1. Leadership
Group 3

3. Objectives
 Define leadership and contrast leadership and management.
 Summarize the conclusions of trait theories of leadership.
 Identify the central tenets and main limitations of behavioral theories.
 Assess contingency theories of leadership by their level of support.
 Compare and contrast charismatic and transformational leadership.
 Define authentic leadership and show why effective leaders exemplify
ethics and trust.
 Demonstrate the role mentoring plays in our understanding of leadership.
 Address challenges to the effectiveness of leadership.
 Assess whether charismatic and transformational leadership generalize
across cultures.

4. What Is Leadership?
Leadership
The ability to influence a
group toward the
achievement of a vision
or set of goals.
Management
Use of authority inherent
in designated formal rank
to obtain compliance from
organizational members.

5. Nonsanctioned Leadership?
The ability to influence that arises outside
the formal influence
All Leaders are not Managers
All Managers are not Leaders

6. Trait Theories
Traits Theories of Leadership Traits:
Leadership
• Ambition and energy
Theories that consider
personality, social, physic • The desire to lead
al, or intellectual traits to • Honest and integrity
differentiate leaders from • Self-confidence
nonleaders.
• Intelligence
• High self-monitoring
• Job-relevant
knowledge

7. Big Five Personality Framework
Extraversion
Agreeableness
Conscientiousness
Emotional Stability
Openness to Experience

8. Strong Leaders - history

9. Trait Theories
Limitations:
• No universal traits found that predict
leadership in all situations.
• Traits predict behavior better in “weak”
than “strong” situations.
• Unclear evidence of the cause and effect
of relationship of leadership and traits.
• Better predictor of the appearance of
leadership than distinguishing effective
and ineffective leaders.

10. Behavioral Theories
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
• Trait theory:
Leaders are born, not made.
• Behavioral theory:
Leadership traits can be taught.

11. Ohio State Studies
Initiating Structure
The extent to which a leader is
likely to define and structure his
or her role and those of
sub-ordinates in the search for
goal attainment.
Consideration
The extent to which a leader is likely to have job
relationships characterized by mutual trust, respect
for subordinate’s ideas, and regard for their feelings.

12. University of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees and
accepting individual differences among members.
Production-Oriented Leader
One who emphasizes technical
or task aspects of the job.

13. The Managerial
Grid
(Blake and Mouton)

14. Contingency Theories
Fiedler’s Contingency Model
The theory that effective groups depend on a proper
match between a leader’s style of interacting with
subordinates and the degree to which the situation
gives control and influence to the leader.
Least Preferred Co-Worker (LPC)
Questionnaire
An instrument that purports to
measure whether a person is task-
or relationship-oriented.

15. LPC Scale
• Used to measure a person’s leadership style
• For example, it measures your style by
having you describe a coworker with whom
you had difficulty completing a job. (not
necessarily someone you dislike, but
someone with whom you least like to work
with)
• After you choose this person, the LPC
instrument asks you to describe your
coworker on 16 sets of adjectives

16. Least Preferred Coworker (LPC) Scale
Pleasant 8 7 6 5 4 3 2 1 Unpleasant
Friendly 8 7 6 5 4 3 2 1 Unfriendly
Rejecting 8 7 6 5 4 3 2 1 Accepting
Tense 8 7 6 5 4 3 2 1 Relaxed
Cold 8 7 6 5 4 3 2 1 Warm
Supportive 8 7 6 5 4 3 2 1 Hostile
Boring 8 7 6 5 4 3 2 1 Interesting
Quarrelsome 8 7 6 5 4 3 2 1 Harmonious
Gloomy 8 7 6 5 4 3 2 1 Cheerful
Open 8 7 6 5 4 3 2 1 Closed
Backbiting 8 7 6 5 4 3 2 1 Loyal
Untrustworthy 8 7 6 5 4 3 2 1 Trustworthy
Considerate 8 7 6 5 4 3 2 1 Inconsiderate
Nasty 8 7 6 5 4 3 2 1 Nice
Agreeable 8 7 6 5 4 3 2 1 Disagreeable
Insincere 8 7 6 5 4 3 2 1 Sincere
Kind 8 7 6 5 4 3 2 1 Unkind

17. Scoring
• Your final score is the total of the numbers
you circled on the 16 scales
• 57 or less = Low LPC (task motivated)
• 64 or above = High LPC (motivated by
relationships)

18. Defining the Situation
Fiedler has identified 3 situational dimensions
1.Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
2. Task Structure
The degree to which the job assignments are
procedurized.
3.Position Power
Influence derived from one’s formal structural
position in the organization; includes power to
hire, fire, discipline, promote, and give salary
increases.

