LEADERSHIP THEORIES
A Leadership Story:
“Management is doing things right,
leadership is doing the right things”
(Warren Bennis and Peter Drucker)
What Is Leadership?
Leadership
The ability to influence a
group
toward
the
achievement of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.
Definitions
 Leadership has been described as the “process of
social influence in which one person can enlist the
aid and support of others in the accomplishment of a
common task”.
 Leadership is the art of getting someone else to do
something you want done because he wants to do it."
– Dwight D. Eisenhower
 while leaders set the direction, they must also use
management skills to guide their team to the right
destination in a smooth and efficient way.
What is leadership, and what is the difference
between leadership and management?
 In a nutshell, the difference between leadership and
management is:
– Leadership is setting a new direction or vision
for a group that they follow.
• ex: a leader is the spearhead for that new direction
– Management
controls
or
directs
people/resources in a group according to
principles or values that have already been
established.
 Leadership without
management
 Management without
leadership
 ...sets a direction or vision that
others follow, without considering
too much how the new direction is
going to be achieved. Other people
then have to work hard in the trail
that is left behind, picking up the
pieces and making it work.
– Ex: in Lord of the Rings, at
the council of Elrond, Frodo
Baggins rescues the council
from conflict by taking
responsibility for the quest
of destroying the ring - but
most of the management of
the group comes from
others.
 ...controls resources to maintain the
status quo or ensure things happen
according to already-established
plans.
– Ex: a referee manages a
sports game, but does not
usually provide "leadership"
because there is no new
change, no new direction the referee is controlling
resources to ensure that the
laws of the game are
followed and status quo is
maintained.
LEADERSHIP
THEORIES
Trait
Theories
Behavioral
Theories
•Ohio State Studies
•Uni. Of Michigan State
Contingency
Theories
•Fiedler Model
•Hersey and Blanchard’s
Situational Theory
Path Goal Theory
New Theories
•Leader Exchange Theory
•Vroom and Yetton’s
Leader Participation Model
Trait Theories
Traits Theories of
Leadership
Theories that consider
personality,
social,
physical, or intellectual
traits
to differentiate
leaders from non-leaders.
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant
knowledge
Trait Theories
Limitations:
• No universal traits found that predict leadership in
all situations.
• Traits predict behavior better in “weak” than
“strong” situations.
• Unclear evidence of the cause and effect of
relationship of leadership and traits.
• Better predictor of the appearance of leadership
than distinguishing effective and ineffective
leaders.
Behavioral Theories
Behavioral Theories of Leadership
Theories
proposing
that
specific
differentiate leaders from non-leaders.
behaviors
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.
Ohio State Studies
 A famous series of studies on leadership were done in
Ohio State University, starting in the 1950s. They found
two critical characteristics either of which could be
high or low and were independent of one another.
 The research was base on questionnaires to leaders
and subordinates. These are known as the Leader
Behavior Description Questionnaire (LDBQ), which
was designed to discover how leaders carry out
their activities, and the Supervisor Behavior
Description Questionnaire (SDBQ). By 1962, the LDBQ
was on version XII.
Ohio State Studies
Initiating Structure
The extent to which a leader is
likely to define and structure his
or her role and those of subordinates in the search for goal
attainment.
Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect
for subordinate’s ideas, and regard for their feelings.
Ohio State Studies
 The first element was tagged Initiating Structure and deals with Task
Behavior, focusing on production issues.
– Example: measuring production output.
 The second element, Consideration for Workers, focused on the
human side of the business and was also called Relationship
Behavior.
– Example: orientation of new employees
 In this way the Ohio State Studies brought together the seemingly
juxtaposed Scientific Management and Human Relations Movement.
 An important finding of the Ohio State studies was that these two
dimensions are independent.
– This means that consideration for workers and initiating
structure exist simultaneously and in different
amounts. A matrix was created that showed the various
combinations and quantities of the elements.
