CHAPTER 1

INTRODUCTION

1.1 Definition of Leadership

Leadership is a process whereby an individual influences a group of

individuals to achieve a common goal. Defining leadership as a process means

that it is not a trait or characteristic that resides in the leader but rather a

transactional even that occurs between the leaders and the followers. Process

implies that a leader affects and is affected by followers. It emphasizes that

leadership is not linear, one-way event, but rather an interactive event. When

leadership is defined in this manners it becomes available to every one. It is not

restricted to the formally designated leader in a group

An activity or set of activities, observable to others that occurs in a group,

organization or institution involving a leader and followers who willingly

subscribe to common purpose and work together to achieve them. ( Professor

Kenneth Clark). Leadership is the ability to get men to do what they don’t like to

do and like it. (Harry S. Truman. Page 5)

Glossary for Management Papers (2004) describes leader and leadership

as follows: Leader n. guide, conductor, pilot, director, pioneer, and shepherd.

Person who influences and guides the direction action, opinions and attitudes of

people. Leader are concerned with doing right the right thing.

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1.2. Leadership According to Scientific Management and Social

Scientific management pioneered by scientist Frederick W. Taylor in the

early 20th century and developed into as ciene of leadership. 

Understanding leadership according to some figures:

1. " Activities affecting the people to work together to achieve a

goal that you want" (Ordway Tead, 1935).

2. " The process of directing and task relationships activities

affecting the members of the group" (Stoner,1982).

3. " Leadership is the ability to influence, motivate, and direct

others in order to attain desired objectives" (Don and

John, 1992).

4. " Leadership is the ability to influence people to willingly

follow one's guidance or adhere to one's decisions"

(Leslie and Lloyd, 1995).

5. “ The effort using a style affects and not forced to motivate

the individual in achieving goals" (Gibson et al., 1997).

6. "Leadership is the moral and intellectual Ability tovisualize

and work for what is best for the company and its employees"

(Mullins, 2001).

While the understanding of leadership according to social sciences according

to some figures:

1. Leadership is the influential increment over and above

mechanical compliance with the routine directives of the

organization. (Katz & Kahn, 1978: 528)

2. Leadership may be considered as the process (act) of influencing

the activities of an organized group in its efforts toward goal

setting and goal achievement. (Stogdill, 1950:3)

From a variety of the above definition, it can be concluded that leadership

is an ability to influence, directing, and motivating of others in order to achieve

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the objectives of the organization or group. In leadership, the necessary attitude of

authority, be sensitive to taste, led, and intellectual. While the leader is someone

who has special skills, with or without official recognition can affect his group, to

conduct a joint effort leads to the achievement of specific goals.

1.3 Distinguishing between Leader and Leadership

a. Leader

A leader has to implement a personal agenda, and the organizational

agenda. The personal agenda consists of the goal close to the leader’s heart. The

organizational agenda establishes the framework within which all work is done.

Employees must know what is to be done, when it is to be done, and their part in

making it happen. The good leader must be able to state the agenda in a few

sentences that everyone can grasp. Moreover, a leader needs to have a pragmatic

and understandable operating philosophy. The framework of an operating

philosophy is created from learning, innovating, and deciding.

“A leader may not recognize the personal characteristics that cause people to follow him or her, but the followers respond to those characteristics” (Crosby, 1997).

Since the process of leadership cannot be separated from the person as

leader, the following traits and talents are required for an individual who will

adequately fulfill the role of leader: character, charisma, switching mindsets, and

know-how.

1. Character: Sheehy (1990) argued that character is the most crucial and

most illusive element of leadership. As applied to human beings, it refers

to the enduring marks in our personality which includeour inborn talents

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as well as the learned and acquired traits imposed upon us by life and

experience.

2. Charisma: The function of a charismatic leader is the vital part of

leadership. Charismatic leaders are able to express themselves fully. They

also know who they are, what their advantages and disadvantages are, and

how to completely use their advantages and compensate for their

disadvantages. Moreover, they know what they want, why they want it,

and how to communicate what they want in order to gain cooperation and

support from others (Bennis, 1989).

3. Switching mindsets: The leaders‟ success in confronting challenges rests

entirely on the leader’s ability to change mindsets, create new realities and

thereby see new alternatives and possibilities. A mindset is a consistent but

unexamined framework of assumptions and viewpoints about the nature of

reality as it pertains to business. It is a lens or a filter that controls your

mind, your thoughts, your perceptions and your actions. Through

switching leaders' mindsets, leaders could alter the entire range of business

actions and solutions available to achieve new success in leadership.

4. Know-how: Leadership in different areas requires different technical

expertise. Bennis (1989) stated that leaders must possess "business

literacy" (p.89). That is, leaders must have knowledge of and be experts at

what they are doing. Leaders must have horizontal and vertical knowledge

of how the business works and a full understanding of what is required to

do the task well.

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b. Leadership

As an adjective, Leadership is deliberately causing people-driven action in

a planned fashion for the purpose of accomplishing the leader‟s agenda (Crosby,

1997). Leadership means that a leader is selecting people carefully and steering

them in his direction. Leadership is a clear agenda, a personal philosophy,

enduring relationships, and worldliness. However, leadership must be done by a

leader.

“Leadership is the accomplishment of a goal through the direction of human assistants. The man who successfully marshals his human collaborators to achieve particular ends is a leader” (Prentice, 2005, p.151).

Rost (1993) defined Leadership as "a power and value laden relationship between leaders and followers who intend real changes that reflect their mutual purposes and goals" (p. 102).

All forms of leadership must use power. However, power needs not be

coercive, dictatorial or punitive to be affective. Instead, power can also be used in

a non-coercive manner to orchestrate, mobilize, direct and guide members of an

institution or organization in the pursuit of a goal or series of objectives (Thomas,

2011).

Peters and Waterman (1982) stated that "The real role of

leadership is to manage the values of an organization" (p.

255).

All leadership is value laden. Also, all leadership, whether good or bad, is

moral leadership. Leadership is a process of influence which involves an ongoing

transaction between a leader and followers (Hollander, 1978). Leadership,

however, does not exclusively reside in the leader. Rather it is a dynamic

relationship between leaders and followers alike. Leadership is always plural; it

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always occurs within the context of others.Leaders and followers intend real

changes. All forms of leadership are essentially about transformation (Rost,

1993).