19. Findings from Fiedler Model

20. Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’
readiness.
Follower Unwilling Willing
Readine
ss
Supportive Monitoring
Able Participative
Leadership
Styles
High Task
Unable and
Directive Relationship
Orientations

21. Path-Goal Theory
Path-Goal Theory (Robert House)
The theory that it is the leader’s job to assist followers
in attaining their goals and to provide them the
necessary direction and/or support to ensure that their
goals are compatible with the overall objectives of the
group or organization.

22. The Path-Goal Theory

23. Leader-Participation Model
Leader-Participation Model (Vroom and Yetton)
A leadership theory that provides a set of rules to
determine the form and amount of participative
decision making in different situations.

24. Contingency Variables in the Revised
Leader-Participation Model
1. Importance of the decision
2. Importance of obtaining follower commitment to the
decision
3. Whether the leader has sufficient information to
make a good decision
4. How well structured the problem is
5. Whether an autocratic decision would receive
follower commitment

25. 6. Whether followers “buy into” the organization’s
goals
7. Whether there is likely to be conflict among
followers over solution alternatives
8. Whether followers have the necessary information
to make a good decision
9. Time constraints on the leader that may limit
follower involvement
10. Whether costs to bring geographically dispersed
members together is justified
11. Importance to the leader of minimizing the time it
takes to make the decision
12. Importance of using participation as a tool for
developing follower decision skills

26. 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.
© 2005 Prentice Hall Inc. All rights reserved. 11–25

27. Leader-Member Exchange Theory

28. Leader-Member Exchange (LMX) Theory
• Because of time pressures, leaders form a special relationship with
a small group of followers: the “in-group”
• This in-group is trusted and gets more time and attention from the
leader (more “exchanges”)
• All other followers are in the “out-group” and get less of the
leader’s attention and tend to have formal relationships with the
leader (fewer “exchanges”)
• Leaders pick group members early in the relationship

29. Leader-Member Exchange (LMX) Theory
 How groups are assigned is unclear
– Follower characteristics determine group membership
 Leaders control by keeping favorites close
• Research has been generally supportive

30. Charismatic Leadership
“Certain quality of an individual personality, by virtue of
which he / she is set apart from ordinary people and treated
as endowed with supernatural, superhuman, or at least
specifically exceptional power or qualities”.
“Max Weber”

31. Charismatic Leadership
• House’s Charismatic Leadership Theory:
– Followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors
• Four characteristics of charismatic leaders
– Have a vision
– Are willing to take personal risks to achieve the vision
– Are sensitive to follower needs
– Exhibit behaviors that are out of the ordinary

32. Are Charismatic Leaders born / Made?
• Traits and personality are related to charisma
• People can be trained to exhibit charismatic behaviors
• 3 step Process
1. Develop on aura of charisma by maintaining an optimistic view.
2. Draw others in by creating a bond that inspires them to follow.
3. Bring out the potential in followers by tapping into their emotions

33. How Charismatic Leaders Influence Followers
• A four-step process:
1. Leader articulates an attractive vision
• Vision Statement:
A formal, long-term strategy to attain goals
• Links past, present, and future
2. Leader communicates high performance expectations and
confidence in follower ability
3. Leader conveys a new set of values by setting an example
4. Leader engages in emotion-inducing and often unconventional
behavior to demonstrate convictions about the vision

34. Does effective charismatic leadership
depend on the situation?
 Charismatic effectiveness may depend on situation
– Charisma works best when:
• The follower’s task has an ideological component
• There is a lot of stress and uncertainty in the
environment
• The leader is at the upper level of the organization
• Followers have low self-esteem and self-worth

35. The dark side of charismatic leadership
• Dark Side of Charisma
– Ego-driven charismatics allow their self-
interest and personal goals to override the
organization’s goals

