management (chapter 17)

CHAPTER 17: LEADERSHIPWho are Leaders?

Leader is someone who can influence others and who has managerial authority. Ideally, all managers must be leaders. because leading is one of the four leadership functions.

What is Leadership?Leadership is what leaders do. It's the process of leading a group and influencing that group to

achieve it's goals.

EARLY LEADERSHIP THEORIES These early leadership theories focused on the leader (leadership trait theories) and how the

leader interacted with his/her group members (leadership behavior theories).

A. Leadership Trait TheoriesThis theory attempts to identify traits consistently associated with leadership were more successful. The seven traits shown to be associated with effective leadership are:

1. Drive- leaders exhibit a high effort level. They have high desire for achievement, they are ambitious, they have a lot of energy, they are tirelessly persistent, and shows initiative.

2. Desire to lead- leaders have strong desire to influence and lead others. They show willingness to take responsibility.

3. Honesty and Integrity- leaders build trusting relationship with followers by being truthful and non-deceitful and by showing high consistency between word and deed.

4. Self-confidence- Leaders need to show self-confidence in order to convince followers of the rightness of their goals and decisions.

5. Intelligence- Leaders must be able to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct visions.

6. Job-relevant knowledge- Effective leader have high degree of knowledge about the company, industry, and technical matters.

7. Extraversion- Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or withdrawn.

B. Leadership Behavioral Theories

Behavioral Theories – leadership theories that identify behaviors that differentiated effective leaders from ineffective leaders

1. University of Iowa Studiesa. Autocratic Style – leader who dictates work methods, makes unilateral decisions and

limit employee participationb. Democratic Style – leader who involved employees in decision making, delegated

authority and used feedback as an opportunity for coaching employeesc. Laissez-faire Style – leader who lets the group make decisions and complete the work in

whatever way it sees fit Democratic style of leadership was most effective, although later studies showed mixed

results.2. The Ohio State Studies

a. Initiating Structure →extent to which a leader defined his/her role and the roles of group members in attaining goals→include behaviors that involved attempts to organize work, work relationship

CASTILLO, DELA CRUZ, FIRMANTE, MAGBITANG, PANDAN, TAN, SALAZAR, ZAMORA

and goalsb. Consideration

→extent to which a leader has work relationships characterized by mutual trust and respect for group members’ ideas and feelings→help members with personal problems. Friendly and approachable and treated group members equally

c. High-High Leader →a leader high in both initiating structure and consideration behavior

High-High Leaders achieve high subordinate performance and satisfaction, but not in all situations.

3. University of Michigan Studies identified behavioral characteristics of leaders that were related to performance

effectivenessa. Employee-Oriented – leaders who emphasize interpersonal leadershipsb. Production-Oriented – leaders who emphasize the task aspects of the job

Employee-Oriented leaders were associated with high group productivity and higher job satisfaction.

4. The Managerial Grid Managerial Grid - provided the basis for the development of a two-dimensional grid for

appraising leadership styles evaluation is made by ranking them on a scale of 1 (low) to 9 (high) Dimensions:a. “Concern for people” - vertical part of the grid b. “Concern for production” - horizontal part of the grid

5 Behavioral Styles:1. Impoverished Management – 1,1 or low concern for production and low concern for

people2. Task Management – 9,1 or high concern for production and low concern for people3. Middle-of-the-Road Management – 5,5 or medium concern for production and

medium concern for people4. Country Club Management – 1,9 or low in concern for production and high concern

for people5. Team Management – 9,9 or high concern for production and high concern for people

Leaders performed best when using 9,9 style (Team Management).