Transformation is about leaders and followers intending to pursue real

changes actively. Leadership is not about maintaining the status quo; it is about

initiating change in an organization instead. The process of leadership always

involves a certain number of transactional changes.

The important requirement of the leadership process is for leaders to

remember the followers to pursuit their mutual purposes and goals. Through

education and training, leaders must serve as effective teachers or mentors to

make their followers co-responsible in the pursuit of their mutual purposes and

goals (Nanus, 1989). Leadership is an extension of the leader‟s beliefs. A highly

personal core competence is only from within the leader. In leadership and the

customer revolution, Rick Tate (2003) said “Leadership touches the heart and

soul.”

1.4. Principles of leadership

Characteristics of a leader based on the principles of (Stephen r. Coney) as

follows:

1. Lifelong learning

Not only through formal education, but also out side the school. For example,

learn through reading, writing, listening, and observing. Had a good

experience or a bad as a learning resource.

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2. Service – Oriented

A leader is not served but to serve, and serve with the leader principle based

on a career as a primary goal. In giving service, leaders should have been

more principled on good service.

3. Bring a positive energy

Everyone has energy and passion. Use the positive energy that is based on

sincerity and desire support the success of others. For that it takes positive

energy to building rapport. A leader must be able and willing to work for long

periods of time and the conditions are not specified. Therefore, a leader of the

haras can show a positive energy, such as;

a. Believe in others

A leader of the trust of others including his staff, so that they have the

motivation and keep up the good work. Therefore, the trust must be

followed with concern.

b. Balance in life

A leader must be able to balance its work. Oriented to the principles

of humanity and balance them selves between work and sports, rest and

recreation. Balance also means balanced between the life of the world and the

hereafter.

c. Look at life as a challenge

The word ' challenge ' is often interpreted negatively. In this case the

challenge means the ability to enjoy life and all its consequences. Because life

is a challenge that is needed, to have a sense of security that comes from

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within yourself. Sense of security depends on the initiative,

skills, creativity, willpower, courage, dynamics and freedom

d. Synergies

Principled people who always lived in synergy and catalyst of change, they've

always overcome the disadvantage for yourself and others. Synergy is a group

work and benefit both sides. According to The New Webster's International

Dictionary Brolier, Synergy is a group work, which give the results more

effective than working individually. A leader must be able to

synergist with everyone, staff, boss, colleague.

e. Exercises develop yourself

A leader must be able to renew themselves in order to achieve high

success. So he is not only oriented process. The process in developing

the self is composed of several components that relate to:

1) Understanding of the material;

2) Expand the material through study and experience;

3) Teaching materials to others;

4) Apply the principles;

5) Monitor the results;

6) Reflect the results;

7) Adding new knowledge necessary material;

8) New understanding; and

9) Back to being themselves again.

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SUMMARY

While the terms "leadership" and "leader" are different, the definition of

leadership cannot be separated from the person of leader and the task of

leadership. Leadership is the interaction between the leader’s characteristics and

the situation. A successful leader always has the special traits and talents to

adequately fulfill the role of leader. A person in the formal role of a leader may

not possess leadership skills nor be capable of leading. A good deal of leadership

can come from people who are not formal leaders.

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CHAPTER 2

THEORY OF LEADERSHIP

2.1 Great Man Theory

The Great Man Theory was a popular 19th century idea according to which

history can be largely explained by the impact of "great men", or heroes: highly

influential individuals who, due to either their personal charisma, intelligence,

wisdom, or Machiavellianism utilized their power in a way that had a decisive

historical impact. (Stephen P. Robbins, 2008).

The Great Man Theory hypothesizes that true leaders are born not made.

Leaders have an inherent capacity to rise to the occasion when needed either

through charisma, intelligence, wisdom or some other parameter. The theory was

given prominence by a Scottish writer named Thomas Carlyle in the 1840’s. He

felt that heroes used their personal attributes or divine intervention to shape

history. His most famous quote “The history of the world is but the biography of

great men”, reflected his belief concerning leaders being born not made (Carlyle,

1888).

2.2 Trait Theory

Trait theories can be described as a branch of the Great Man Theory. These

theories hypothesize that the specific traits of an individual give them better

propensity to be a leader. These personality traits or behavioral characteristics are

inherent in the family and passed on genetically. This theory emphasizes that

leaders share many common traits and characteristics that make them successful.

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The theory was popularized in the 1937 by Gordon Alport and Hans

Eysenck (1947). Trait theories of leadership differentiated leaders from

nonleaders by focusing on personal qualities and characteristics. (Stephen P.

Robbins, 2008).

According to Eysenck (1947) this theory based primarily on physiology and

genetics—interested in temperament (the aspect of personality that exists from

birth). Divided personality into two biologically-based categories of temperament:

Extraversion/Introversion

a. Extraversion characterized by being outgoing, talkative, and in need

of external stimulation

b. Eysenck's arousal theory of extraversion—everybody has certain

optimal level of arousal at which he/she performs best

1. extraverts chronically under-aroused and need external

stimulation to bring them up to an optimal level of

performance

2. introverts chronically over-aroused and need peace and quiet to

bring them to an optimal level of performance

Neuroticism/Stability

a. Neuroticism or emotionality characterized by high levels of negative

affect such as depression and anxiety.

b. Neuroticism based on activation thresholds in the part of the brain

responsible for the fight-or-flight response.

1. Activation can be measured by heart rate, blood pressure, cold

hands, sweating, and muscular tension.

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2. Neurotic people, who have low activation thresholds and are

unable to control their emotional reactions, experience negative

affect in the face of minor stressors.

3. Emotionally stable people, who have high activation thresholds

and good emotional.

The two dimensions (axes), extraversion-introversion and

emotional stability instability, define four quadrants:

a. Stable extraverts (sanguine qualities such as outgoing, talkative,

responsive, easygoing, lively, carefree, good leaders)

b. Unstable extraverts (choleric qualities such as touchy, restless,

excitable, changeable, impulsive, irresponsible)

c. Stable introverts (phlegmatic qualities such as calm, even-tempered,

reliable, controlled, peaceful, thoughtful, careful, passive)

d. Unstable introverts (melancholic qualities such as quiet, reserved,

pessimistic, sober, rigid, anxious, moody)

Psychoticism

Further research demonstrated the need for a third category of temperament

is Psychoticism/Socialization. These are people with tendencies to psychosis,

meaning that they are more likely to have problems dealing with reality.

