The document describes a group of workers clearing a road through dense jungle on a remote island under the direction of leaders. The leaders efficiently organize the labour and monitor progress and resource allocation, maintaining excellent progress. However, one day someone climbs a tree and sees the larger context, shouting "Wrong Way!" to indicate the group may be headed in the incorrect direction despite appearing busy and making progress under the current approach.

1. Leadership

2. Story
A group of workers and their leaders are set a task of clearing a
road through a dense jungle on a remote island to get to the
coast where an estuary provides a perfect site for a port.
The leaders organise the labour into efficient units and monitor
the distribution and use of capital assets – progress is excellent.
The leaders continue to monitor and evaluate progress, making
adjustments along the way to ensure the progress is
maintained and efficiency increased wherever possible.
Then, one day amidst all the hustle and bustle and activity, one
person climbs up a nearby tree. The person surveys the scene
from the top of the tree.

3. Definition
The ability to positively influence people and
systems to have a meaningful impact and
achieve results.
 Leading People
 Influencing People
 Commanding People
 Guiding People

4. Leadership Story
And shouts down to the assembled group below…
“Wrong Way!”
(Story adapted from Stephen Covey (2004) “The Seven Habits
of Highly Effective People” Simon & Schuster).
“Management is doing things right,
leadership is doing the right things”
(Warren Bennis and Peter Drucker)

5. Characteristics of Leadership
1. Leader must have followers
2. It is working relationship between leader and
followers
3. Purpose is to achieve some common goal or goals
4. A leader influences his followers willingly not by
force
5. Leadership is exercised in a given situation
6. Leadership is a power relationship
7. It is a continuous process

6. A Question…
A leader need not be a manager but a manager
must have many of the qualities of a good
Leader..
Managerial Leadership

7. Significance
1. Setting Goals
2. Motivating Employees
3. Building morale
4. Creating Confidence
5. Discipline
6. Developing Team-work
7. Facilitates Change
8. Representing the group

8. Leadership Styles
• Leader by the position achieved
• Leader by personality, charisma
• Leader by moral example
• Leader by power held
• Intellectual leader
• Leader because of ability to accomplish things

9. Leadership Management
Working in the system
React
Control risks
Enforce organizational rules
Seek and then follow direction
Control people by pushing them in
the right direction
Coordinate effort
Provide instructions
Working on the system
Create opportunities
Seek opportunities
Change organizational rules
Provide a vision to believe in and
strategic alignment
Motivate people by satisfying
basic human needs
Inspire achievement and energize
people
Coach followers, create self-
leaders and empower them

10. Leadership Traits
• Intelligence
– More intelligent than
non-leaders
– Scholarship
– Knowledge
– Being able to get things
done
• Physical
– Doesn’t seem to be
correlated
• Personality
– Verbal facility
– Honesty
– Initiative
– Aggressive
– Self-confident
– Ambitious
– Originality
– Sociability
– Adaptability

11. Leadership styles
Autocratic:
o Leader makes decisions without reference to anyone
else
o High degree of dependency on the leader
o Can create de-motivation and alienation
of staff
o May be valuable in some types of business where
decisions need to be made quickly and decisively

12. Democratic:
• Encourages decision making from different
perspectives – leadership may be emphasised
throughout the organisation
– Consultative: process of consultation before decisions are
taken
– Persuasive: Leader takes decision and seeks to persuade
others that the decision is correct

13. Laissez-Faire:
1. ‘Let it be’ – the leadership responsibilities
are shared by all
2. Can be very useful in businesses
where creative ideas are important
3. Can be highly motivational,
as people have control over their working life
4. Can make coordination and decision making
time-consuming and lacking in overall direction
5. Relies on good team work
6. Relies on good interpersonal relations

14. Paternalistic:
 Leader acts as a ‘father figure’
 Paternalistic leader makes decision but may consult
 Believes in the need to support staff