Contingency Theories of Leadership

Contingency Theories-defines leadership styles and the situation, and attempts to answer the if-then contingencies

1) Fiedler Model-effective group performance depends upon properly matching the leaders’ s style and amount of control and influence in the situation Least-Preferred Coworker(LPC) Questionnaire – Is developed by Fiedler to measure a leader’s

style. Which uncovered 3 dimensions that defined the key situational factors in leader effectiveness.a) Leader- Member relations –degree of confidence, trust, and respect employees have for their

leader. Rated as good or poor.b) Task Structure- the degree to which job assignments were formalized and structured. Rated

as high or low.


c) Position Power-degree of influence a leader had over activities such as hiring, firing, discipline and salary increases. Rated as strong or weak.

2) Hersey and Blanchard’s Situational Leadership Theory Situational Leadership Theory (SLT) – is a contingency theory that focuses on followers’ readiness.When you say readiness, it refers to the extent to which people have the ability and willingness to accomplish a specific task.

The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers who accept or reject the leader. The group’s effectiveness depends on the actions of the followers.

SLT’s four specific leadership styles:

● Telling (high task-low relationship): The leader defines roles and tells people what, how, when, and where to do various tasks

● Selling (high task-high relationship): The leader provides both directive and supportive behavior● Participating (low task-high relationship): The leader and followers share in decision making; the

main role of the leader is facilitating and communicating● Delegating (low task-low relationship): The leader provides little direction or support

Four stages of followers’ readiness:1. People are both unable and unwilling to take responsibility for doing something. Followers aren’t

competent or confident.2. People are unable but willing to do the necessary job tasks. Followers are motivated but lack

appropriate skills. 3. People are able but unwilling to do what the leader wants. Followers are competent, but don’t

want to do something.4. People are both able and willing to do what is asked of them.

3) Path-Goal ModelPath-Goal Theory- This theory states that the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the goals of the group or organization.House identified four leadership behaviors:

1. Directive Leader: Lets subordinates know what’s expected of them, schedules works to be done, and gives specific guidance on how to accomplish tasks.

2. Supportive Leader: Shows concern for the needs of followers and is friendly.3. Participative Leader: Consults with group members and uses their suggestions before making a

decision4. Achievement Oriented Leader: Sets challenging goals and expects followers to perform at their

highest level.

Path-Goal Theory proposes two situational or contingency variables that moderate the leadership behavior-outcome relationship: Those in the environment that are outside the control of the follower (including task structure, formal authority system, and the work group) and those that are part of the personal characteristics of the follower (including locus of control, experience and perceived ability).

Directive leadership


● Leads to greater satisfaction when tasks are ambiguous or stressful. Followers aren’t sure what to do, so the leader gives them directions

● Likely to be perceived as redundant among subordinates with high perceived ability or with considerable experience. The followers are capable so they don’t need the leader to tell them what to do.

● Lead to higher employee satisfaction when there is conflict within a work group. The followers need a leader who will take charge.Supportive leadership

● Results in high employee performance and satisfaction when subordinates are performing structured tasks. Leader only supports followers, not tell them what to do.

Achievement-oriented leadership will increase subordinates’ expectancies that effort will lead to high performance when tasks are ambiguously structured. By setting challenging goals, followers know what the expectations are.

Contemporary Views of LeadershipLatest views of leadership:

1. Leader-Member Exchange (LMX) Theory. Leadership theory that says leader create in-groups and out-groups and those in the

in-group will have higher performance ratings, less turnover and greater job satisfaction

In-group members→have demographic, attitude, personality, and even gender similarities with the leader; →have higher confidence than out-group members→expected to perform best (higher performance ratings, engage in more citizenship behaviors at work, report greater satisfaction with their bosses) since leaders invest their time and other resources to them

Leaders do differentiate among followers which is not random2. Transformational- Transactional Leadership

Transactional leaders→lead primarily by using social exchanges or transactions→guide or motivate followers to work toward established goals by exchanging rewards for their productivity

Transformational o LEADERS→stimulate and inspire (transform) followers to achieve extraordinary outcomes→attempts to instill in followers the ability to questiono LEADERSHIP→develops from transactional leadership→produces levels of employee effort and performance that go beyond what could occur with a transactional approach alone

Transactional and transformational leadership shouldn’t be viewed as opposing approaches to getting things done.