Psychotic people sometimes have hallucinations and often have delusions such as

odd beliefs about being watched. (Hans and Sybil Eysenck, 1947).

2.3 Behavioral Theory

Douglas McGregor (1906 - 1964) is one of the forefathers of management

theory. McGregor developed a philosophical view of humankind with his Theory

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X and Theory Y in 1960. His work is based upon Maslow's Hierarchy of Needs,

in that he grouped the hierarchy into lower-order needs (Theory X) and higher-

order needs (Theory Y). He suggested that management could use either set of

needs to motivate employees, but better results would be gained by the use of

Theory Y, rather than Theory X. (McGregor, 1960).

These two opposing perceptions theorized how people view human behavior

at work and organizational life :

a. Theory X

This is the authoritative and traditional style of management. Theory

X managers assume that people are lazy, don't want to work and it is the job

of the manager to force or coerce them to work. People are viewed as a

"cost" that must be monitored and controlled. It is based on three basic

assumptions:

1. The average person inherently dislikes work and will avoid it if at

all possible.

2. Most people have to be coerced, controlled, directed and threatened

to get them to work towards organizational goals.

3. The average person prefers to be directed, avoids responsibility,

isn't ambitious and simply seeks security.

In practice Theory X managers tend to be autocratic and controlling,

and feel it is up to them to ride people and make them do their work. These

managers tend to micro-manage, be extremely task oriented and not put

much emphasis on building positive relationships. Little emphasis is shown

towards developing a positive work environment, and recognition and

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appreciation would be rare. People working for these managers tend to be

motivated by fear and feel unappreciated.

b. Theory Y

This is a more dignified and enlightened management style. Theory Y

managers assume people will perform well if treated positively, and that

higher order needs dominate most individuals. People are viewed as "assets"

that should be valued and developed. It is based on six basic assumptions:

1. The physical and mental effort of work is as natural as play, so the

average person does not inherently dislike work.

2. People will exercise self-direction and self-control in order to

achieve objectives.

3. Rewards of satisfaction and self-actualization come from the effort

to achieve objectives.

4. The average person learns not only to accept but to seek

responsibility.

5. Most people have a capacity for imagination, ingenuity and

creativity.

6. The intellectual potential of most people is only partially realized.

In practice Theory Y managers tend to be participative when making

decisions, and value both results and relationships. These managers tend to

delegate and empower their people because they trust them and feel they

will do good work (i.e., managers are "coaches"). Priorities will be given to

developing positive work environments, and expressing regular recognition

and appreciation. These managers will also feel that people are important

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and worth developing. People working for these managers tend to feel

appreciated and dignified, and will generally have good morale and feel

motivated.

2.4 Situational Theory

Paul Hersey and Ken Blanchard developed situational leadership theory.

The theory was first introduced as “Life Cycle Theory of Leadership” and was

renamed to situational leadership in the 1970s (1969). The basis for this

theory/style is that there is no one best leadership style. The style employed is

driven by the immediate task and the maturity of the group to which they are

leading.

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Hersey and Blanchard characterized leadership style in terms of the amount of

Task Behavior and Relationship Behavior that the leader provides to their

followers. They categorized all leadership styles into four behavior types,

which they named S1 to S4:

a. S1: Telling – is characterized by one-way communication in which the

leader defines the roles of the individual or group and provides the

what, how, why,when, and where to do the task.

b. S2: Selling – while the leader is still providing the direction, he is now

using two-way communication and providing the socioemotional

support that will allow the individual or group being influenced to buy

into the process.

c. S3: Participating – this is now shared decision making about aspects of

how the task is accomplished and the leader is providing less task

behaviors while maintaining high relationship behavior.

d. S4: Delegating – the leader is still involved in decisions; however, the

process and responsibility has been passed to the individual or group.

The leader stays involved to monitor progress.

Of these, no one style is considered optimal for all leaders to use all

the time. Effective leaders need to be flexible, and must adapt themselves

according to the situation.

Readiness

According to Hersey and Blanchard, knowing when to use each style

is largely dependent on the readiness of the person or group one is leading.

The four different readiness levels are:

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a. R1 – People at this level of readiness lack the knowledge, skills, or

confidence to work on their own, and they often need to be pushed to

take the task on. They are unable and unwilling.

b. R2 – at this level, people might be willing to work on the task, but they

still don’t have the skills to complete it successfully. The person is,

therefore, unable but willing or motivated.

c. R3 – Here, people are ready to perform the task. They will be called able

but unwilling or insecure.

d. R4 – These people are able to work on their own. They have high

confidence and strong skills, and they’re committed to the task. They

are, therefore, able and willing or motivated.

2.5 Contingency theory

Because of the perceived failure by researchers to obtain consistent results

from either the behavioural or trait theories, researchers began to focus on

situational influences. The goal was to match leadership style with work

conditions in order to achieve leadership effectiveness. Isolating the situational

conditions proved to be somewhat difficult. Three of the most successful

contingency theories are presented here.

1) The Fiedler Contingency Model.

One of the first models of this type was developed by Fred Fiedler. It

proposes that effective group performance depends on the proper match

between the leader’s style and the degree to which the situation gives control

to the leader.

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a) Identifying Leadership Style. Fiedler created the Least Preferred Coworker

(LPC) questionnaire, which purports to measure whether a person is task-

or relationship-oriented. High LPC scores indicate a relationship-oriented

leader; low LPC scores indicate a task-oriented leader. Fiedler assumed

that an individual’s leadership style is fixed. If the situation and style are

not optimal, then the situation needs to be modified or the leader needs to

be replaced.

b) Defining the Situation. Fiedler identified three contingency dimensions

that defined the key situational factors that will determine the appropriate

leadership style.

1) Leader-member relations: the degree of confidence, trust, and

respect members have in their leader. Measured as good or poor.

2) Task structure: the degree to which the job assignments are

structured or unstructured. Measured as high or low.