15. Leadership Theories
Trait Theory
• Early on, it was thought that leaders were born with
inherent physiological and personality traits
– Age
– Height
– Intelligence
– Academic achievements
• Stogdill (1974) – identified several general factors that
differentiate leaders from non-leaders…

16. • Capacity: problem-solving capabilities, making judgments and
working hard
• Achievements: accomplishments such as academic record,
knowledge and sports
• Responsibility: dependability, reliability, self-drive, perseverance,
aggressiveness and self-confidence
• Participation and involvement: highly developed social interaction,
popularity, swift adaptation to changing situations, and easier
cooperation compared to non-leaders
• Socio-economic status: effective leaders usually belong to higher
socio-economic classes
Leadership Theories
Trait Theory (continued)

17. Leadership Theories
Behavioral Theories
• Ohio State studies focused on task and social behavior of leaders
• Identified two dimensions of leader behavior
– Initiating Structure: role of leader in defining his/her role and
roles of group members
– Consideration: leader’s mutual trust and respect for group
members’ ideas and feelings
• Two different behavioral theories:
Role Theory
Managerial Grid

18. Leadership Theories
Managerial Grid
• Developed by Drs. Robert R. Blake and Jane S. Mouton
• Believed managers have different leadership styles which led to
two different dimensions of leadership:
• Concern for Production: manager who is task-oriented
and focuses on getting results or accomplishing the
mission (X-axis of grid)
• Concern for People: manager who avoids conflicts and
strives for friendly relations with subordinates (Y-axis of
grid)

19. Leadership Theories
Managerial Grid (continued)
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
**manager
’s goal is
9,9**

20. Leadership Theories
Participative Theories
• Assumes the following
– Involvement in decision-making improves the understanding
of the issues involved and the commitment of those who
must carry out the decisions.
– People are less competitive and more collaborative when
they are working on joint goals.
– Several people deciding together make better decisions
than one person alone.
• Two different participative theories:
 Lewin’s leadership styles
 Likert’s leadership styles

21. Likert’s system of Leadership
• Rensis Likert and his associates studied the patterns and styles of
managers for three decades at the University of Michigan, USA, and
identified a four-fold model of management systems.
1. The model was developed on the basis of a questionnaire
administered to managers in over 200 organizations and research
into the performance characteristics of different types of
organizations.
2. The four systems of management system or the four leadership
styles identified by Likert are:

22. • System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at
the upper echelons of the hierarchy. The superior has no trust and confidence in
subordinates. The decisions are imposed on subordinates and they do not feel free at all
to discuss things about the job with their superior. The teamwork or communication is
very little and the motivation is based on threats.
• System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels
but not at the lower levels of the organizational hierarchy. The superior has condescending
confidence and trust in subordinates (master-servant relationship). Here again, the
subordinates do not feel free to discuss things about the job with their superior. The
teamwork or communication is very little and motivation is based on a system of rewards.
• System 3 - Consultative: Responsibility is spread widely through the organizational
hierarchy. The superior has substantial but not complete confidence in subordinates. Some
amount of discussion about job related things takes place between the superior and
subordinates. There is a fair amount of teamwork, and communication takes place
vertically and horizontally. The motivation is based on rewards and involvement in the job.
• System 4 - Participative: Responsibility for achieving the organizational goals is
widespread throughout the organizational hierarchy. There is a high level of confidence
that the superior has in his subordinates. There is a high level of teamwork,
communication, and participation.

23. Conclusion
• According to Rensis Likert, the nearer the behavioral
characteristics of an organization approach System 4
(Participative), the more likely this will lead to long-
term improvement in staff turnover and high
productivity, low scrap, low costs, and high earnings,
if an organization wants to achieve optimum
effectiveness, then this is the ideal system

24. Leadership Continuum
• A simple model which shows the relationship
between the level of freedom that a manager
chooses to give to a team, and the level of
authority used by the manager. As the team's
freedom is increased, so the manager's
authority decreases. This is a positive way for
both teams and managers to develop.

