Leadership

&
Leading People
 Learning Outcomes
• Define leader and explain the difference between 
mangers and leaders
• Summarize the conclusions of various theories of 
leadership
• Discuss the qualities that characterize charismatic 
leaders
• Describe the skills that visionary leaders exhibit
• Explain the four specific roles of effective team leaders
• Identify the dimensions of trust
 Manager Vs. Leader

Manager Leader

Appointed and May Have

Have Formal Managerial
Authority Authority and
Influence Others
Manager Vs. Leader
 The Place of Leadership

• Can Anyone Be a Leader?
– Some people don’t have what it takes to be a 
leader
– Some people are more motivated to lead than 
others
• Is Leadership Always Necessary?
– Some people don’t need leaders
– Leaders need to be aware of followers’ needs
 Early Leadership Theories
1. Trait Theories
2. Behavioral Theories
3. Contingency Theories
• Trait Theories (1920s–30s)
– Research that focused on identifying personal characteristics that 
differentiated leaders from nonleaders was unsuccessful
– Later research on the leadership process identified seven traits 
associated with successful leadership:
1. Drive
2. desire to lead
3. honesty and integrity
4. self­confidence
5. Intelligence
6. job­relevant knowledge
7. extraversion
 Behavioural Theories
• University of Iowa Studies (Kurt Lewin)
– Identified three leadership styles:
• Autocratic style: centralized authority, low participation
• Democratic style: involvement, high participation, 
feedback
• Laissez­faire style: hands­off management
– Research findings: mixed results
• No specific style was consistently better for producing 
better performance
• Employees were more satisfied under a democratic leader 
than an autocratic leader
 Behavioural Theories (cont’d)
• Ohio State Studies
– Identified two dimensions of leader behaviour
• Initiating structure: the role of the leader in defining his or 
her role and the roles of group members
• Consideration: the leader’s mutual trust and respect for 
group members’ ideas and feelings
– Research findings: mixed results
• High­high leaders generally, but not always, achieved high 
group task performance and satisfaction
• Evidence indicated that situational factors appeared to 
strongly influence leadership effectiveness
 Behavioural Theories (cont’d)
• University of Michigan Studies
– Identified two dimensions of leader behaviour
• Employee oriented: emphasizing personal relationships
• Production oriented: emphasizing task accomplishment
– Research findings:
• Leaders who are employee oriented are strongly associated 
with high group productivity and high job satisfaction
 Behavioural Theories (cont’d)

• Managerial Grid
– Appraises leadership styles using two 
dimensions:
• Concern for people
• Concern for production
 The
Managerial
Grid
 Contingency Theories of
Leadership
• The Fiedler Model
– Effective group performance depends upon the match 
between the leader’s style of interacting with 
followers and the degree to which the situation allows 
the leader to control and influence
– Assumptions:
• Different situations require different leadership styles 
• Leaders do not readily change leadership styles
– Matching the leader to the situation or changing the situation to 
make it favourable to the leader is required
 Contingency Theories… (cont’d)

• The Fiedler Model (cont’d)
– Least­preferred co­worker (LPC) questionnaire
• Determines leadership style by measuring responses to 18 
pairs of contrasting adjectives
– High score: a relationship­oriented leadership style
– Low score: a task­oriented leadership style
– Situational factors in matching leader to the situation:
• Leader­member relations
• Task structure
• Position power
 Findings of the Fiedler Model
High

People-Oriented
Performance

Task-Oriented

Low
Favourable Moderate Unfavourable
• Category I II III IV V VI VII VIII
• Leader-MemberGood Good Good Good Poor Poor Poor Poor
Relations
• Task Structure High High Low High High High Low Low
• Position PowerStrong Weak Strong Weak Strong Weak Strong Weak
 Contingency Theories… (cont’d)

• Hersey and Blanchard’s Situational Leadership 
Theory (SLT)
– Successful leadership is achieved by selecting a 
leadership style that matches the level of the 
followers’ readiness
• Acceptance: do followers accept or reject a leader?
• Readiness: do followers have the ability and 
willingness to accomplish a specific task?
– Leaders must give up control as followers 
become more competent
 Contingency Theories… (cont’d)