3) Position power: the degree of influence a leader has over hiring,

firing, discipline, promotions, and salary increases. Measured as

strong or weak.

c) Eight Potential Situations. The combination of the measurements of these

three dimensions creates eight potential situations (“octets”) that a leader

might face.

d) Matching Leaders and Situations.

1) Task-oriented leaders tend to perform better in situations that

are either very favorable to them or which are very unfavorable

(category I, II, III, VII, or VIII).

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2) Relationship-oriented leaders perform better in moderately

favorable situations (categories IV through VI).

3) Recently Fiedler has condensed these eight situations down to

three based on the degree of control: task-oriented leaders

perform best in situations of high and low control while

relationship-oriented leaders perform best in moderate control

situations.

e) Using the Model to Improve Leadership Effectiveness. Because Fiedler

believes an individual’s leadership style is fixed, there are really only two

ways to improve leader effectiveness:

1) Change the leader to fit the situation.

2) Change the situation to fit the leader. This can be done by

restructuring tasks or increasing/decreasing the power the leader

has to control factors such as salary increases, promotions, and

disciplinary actions.

f) Fiedler Contingency Model Summary. Considerable evidence supports

substantial parts of Fiedler's model. In the more recent and simplified

version of the model, there is even stronger evidence to support its

conclusions. However, the LPC questionnaire is problematic and the

contingency variables are complex and difficult for practitioners to assess,

making this a difficult model to use on a practical basis.

2) Leader-Member Exchange (LMX) Theory.

Unlike the other leadership theories mentioned thus far, the LMX theory

does not assume that managers treat all workers the same way.

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a) Grouping.

Because of time pressures, leaders establish a special relationship with a

small group of their followers: the in-group. These individuals receive a

disproportionate amount of the leader’s attention and are more likely to

receive special privileges. Out-group members get less of the leader’s

time, fewer of the preferred rewards and have leader-follower relations

based on formal authority interactions.

b) Group Selection.

While the selection process is unclear, leaders tend to choose in-group

members (high LMX) because they have attitude and personality

characteristics that are similar to the leader or a higher level of competence

than do the out-group members (low LMX). While the leader does the

choosing, it is the followers’ characteristics the drive the leader’s

categorizing decision. The selections appear to be relatively stable over

time.

c) Maintaining LMX.

Leaders induce LMX by rewarding those employees with whom they want

a closer linkage and punishing those with whom they do not. High LMX

employees are allowed to communicate frequently with the supervisor,

while low LMX employees are discouraged from doing so.

d) LMX Theory Summary.

Research has been generally supportive and may be tied to the concept of

the self-fulfilling prophecy: when leaders expect the best from a set of

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employees, they tend to get it. In general, research has shown the

following:

Leaders do differentiate among followers.

The in-group and out-group disparities are not random.

In-group members will have higher performance ratings, lower turnover

intentions, greater satisfaction with their superior, and higher overall

satisfaction.

3) The Path-Goal Theory.

Developed by Robert House, this theory extracts elements from the Ohio

State leadership research as well as the expectancy theory of motivation.

a) The Leader’s Purpose. In Path-Goal theory, the leader's job is to provide

followers with information, support, or other resources necessary for them

to achieve their goals. Effective leaders clarify the path to goal

achievement and remove any roadblocks the workers encounter along the

path.

b) Leader Behaviors. Unlike Fiedler, House assumes leaders are flexible and

that the same leader can display any or all of the necessary behaviours for

effectiveness in a given situation. There are four identified leadership

behaviors in this theory:

1) Directive: these leadership behaviors include letting followers

know what is expected of them, scheduling work to be done,

and giving specific guidance as to how to accomplish tasks.

2) Supportive: these behaviors include being friendly and showing

concern for the needs of followers.

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3) Participative: the leader consults with followers and uses their

suggestions before making a decision.

4) Achievement-Oriented: the behaviors for this type of leader

include setting challenging goals and expecting followers to

perform at their highest level.

c) Contingency Variables. This theory proposes two classes of contingency

variables that moderate leadership behavior:

1) Environmental Variables: factors that are outside the control of

the employee such as task structure, the formal authority system,

and the worker. These variables determine the type of leader

behavior required for outcomes to be maximized.

2) Employee Characteristics: variables such as locus of control,

experience, and perceived ability, which are the interpersonal

characteristics of the employee. These variables determine how

the environment and leader behavior are interpreted.

d) Path-Goal Theory Predictions. The theory proposes the leader behaviour

will be ineffective when it is redundant with the sources of environmental

structure or incongruent with employee characteristics. Specific

predictions (i.e., effective matches between leadership behaviors and

contingency variables) include:

1) Directive leadership behaviors are more appropriate when tasks

are ambiguous or stressful.

2) Supportive leadership is more effective when employees are

performing structured tasks.

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3) Directive leadership is inappropriate when employees have high

perceived ability or considerable experience.

4) Participative leadership behaviors are more appropriate for

employees with internal locus of control.

5) Achievement-oriented behaviors are appropriate when tasks are

ambiguously structured.

e) Path-Goal Theory Summary. The theory itself, due its complexity, has

received mixed support. While this theory is attractive, it may be quite a

while before we can safely say that it has practical uses in the workplace.

2.6. Transactional theory

Transactional Leadership, also known as managerial leadership, focuses

on the role of supervision, organization, and group performance; transactional

leadership is a style of leadership in which the leader promotes compliance of his

followers through both rewards and punishments.

Within the context of Maslow's hierarchy of needs, transactional

leadership works at the basic levels of need satisfaction, where transactional

leaders focus on the lower levels of the hierarchy. Transactional leaders use an

exchange model, with rewards being given for good work or positive outcomes.

Conversely, people with this leadership style also can punish poor work or

negative outcomes, until the problem is corrected. One way that transactional

leadership focuses on lower level needs is by stressing specific task performance

(Hargis et al, 2001).

