1. LEADERSHIP IN
ORGANIZATIONS
MANAGEMENT 6th Ed.
By: Richard Daft
Prepared by: GREGAR DONAVEN E. VALDEHUEZA, MBA
Lourdes College Instructor

2. Learning Objectives
 Define leadership and explain its importance for organizations.
 Identify personal characteristics associated with effective
leaders.
 Explain the five sources of power and how each causes different
subordinate behavior.
 Describe the leader behaviors of initiating structure and
consideration and when they should be used.
 Describe Hersey and Blanchard’s situational theory and its
application to subordinate participation.
 Explain the path-goal model of leadership.
 Discuss how leadership fits the organizational situation and how
organizational characteristics can substitute for leadership
behaviors.
 Describe transformational leadership and when it should be
used. Explain innovative approaches to leadership in the new
workplace.

3. The Nature of Leadership
Leadership occurs among people, involves
the use of influence, and is used to attain
goals.
Leadership:
the ability to influence people toward the
attainment of goals.

4. Leadership versus Management
Leader qualities Manager qualities
SOUL MIND
Visionary Rational
Passionate Consulting
Creative Persistent
Flexible Problem solving
Inspiring Tough-minded
Innovative Analytical
Courageous Structured
Imaginative Deliberate
Experimental Authoritative
Initiates change Stabilizing
Personal power Position power

5. Major differences between manager and
leader qualities relates to the source of
power and the level of compliance it
engenders within followers.
Power:
the potential ability to influence others’
behavior.

6. Position Power
 Legitimate Power
 Power that stems from a formal management
position in an organization and the authority
granted to it.
 Reward Power
 Power that results from the authority to bestow
rewards on other people.
 Coercive Power
 Power that stems from the authority to punish or
recommend punishment.

7. Personal Power
 Expert Power
 Power that stems from special knowledge of or
skill in the tasks performed by subordinates.
 Referent Power
 Power that results from characteristics that
command subordinates’ identification with,
respect and admiration for, and desire to emulate
the leader.

8. Empowerment
 the giving or delegation of power; authority (
www.freedictionary.com)
 Empowerment is the process of enabling or
authorizing an individual to think, behave, take
action, and control work and decision making
in autonomous ways. (humanresources.about.com)
Empowering employees works because total
power in the organization seems to increase.
Everyone has to say and hence contributes
more to organizational goals.

9. Leadership Traits
Traits:
the distinguishing personal characteristics
of a leader, such as intelligence, values, and
appearance.

10. Personal Characteristics of Leaders
Physical Characteristics: Social Characteristics:
 Energy  Sociability, interpersonal skills
 Physical stamina  Cooperativeness
Intelligence & Ability:  Ability to enlist cooperation
 Intelligence, cognitive ability  Tact, diplomacy
 Knowledge Work Related Characteristics:
 Judgment, decisiveness  Achievement drive, desire to
Personality: excel
 Self-confidence  Conscientiousness in pursuit of
 Honesty & integrity goals
 Persistence against obstacles,
 Enthusiasm
tenacity
 Desire to lead
Social Background:
 Independence
 Education
 Mobility

11. Autocratic versus Democratic Leaders
Autocratic leader
 Leader who tends to centralize authority and
rely on legitimate, reward, and coercive power
to manage subordinates.
Democratic leader
 Leader who delegates authority to others,
encourages participation, and relies on expert
and referent power to influence subordinates.

12. Leadership Continuum
Boss-Centered Subordinate-Centered
Leadership Leadership
Use of authority by
managers
Area of freedom for
subordinates
Manager Manager Manager Manager Manager Manager Manager
makes “sells” presents presents presents defines permits
decision decision ideas and tentative problem, gets limits, asks subordinates
and invites decision suggestions, group to to function
announces questions subject to makes make within limits
it change decision decision defined by
superior

13. Behavioral Approaches
 Ohio State Studies
2 major behaviors:
 Consideration
- The type of behavior that describes the
extent to which the leader is sensitive to
subordinates, respects their ideas and
feelings, and establishes mutual trust.
 Initiating structure
- A type of leader behavior that describes
the extent to which the leader is task
oriented and directs subordinates work
activities toward goal attainment.

14. A leader may have any of four styles:
 high initiating structure – low consideration
 high initiating structure – high consideration
 low initiating structure – low consideration
 low initiating structure – high consideration

15.  Michigan Studies
Employee-centered leaders:
 Established high performance goals and
displayed supportive behavior toward
subordinates.
Job-centered leaders:
 Less concerned with goal achievement and
human needs in favor of meeting schedules,
keeping costs low, and achieving production
efficiency.