Ohio State Studies
 Consideration
individual.
is
more
strongly
related
to
the
– The followers of leaders who were high in
consideration were more satisfied with their jobs
and more motivated and also had more respects
for their leaders.
 Initiating structure was more strongly related to higher
level of group and organization productivity and
more positive performance evaluations.
University of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees and
accepting individual differences among members.
Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.
University of Michigan Studies
 A series of studies on leadership were done in
Michigan University, starting in the 1950s. Under the
general direction of Rensis Likert, the focus of the
Michigan studies was to determine the principles and
methods of leadership that led to productivity and job
satisfaction. Two types of leadership behaviors were
identified:
– employee orientation (stress the humanrelations aspect, employees are viewed as
human beings with personal needs)
– production orientation (stress on the
technical and production aspects of the job,
employees viewed as the means of getting
the work done).
University of Michigan Studies
 Leaders with an employee orientation showed
genuine concern for interpersonal relations. Those
with a production orientation focused on the task or
technical aspects of the job.
 The conclusion of the Michigan studies was that an
employee orientation and general instead of close
supervision yielded better results. Likert eventually
developed four "systems" of management based on
these studies; he advocated System 4 (the
participative-group system, which was the most
participatory set of leader behaviors) as resulting in
the most positive outcomes.
The
Managerial
Grid
(Blake and Mouton)
Scandinavian Studies
Development-Oriented Leader
One who values experimentation, seeking new ideas,
and generating and implementing change.
Researchers in Finland and Sweden
question whether there are only two
dimensions
(production-orientation
and
employee-orientation)
that
capture the essence of leadership
behavior. Their premise is that in a
changing world, effective leaders
would exhibit development-oriented
behavior.
Contingency Theories
 The leader's ability to lead is contingent upon
various situational factors, including the
leader's preferred style, the capabilities and
behaviors of followers and also various other
situational factors.
 Contingency theories contend that there is no
one best way of leading and that a leadership
style that is effective in some situations may
not be successful in others.
Contingency Theories
 An effect of this is that leaders who are very
effective at one place and time may become
unsuccessful either when transplanted to
another situation or when the factors around
them change.
 This helps to explain how some leaders who
seem for a while to have the 'Midas touch'
suddenly appear to go off the boil and make
very unsuccessful decisions.
Contingency Theories
 Contingency theory is similar to situational theory in
that there is an assumption of no simple one right
way. The main difference is that situational theory
tends to focus more on the behaviors that the leader
should adopt, given situational factors (often about
follower behavior), whereas contingency theory takes
a broader view that includes contingent factors about
leader capability and other variables within the
situation.
Fiedler’s Contingency Model
 Proposed by the Austrian psychologist Fred Edward Fiedler.
 The contingency model emphasizes the importance of both the
leader's personality and the situation in which that leader
operates.
– A leader is the individual who is given the task of
directing and coordinating task-relevant activities, or
the one who carries the responsibility for performing
these functions when there is no appointed leader.
 Fiedler relates the effectiveness of the leader to aspects of the
group situation. Fred Fiedler's Contingency Model also predicts
that the effectiveness of the leader will depend on both the
characteristics of the leader and the favorableness of the
situation.
Contingency Theories
Fiedler’s Contingency Model
The theory that effective groups depend on a proper
match between a leader’s style of interacting with
subordinates and the degree to which the situation
gives control and influence to the leader.
Least Preferred Co-Worker (LPC)
Questionnaire
An instrument that purports to
measure whether a person is taskor relationship-oriented.
Fiedler’s Model: Defining the Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
The degree to which the job assignments are
procedurized.
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
Findings from Fiedler Model
Cognitive Resource Theory
Cognitive Resource Theory
A theory of leadership that states that stress can
unfavorably affect a situation and that intelligence
and experience can lessen the influence of stress on
the leader.
Research Support:
• Less intelligent individuals perform better in leadership
roles under high stress than do more intelligent
individuals.
• Less experienced people perform better in leadership
roles under low stress than do more experienced people.