However, evidences support the superiority of transformational leadership over transactional leadership.

3. Charismatic-Visionary Leadership Charistmatic Leader

→an enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways→5 personal characteristics:


1. They have a vision2. The ability to articulate that vision3. A willingness to take risk that vision4. A sensitivity to both environmental constraints and follower needs5. Behaviors that are out of ordinary

Visionary Leadership→ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation

4. Team Leadership Because leadership is increasingly taking place within a team context and more

organizations are using work teams, the role of the leader in guiding team members has become increasingly important. The role of team leadership is different in the traditional leadership. It is a challenge for many managers to become an effective team leader. An effective team of leaders have mastered the difficult balancing act of knowing when to leave their teams alone and when to get involved.

A study found a certain common responsibilities of all leaders in an organization that reorganized themselves around employee teams. These responsibilities included: Coaching, Facilitating, Handling disciplinary problems, reviewing team and individual performances, training and communication.

A more meaningful way to describe a team leader’s job is to focus on two priorities: 1. managing the team’s external boundary 2. facilitating the team process.

These priorities entail four specific leadership roles and these are: Coach, Liaison with External Constituencies, Conflict Manager and Troubleshooter.

Leadership Issues in the 21 st Century These issues are:

1. Managing Power Leader’s power is their right and capacity to influence work actions or decisions. The

five sources of leader power are:i. Legitimate power- the power a leader has as a result of his or her position in the

organization. It is the same as authority.ii. Coercive power- the power a leader has to punish or controliii. Reward power- the power a leader has to give positive rewardsiv. Expert power- power that’s based on expertise, special skills or knowledgev. Referent power- power that arises because of person’s desirable resources or

personal traits Most effective leaders rely on several different forms of power to affect the behavior and

performance of their followers. 2. Developing Trust

Trust and credibility is an important consideration for leaders, both are fragile. Credibility

→ is also honesty. →Honesty is absolutely essential to leadership

In addition to being honest, credible leaders are competent and inspiring. Trust

→ ability of a leader. Belief in the integrity and character→ 5 dimensions of trust:

1. integrity: honest and truthfulness2. competence: techinical and interpersonal knowledge and skills 3. consistency: reliability, predictability, and good judgment in

handling situations


4. loyalty: willingness to protect a person, physically and emotionally5. openness: willingness to share information and ideas freely

Trusting in a leader significantly related to positive job outcomes including performance, behavior, job satisfaction, and commitment.

Managerial and leadership effectiveness depends on the ability to gain the trust of followers

3. Empowering Employees STOP (Safety Training Observation Program)

→ empowers employees which is responsible for observing one another, correcting improper procedures and encouraging safe procedures

Empowerment involves increasing the decision making discretion of workers. Another reason is that organizational downsizing left many managers with larger span of

control. Although empowerment is not the answer, it can be useful to employees have skills, knowledge and experience to do their job fully.

4. Leading Across Cultures How can managers account for cross-cultural differences as they lead?

Effective leaders do not use a single style. They adjust their style to the situation.

Natural culture → certainly an important situational variable in determining which leadership style will

be most effective.→affects leadership style because it influences how followers will respond→Leaders can’t and shouldn’t just choose their styles randomly. They’re constrained

by the cultural conditions their followers have come to expect. GLOBE study found that leadership has universal aspects (specifically, a number of

elements of transformational leadership appear to be associated with effective leadership regardless of what country the leader is in)Elements: vision, foresight, providing encouragement, trustworthiness, dynamism, positiveness, proactiveness

Thus, effective business leaders in any country are expected by their subordinates to:- provide a powerful and proactive vision to guide the company in the future- strong motivational skills to stimulate all employees to fulfil the vision - excellent planning skills to assist in implementing the visionThe universal appeal of these transformational leader characteristics is due to pressures toward common technologies and management practices.