16.  The Leadership Grid
 A two-dimensional leadership theory that
measures leader’s concern for people and
concern for production.

17. Leadership Grid Figure
9 Country Club Management (1,9) Team Management (9,9)
Thoughtful attention to the needs of Work accomplishment is from
8 people for satisfying relationships leads committed people; interdependence
C to a comfortable, friendly organization through a “common stake” in
O atmosphere and work tempo. organization purpose leads to
N 7 relationships of trust and respect.
C
E
R 6 Middle-of-the-Road Management (5,5)
N
Adequate organization performance is
F
5 possible through balancing the necessity to
O get out work with maintaining morale of people
R
at a satisfactory level.
P 4
E
O
P 3
L Impoverished Management (1,1) Authority-Compliance (9,1)
E Exertion of minimum effort to get Efficiency in operations results from
2 required work done is appropriate to arranging conditions of work in such
sustain organization membership. a way that human elements interfere
1 to a minimum degree
1 2 3 4 5 6 7 8 9
CONCERN FOR PRODUCTION

18. Contingency Approaches
 A model of leadership that describes the
relationship between leadership styles and
specific organizational situations.

19.  Fiedler’s Contingency Theory
Leadership Style:
 Relationship-oriented leader – concerned
with people, as in the consideration style.
 Task-oriented leader – primarily motivated
by task accomplishment, which is similar to
the initiating structure style.

20. Leadership style was measured with a
questionnaire known as the Least Preferred
Coworker (LPC) scale.
example:
open - - - - - - - - guarded
quarrelsome - - - - - - - - harmonious
efficient - - - - - - - - inefficient

21. Situation:
Leadership situations can be analyzed
in terms of three elements.
1. Leader-member relations – refers to group
atmosphere and members’ attitude toward
and acceptance of the leader.
2. Task structure – refers to the extent to which
tasks performed by the group are defined,
involve specific procedures, and have clear,
explicit goals.
3. Position power – is the extent to which the
leader has formal authority over subordinates.

22. How Leader Style Fits the Situation

23. A leader needs to know two things in order to
use Fiedler’s Contingency Theory:
 The leader should know whether he/she has a
relationship- or task-oriented style.
 The leader should diagnose the situation and
determine whether leader-member relations, task
structure, and position power are favorable or
unfavorable.

24.  Hersey and Blanchard’s Situational Theory
Situational Theory
 A contingency approach to leadership that links
the leader’s behavioral style with the task
readiness of subordinates.

25. Four leadership styles:
1. Telling style – reflects a high concern for production
and a low concern for people. (Directive style)
2. Selling style – based on a high concern for both
people and production.
3. Participating style – based on a combination of high
concern for people and low concern for production.
4. Delegating style – reflects a low concern for both
people and production.

26. Low Readiness Level  Telling Style
Moderate Readiness Level  Selling Style
High Readiness Level  Participating Style
Very High Readiness Level  Delegating Style

27. Hersey-Blanchard’s Situational Theory of Leadership

28.  Path-Goal Theory
 A contingency approach to leadership
specifying that the leader’s responsibility is to
increase subordinates’ motivation by clarifying
the behaviors necessary for task
accomplishment and rewards.
This model is called a contingency theory because it consists
of three sets of contingencies (leader behavior and style,
situational contingencies, and the use of rewards to meet
subordinates’ needs.)
Fiedler Theory assumption would be to switch leaders as
situations change. In Path-Goal Theory, leaders switch their
behaviors to match the situation.

29. Leader Roles in the Path-Goal Theory

30. Fourfold classification of leader behaviors:
1. Supportive leadership – involves leader behavior
that shows concern for subordinates’ well-being and
personal needs. This is similar to the consideration
leadership.
2. Directive leadership – occurs when the leader tells
subordinates exactly what they are supposed to do.
This is similar to the initiating-structure leadership.
3. Participative leadership – the leader consults with
his/her subordinates about decisions.
4. Achievement-oriented leadership – occurs when the
leader sets clear and challenging goals for
subordinates.

31. Two important situational contingencies are:
1. The personal characteristics of group members.
Include such factors:
 Ability
 Skills
 Needs
 Motivations
2. The work environment.
Include such factors:
 Degree of task structure – the extent task are well-defined
and have explicit descriptions and work procedures.
 Nature of formal authority system – the amount of legitimate
power used by managers and the extent to which policies
and rules constrain employees’ behavior.
 The work group – the educational level of subordinates and
the quality of relationships among them.