Hersey and Blanchard’s Situational Leadership
Theory
 In contrast to Fiedler’s contingency leadership
model and its underlying assumption that
leadership style is hard to change, the HerseyBlanchard
situational
leadership
model
suggests that successful leaders do adjust
their styles.
Hersey and Blanchard’s Situational Leadership
Theory
 For Hersey and Blanchard the key issue in making
these adjustments is follower maturity, as indicated by
their readiness to perform in a given situation.
 “Readiness,” in this sense, is largely based on two
major factors – follower ability and follower confidence.
 Hersey and Blanchard believe that leaders should be
flexible and adjust their styles as followers and
situations change over time.
Hersey and Blanchard’s Situational
Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Unable and
Unwilling
Unable but
Willing
Able and
Unwilling
Able and
Willing
Follower readiness:
ability and willingness
Leader: decreasing need
for support and supervision
Directive
High Task and Relationship
Orientations
Supportive
Participative
Monitoring
Leadership Styles and Follower Readiness
(Hersey and Blanchard)
Follower
Readiness
Unwilling
Able
Supportive
Participative
Willing
Monitoring
Leadership
Styles
Unable
Directive
High Task
and
Relationship
Orientations
Leadership Styles and Follower Readiness
(Hersey and Blanchard)
 Participating Style—
 Emphasizing shared ideas and
participative decisions on task
directions; this is a low-task,
high-relationship style.
 Selling Style—
 Explaining task directions in a
supportive and persuasive way;
this is a high-task, highrelationship style.
 Delegating Style—
 Allowing the group to take
responsibility for task decisions;
this is a low-task, low-relationship
style.
 Telling Style—
 Giving specific task directions
and closely supervising work;
this is a high-task, lowrelationship style.
Hersey and Blanchard’s Situational Leadership
Theory
 The participating style is recommended for
low-to-moderate readiness situations. Here,
followers are capable but also unwilling or
insecure about the tasks. As you might expect,
this participation style with its emphasis on
relationships is supposed to help followers
share ideas and thus draw forth understanding
and task confidence.
Hersey and Blanchard’s Situational Leadership
Theory
 The selling style is recommended for
moderate to high-readiness situations.
Here, followers lack capability but are
willing or confident about the task. In this
case, the selling style and its emphasis on
task guidance is designed to facilitate
performance
through
persuasive
explanation.
Hersey and Blanchard’s Situational Leadership
Theory
 When follower maturity is high, the situational
leadership model calls for a delegating style
which might be described as offering minimal
leadership intervention. The style is one of
turning over decisions to followers who have
high task readiness based on abilities,
willingness and confidence about task
accomplishment.
Hersey and Blanchard’s Situational Leadership
Theory
 When follower maturity is low, by contrast, the
model calls for the telling style with its
emphasis on task directed behaviors. The
telling style works best in this situation of low
readiness, by giving instructions and bringing
structure to a situation where followers lack
capability and are unwilling or insecure about
their tasks.
Hersey and Blanchard’s Situational Leadership
Theory
 Managers using the situational leadership model
must be able to implement the alternative leadership
styles as needed. To do this, they have to understand
the maturity of followers in terms of readiness for task
performance and then use the style that best fits. In
terms of the appropriate style-situation match ups,
the situational leadership model suggests the
following.
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.
Leader–Member Exchange Theory
 One of the things you may have noticed in your work
and study groups is the tendencies of leaders to
develop “special” relationships with some team
members.
 This tendency is central to leader-member exchange
theory, or LMX theory as it is often called.
 The theory basically recognizes that in most, or at least
many, leadership situations not everyone is treated
the same by the leader.
 Instead, people fall into “in” groups and “out” groups
in relationships with their leaders. Obviously, the group
you are in can have quite a significant influence on
your experience with the leader.
Leader–Member Exchange Theory
 The notion underlying leader-member exchange theory is that
as a leader and follower interact over time, their exchanges end
up defining the follower’s role.
