Chapter 2
Understanding Theories of Leadership and Leadership Styles
This session will cover an opening leadership profile, a framework for distinguishing leadership
styles, contingency factors, global snapshot of selected leadership styles, important aspects about
leadership styles, and a scenario.
Opening Leadership Profile: the Overall Style of China’s Wealthiest Businessperson
Jianlin Wang is the founder-chairman of the Wanda Group, based in Dalian, Northeast China.
The self-made Wang is ranked as the wealthiest man in China in Forbes’ 2012 list, with a
personal net worth of $7.1 billion and an annual group income of $17 billion.
Jianlin Wang has a unique style range comprised of the following styles: directive (dictates
employees on when to arrive at work); supportive (proposes fair employment pact); delegative
(delegates added power); inspirational (emphasizes “centennial development”); collaborative
(engages in acquisitions); participative (offers a great career platform).
A bewildering number of theories have been advanced to explain a variety of leadership aspects,
each with its own partial wisdom or advantages. In order to make sense of the various theories, it
is useful to use a consistent framework that asks:
What is the background of the theory and what have researchers tried to explain?
Which contingency factors does the theory emphasize, if any?
Which style or styles does the theory emphasize?
What type of performance goals does the theory emphasize?
What are the strengths and weaknesses of the theory or approach?
How important is this theory or approach around the globe?
Contingency Factors
An immense number of situational and cultural factors affect the leader’s preferred modes of
action (exhibited as styles) and their degree of effectiveness. The range of contingency factors is
extensive: types include leader characteristics (traits and skills, behaviors, leader perceptions of
followers, leader power and ability to influence), task characteristics (role, task, and
organizational clarity and complexity), subordinate characteristics (follower traits and skills, task
commitment, and follower perceptions of leader), organizational characteristics (power
© Taylor & Francis 2015
relationships, organizational design, external connectedness, and environmental uncertainty), and
cultural setting (societal and organizational culture).
It is easier to understand the effects of contingencies on leadership styles when only one or a few
contingencies dominate. Below is a series of situations provided as examples in which specific
contingencies would generally call for relatively pure leadership styles:
First: Sanjay, a manager, has a new assistant who is unclear about what tasks are to be done and
when; she looks up to him for direction. This situation is best resolved with a directive leadership
style.
Second: Hiromi is the chief operating officer of the firm. Because of her position, she receives
many requests that must be channeled to public relations department to handle. This situation is
best resolved with a delegative leadership style.
Third: Charlie is the director of sales for a turnstile company, which sells security systems all
over the world. Charlie keeps track of the global trends, and constantly mentors his team in being
sensitive to diverse cultures of the world. This situation is best resolved with a globally focused
leadership style.
There are certain debates about dominant leadership styles, but most researchers agree on
existence of several of them: laissez-faire, directive, supportive, participative, delegative,
achievement-oriented, inspirational, strategic, collaborative, and globally focused.
Below is an overview of “generic” styles:
1. Laissez-faire can be described as a non-style, “leave it be”; a passive indifference about
task and subordinates. The style exhibits low leader control, low goals, and performance
expectations, little motivational stimulation; the style is effective when followers have
skills and drive.
Behavioral competencies are aimed at people: by recruiting good subordinates and
organizational goals: ensuring good processes. The style is particularly important in Latin
Europe.
2. Directive leaders let subordinates know what they are expected to do; ask to follow rules
and procedures. The style exhibits high leader control, average performance expectations,
formalistic notion of motivation based on legitimacy of command, reward, and
punishments; internal focus. This style has three subtypes: instructive, structuring,
negative.
Behavioral competencies are aimed at tasks: monitor, plan operations, clarify roles,
delegate; people: manage conflict, manage personnel change; and organizational goals:
general management functions. The style is the most important in emerging markets.
3. Supportive leaders consider the needs of followers, display concern for their needs;
create a friendly work environment. Such leaders have at least average performance
© Taylor & Francis 2015
4.
5.
6.
7.
expectations, emphasize human compassion; and have an internal focus. This style has
two subtypes: caring model, negative.
Behavioral competencies are aimed at people: consult (listen), coordinate personnel,
develop staff, motivate, build teams, and manage conflict. The style is the most important
in Southern Asia, Anglo, Sub-Saharan Africa, Confucian Asia, and the least important in
Latin and Nordic Europe.
Participative leaders consult with subordinates and take their opinions into account;
provide advice rather than direction, establish friendly work environment. Such leaders
have at least average performance expectations, moderate control, appreciation of
competence and involvement as motivators; internal focus. This style has two subtypes:
self-conscious team, negative.
Behavioral competencies aim at task: delegate; people: consult (discuss), coordinate
personnel, develop staff, motivate, build teams, manage conflict, manage personnel
change. The style is the most important in Protestant cultures, and least so in Asian
cultures.
Delegative leaders allow subordinates relative freedom for decision-making and from
daily monitoring and short-term review. Such leaders have at least moderate performance
expectations, low leader control, motivation—followers seek independence as a form of
self-fulfillment. The style has two forms: 1) subordinates are given additional duties with
the same level of leader monitoring, 2) subordinates are given additional decision-making
power.
Behavioral competencies aim at task: delegate; people: develop staff, motivate. The style
is the most important in Protestant cultures, and least so in Asian cultures.