37. Transactional and Transformational
Leadership
 Transactional Leaders
– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
requirements
 Transformational Leaders
– Inspire followers to transcend their own self-interests for
the good of the organization; they can have a profound and
extraordinary effect on followers
 Not opposing, but complementary, approaches to
leadership
– Great transformational leaders must also be transactional;
only one type is not enough for success

38. Characteristics of the Two Types of Leaders
Transactional Transformational
• Contingent Reward: • Idealized Influence:
– Contracts exchange of rewards – Provides vision and sense of
for effort, promises rewards for mission, instills pride, gains
good performance, recognizes respect and trust
accomplishments • Inspiration:
• Management by Exception: – Communicates high
expectations, uses symbols to
– Active: Watches and searches focus efforts, expresses
for deviations from rules and important issues simply
standards, takes corrective
action
• Intellectual Stimulation:
– Promotes intelligence,
– Passive: Intervenes only if rationality, and problem solving
standards are not met
• Individualized
• Laissez-Faire: Consideration:
– Abdicates responsibilities, – Gives personal attention,
avoids making decisions coaches, advises

39. The Relationship between Transformational
and Transactional Leadership
 These two are not opposing approaches.
 They complement each other
 They are not equally important
 Transformational Leadership builds on Transactional
Leadership
 if you are a good transactional leader but do not have
transformational qualities.
 The best leaders are transactional and
transformational.

40. Full range of Leadership model
Effective
Idealized Influence
Inspirational
Motivation
Intellectual
Stimulation
Individualized Transformatio
Consideration nal
Contingent Active
Passive Reward
Management by
Exception
Transactional
Laissez - Faire
Ineffective

41. How Transformational Leadership Works
 Leaders – More effective
– More creative
– Encourage those who follow them
– Show greater agreement among
top manager about organizational
goal.
– Improving performance by building
consensus among group members
– Able to increase the follower
efficiency

42. How Transformational Leadership Works……
 Response of leaders in Organization
- Greater decentralization
- Manager have propensity to take risk
- Compensation plans geared toward
long term result
- Facilitate corporate entrepreneurship.

43. Evaluation of Transformational Leadership
 Transformational Leadership theory is not perfect
 4 I’s in transformational leadership are not
always superior in effectiveness to transactional
leadership.
 It is more strongly correlated than transactional
leadership with,
1. Lower turnover rates
2. Higher productivity
3. Lower employee stress and burnout
4. Higher employee satisfaction

44. Transformational Leadership versus Charismatic
Leadership
 Charismatic Leadership – Want followers to adopt
charismatic world and go no further
 Transformational leadership – Attempt to instill in
followers the ability to question not only established views
but eventually those established by leaders.
 many researchers believes transformational is broader than
charismatic leadership.
 Leader score is high in both leadership.
 Therefore, in practice they may be roughly equivalent.

45. Authentic Leadership
 Authentic leaders know who they are, know what they
believe in value, and act on those values and beliefs
openly and candidly

46. Ethics and Leadership
 Ethical Leaders
 Unethical Leaders
 Treat followers effective
 Socialized Charismatic Leadership
leadership that conveys other centered (not self
centered) values by leaders who model ethical conduct

47. Trust and Leadership
Trust is a psychological state that exists when you agree to
make yourself vulnerable to another
Employees’ Trust in Their CEOs

48. How trust developed?
Leader
Trustworthiness
Risk taking
Integrity
Information sharing
Benevolence Trust
Group Effectiveness
Ability
Productivity
Propensity to Trust

49. Challenges to the Leadership Construct

50. Leadership as an Attribution
Attribution Theory External
Distinctiveness
Internal
External
Individual
Consensus
Behaviour
Internal
External
Consistency
Internal

51. Attribution Theory of Leadership
– The idea that leadership is merely an attribution that
people make about other individuals
Qualities Attributed to Leaders:
• Leaders are intelligent, outgoing, have strong
verbal skills, are aggressive, understanding, and
industrious.
• Effective leaders are perceived as consistent and
unwavering in their decisions.
• Effective leaders project the appearance of being
leaders.