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2.7. Transformational theory

Transformational leadership theory is all about leadership that creates

positive change in the followers whereby they take care of each other's interests

and act in the interests of the group as a whole (Warrilow, 2012). The concept of

transformational leadership was introduced by James Macgregor Burns in 1978 in

his descriptive research on political leaders, but its usage has spread into

organizational psychology and management with further modifications by B.M

Bass and J.B Avalio (Jung & Sosik, 2002). Transformational leadership enhances

the motivation, morale, and performance of followers through a variety of

mechanisms. These include connecting the follower's sense of identity and self to

the project and the collective identity of the organization; being a role model for

followers that inspires them and makes them interested; challenging followers to

take greater ownership for their work, and understanding the strengths and

weaknesses of followers, so the leader can align followers with tasks that enhance

their performance. Warrilow (2012) identified four components of

transformational leadership style:

(1) Charisma or idealised influence: the degree to which the leader

behaves in admirable ways and displays convictions and takes

stands that cause followers to identify with the leader who has a

clear set of values and acts as a role model for the followers.

(2) Inspirational motivation: the degree to which the leader articulates a

vision that is appeals to and inspires the followers with optimism

about future goals, and offers meaning for the current tasks in hand.

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(3) Intellectual stimulation: the degree to which the leader challenges

assumptions, stimulates and encourages creativity in the followers -

by providing a framework for followers to see how they connect to

the leader, the organisation, each other, and the goal] they can

creatively overcome any obstacles in the way of the mission.

(4) Personal and individual attention: the degree to which the leader

attends to each individual follower's needs and acts as a mentor or

coach and gives respect to and appreciation of the individual's

contribution to the team. This fulfils and enhances each individual

team members' need for self-fulfilment, and self-worth - and in so

doing inspires followers to further achievement and growth.

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C o m p a r i s o n o f T r a n s a c t i o n a l a n d T r a n s f o r m a t i o n a l L e a d e r s h i p ( H a y , 2 0 1 2 )

Transactional Leadership Transformational Leadeship

Leadership is responsive Leadership is proactive

Works within the organisational culture

Works to change the organisational culture by implementing new ideas

Employees achieve objectives through

rewards and punishments set by leader

Employees achieve objectives through higher ideals and moral values

Motivates followers by appealing to their

own self interest

Motivates followers by encouraging them to put

group interests first

Management-by-exception: maintain the

status quo; stress correct actions to improve

performance.

Individualised consideration: Each behaviour is

directed to each individual to express consideration

and support.

Intellectual stimulation: Promote creative and

innovative ideas to solve problems.

SUMMARY

The theory of leadership that most suitable to be applied in Indonesia is

situational theory which states that there is no one best style of leadership. but

leadership theory should be applied conditionally, like what is happening today,

Mr. Jokowi has been selected as Indonesia's president 2014-2019 period, because

people need a leader who is close to citizens.

26

CHAPTER 3

TYPES OF LEADERSHIP

3.1 Autocratic leadership style

A leadership style where the leader makes all decisions independently or

without consulting with others

Advantages : Good in certain circumstances, such as urgent tasks or military

actions

Disadvantages : Poor decisions, poor level of employee motivation

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 the autocratic style, the leader makes decisions without consulting with

others. In Lewin’s experiments he found that caused the greatest discontent.

An autocratic style works best when:

a) There is no need for input on the decision.

b) Where the decision would not change as a result of input actions

would not be affected whether they were or were not involved in the

decision-making.

3.2 Democratic leadership style: persuasive or consultative

A leadership style where a leader encourages employee participation in

decision-making

Can be persuasive or consultative

27

Consultative : Process of consultation before decisions are taken

Persuasive : Leader takes decision and seeks to persuade others that the

decision is correct

Advantages : Better decisions, employee motivation

May help motivation and involvement

Improves the sharing of ideas and experiences within the business

Can delay decision making

Workers feel ownership of the firm and its ideas

Disadvantages : Delayed decision, long consultation

In the democratic style, the leader involves the people in decision making,

although the process for the final decision may vary from the leader having the

final say to them facilitating consensus in the group

Democratic decision making usually appreciated by the people, especially

if they have been used to autocratic decisions with which they disagreed.

Democratic style can be problematic when there are wide range of

opinions and there is no clear way of reaching an equitable final decision.

3.3 Laissez-faire leadership style

A leadership style where employees are encouraged to make their own

decisions within limits.

Advantages : More freedom for employees

Relies on good team work

Relies on good interpersonal relations

Can be very useful in businesses where creative ideas are

important

28

Can be highly motivational, as people have control over their

working life

Can make coordination and decision making

Disadvantages : Few guidelines, little incentive, poor motivation, maybe a mess

Time-consuming and lacking in overall direction

Free-reign leadership when leader believes in minimal supervision,

leaving most decisions to subordinates. Empowerment when practice in which

managers lead employees by sharing power, responsibility, and decision making

with them. ‘Let it be’ – the leadership responsibilities are shared by all

The laissez-faire style minimizes the leader’s involvement in decision

making. Laissez-faire works best when people are capable and motivated in

making their own decisions, and where there is no requirement for a central

coordination.

Autocratic

Leadership

Democratic

Leadership

Free-Reign Leadership

(Laissez-faire)

Concentration

of power

With manager Share between

manager and

employees

With employees –

minimal supervision

Decision

making

By manager By manager and

employees

By employees

Communication

flow

From top down Two way Widespread and as

needed

Limitation Employees

cannot question

It is a time

consuming

Not suitable for lesser

experienced employees

29

decisions affair

Agreement Team agreement

is not necessary

Team

Agreement is

needed

When team members

are able to analyze the

situation

3.4 Bureaucratic leadership

The bureaucratic leader believes more in very structure procedures and

tends to bend over the pre-established measures rather it was successful or not.

This type of leadership has no space to explore new ways to solve problems and is

usually slow paced to ensure adherence to the ladders stated by the company.

Leaders ensure that all the steps have been followed prior to sending it to the next

level of authority. Universities, hospitals, banks and government usually require

this type of leader in their organizations to ensure quality, increase security and

decrease corruption. Leaders who would like to speed up the process will

experience frustration and anxiety and are not welcome (Weber, 1905).

