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Leadership
CHAPTER

11

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Learning Objectives
In this chapter, you will understand:

How to contrast leadership and management

The different theories of leadership.
The two inspirational approaches to
leadership.
The link between emotional intelligence and
leadership.
Contemporary issues pertaining to
leadership.
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11.1

What is Leadership?

Leadership is the process of influencing individuals and groups to achieve goals.

MANAGER

LEADER

Rational

Intuitive

Complexity

Change

Planning and Budgeting

Setting DirectionVisions

Targets/Goals

Aligning People

Organizing and Staffing

Motivating Inspiring/
Moving

Controlling and Problem

Solving
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11.1.1 Roles of Leadership

Shares organizations vision with people.
Recruits, trains and retains.
Models positive behaviour.
Challenges, provokes and stimulates
intellectually.
Discovers talent.
Builds the culture of creativity and innovation.
Instills ownership.

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11.1.2 Leadership Studies

Timeline

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11.2

Trait Theories

Traits play a central role in differentiating

leaders from non-leaders.
Seven traits associated with effective
leadership are:

Drive
Desire to lead
Honesty and integrity
Self-confidence

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Intelligence
Job-relevant
Knowledge and
extraversion
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11.3

Behavioural Theories

Behavioural theories: Leadership is central to

performance and other outcomes.
Ohio State Studies: Two dimensions of
leadership behaviourinitiating structure and
consideration.
University of Michigan Studies: Two
dimensions of leadership behaviouremployee
oriented and production oriented.
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11.3 Behavioural Theories

(cont.)
Blake and Mouton managerial grid:
Two-dimensional gridconcern for people
and concern for production.
The Scandinavian Studies: Researchers
from Finland and Sweden discovered a third
dimension to leadership behaviour.

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11.3.1 Ohio State Studies

Initiating structure is the extent to which a
leader defines and structures his/her role as
well as those of his/her followers in order to
accomplish goals.
Consideration is the extent to which a leader
has work relationships with his/her followers
that are characterized by mutual trust, regard
for followers ideas and concern for their
feelings.
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11.3.2 University of Michigan

Studies
Employee-oriented leader: A leader who
emphasizes interpersonal relations, takes a
personal interest in the needs of employees
and accepts individual differences among
members.
Production-oriented leader: A leader who
emphasizes technical or task aspects of the
job.
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11.3.3 The Managerial Grid

The managerial grid
(also known as the
leadership grid) is
drawn from the Ohio
State and Michigan
studies, for its two
main dimensions
concern for people
and concern for
production.
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11.3.4 The Scandinavian

Studies
Development-oriented leader:
A leader who values experimentation,
seeks new ideas, and generates and
implements change.

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11.4

Contingency Theories

Consider other aspects of leadership situation to

predict outcomes:
Fiedler Contingency Model
Hersey and Blanchard Situational Theory
Leader-Member Exchange Theory
Path-Goal Theory
Leader-Participation Model
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11.4.1 Fiedler Contingency

Model
Fiedler contingency model proposes that effective
group performance depends upon the proper match
between a leaders style of interacting with his/her
followers and the degree to which the situation allowed
the leader to control and influence.
Least-preferred co-worker
(LPC) questionnaire: An instrument that purports to
measure whether a person is task or relationship
oriented.
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11.4.1 Fiedler Contingency

Model (cont.)
Leader-member relations describe the extent to which
followers have confidence, trust and respect in their
leader.
Task structure describes the extent to which job
assignments are formalized and are structured/
unstructured.
Position power describes the amount of influence a
leader had over power-based activities such as hiring,
firing and promotions.
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11.4.2 Hersey and Blanchards

Situational Theory
Situational leadership
theory focuses on followers.
It echoes the reality that it is
the followers who accept or
reject the leader.

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11.4.3 Leader-Member
Exchange Theory
Leader-member exchange (LMX) theory:
Leaders create in-groups and out-groups,
and subordinates with in-group status will
have higher performance ratings, less
turnover and greater job satisfaction.

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11.4.4 Path-Goal Theory

Robert House identified four types of leaders:
The directive leader informs followers of what is
expected of them, schedules work that needs to
be done and gives clear directions as how to
accomplish tasks.
The supportive leader is friendly and displays
concern for the needs of followers.
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11.4.4 Path-Goal Theory (cont.)

The participative leader discusses with
followers and considers their suggestions in
making a decision.
The achievement-oriented leader
establishes challenging goals and expects
followers to perform their best.

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11.4.4 Path-Goal Theory (cont.)

This theory states that it is the leaders duty to support his or
her followers in reaching their goals and to offer the direction
or support needed to ensure that their goals are congruent to
the organizations overall objectives.
Leader Behaviour
Directive
Supportive
Participative
Achievement oriented
Environmental Contingency Factors
Task structure
Formal authority system
Work group
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Follower Outcomes
Performance
Satisfaction

Follower Contingency Factors

Locus of control
Experience
Perceived ability
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11.5

Inspirational Theories

11.5.1 Charismatic Leadership

11.5.2 Transformational Leadership
11.5.3 Emotional Intelligence and
Leadership Effectiveness

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11.5.1 Charismatic Leadership

The charismatic leadership theory is based on the
assertion that followers make attributions of heroic
or exceptional leadership abilities when they
observe certain behaviours.
Qualities that differentiate charismatic leaders from
non-charismatic ones:
They have a vision.
They are willing to take risks to realize that vision.
They are perceptive to both constraints within the
environment and needs of the follower.
They display behaviours that are atypical.
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11.5.2 Transformational
Leadership
Transactional leaders:

Transformational leaders:

These types of leaders direct

or motivate their followers by
clarifying role and task
requirements for achieving
the organizations
established goals.

These leaders take notice of the

concerns and developmental
needs of individual followers;
they change followers
awareness of issues by
helping them look at old
problems in new ways; and
they are able to excite,
arouse and inspire followers
to exert extra effort to attain
group goals.

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11.5.3 Emotional Intelligence and

Leadership Effectiveness
Recent studies have shown that emotional intelligence
(EI), more than IQ, or any other single factor, is the best
predictor of who will come out as a leader.
Great leaders demonstrate their EI by exhibiting all five of it
key components:
Self-awareness
Self-management
Self-motivation
Empathy
Social skills
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11.6
Neuroleadership
Theories
Neuroleadership is the study of leadership
through the lens of neuroscience (Rock and
Schwartz, 2006).
Neuroleadership explores the central elements
of leadership such as:

Self-awareness
Awareness of others
Insight
Influencing
Decision making

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11.7

Trust

Trust: A belief or hope that another will neither

through words, actions or decisions, act
opportunistically.
Five key dimensions:
Integrityrefers to truthfulness.
Competencecovers an individuals technical
knowledge and interpersonal skills.
Consistencyconcerns a persons reliability,
predictability and good judgement in handling situations.
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11.7

Trust (cont.)

Loyaltythe willingness to protect and save face for

another person.
Opennessthe ability to rely on another to give you the
full truth.

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created values in leadership

CIMB CEO
- when there are important decisions to be made, he will decide unilaterally
with his staff under the group strategy to plan, implement and execute on
the necessary work.

He personally sent out email to keep everyone informed of the latest

development.

During the bank merger exercise, he specially instructed the HR

team to exercise care in handling workforce so as to minimize branches
shut down which will result of due to some staff being layoff. - most of the
staff affected have retained and retrained so that they can continue to work
in other departments within the group.

Value loaded: Change aiming at satisfying customers needs and

enhanced organizations products and services.

Diagnosis cycle: An OD approach to diagnose organizational

problems, prescribe and implement interventions, and monitor progress.

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