• Hersey and Blanchard’s Situational Leadership 
Theory (SLT) (cont’d)
– Creates four specific leadership styles 
incorporating Fiedler’s two leadership 
dimensions:
• Telling: high task–low relationship leadership
• Selling: high task–high relationship leadership
• Participating: low task–high relationship leadership
• Delegating: low task–low relationship leadership
 Contingency Theories… (cont’d)

• Hersey and Blanchard’s Situational Leadership 
Theory (SLT) (cont’d)
– Identifies four stages of follower readiness:
• R1: followers are unable and unwilling
• R2: followers are unable but willing
• R3: followers are able but unwilling
• R4: followers are able and willing
 Hersey and Blanchard’s Situational
Leadership Model
High relationship High task and
and low task high relationship

High STYLE OF LEADER

S3 S2 High Moderate Low

S4 S1
R4 R3 R2 R1

Able Able Unable Unable

and and and and
willing unwilling willing unwilling
Low High
Task Behaviour Follower Readiness
Source: Reprinted with permission from the Center for Leadership
Low relationship High task and Studies. Situational Leadership® is a registered trademark of the Center
for Leadership Studies. Escondido, California. All rights reserved.
and low task low relationship
Contingency Theories… (cont’d)

• Leader Participation Model (Vroom and 
Yetton)
– Leader behaviour must be adjusted to reflect the 
task structure
– Suggests appropriate participation level in 
decision making
Contingency Theories… (cont’d)

• Leader Participation Model Contingencies:
– Decision significance
– Importance of commitment
– Leader expertise
– Likelihood of commitment
– Group support
– Group expertise
– Team competence
Leader-Participation
Model
Employee Involvement Continuum
Employee Involvement Continuum

Increased Leader Control

1 2 3 4 5

Increased Employee Involvement

 Vroom Leader Participation
Model

• Decide
• Consult Individually
• Consult Group
• Facilitate
• Delegate
Contingency Theories… (cont’d)

• Path­Goal Model
– Leader’s job is to assist his or her followers in 
achieving organizational goals
– Leader’s style depends on the situation:
• Directive
• Supportive
• Participative
• Achievement­oriented
 Path-Goal Theory
Environmental
Contingency Factors

•TaskStructure
Formal
• Authority System
•Work Group

Leader Behaviour Outcomes

•Directive •Performance
•Supportive •Satisfaction
•Participative
Achievement
• Oriented

Subordinate
Contingency Factors

• Locusof Control
•Experience
•
Perceived Ability
 Cutting-Edge Approaches to
Leadership
• Transactional Leadership
– Leaders who guide or motivate their followers in 
the direction of established goals by clarifying 
role and task requirements
• Transformational Leadership
– Leaders who inspire followers to go beyond their 
own self­interests for the good of the 
organization
– Leaders who have a profound and extraordinary 
effect on their followers
 Cutting-Edge Approaches to
Leadership (cont’d)
• Charismatic Leadership
– An enthusiastic, self­confident leader whose 
personality and actions influence people to 
behave in certain ways
– Characteristics of charismatic leaders:
• Have a vision
• Are able to articulate the vision
• Are willing to take risks to achieve the vision
• Are sensitive to the environment and to follower needs
• Exhibit behaviours that are out of the ordinary
 Cutting-Edge Approaches to
Leadership (cont’d)

• Charismatic Leadership (cont’d)
– Effects of Charismatic Leadership
• Increased motivation, greater satisfaction
• More profitable companies
• Charismatic leadership may have a downside:
– After recent ethics scandals, some agreement that CEOs 
with less vision, and more ethical and corporate 
responsibility, might be more desirable
 Cutting-Edge Approaches to
Leadership (cont’d)
• Visionary Leadership
– A leader who creates and articulates a realistic, 
credible, and attractive vision of the future that 
improves upon the present situation
– Visionary leaders have the ability to:
• Explain the vision to others
• Express the vision not just verbally but through 
behaviour
• Extend or apply the vision to different leadership 
contexts
 Visionary Leadership