32. Path-Goal Situations & Preferred Leader Behavior

33.  Substitute for Leadership
The final contingency approach suggests that
situational variables can be so powerful that they
actually substitute for or neutralize the need for
leadership.
 Substitute – a situational variable that makes a
leadership style unnecessary or redundant.
 Neutralizer – a situational variable that counteracts a
leadership style and prevents the leader from
displaying certain behaviors.

34. Substitute and Neutralizers for Leadership
Variable Task-Oriented People-Oriented
Leadership Leadership
Organizational variables: Group cohesiveness Substitute for Substitute for
Formalization Substitute for No effect on
Inflexibility Neutralizes No effect on
Low positional power Neutralizes Neutralizes
Physical separation Neutralizes Neutralizes
Task characteristics: Highly structured task Substitute for No effect on
Automatic feedback Substitute for No effect on
Intrinsic satisfaction No effect on Substitute for
Group characteristics: Professionalism Substitute for Substitute for
Training/experience Substitute for No effect on

35. Change Leadership
 Transactional Leader
 Leader who clarifies the role and task
requirements of subordinates, initiate structure,
provide appropriate rewards, and try to be
considerate to and meet the social needs of
subordinates.
 Charismatic Leader
 Leader who has the ability to motivate
subordinates to transcend their expected
performance.

36. Impact of charismatic leaders is normally from:
1. Stating a lofty vision of an imagined future
that employees identify with.
 Vision – an attractive, ideal future that is
credible yet not readily attainable.
2. Shaping a corporate value system for which
everyone stands.
3. Trusting subordinates and earning their
complete trust in return.

37.  Charismatic leaders tend to be less predictable
than transactional leaders. They create an
atmosphere of change , and they may be
obsessed by visionary ideas that excite,
stimulate, and drive other people to work hard.
 Transformational Leader
 A leader distinguished by a special ability to bring
about innovation and change by recognizing
followers’ needs and concerns, helping them look
at old problems in new ways, and encouraging
them to question the status quo.

38. Leading the New Workplace
Four areas of particular interest for leadership in the
new workplace are a new concept referred to as:
 Level 5 leadership
 Women’s ways of leading
 Virtual leadership
 Servant leadership

39. The Level 5 Leadership Hierarchy
Level 5: The Level 5 Leader
Builds an enduring great organization through a
combination of personal humility and
professional resolve.
Level 4: The Effective Executive
Builds widespread commitment to a clear and
compelling vision; stimulates people to high
performance.
Level 3: Competent Manager
Sets plans and organizes people for the
efficient and effective pursuit of objectives.
Level 2: Contributing Team Member
Contributes to the achievement of team goals; works
effectively with others in a group.
Level 1: Highly Capable Individual
Productive contributor; offers talent, knowledge,
skills, and good work habits as an individual
employee.

40. Leading the New Workplace
Four areas of particular interest for leadership in the
new workplace are a new concept referred to as:
 Level 5 leadership
 Women’s ways of leading
 Virtual leadership
 Servant leadership

41. Recent research indicates that women’s style of
leadership is particularly suited to today’s
organizations.
Female managers score significantly higher than men
on abilities such as motivating others, fostering
communication, and listening.
 Interactive leadership
 A leadership style characterized by values such as
inclusion, collaboration, relationship building, and
caring.

42. Leading the New Workplace
Four areas of particular interest for leadership in the
new workplace are a new concept referred to as:
 Level 5 leadership
 Women’s ways of leading
 Virtual leadership
 Servant leadership

43. People who excel as virtual leaders tend to
be open-minded and flexible, exhibit positive
attitudes that focus on solutions rather than
problems, and have superb communication,
coaching, and relationship-building skills.
Essentials in virtual environment:
 Building trust
 Maintaining open lines of communication
 Caring about people
 Being open to subtle cues from others

44. Leading the New Workplace
Four areas of particular interest for leadership in the
new workplace are a new concept referred to as:
 Level 5 leadership
 Women’s ways of leading
 Virtual leadership
 Servant leadership

45. Servant leadership, first described by Robert
Greenleaf, is leadership upside down
because leaders transcend self-interest to
serve others and the organization.
 Servant leader
 A leader who works to fulfill subordinates’ needs
and goals as well as to achieve the organization’s
larger mission.

46. END
 Questions?
 Suggestions?
 Clarifications?
 Violent reactions?
 Everything’s clear?
HAVE A GOOD DAY!!! 