26. Contingency Theory
• Assumptions:
– No one best way of leading
– Ability to lead contingent upon various situational
factors:
• Leader’s preferred style
• Capabilities and behaviors of followers
• Various other situational factors
• Effect:
– Leaders who are successful in one situation may
become unsuccessful if the factors around them
change
Leadership Theories

27. Contingency Theory: Fiedler’s Least Preferred Co-Worker
(LPC) Theory
• Assumptions:
– Leaders prioritize between task-focus and people-focus
– Leaders don’t readily change their style
• Key situational factor in matching leader to situation:
• Relationships
• Power
• Task structure
• LPC Questionnaire
– Determines leadership style by measuring responses to 18 pairs of
contrasting adjectives.
– High score: a relationship-oriented leadership style
– Low score: a task-oriented leadership style
• Tries to identify the underlying beliefs about people, in particular whether the
leader sees others as positive (high LPC) or negative (low LPC).
Leadership Theories

28. Exhibit 17.4
Findings of the Fiedler Model
Leadership Theories

29. Situational Leadership
• Situational factors (motivation, capability of followers,
relationship between followers and leader) determine
the best action of leader
• Leader must be flexible to diagnosis leadership style
appropriate for situation and be able to apply style
• No one best leadership style for all situations
Leadership Theories

30. Hersey & Blanchard’s Situational Leadership (1977)
Identified 4 different leadership styles based on readiness of followers
R1. Telling (high task/low relationship behavior)
• Giving considerable attention to defining roles and goals
• Recommended for new staff, repetitive work, work needed in a short time span
• Used when people are unable and unwilling
R2. Selling (high task/high relationship behavior)
• Most direction given by leader encouraging people to ‘buy into’ task
• Used when people are willing but unable
R3. Participating (high relationship/low task behavior)
• Decision making shared between leaders and followers, role of leader to facilitate
and communicate
• Used when people are able but unwilling
R4. Delegating (low relationship/low task behavior)
• Leader identifies problem but followers are responsible for carrying out response
• Used if people are able and willing
Leadership Theories

31. Source: Reprinted with permission from the Center for Leadership
Studies. Situational Leadership® is a registered trademark of the Center
for Leadership Studies. Escondido, California. All rights reserved.
Leadership Theories
Hersey & Blanchard’s Model

32. Summary of Leadership Theories
Theory Leadership Based On…
Trait Theory Leaders born with leadership traits
Behavioral Theory Initial structure and consideration
- Role Theory Shaped by culture, training, modeling
- Managerial Grid Concern for production and concern for people
Participative Leadership More people involved = better collaboration
- Lewin’s Style Autocratic, democratic, laissez-faire
- Likert’s Style Task oriented, relationship oriented, participative style
Contingency Theories No one best leadership style
- Fiedler’s LPC Theory Task focus v. relationship focus
- Cognitive Resource Theory Intelligence and experience make a difference
- House’s Path Goal Theory Help followers make their goals compatible with
organizational goals
Situational Leadership Similar to contingency theory
- Hersey and Blanchard Based on relationship between leader and follower
and task behavior
- Vroom & Yetton Decision quality and decision acceptance

33. Transactional Vs. Transformational
Leadership
Basis of Distinction Transactional Transformational
Basis Based on exchange
relationship between leader
and followers.
Based on leaders values,
beliefs and needs of
followers
Method of inspiration Rewards and recognition for
good performance
Leaders charisma, vision
and energy
Orientation Task Orientaion Goal Orienatation
Approach Passive and stable Active and dynamic
Main functions of leader Determination of objectives,
clarifying tasks, helping
subordinates in achieving
objectives
Providing vision and sense
of mission, instilling pride,
gaining respect and trust,
inspiring people, giving
personal attention.

34. Queries…????