Express Explain
the Vision the Vision
Extend
the Vision
 Cutting-Edge Approaches to
Leadership (cont’d)
• Team Leadership Characteristics
– Having patience to share information
– Being able to trust others and to give up authority
– Understanding when to intervene
• Team Leader’s Job
– Managing the team’s external boundary
– Facilitating the team process
• Coaching, facilitating, handling disciplinary problems, 
reviewing team and individual performance, training, and 
communicating
Specific Team Leadership Roles
Liaison with
external
Coach
constituencies

Team
Leadership
Roles

Conflict
manager
Troubleshooter
 Cross-Cultural Leadership

• Universal Elements of Effective Leadership
– Vision
– Foresight
– Providing encouragement
– Trustworthiness
– Dynamism
– Positiveness
– Proactiveness
 Cross-Cultural Leadership Findings

• Korean leaders are expected to be paternalistic toward employees.
• Arab leaders who show kindness or generosity without being asked 
to do so are seen by other Arabs as weak.
• Japanese leaders are expected to be humble and speak frequently.
• Scandinavian and Dutch leaders who single out individuals with 
public praise are likely to embarrass, not energize, those 
individuals.
• Malaysian leaders are expected to show compassion while using 
more of an autocratic than a participative style.
• Effective German leaders are characterized by high performance 
orientation, low compassion, low self­protection, low team 
orientation, high autonomy, and high participation
 Gender Differences and
Leadership
• Research Findings
– Males and females use different 
styles:
• Women tend to adopt a more democratic 
or participative style unless in a male­
dominated job
• Women tend to use transformational 
leadership
• Men tend to use transactional leadership
 Where Female Managers Do Better:
A Scorecard
ofNone
the five studies set out to find gender differences. They stumbled on them while
compiling and analyzing performance evaluations.

Skill
(Each check mark denotes which group MEN WOMEN
scored higher on the respective studies)
Motivating Others
Fostering Communication *
Producing High-Quality Work
Strategic Planning *
Listening to Others
Analyzing Issues *
* In one study, women’s and men’s scores in these categories were
statistically even.
Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel
Decisions International Inc., Advanced Teamware Inc.

Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.
 Current Leadership Issues
• Managing Power
– Legitimate power – Expert power
• The power a leader has  • The influence a leader 
as a result of his or her  can exert as a result of 
position his or her expertise, 
– Coercive power skills, or knowledge
• The power a leader has  – Referent power
to punish or control
• The power of a leader 
– Reward power that arises because of a 
• The power to give  person’s desirable 
positive benefits or  resources or admired 
rewards personal traits
 Developing Trust
• Credibility (of a Leader)
– The assessment, by a leader’s followers, of the 
leader’s honesty, competence, and ability to inspire 
• Trust
– The belief of followers and others in the integrity, 
character, and ability of a leader
• Dimensions of trust: integrity, competence, consistency, 
loyalty, and openness
– Trust is related to increases in job performance, 
organizational citizenship behaviours, job 
satisfaction, and organization commitment
 Providing Moral Leadership

• Addressess both the moral content of a leader’s 
goals and the means used to achieve those 
goals
• Ethical leadership is more than being ethical
– Includes reinforcing ethics through 
organizational mechanisms
 Providing On-line Leadership

• Challenges of On­line Leadership
– Communication
• Choosing the right words, structure, tone, and style for 
digital communications
– Performance management
• Defining, facilitating, and encouraging performance
– Trust
• Creating a culture where trust is expected, encouraged, 
and required
 Empowering Employees

• Empowerment
– Involves increasing the decision­making 
discretion of workers
– Why empower employees?
• Quicker responses to problems and faster decisions
• Relieves managers to work on other problems
 Empowerment: Cautions

• The following conditions should be met for 
empowerment to be introduced:
– Clear definition of company’s values and mission
– Employees have relevant skills
– Employees need to be supported, not criticized, 
when performing
– Employees need to be recognized for their efforts
 Tips for Managers:
Suggestions for Building Trust
Practise openness
Be fair
Speak your feelings
Tell the truth
Show consistency
Fulfill your promises
Maintain confidences
Demonstrate competence
The End.
Thank you!