 Whether due to personality similarities or differences, time
pressures and interaction opportunities, or the follower’s
competencies and accomplishments, this role ends up being
defined into a high-exchange or low-exchange relationship with
the leader.
 You might think of the LMX concept in respect to a leader being
more willing to find time to spend relating to and interacting with
some followers than others. Those that do get the leader’s
attention end up forming a special in-group relationship with him
or her.
Leader–Member Exchange Theory
 One of the implications of the leader-member exchange theory
is that the nature of the exchange is determined by the leader
based on some presumed characteristics of the follower. A high
LMX relationship is usually based on perceived favorable
personality, compatibility, and competency; a low LMX
relationship is based on just the opposite set of views.
 For the follower in a high LMX relationship, being part of the
leader’s inner circle or in-group can have positive implications in
terms of getting rewards, access to information, and other
special treatments. Being in the out-group can have negative
consequences on the same terms. For the leader, it is nice to be
able to call on and depend upon the loyal support of those in the
in-group. But the leader may also be missing out on lost
opportunities of working more intensely with out-group
members.
Leader-Member Exchange Theory
Path-Goal Theory
The theory that it is the leader’s job to
assist followers in attaining their goals
and to provide them the necessary
direction and/or support to ensure that
their goals are compatible with the
overall objectives of the group or
organization.
The Path-Goal Theory
Leader-Participation Model
Leader-Participation Model (Vroom and Yetton)
A leadership theory that provides a set of rules to
determine the form and amount of participative
decision making in different situations.
Leader-Participation Model
 Leadership is all about making decisions, conceiving
vision, setting goals, laying paths to reach the goal, and
making all efforts with followers in achieving it.
 Effective Leadership requires taking situation based
decisions. An individual will be accepted as Leader when
his ideas, suggestions and advise are more appropriate to
the situation. Decision taken under particular situation may
not hold good for all situations & it may give different
results in different situations.
Leader-Participation Model
– How will you get expected output from your decision
on particular thing ?
– What factors that affect making a good decision?
– In what situations I need to get consultation from
others or to make own decision?
– How do I get commitment from my followers on
particular decision?
 Vroom-Yetton-Jago Normative Decision Model help us to
answer above questions.
Leader-Participation Model
 This model identifies five different styles (ranging
from autocratic to consultative to group-based
decisions) on the situation & level of involvement.
They are:
–
–
–
–
–
Autocratic Type 1 (AI)
Autocratic Type 2 (AII)
Consultative Type 1 (CI)
Consultative Type 2 (CII)
Group-based Type 2(GII)
Leader-Participation Model
 Autocratic Type 1 (AI) – Leader makes own decision using
information that is readily available to you at the time. This type is
completely autocratic.
 Autocratic Type 2 (AII) – Leader collects required information from
followers, then makes decision alone. Problem or decision may or may
not be informed to followers. Here, followers involvement is just
providing information.
 Consultative Type 1 (CI) – Leader shares problem to relevant
followers individually and seeks their ideas & suggestions and makes
decision alone. Here followers’ do not meet each other & leader’s
decision may or may not has followers influence. So, here followers
involvement is at the level of providing alternatives individually.
Leader-Participation Model
 Consultative Type 2 (CII) – Leader shares problem
to relevant followers as a group and seeks their ideas
& suggestions and makes decision alone. Here
followers’ meet each other and through discussions
they understand other alternatives. But leader’s
decision may or may not has followers influence. So,
here followers involvement is at the level of helping
as a group in decision-making.
 Group-based Type 2(GII) – Leader discuss problem
& situation with followers as a group and seeks their
ideas & suggestions through brainstorming. Leader
accepts any decision & do not try to force his idea.
Decision accepted by the group is the final one.
Contingency Variables in the Revised
Leader-Participation Model
1.
2.
3.
4.
5.
6.
7.