3.5 Charismatic leadership

The charismatic leader leads by infusing energy and eagerness into their

team members. A charismatic leader is someone who is often on the run. they is

not someone who feels pleased with any type of stationary situation. This type of

leader has to be committed to the organization for the long run. If the success of

the division or project is attributed to the leader and not the team, charismatic

leaders may become a risk for the company by deciding to resign for advanced

opportunities. It takes a company time and hard work to gain the employees’

30

confidence back with other type of leadership after they have committed

themselves to the magnetism of a charismatic leader (Weber, 1905)

3.6 Transactional leadership

The transactional leader is given power to perform certain tasks and

reward or punish for a team’s performance. It gives the opportunity to the

manager to lead the group and the group agrees to follow his lead to accomplish a

predetermined goal in exchange for something else. Power is given to the leader

to evaluate, correct and train subordinates when productivity is not up to the

desired level and reward effectiveness when expected outcome is reached (Burns,

1978).

3.7 Transformational leadership

The transformation leader motivates its team to be effective and efficient.

Communication is the base for goal achievement focusing the group in the final

desired outcome or goal attainment. This leader is highly visible and uses

chain of command to get the job done. Transformational leaders focus on the big

picture, needing to be surrounded by people who take care of the details. The

leader is always looking for ideas that move the organization to reach the

company’s vision (Burns, 1978)

3.8 People-oriented leadership

The people-oriented leader is the one that, in order to comply with

effectiveness and efficiency, supports, trains and develops his personnel,

increasing job satisfaction and genuine intert to do a good job (Fiedler, 1967)

31

3.9 Servant leadership

The servant leader facilitates goal accomplishment by giving it steam

members what they need in order to be productive. This leader is an instrument

employees use to reach the goal rather than a commanding voice that moves to

change. This leadership style, in a manner similar to democratic leadership, tends

to achieve the results in a slower timeframe than other styles, although

employee engagement is higher (Greenleaf, 1977).

3.10 Environmental leadership

The environmental leader is the one who nurtures group or organizational

environment to affect the emotional and psychological perception of an

individual’s place in that group or organization. An understanding and application

of group psychology and dynamics is essential for this style to be effective. The

leader uses organizational culture to inspire individuals and develop leaders at all

levels. This leadership style relies on creating an education atmosphere where

groups interactively learn the fundamental psychology of group dynamics and

culture from each other. The leader uses this psychology and complementary

language, to influence direction through the members of the inspired group to do

what is required for the benefit of all (Carmazzi, 2005 )

3.11 Visionary Leadership Type

Early ideas on visionary leadership were developed via the sociologist

Max Weber’s notions of charisma and the transformational and charismatic

leadership theories of the historian James MacGregor Burns and the management

scholar Robert House. Other theorists, such as Bernard Bass, Ben Avolio, Warren

Bennis, Burt Nanus, Jay Conger, and Rabindra Kanungo also developed theories

32

with vision communication components. Visionary leadership is said to have

positive effects on follower outcomes, resulting in high trust in the leader, high

commitment to the leader, high levels of performance among followers, and high

overall organizational performance.

3.12 Transactional Leadership style

Motivate followers by appealing to their own self-interest. Motivate by the

exchange process. Example : business owners exchange status and wages for the

work effort of the employee, Focuses on the accomplishment of tasks & good

worker relationships in exchange for desirable rewards, Encourage leader to adapt

their style and behaviour to meet expectations of followers.

When this style used: Leader wants to be in control, When there are

approaching deadlines that must be met, Relationship is short term.

33

3.13 6 Types of Leadership Style by Goleman

34

Leadership Styles cont.

Directive Visionary Affiliative Participative Pacesetting Coaching

Impact on

Climate

Negative Most strongly

positive

Positive Positive Negative Positive

Comments Flexibili

ty hardest hit

People

feel

disrespected

Sense of

responsibility

evaporates

Most

effective style

Visionar

y; motivates

people by

making clear

how work fits

into larger

Builds

emotional bonds

Positively

effects

communication

Trust

increases

flexibility

Builds

trust, respect, and

commitment by

getting input and

building buy-in

By

listening leader

learns how to

Sets high

standards, looks to

do things better,

pinpoints poor

performers

Paradoxica

l, would think

above improves

Help

employees identify

their unique

strengths and

weaknesses

Establish

long-term goals

and help

35

Leaves

people

alienated

Someti

mes it will

work, e.g., a

turnaround or

hostile takeover

looming

Can

break failed

business habits

vision.

Standar

ds and rewards

clear.

Gives

people leeway

to devise means

to meet vision

Works

in most

situations

Does

not work in all

situations, e.g.,

Gives

positive feedback

Celebrates

successes

Style

generally works

well but

particularly when

want to build

team, increase

trust, etc.

May not

focus on

performance; use

build morale

Can lead to

endless meetings

Can delay

decisions and

escalate conflict

Works best

when leader is

uncertain or need

to generate ideas

and followers are

competent.

results, instead it

destroys climate

Employees

overwhelmed and

feel untrusted.

Guidelines

often not made

clear.

Commitme

nt & flexibility

decline.

Works well

when all

employees are

employees see

how to reach them

Excel at

delegating

Powerful

tool but not often

used

Employees

know what is

expected and how

it fits vision

Good when

employees want to

be coached

36

team of experts with other styles self-motivated and

competent.

Leader

must have

expertise to help

employee

SUMMARY

In the leadership style, that must be combine to make our strategy or our action can be success. Someone or leader can’t be stand

just had one style in their company field. That means if the leader just on use one style, the company can’t be survive in the future. Not

only just in leader, but in employee, organization also happen like that

37

CHAPTER 4

A WAY TO BUILD THE LEADERSHIP SOUL

Leadership is an ability to influence a person or group of people towards

to achieve their objectives, in this very dynamic world an organizations need a

capable leaders to challenging the status quo, to create visions of the future and

inspire the members of the organization to have the desire to achieve their visions

(Robbins, 2001; Appelbaum et al., 2004).

Because there are no one can deny the important of leadership to a success

of an organization. The ability of the leadership of the organization is a major

factor in building a work ethic within the organization (Bass &Avolio, 1994).

Defined by Stoner, Freeman and Gilbert (1995), Leadership is the process

of directing and influencing the members in terms of the various activities that

must be performed. The leader can be defined as someone who has the ability to

influence the behavior of others without the use of force, so they lead people to

accept him / her as someone who is worthy to lead them.

Leadership is developed, not discovered. People who are born as a true

leader will always stand out, but to remain consistent, natural leadership

characteristics must be developed. According to John Maxwell, in his book

Developing Leadership that: "An optimal leadership is a result of training /

practice, it wasn’t born just like that. So it should be seized, not given.

