appropriate when urgent
action is necessary e.g. fire and if team members are not
knowledgeable and/or skilled
 Democratic leadership style- when the manager has confidence
in subordinates’ knowledge, experience, and willingness to
assume responsibility;
 Laissez-faire -when the team is highly skilled and motivated,
and has a history of producing excellent work
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Work/People Theories
Failure to establish is the best practice (democratic and autocratic)
researches were later directed towards other dimensions of leader
behavior i.e orientation either to tasks or relationships with people
 Concern for structures versus Concern for Team Members
 Researchers at Ohio State University identified two major behaviours,
called consideration and initiating structure.
◼ Initiating Structure: The extent to which a leader is task oriented and directs
subordinates in work activities towards goal attainment.
◼ It includes attempts to organize work, define work relationships and give
instructions.
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Work/People Theories…
◼ Consideration: The extent to which a manager has job relationship
characterized by mutual trust, friendship, support, respect, and warmth.
◼ The manager with high consideration shows concern for fellow
organizational members by helping them with their personal problems, is
friendly and approachable and treats all members as equals.

Employees Orientation versus Production Orientations
 Researchers at the University of Michigan took a different
approach by comparing the behaviour of effective and ineffective
leaders.
 The study identified two dimensions of leader behaviour
employee oriented and production oriented
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Work/People Theories…
 Employee oriented leaders: They emphasize interpersonal
relationships by taking personal interest in the employee needs
and accepting their individual differences.
 Production oriented leaders: They are concerned mainly with
accomplishment of team’s tasks. This focus implies that group
members were regarded as means to an end.
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The conclusion was that employee-oriented leadership was
associated with high team productivity and high job
satisfaction as compared to production-oriented leadership.
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Managerial grid
Building on the Ohio State and Michigan studies Blake and
others of the University of Texas developed a two dimensional
grid as a tool for analyzing leadership styles.
 They identified five leadership styles with varying concerns
for people and production
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Managerial Grid Description

The impoverished style: Is located at point (1, 1),
 Implication: Managers want to stay out of trouble.

The country club style: Is found at point (1, 9),
 Implication: The manager’s primary objective is to create a secure
and comfortable atmosphere trusting that subordinates will
respond positively.

The authoritarian style: Is found at point (9, 1),
 Implication: Their primary objective is to achieve the organization's
goals. Employee needs are not relevant in this process
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
The middle-of-the-road style: Is located at point (5, 5),
 Implication: The primary objective is to maintain employee morale
at a level sufficient to get the organization's work done

The team style: Is located at point (9, 9
 Implication: The major aim is to establish cohesion and foster a
feeling of commitment among workers.
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The Managerial Grid model suggests that effective managers
are those who use a style that reflects the highest concern for
both people and production i.e. team-oriented leadership
style at point (9, 9).
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Situational(Contingency) theories
Leadership styles cannot be fully explained by behavioral
models. The situation in which the group is operating also
determines the style of leadership to be adopted.
 Several models have been developed to explain the
relationship between leadership style and organizational
situation, three of which are described here:
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Fred E. Fiedler's contingency model
Fiedler's model assumes that group performance depends on:
 Leadership style, described in terms of task-motivation and
relationship-motivation.
 Situational favorableness, determined by three factors:

Leader-member relations.
 Degree to which a leader is accepted and supported by the
group members.
 In a favorable relationship, a manager has a highly formed task
structure and is able to reward and/or punish employees without
any problems.
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Fiedler's contingency model…

Task structure:
 The extent to which the task is structured and defined, with clear
goals and procedures. The spelling out in detail of what is
required of subordinates affects task structure.