Importance of the decision
Importance of obtaining follower commitment to the decision
Whether the leader has sufficient information to make a good decision
How well structured the problem is
Whether an autocratic decision would receive follower commitment
Whether followers “buy into” the organization’s goals
Whether there is likely to be conflict among followers over solution
alternatives
8. Whether followers have the necessary information to make a good decision
9. Time constraints on the leader that may limit follower involvement
10. Whether costs to bring geographically dispersed members together is
justified
11. Importance to the leader of minimizing the time it takes to make the decision
12. Importance of using participation as a tool for developing follower decision
skills
PART II
Leadership
Types of Leadership Style
Autocratic Leaders
– Leader makes decisions
without reference to
anyone else
– High
degree
of
dependency
on
the
leader
– Can create de-motivation
and
alienation
of staff
– May be valuable in some
types of business where
decisions need to be
made
quickly
and
decisively
 In fact, it might be
perceived that there
are not a lot of good
things to say about
autocratic
leaders. This style of
leadership is often
very
stressful
on
fellow employees, and
makes
the
work
environment itself not
a fun place to be. But
like all leadership
styles, there is a time,
and a situation, where
the
style
is
appropriate.
Autocratic Leaders
 Cons of Autocratic Leaders
 The communication style of an autocratic leader is
usually described as one way. They tell you exactly
what they want done. The feedback you would
receive from this type of leader would generally be
unplanned. They would simply tell you when you've
made a mistake.
 The decision-making process is usually unilateral,
and they accomplish goals by directing people. Now
that might not sound like the type of leader you'd
follow, but there are actually situations when this
style is very effective.
Autocratic Leaders
 Pros of Autocratic Leaders
 In the workplace, some operating conditions may call
for urgent action. In these cases, an autocratic style
of leadership may be the best style to
adopt. Surprisingly, many individuals have already
worked for an autocratic leader, and therefore have
little trouble adapting to that style.
 In fact, in times of stress or emergency some
subordinates may actually prefer an autocratic
style. They prefer to be told exactly what to do. So
to summarize - the autocratic leadership style is very
effective when critical business decisions or actions
are needed, but very stressful on followers or
coworkers when the added pressure is no longer
necessary.
Autocratic Leaders
 Autocratic Leaders in the Workplace
 On the down side, several studies suggest that organizations with
many autocratic leaders have higher turnover and absenteeism than
other organizations. With today's emphasis on joint decision making
and empowerment, employees just entering the workforce will be
highly resistant to this management style.
 So the autocratic leadership style should not be used when you
want to get your employees engaged in the decision-making
process. Autocratic leaders are also not effective in situations
where your employees might become resentful or fearful.
 Finally, if your company is struggling with low morale, or is
interested in building employee relationships, then an autocratic
leadership style will only make the work environment worse.
Examples
 Martha Stewart
 Martha Stewart built her empire with personal attention
to every detail. Whether you liked her or not, she was
meticulous and demanding.
She was also very
successful in her endeavors, and in using her autocratic
management style.
 Many industry analysts might argue that it was Martha's
autocratically demanding style that allowed her to
flourish in a competitive environment such as the
entertainment industry. Others might argue that even
more success might have awaited Martha Stewart if she
had not relied so heavily on the autocratic style.
Examples
 Howell Raines
 Newspapers and old industries often flourished under
autocratic leaders that stood watch over factory workers to
make sure their factories kept humming. The point here is
that it might not be easy to work under these
circumstances, but the autocratic leadership style is
certainly efficient.
 Howell Raines was the Executive Editor of the New York Times from
2001 until 2003. Widely cited as a "hard-charging" Executive Editor,
Raines was known for his policy of "flooding the zone"- using all of the
New York Times' resources to cover what he deemed were important
stories.
 Howell Raines is a classic example of how an autocratic
style can be used successfully in a highly-demanding
industry. Think about the daily pressures associated with
publishing one of the highest quality newspapers in the
world.