52. Substitutes and Neutralizers for Leadership
• Leadership substitutes
subordinate, task, or organizational
characteristics that make leaders redundant or
unnecessary
• Leadership neutralizers
subordinate, task, or organizational
characteristics that interfere with a leader’s
actions

53. Substitutes and – Continue……….
• Relationship- Task-
oriented oriented
Characteristics Leadership Leadership
Individual
• Experience/training No effect on Substitutes for
Professionalism Substitutes for Substitutes for
Indifference to rewards Neutralizes Neutralizes
Job
• Highly structured task No effect on Substitutes for
Provides its own feedback No effect on Substitutes for
Intrinsically satisfying Substitutes for No effect on
Organization
• Explicit formalized goals No effect on Substitutes for
Rigid rules and procedures No effect on Substitutes for
Cohesive work groups Substitutes for Substitutes for

54. Online Leadership
 Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that
support verbal interactions.
– There is no supporting context to assist the receiver
with interpretation of an electronic communication.
– The structure and tone of electronic messages can
strongly affect the response of receivers.
– An individual’s verbal and written communications
may not follow the same style.
– Writing skills will likely become an extension of
interpersonal skills.

55. Finding and creating effective leaders
 By reviewing the knowledge, skills and abilities needed to do the job effectively.
 Personality tests :- Can identify traits associated with leadership.
• Extraversion
• Conscientiousness
• Openness to experience
• Self monitoring – high self monitors are better at reading situations and
adjusting their behavior accordingly.
•Self confidence
• Having a vision
• The verbal skills to frame issues or charismatic physical presence.
• High emotional intelligence – especially in situations requiring transformational
leadership
• Experience – Poor predictor of leader effectiveness but situation- specific
experience is relevant.

56. Training leaders
These efforts take many forms:-
•From executive leadership programs and outward bound programs
How can managers get maximum effect from their leadership trainings?
1. Let’s recognize the obvious.
high self monitors – they have the flexibility to change their
behavior.
2. What can organizations teach that might be related to higher leader
effectiveness?
• Not “ vision creation” but, likely, implementation skills.
• Can train people to develop “ an understanding about content
themes critical to effective visions”
• Can teach skills – Trust building and mentoring
• Can be taught situational – analysis skills.
A number of companies turn to executive coaches to help senior
managers improve their leadership skills.
Hired coaches to help top executives improve their interpersonal skills
and be more professional in their approach.

57. Global implications
How culture might influence the validity of the theories ?
India Brazil France Egypt China
Action •Team oriented, •More •Team oriented •Emphasizes
orientation & Participative bureaucratic •Participative being polite,
charisma were &humane view of leaders leadership considerate &
found to be the •Participative •Less likely to •Relatively high- unselfish
most important decision making expect them to power-distance •It also has a
characteristics would be suited be humane & culture high
for effective to managing considerate. performance
leadership employees •A leader high orientation
on initiating •Moderately
structure will do participative
best & can make •Status
decisions in a difference
relatively between leaders
autocratic and employees
manner

58. Universal aspects of leadership
A number of elements making up transformational leadership
appear associated with effective leadership, regardless of the
country
What elements of transformational leadership appear universal ?
Foresight
Vision
Providing encouragement
Trust worthiness
Dynamism
Positiveness
Pro-activeness

59. Conclusions of the two members of the GLOBE team
“Effective business leaders in any country are
expected by their subordinates to provide a
powerful & proactive vision to guide the
company into the future, strong motivational
skills to stimulate all employees to fulfill the
vision, & excellent planning skills to assist in
implementing the vision.

60. Mentoring – Leading for the Future
 Mentor: A senior employee who supports a less
experienced employee.
Psychological
Career Functions
Helping the protégé gain skills and
Functions
abilities
Counseling the protégé to
Lobbying for the protégé to get bolster his/her confidence
better assignments
Sharing personal experiences
Providing exposure to influential
individuals in the organization with the protégé
Providing friendship and
Acting as a sounding board for
ideas acceptance
Protecting the protégé to his or her Acting as a role model
reputation

61. Finding and Creating Effective Leaders
Selecting Leaders
Training Leaders

62. Summary and Managerial Implications
• Leadership is central to understanding group
behavior as the leader provides the direction.
• Extroversion, conscientiousness, and openness all
show consistent relationships to leadership.
• Behavioral approaches have narrowed leadership
down into two usable dimensions.
• Need to take into account the situational
variables, especially the impact of followers.

63. Summary conti…….
• Research on charismatic and transformational
leadership has made major contributions to
our understanding of leadership.
• Leaders must be seen as authentic and
trustworthy.
• Investment must be made in the future through
mentoring and training leaders.

64. THANK YOU