All people are born as a leader ,everyone can develop leadership and skills.

Everyone can benefit from using them. First, take time to honestly analyze your

self. Learn to understand yourself. It’s the first step tounder standing others.

38

Before knowing the step to be a good leader, there are several questions that must

be answered by ourselves. Consider these important questions:

1. What kind of leader am I? One who helps solve problems? A leader who

helps people get along? How do others see me as a leader?

2. What are my goals, purposes, and expectations in working with this

particular group?

Identify areas for improvement. Ask yourself these questions:

1. Do I try to be aware of how others think and feel?

2. Do I try to help others perform to the best of their abilities?

3. Am I willing to accept responsibility?

4. Am I willing to try new ideas and new ways of doing things?

5. Am I able to communicate with others effectively?

6. Am I a good problem solver?

7. Do I accept and appreciate other perspectives and opinions?

8. Am I aware of current issues and concerns on campus or in my

community?

Then after analyzing your strengths and weaknesses ,take action. Devise a

strategy for upgrading your skills. Here are a few strategies to consider:

Based on The Undefeated Mind by dr.Lickerman, he explains that there are

several requirements for someone to be a leader. Among them:

1) Be confident. 

Requiring an entire post unto itself, suffice it to say for the purpose of this

post that a world of difference exists between saying, "I don't

know" nervously and uncertainly and saying "I don't know" confidently.

39

To say "I don't know" nervously and uncertainly communicates

incompetence. To say "I don't know" confidently not only communicates

competence but also that it's perfectly acceptable that you don't know the

answer to the specific question you were asked. I listen to medical students

say "I don't know" all the time. The ones who say it confidently do tend to

be more competent than those who say it nervously and uncertainly. Not

knowing something doesn't make you a bad leader. Allowing that lack of

knowledge to sap your confidence, or worse, not having confidence in the

first place, does.

2) Be kind but firm.

Being a leader means having to set boundaries, but boundaries can be set

angrily and condescendingly or gently and compassionately. Do it gently

and compassionately and people will not only respect the boundaries you

set but you as well.

3) Be an expert.

However long it takes, whatever you have to do, know what you're talking

about. Don't ever try to fake content knowledge. If you don't know what

you need to know, find it out.

4) Be decisive.

A great leader listens to a diversity of opinions, asks probing questions,

debates issues, challenges positions---but when the time to discuss and

debate is over, makes a decision and moves on.

40

5) Be willing to have people disagree with you.

If you're setting appropriate boundaries and taking strong positions, some

people may not only disagree with you but actively dislike you. But that's

more about them than it is about you. Don't take it personally.

6) Know when to spend time building a consensus and when to make an

executive decision.

Sometimes everyone (or almost everyone) involved needs to agree before

progress can be made. Other times waiting for a consensus risks failure.

Learn to recognize when it's time to take over.

7) Have a vision.

A vision that excites the people who follow you, that inspires them in such

a way that they perform (or want to perform) at a level they didn't know

they could.

8) Care about the people you lead.

Genuine concern is always perceived and appreciated---and far more

motivating than any punitive measure could ever be.

9) Mentor people.

Great leaders always have people who want to learn from them. Someone

is always watching you, whether you realize it or not. If you're ever unsure

about what decision to make, think about what each of your choices will

teach the people around you. Try to pick the choice that demonstrates the

greatest virtue.

10) Fully visualize every repercussion of each of your decisions in

advance. Plans often fail because of unforeseen consequences. Follow the

41

predicted results of your decisions into every nook and cranny and take a

360 degree look around in your mind. The more concretely you can do

this, the more likely you'll be able to predict results no one else can.

Communication Skills in Leadership

Skill Category LeadershipInterpersonal Communication √Active hearing √Public Speaking √Interview √Written Communication √Computer Skills √Advocate Media √Sensitivity of Culture √Feed Back √Delegation √Framing √Dialogue √Meeting Skills √Health Communication √Social Marketing √Mentoring √Conflict Resolution √Negotiate √

Source: Rowitz, Louis(2012)

Leadership is being a good listener and talking about a situation or a

problem expands can improved our understanding about the situation. And keep

your team informed so they will understand their role in the organization and will

tend not to be confused. Generally, people would like to have too much to do than

not enough to do. They lose self-esteem if they are not kept busy, and then

productivity falls off dramatically.

SUMMARY

Everyone can be leader but not of all leaders have a leadership

characteristic. A person who have a leadership not always as a leader in their

42

group or workplace, but they influence the others, of course in the positive ways.

A leader have to develop their skills ,because a leadership is not given , but a

result of developing and practicing to be a better personal.

43

CHAPTER 5

DIFFERENCES BETWEEN MANAGER AND LEADERSHIP

The development of the transformational theories of leadership stimulated

a reconsideration of the concept of leadership and management and initiated

drawing distinctions between the two. These differences have not been entirely

clear, as there has been great confusion in terminology, and these distinctions may

be largely academic rather than practical in nature. Many authors seems to use the

words almost interchangeably at times while others are quick to illustrate the

distinctions between management and leadership as if represent a litmus test of

the truly effective executives.

Although there do seem to be a set of practical and important tasks that fall

under “management” and a set that belong under the heading of “leadership”,

some actions that have passed for leadership in health system, organization, and in

the literature really represent management skill. Before refocusing on leadership

skill, it is important to note that some management aspect of a public health

practitioner’s work can not be exchanged for leadership. There is great inherent

value to enabling people and ideas to interact to “establish strategies and make

decisions”. It is not leadership alone that makes public health systems function.

Although the distinction is primarily an academic one, the difference between

leadership and management behaviors raises many questions. The context itself

may contribute much to the evaluation and categorizing of behaviors; some fall

more cleanly into the two groups.

44

In essence, management holds a primary allegiance to the organizations

and fulfills certain roles because they are attached to the position. Managers may

set productions goals for an organization, assign workloads, and ensure that

workers have the requisite skills and materials necessary to complete their

assigned task. Leadership, on the other hand, is the way managers get things done

by inspiring the best performance and building the internal capacity of an

organization in something no tangible ways. Although a central role of

administration, leadership is merely one role of management. However, the peril

is that public health leaders will engage only in management and not in leadership

because of lack of training and experience or benefit from leadership skills, he or

she must not simultaneously relinquish his or management duties. An ability to

seamlessly execute both when necessary is a skill that is vital to successful public

health leaders.