5. Becoming an effective leader 2 issues:

a. Leader training - Some people don’t have what it takes to be a leader.- Leadership training is more likely to be successful with individuals who are

high self-monitors than the low self-monitors.- Things that individuals can learn that might be related to being more

effective leaders:a. Vision-creationb. Implementation skillsc. Understanding about content themes critical to effective visionsd. Trust building and mentoring

b. Substitutes for leaders - Leadership may not be important.- Certain individual, job, and organizational variable can act as “substitutes for

leadership” negating the influence of the leaders.


- Characteristics that can neutralize the effect of leadership/ replace the employee’s need for a leader’s support or ability to create structure and reduce task ambiguity:a. Experienceb. Trainingc. Professional orientationd. Need for independence

- Jobs that are inherently unambiguous and routine or that are intrinsically satisfying may place fewer demands on leaders.

- Organizational characteristics that can substitute for formal leadership:a. Explicit formalized goalsb. Rigid rules and proceduresc. Cohesive work


ASSESSMENT:

I. True or False

_____ 1. All managers are leaders and all leaders are managers._____ 2. The autocratic style described a leader who dictated work methods, made lateral decisions, and

unlimited employee participation._____ 3. Based on the efforts of researchers, they proved that it is possible to identify a set of traits that

would always differentiate a leader from a non-leader._____ 4. Situational Leadership Theory essentially views the leader-follower relationship as like that of a

parent and a child. _____ 5. Of the 5 dimensions of trust, loyalty is the most critical when someone assesses another's

trustworthiness._____ 6. Despite the belief that some leadership will always be effective, leadership is not always

important._____ 7. Transformational leadership produces levels of employee's effort and performance that go

beyond what would occur with a transactional approach alone._____ 8. A visionary leadership is the ability to create and articulate an unrealistic, credible, and attractive vision of the future that improves upon the present situation._____ 9. Path-goal theory states that it is the leader's job to assist the followers and provide direction

needed to achieve it's goals. _____ 10. The role of the team leader is the same as the role of a traditional leadership.

II. Multiple Choice_____ 1.This theory proposed that effective group performance depends on leader's style and amount of control an it's influence in the situation.

a. SLT b. Path-Goal Theory c. Fiedler Model d. LMX Theory_____ 2. Which of the following is not a leadership behavior based on path-goal model?

a. Goal oriented leader b. Supportive leader c. Directive Leader d. Passive leader_____ 3. For this theory, both leader and the follower must "invest" in the relationship.

a. SLT b. Path-Goal Model c. Fiedler Model d. LMX Theory_____ 4. Identify which trait is not associated with leadership.

a. intelligence b. dependence c. integrity d. drive_____5. Leader behavior which was defined as the extent to which a leader has work relationships characterized by mutual trust and respect for group member's ideas and feelings.

a. Managerial Grid b. Initiating Structure c. Consideration d. Empathy_____ 6. It is the degree to which job assignments were formalized and structured.

a. Task structure b. Position power c. Leader-member relations c. managerial grid_____ 7. This is the power of the leader to punish and control.

a. Coercive Powerb. Authoritative Power c. Legitimate Power d. Reward Power_____ 8. Power that arises because of a person's desirable resources or personal traits.

a. Expert Power b. Coercive Power c. Referent Power d. Legitimate Power_____ 9. Based on SLT, which style provides directive and supportive behavior?\

a. Selling b. Telling c. Delegating d. Participating_____ 10.This can be judged based on someones honesty, competence, and ability to inspire.

a. Openness b. Trust c. Consistency d. Credibility


ANSWER KEY:True or False

1. false2. false3. false4. true5. false6. true7. true8. false9. true 10. false

Multiple Choice1. b2. d3. b4. b5. c6. a7. a8. c9. a10. d


management (chapter 17)

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