Democratic Leadership
 Encourages
decision
making
perspectives – leadership may
throughout the organisation.
from
different
be emphasised
– Consultative: process of consultation before decisions are taken
– Persuasive: Leader takes decision and seeks to persuade others
that the decision is correct
•
•
•
•
May help motivation and involvement
Workers feel ownership of the firm and its ideas
Improves the sharing of ideas and experiences within the business
Can delay decision making
Democratic Leadership
 The democratic leadership style is a very open and collegial
style of running a team. Ideas move freely amongst the
group and are discussed openly. Everyone is given a seat
at the table, and discussion is relatively free-flowing.
 This style is needed in dynamic and rapidly changing
environments where very little can be taken as a constant.
In these fast moving organizations, every option for
improvement has to be considered to keep the group from
falling out of date.
 The democratic leadership style means facilitating the
conversation, encouraging people to share their ideas, and
then synthesizing all the available information into the best
possible decision. The democratic leader must also be able
to communicate that decision back to the group to bring
unity the plan is chosen.
Democratic Leadership
 When is it Used?
 When situations change frequently, democratic leadership offers
a great deal of flexibility to adapt to better ways of doing things.
Unfortunately, it is also somewhat slow to make a decision in
this structure, so while it may embrace newer and better
methods; it might not do so very quickly.
 Democratic leadership style can bring the best out of an
experienced and professional team. It capitalizes on their skills
and talents by letting them share their views, rather than simply
expecting them to conform.
 If a decision is very complex and broad, it is important to have
the different areas of expertise represented and contributing
input – this is where democratic leader shines.
Democratic Leadership
 Good fits for Democratic Leadership:
 Creative groups (advertising, design): ideas need to flow in
creative environments to find create new concepts and designs.
 Consulting: when paid to explore problems and find solutions,
your role will be to explore the possibilities in depth, and that
means there has to be a great deal of exploration and open
discussion.
 Much of the service industry: new ideas allow for more flexibility
to changing customer demands.
 Education: few places need to be open to different ideas than
education, both by educators and their students.
Democratic Leadership
 Democratic Leadership at Work
 Daniel Goleman also thought there were enough
distinguishing characteristics found in democratic
leadership to include it as one of his six styles. In his
model, the primary behavior of these leaders was to
forge consensus through collaboration. The key to
this style is communication - seeking the opinions of
others, and letting your opinion be known.
 When the workplace is ready for democratic leaders,
the style produces a work environment that
employees can feel good about. Workers feel that
their opinion counts, and because of that feeling they
are more committed to achieving the goals and
objectives of the organization.
Democratic Leadership
 Democratic Leadership at Work
 But Goleman and others also recognized that not
every style is effective in every work environment that's what situational leadership is all about; finding
the right style to apply to the situation at hand. So
the logical question is: When is the democratic
leadership style effective at work?
Democratic Leadership
 Pros of the Democratic Leadership Style
 Since employees or followers have an equal say in
the decision-making process, they are more
committed to the desired outcome. The collaborative
environment created by this style often results in more
thorough solutions to problems.
 This creates an ideal environment for collaborative
problem-solving
in
addition
to
decisionmaking. However, this democratic process has its
drawbacks.
Democratic Leadership
 Cons of the Democratic Leadership Style
 The democratic leader depends on the knowledge of his
followers or employees.
If the workforce is
inexperienced, this style is not very effective. You simply
need a fair amount of experience to make good
decisions.
 The other drawback of the democratic style is that the
collaborative effort takes time. When you ask people for
their opinions, it takes time for them to explain what they
think and for others to understand what they are
saying.
If the business need is urgent, then the
democratic leader needs to switch styles.
Democratic Leadership
 Cons of the Democratic Leadership Style
 To summarize, the pros and cons of this style are pretty
much in alignment - strength also becomes
weakness. You get more input, but it takes time. People
can share their knowledge, but they have to understand
the process first. The democratic leadership style is
most effective when you have a workplace that has
experienced.
Democratic Leadership
 Examples of Democratic Leaders
 We're going to finish up by giving you an example of
a democratic leader at work.