Position power.
 The ability of a leader to control subordinates through reward and
punishment. It is high when the manager has the power to plan and
direct the work of subordinates, evaluate it and reward or punish
them and vice versa.
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Fiedler’s conclusions were as follows
It may be easier for leaders to change their situation to
achieve effectiveness, rather than change their leadership
style.
 While high levels of the above three factors give the most
favorable situation, low levels lead to the least favorable
situation.
 While relationship-motivated leaders are most effective in
moderately favorable situations, task-motivated leaders are
most effective in both, high and low favorable situations.
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Hersey-Blanchard's Contingency theory
This theory suggests that leadership style should be matched
with the maturity of the subordinates.
 To determine the appropriate leadership style to use in a given
situation, a leader must, first determine the maturity levels of
his/her followers in relationship to the specific task. Maturity
exists in two forms:

 Psychological & Job Maturity
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Psychological maturity:
 Their self-confidence and ability and readiness to accept
responsibility.

Job maturity:
 Their relevant skills and technical knowledge.
As the subordinate maturity increases, leadership should be
more relationship-motivated than task-motivated.
 Once maturity levels have been identified, a manager can
determine the appropriate leadership style i.e. telling, selling,
participating, or delegating
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
Telling:
 This style reflects high task/low relationship behavior. The leader
provides clear instructions and specific direction. Telling style is best
matched with a low subordinates’ maturity (readiness).

Selling:
 This style reflects high task/high relationship behavior.
 The leader encourages two-way communication and helps build
confidence and motivation on the part of the employee, although the
leader still has responsibility and controls decision making
 Selling style is best matched with a moderate followers’ readiness
level.
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
Participating.
 This style reflects high relationship/low task behavior. With this style,
the leader and followers share decision making and no longer need
or expect the relationship to be directive. Participating style is best
matched with a moderate follower readiness level.

Delegating.
 This style reflects low relationship/low task behavior. Delegating
style is appropriate for leaders whose followers are ready to
accomplish a particular task and are both competent and motivated
to take full responsibility. This style is best matched with a high
follower readiness level.
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House's path-goal theory
the leader’s responsibility is to increase motivation among
subordinates so as to attain personal and organizational
goals.
 It is argued under this theory that performance, subordinates’
satisfaction and motivation can be affected by the leader in
following ways:

 Offering rewards for the achievement of performance goals.
 Clarifying paths towards these goals.
 Removing performance obstacles.
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
A manager's job is to coach or guide workers to choose the
best paths for reaching their goals. Path-goal theory
identifies several leadership styles which include the following:
 Supportive.
◼ The leader is friendly and approachable. He or she shows concern for
the followers' well-being. This style is appropriate when followers lack
confidence.
 Directive.
◼ The leader tells followers exactly what they are supposed to do. This
style is appropriate when followers hold ambiguous jobs.
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 Participative.
◼ The leader consults with followers and asks them for suggestions before
making a decision. This style is appropriate when followers are using
improper procedures or are making poor decisions
 Achievement-oriented.
◼ The leader sets challenging goals for followers, expects them to perform
at their highest levels. This style is appropriate when followers lack job
challenges
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Contemporary approaches to leadership
Transactional leadership
 Transactional leader assumes a social exchange between the
management and organizational members.
 They guide or motivate team members to work toward
established goals by exchanging rewards for their productivity
 Leaders who exhibit transactional behaviors are more focused
on accomplishing the task at hand and maintaining good
working relations with subordinates by rewarding for
performance
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The relationship between the subordinate and the leader
becomes transactional because money or any other award
is paid by the leader to team members for their compliance
and effort.
 The main limitation of this leadership is that it assumes that
people are largely motivated by simple rewards.
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Examples:
The Online Learning Platform
 Scenario: Professor AAA uses a gamified online learning
platform where students earn points for completing quizzes,
watching videos, and participating in discussions. These points
translate to bonus points on exams and extra credit
opportunities. Students who actively engage with the platform
are rewarded, while those who neglect it face the possibility
of lower grades.
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Transactional aspects: Professor AAA uses points (bonus
points, extra credit) as a reward for engaging with the
learning platform, while lower grades serve as a potential
punishment for inactivity. This incentivizes students to
participate actively in the online learning experience
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The Well-Defined Group Project
Scenario: Professor AAA assigns a group project with clearly
defined deliverables, deadlines, and individual roles for each
member. Students who meet their individual responsibilities
and contribute effectively to the group's success receive bonus
points.
 Transactional element: The professor clarifies expectations
and rewards individual contributions within the team structure.
This encourages students to be accountable and work towards
shared goals.
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Transformational leadership
Transformational leaders encourages and obtains
performance beyond expectations by stimulating and
inspiring their subordinates to deliver as well as cultivating
employee acceptance and commitment to their visions.
 It assumes that people will follow the person who has the
ability to inspire and motivate them and that tasks can be
accomplished by injecting feelings of confidence, admiration,
and commitment among the subordinates.
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Example
The Green Chemistry Institute
 Situation: Professor AAA envisioned a sustainable future for
chemistry and founded the Green Chemistry Institute.
 Leadership: He encouraged students to question traditional
chemical practices and develop environmentally friendly
alternatives.
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Transformational Elements
Intellectual Stimulation: He challenged students to think
creatively and design solutions for real-world problems.
 Individualized Consideration: He fostered a mentoring
environment, guiding students while allowing them ownership
of their projects.
 Inspiration: His passion for environmental responsibility
instilled a sense of purpose and social impact in his students.
 Visionary Goal: He envisioned a future where chemistry
contributes to a sustainable world, inspiring generations of
green chemists.
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The Citizen Science Project
Situation: A professor AAA initiates a citizen science project
involving undergraduates in analyzing water quality data
from local communities.
 Leadership: The professor empowers students to take
ownership of the project, from data collection to analysis and
communication.
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Transformational Elements
Intellectual Stimulation: Students engage in authentic research,
applying their knowledge to solve real-world problems.
 Individualized Consideration: The project allows students to
explore diverse interests and develop their unique skills.
 Inspiration: The opportunity to make a positive impact on their
community fosters a sense of purpose and civic engagement.
 Visionary Goal: The project fosters scientific literacy and
empowers students to become leaders in environmental
stewardship.
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Charismatic-Visionary Leadership
 A charismatic leader is the one, who is enthusiastic and selfconfident, whose personality and actions influence people to
behave in certain ways. Characteristics that distinguish
charismatic leaders from non-charismatic leaders include the
following:
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 Having a vision and being able to articulate that vision;
 Being willing to take risks to achieve that vision;
 Being sensitive to environmental and followers’ needs;
 Exhibiting behaviours that are out of the ordinary.
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Though recent studies have found no relationship between
charisma and organizational performance, charisma is still
believed to be a desirable leadership quality.
 Charismatic leadership is most appropriate when
subordinates’ task has an ideological purpose or when
environment involves high degree of stress and uncertainty.
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Team leadership
 The role of the manager is therefore to help team member
reach the preset goals. The challenge for many managers is
learning how to become an effective team leader.
 Managers must be patient in sharing information, must learn
to trust others and to give up authority as well as
understanding when to intervene.
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Major leadership issues in
management today
Managers of today’s organizations face important but
challenging leadership issues. In this section, some of these issues
are discussed.
a) Building trust
 Trust is defined as the belief in integrity, character and ability
of a leader or manager. Research has identified five elements
of the term trust, which are:
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Integrity: Honesty and trustfulness;
 Competency: Technical and interpersonal knowledge and
skills;
 Consistency: Reliability, predictability, and good judgment in
handling situations;
 Loyalty: Willingness to protect a person physically and
emotionally;
 Openness: Willingness to share ideas and information freely.

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b)Providing ethical leadership
 There is a growing general interest in ethics through the field
of management.
 Ethical leadership denotes the need for managers to conduct
in accordance with the principles, values and beliefs that
define what is right and what is wrong.
 Managers must set acceptable goals and behave according
to set standards.
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c)Empowering employees
 This refers to the process of giving workers at all levels
authority to make decisions and the responsibility for their
outcomes..
d) Gender and Leadership
 The number of women managers is rising but still relatively
low in top levels.
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Stereotypes suggest women are supportive and concerned
with interpersonal relations whereas men are seen as taskfocused.
 However, research indicates that there is no gender-based
difference in leadership effectiveness and that women are
seen to be more participative than men.

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