The current academic thinking holds that while management talent is an

important component of administration, it is quite different from those of

leadership. Traditional management follows a transactional model, in which work

is exchanged for rewards. Here, the leader works to maintain the status quo and

preserve the current working criteria. Playing within the rules, maximizing

personal rewards, and providing incentives commensurate with performance are

thought to support only ordinary performance in organizations. In

transformational leadership, however, upsetting the status quo to create new rules

that optimize the system using an independent structure are purposed to create

extraordinary result

45

Kotter draws even further distinctions between management and

leadership skill. According to Kotter, management copes with complexity while

leadership copes with change. An important management skill is to plan and

budgeting, while the leadership counterpant is to set direction. Managers use

organizing and staffing to achieve the institutional plan while leaders align people

to achieve organizational objective. Controlling and problem solving skills are

employed by managers to ensure that plans are accomplished while leaders

motivate and inspire people to achieve the mutual visions.

Transactional vs Transformational Leadership:

Differences Between Manager and Leader

Transactional Leader or Manager Skills

Transformational Leader or Leader Skills

PerformanceConsidered by leadership writers to produce ordinary performance

Considered by leadership writers to produce extraordinary performance

Goal To maintain the status quo by playing within the rules

To change the status quo by changing the rules

Goal arise out of

Necessity, are reactive, and respond to ideas. They are deeply imbedded in the organization’s history and culture

Desires; they are active, shaping ideas; may be a departure from organization’s history and culture

EmphasisRationality and control, limits choices, focuses on solving problems

Innovation, creativity to develop fresh approaches to long-standing problems, and open issue to new options

Attitudes towards goal

Impersonal, if not passive attitudes Personal and active attitudes

Incentives Based on exchange of needs Based on the greater goodLocus of rewards Maximize personal benefits Optimize systemic benefit

Requires

Persistence, tough-mindedness, hark work, intelligence, analytical ability, tolerance, and good will

Genius and heroism

View work as Enabling processes, ideas, and people to establish

Creative, energizing, and emerging

46

strategies and make decisions

Tactics employed

Negotiate and bergain, use of rewards, punishment, and other forms of coercion.Strive to convert win-lose into win-win situations as part of the process of reconciling differences among people and maintaining balances of power.

Inspire followers, create shared vision, motivate.Strive to create new situations and new directions without regard to reconciling groups or power.

SUMMARY

The leader is the one who brings change with the ideas or new inspiration

while a manager is someone who leads an organization or group according to the

rules of the existing organizations.

47

CHAPTER 6

INDICATOR OF THE LEADERSHIP EFFECTIVENESS

According to J.T. Wren (1995), there is no possible way to measure the

effectiveness of leadership for the reason that an individual's leadership style

varies from person-to-person and is determined by the methodology in which

he/she handles the situation. Leadership is often measured by an individual's

ability to motivate and influence change within an organization or community.

Consequently, leadership effectiveness is primarily predicated upon a leader's

ability to receive adequate results whether the leader is a positive influence or a

negative influence on followers.

Gary Yukl (2009) explained that the criteria of selected to evaluate

leadership effectiveness reflect a research’s explicit or implicit conception of

leadership. Most research evaluate leadership effectiveness in terms of the

consequences of influence on a single individual, a team or group, or an

organization.

The most commonly used measure of leader effectiveness is the extent to

which the performances of the team or organizational unit is enhanced and the

attainment of goals is facilitated. Examples of objective measures such as

productivity. Subjective measures of effectiveness include ratings obtained from

the leader’s superiors, peers, or subordinates.

Follower attitudes and perceptions of the leader are another common

indicator of leader effectiveness. How well does the leader satisfy their needs and

expectations? Do followers like, respect, and admire the leader? Do followers

48

trust the leader and perceive him or her to have high integrity? Are followers

strongly committed to carrying out the leader’s requests or will they resist, ignore

or subvert them? Does the leader improve the quality of work life, build the self

confidence of followers, increase their skills, and contribute to their psychological

growth and development? Follower attitudes, perceptions, and beliefs are usually

measured with questionnaires or interviews. Such aspect of follower behavior also

provide an indirect indicator of dissatisfaction and hostility toward the leader

such as absent of the employee.

Leader effectiveness is occasionally measured in terms of the leader’s

contribution to the quality of group processes, as perceived by followers or by

outside observes. Does the leader enhance group cohesiveness, member

cooperation, member commitment, and member confidence that the group can

achieve its objectives? Does the leader enhance problem solving and decision

making by the group, and help to resolve disagreements and conflicts in

constructive way? Does the leader contribute to the efficiency of role

specializations, the organization of activities, the accumulation of resources, and

the readiness of the group to deal with change and crises?

A final type of criterion for leadership effectiveness is the extent to which

a person has a successful career as a leader is the person promoted rapidly to

positions of higher authority? Does the person serve full term in a leadership

position, or is he or she removed or forced to resign? For elected positions in

organizations, is a leader who seeks re-election successful?

49

There is no simple answer to the question of how to evaluate leadership

effectiveness. The selection of appropriate criteria depends on the objectives and

values of the person making the evaluation and people have different values.

In determining a leader's effectiveness would assess whether he/she is a

transformational or transactional leader. According to Bass (1990)

transformational leaders inspire employees to exceed the expected by embracing a

vision and striving to achieve that vision. Transformational leaders demonstrate

specific behaviors and actions: attributed charisma, inspirational motivation,

intellectual stimulation, and individualized consideration. Attributed charisma

occurs when leaders demonstrate behaviors that engender respect and trust.

Leaders who display charisma demonstrate interest in the well-being of others,

stay calm in crisis situations, formulate decisions that benefit the group as a

whole, demonstrate competence, and earn followers' respect.

SUMMARY

There isn’t certain indicator to measure the effectiveness of leadership.

Leadership effectiveness observable the way of she/he influence subordinate

person in which related with performance of the team or organizational unit is

enhanced and the attainment of goals.

50

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