If your thinking
President John F. Kennedy is a famous democratic
leader, you'd be partially correct. You're right in
saying President Kennedy was a Democrat and
certainly he will be remembered as a great
leader. But President Kennedy was actually a very
good example of a charismatic leader - not a
democratic one.
Democratic Leadership
 Examples of Democratic Leaders
 Interestingly, one of the best examples of a
democratic leader is also a political figure - Dwight D.
Eisenhower (a Republican no less!). As a military
leader, Eisenhower was faced with the difficult task of
getting the Alliance forces to agree on a common
strategy. Eisenhower labored hard to make sure
everyone worked together to come to a common
understanding.
This was one of his greatest
achievements. It was here that the democratic
leadership style, and collaborative efforts, of
Eisenhower shone through. The subsequent victory
of the Alliance forces back up the correctness of the
approach in that particular situation.
Laissez-Faire Leadership
 ‘Let it be’ – the leadership responsibilities are shared by all:
– Can be very useful in businesses where creative ideas are important
– Can be highly motivational, as people have control over their working
life
– Can make coordination and decision making time-consuming and
lacking in overall direction
– Relies on good team work
– Relies on good interpersonal relations
Laissez-faire leadership is characterized by:
– Very little guidance from leaders
– Complete freedom for followers to make decisions
– Leaders provide the tools and resources needed
– Group members are expected to solve problems on their own
Laissez-Faire Leadership
 Benefits of Laissez-Faire Leadership
 Laissez-faire leadership can be effective in
situations where group members are highly
skilled, motivated and capable of working on their
own. While the conventional term for this style is
'laissez-faire' and implies a completely hands-off
approach, many leaders still remain open and
available to group members for consultation and
feedback.
Laissez-Faire Leadership
 Downsides of Laissez-Faire Leadership
 Laissez-faire leadership is not ideal in situations
where group members lack the knowledge or
experience they need to complete tasks and make
decisions. Some people are not good at setting their
own deadlines, managing their own projects and
solving problems on their own. In such situations,
projects can go off-track and deadlines can be
missed when team members do not get enough
guidance or feedback from leaders.
Paternalistic Leadership
 Leader acts as a ‘father figure’
– Paternalistic leader makes decision but may consult
– Believes in the need to support staff
– Leadership in Asian countries such as e.g. China is
oftentimes described as paternalistic leadership.
Paternalistic Leadership is a native Chinese leadership
style, which is deeply rooted in China's patriarchal
tradition and in Confucianism.
• According to theory, paternalistic leadership is composed of
three main elements: autocratic leadership, benevolent
leadership and moral leadership.
Paternalistic Leadership
 Paternalistic managers give more attention to the
social needs and views of their workers. Managers
are interested in how happy workers feel and in many
ways they act as a father figure (pater means father
in Latin).
 They consult employees over issues and listen to
their feedback or opinions. The manager will however
make the actual decisions (in the best interests of the
workers) as they believe the staff still need direction
and in this way it is still somewhat of an autocratic
approach. The style is closely linked with Mayo’s
Human Relation view of motivation and also the
social needs of Maslow.
Change Leadership
Change Leadership
 The most challenging aspect of business is leading
and managing change
 The business environment is subject to fast-paced
economic and social change
 Modern business must adapt and be flexible to
survive
 Problems in leading change stem mainly from human
resource management
Effective Leadership and
Organizational Change
 Effective
leadership
in
the
change
management
process
is
particularly
important, because of all the factors involved
in organizational change.
 According to McShane and VonGlinow
(2004), a leader must be able to “influence,
motivate and enable others to contribute
toward the effectiveness and success of the
organization.” Stabilizing the organization
after the change process begins is critical to
continued success.
Effective Leadership and
Organizational Change
 McShane and VonGlinow (2004) outline seven competencies to
effective leadership.
 Leaders with this set of competencies and skills should be
effective in their leadership ability regardless of the leadership
style that they favor.
 Those competencies include:
•
•
•
•
•
•
•
Emotional intelligence
Integrity
Drive
Leadership motivation
Self-confidence
Intelligence
Knowledge of the business
Selecting the Right Leadership Style
 Selecting the right leadership style to influence the effectiveness of
change is important if large organizational change is to be
successful.