Achievement-oriented leaders set challenging task goals, seek task improvements,
emphasize excellence in follower performance, show confidence that followers will
perform well. The style has one subtype: negative.
Behavioral competencies aim at task: clarify roles (goals), inform, delegate, problem
solve, manage innovation and creativity; people: consult, plan and organize personnel,
develop staff, motivate, build and manage teams. The style is most endorsed in Anglo,
Latin America, and Southern Asia; Nordic Europe; and least important in Confucian
cultures, France.
Inspirational leaders use intellectual stimulation, express confidence in groups and the
organization, enhance group motivation goals, and possess charisma. Such leaders set a
high goal/change level, vary degree of leader control across subtypes, and view
motivational base as a group achievement through acculturation.
Behavioral competencies are aimed at task: manage innovation; people: motivate, team
building, managing personnel change; organizational: scan the environment, strategic
planning, articulate vision, network and partner internally, making decisions, manage
organizational change. The style is mostly endorsed in Anglo cultures.
© Taylor & Francis 2015
8. Strategic leaders focus attention on organizational matters in the environmental context
in order to align the organization with the external environment, to retain or gain
resources, or to maintain comparative or competitive advantage. This style has three
subtypes: “incremental improver,” “radical reformer,” negative.
Behavioral competencies are aimed at organization: scan the environment, strategic
planning, articulate vision, decision-making, managing organization change. The style is
mostly endorsed in countries of Anglo group, Germany, Japan, East Asian countries.
9. Collaborative leaders focus on representation, external partnering, external networking
in order to build up a positive image and create goodwill, and enhance the professional or
local community. Subtypes of this style are: “chair,” “partner,” “socially responsible
leader,” “philanthropist,” negative.
Behavioral competencies are aimed at task: inform internally and external; people:
consult (externally); organizational: network and partner. The style is most important in
Latin America, and the least important in Middle East and East Asia.
10. Globally focused leaders emphasize global context and environmental sensitivity, with a
particular attention to the cultural differences. Such leaders are: open to other cultures
and flexible, aware of differences in communication, aware of cultural influences on
behavior, adaptive, loyal, have multidisciplinary perspective.
Behavioral competencies are aimed at task: manage innovation and creativity; people:
consult, manage teams; organizational: scan the environment, network and partner. This
style is exhibited in many born global firms and in multinational corporations.
The GLOBE study investigated six of the leadership styles: supportive (humane),
participative, achievement-oriented (performance-oriented), inspirational (inspirational),
strategic (visionary), and collaborative. Notable findings are as follows:
Firstly: Supportive leadership is highest in Southern Asia and Sub-Saharan Africa, but low in the
Nordic Europe.
Secondly: Participative leadership is highest in Germanic and Nordic Europe. Participative
leadership is low in Asia and Eastern Europe.
Thirdly: Achievement-oriented leadership is highest in the Anglo region, and lowest in East
Asia.
Fourthly: Inspirational leadership is low for the Middle East, but high for the Anglo region.
Fifthly: Visionary leadership is also low for the Middle East, but high for most other regions.
Sixthly: Collaborative leadership is lowest in the Middle East and East Asia, and highest in Latin
America.
It is also wise to note the important aspects about leadership styles:
Firstly: Leadership styles overlap considerably.
Secondly: “Ideal” style is a mix of two or more styles.
© Taylor & Francis 2015
Thirdly: Good leaders have a number of styles that they are good at using.
Fourthly: Good leaders use different styles depending on the situational and cultural
contingencies. They are able to analyze organizational needs and follower capacities and adapt
their style as needed. Since not all leaders are good at all styles, leadership often needs to be
supported or emanate from the broader team and subordinates, rather than exclusively the leader
her/himself.
Fifthly: Since not all leaders are good at all styles, leadership must be supported or emanate from
the broader team and subordinates
Scenario: Leadership Analysis Based on Style Strengths and Situational Needs
Few managers and leaders have a single style they use all the time. As circumstances vary, their
styles will, too. Contingency theories of leadership emphasize the application of different styles.
A preferred style is the one a leader instinctively uses, and secondary styles are ones the leader
feels comfortable using, even if used more consciously. Even though leaders may have a
preferred style, they may not use it well or in the right circumstances. Our example of style range
is Nergis, who holds a supervisory position in a large restaurant chain.
Nergis’ existing styles:
1. Primary: directive and supportive
2. Secondary: participative and delegative
Now, Nergis has just been promoted to a mid-level management position in a large restaurant
chain where she has worked for nine years. Thus Nergis has to adapt her leadership styles and
add to her repertoire since it is supervisors, not frontline employees, who report to her. New
styles to develop include:
1. Directive style: towards new employees
2. Supportive style: not “too soft”
3. More often usage of participative and delegative styles
4. Achievement-oriented: to appeal to supervisors’ sense of accomplishment
5. Strategic and inspirational styles: to allocate resources and anticipate organizational
changes
6. Globally focused style: to take into account multicultural customer and worker
demographics
After analyzing the case, the following questions are to be answered.
1. Summarize overall style preferences—primary and secondary—and strengths of Nergis.
2. What does she have to improve at in order to be effective?
3. How difficult do you think it will be for her to broaden her style repertoire and how long
might it take?
© Taylor & Francis 2015