 The right leadership style might change as the situation changes
within an organization.
 Different leadership styles to consider include:
–
–
–
–
–
–
–
–
Visionary/inspirational leaders
Commanding leaders
Situational leaders
People-oriented leaders
Task-oriented leaders
Strategic leaders
Logical leaders
Supportive leaders
Selecting the Right Leadership Style
 A commanding leadership
style
 It gives clear direction and is
useful
in
cases
of
emergency.
 The
commanding
style
focuses on performance and
has a short-term goal
orientation.
 Commanders are highly
productive
and
results
oriented.
 They can be very effective
when goal achievement is
the primary focus.
 They learn better by their
own successes and failures
than by input from others.
 Logical Leadership style
 The logical style pertains to
leaders who insist on
covering all alternatives.
 They have long-term goals,
use
analysis
and
questioning, and learn by
reasoning things through.
 They
are
particularly
effective when the goal is
strategy development.
Selecting the Right Leadership Style
 A visionary/ inspirational leadership style
 It should be used when a leader is trying to move people
towards a shared dream. They inspire others with insights
and shared authority.
 The inspirational style is characteristic of those who are able
to develop meaningful visions of the future by focusing on
radically new ideas; they learn by experimentation.
 They show a high level of concern for assuring
cohesiveness of members of the organization and
encouraging others to follow the vision.
 They are inquisitive, curious, and satisfied by finding
radically new solutions.
Selecting the Right Leadership Style
 A coaching leadership style
 It might be used to effectively connect what a person
wants with organizational goals.
The situational leadership style
 This type leaders change their style of leadership
based on how ready their followers seems to be.
 Factors that affect situational decisions include
motivation and capability of followers.
Selecting the Right Leadership Style
People-oriented leaders
 When drastic organizational changes are involved,
having leaders who are people-oriented as opposed to
task-oriented will be better able to anticipate the needs of
the employees as they motivate and enable them to
change.
 With people-oriented leadership, leaders are totally
focused on organizing, supporting, and developing the
people in their teams. It's a participative style, and it
tends to encourage good teamwork and creative
collaboration.
Selecting the Right Leadership Style
 Supportive leaders
 Those leaders who are more concerned with consensus
score high in the supportive dimension. They emphasize
openness and operate more as facilitators than directors.
 They learn by observing outcomes and how others react
to their decisions.
Selecting the Right Leadership Style




 Strategic leaders
Recognize that most work now involves integration rather
than fractionation of diverse interests and skills.
Multiple styles of leadership are needed to effectively
implement most forms of organizational change. Strategic
leaders accept that they cannot have all the answers and
they take steps to obtain information that effectively
guides their choices.
These leaders rely heavily on communication and
persuasion with employees to advance their enlightened
strategies.
When compared to popular models of leaders of the past,
strategic leaders are far more inclined to be information
seekers than information distributors.
Selecting the Right Leadership Style
Task-oriented leaders
 Highly task-oriented leaders focus only on getting the
job done, and they can be quite autocratic. They
actively define the work and the roles required, put
structures in place, plan, organize, and monitor.
However, because task-oriented leaders don't tend to
think much about the well-being of their teams, this
approach can suffer many of the flaws of autocratic
leadership, with difficulties in motivating and retaining
staff.
Theories of Leadership
Theories of Leadership
 May depend on:
–
–
–
–
–
–
Type of staff
History of the business
Culture of the business
Quality of the relationships
Nature of the changes needed
Accepted norms within the institution
Factors Affecting Style
Factors Affecting Style
 Leadership style may be dependent
on various factors:
– Risk - decision making and change initiatives based on
degree of risk involved
– Type of business – creative business or supply driven?
– How important change is – change for change’s sake?
– Organisational culture – may be long embedded and
difficult to change
– Nature of the task – needing cooperation? Direction?
Structure?