IE 001

Engineering
Management
Leadership
LEADERSHIP
INTENDED LEARNING OUTCOMES:
1. Define leader and leadership
2. Differentiate leadership from management
3. Compare and contrast the early theories of
leadership
4. Describe the three major contingency theories
of leadership
5. Describe the contemporary views of leadership.
6. Describe the contemporary issues affecting
leadership.
LEADERSHIP
What is a Leader?
- is someone who can influence others and who
has managerial authority.

What is Leadership?
- this is what leaders do.
- it is a process of leading a group and influencing
that group to achieve its goals.

Are all Managers Leaders?

- ideally, they should be, since leading is one of the
four management functions.
LEADERSHIP
Can anyone be a Leader?
- Some people don’t have what it takes to be a
leader.
- Some people are motivated to lead than others.

Is leadership always necessary?

- Some people don’t need leaders.
- Those with experience, training, professional
orientation or need for independence need less
leadership support.
LEADERSHIP
Exhibit 1: Managership Vs. Leadership:
LEADERSHIP THEORIES
Early Leadership Theories:
I. Leadership Trait Theories
- researchers tried to identify certain traits and
characteristics that would differentiate
leaders from non-leaders.
- researchers eventually recognized that traits
alone were not sufficient for identifying
effective leaders.
LEADERSHIP THEORIES
Seven Traits Associated with Leadership:
● Drive
● Desire to Lead
● Honesty & integrity
● Self-confidence
● Intelligence
● Job-relevant knowledge
● Extraversion
LEADERSHIP THEORIES
II. Leadership Behavior Theories
- researchers tried to identify certain behaviors
that differentiated effective leaders from
ineffective leaders.
Four (4) Main Leader Behavior Studies:
1. University of Iowa studies
2. The Ohio State studies
3. University of Michigan studies
4. Managerial grid
LEADERSHIP THEORIES
1) Univ. of Iowa Studies (Kurt Lewin):
- identified 3 leadership styles:
• autocratic style - centralized authority, low
participation
• democratic style - involvement, high
participation, feedback
• Laissez-faire style - hands-off management
- research findings  mixed results;
• initial results show that democratic was
most effective
• later studies showed that no specific style
is better, showing mixed results
LEADERSHIP THEORIES
2) Ohio State Studies:
- identified two important dimensions of leader
behavior:
• initiating structure - the extent to which a
leader defined his or her role and the roles
of group members in attaining goals.
• consideration - the extent to which a
leader had work relationships characterized
by mutual trust and respect.
LEADERSHIP THEORIES
Ohio State Studies (con’t:)
- research findings  mixed results
• High-high leaders generally, but not always,
achieved high group task performance and
satisfaction.
• Evidence indicated that situational factors
appeared to strongly influence leadership
effectiveness.
LEADERSHIP THEORIES
3) University of Michigan Studies:
– identified two dimensions of leader behavior:
• 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
LEADERSHIP THEORIES
4) The Managerial Grid:
– appraises leadership styles using two (2)
dimensions:
• Concern for people
• Concern for production
LEADERSHIP THEORIES
Exhibit 2: The Managerial Grid :

Source: Reprinted by permission

of Harvard Business Review. An
exhibit from “Breakthrough in
Organization Development” by
Robert R. Blake, Jane S. Mouton
, Louis B. Barnes, and Larry E.
Greiner, November–December
1964, p. 136. Copyright © 1964
by the President and Fellows of
Harvard College. All rights
reserved.
LEADERSHIP THEORIES
The Behavioral Theories of Leadership:
LEADERSHIP THEORIES
Contingency Theories of Leadership:
- look at defining leadership style and the situation
and attempts to answer the if-then
contingencies (if this is the context or
situation, then this is the best leadership
style to use).
The three major contingency theories of
leadership:
1. The Fiedler Model
2. Hersey and Blanchard’s Situational Leadership
Theory
3. Path-Goal Model
LEADERSHIP THEORIES
1) The Fiedler Model
– states that effective group performance
depended upon properly matching the leader’s
style and the amount of control and influence
in the situation.
– 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 favorable
to the leader is required
LEADERSHIP THEORIES
The Fiedler Model (con’t.)
– Least-Preferred Coworker (LPC) Questionnaire
• determines leadership style by measuring
responses to 18 (sometimes 16-25) pairs of
contrasting adjectives:
a) high score  a relationship-oriented
leadership style
b) Low score  a task-oriented leadership
style
LEADERSHIP THEORIES
The Fiedler Model (con’t.)
– uncovered three contingency dimensions that
defined the key situational factors in
leader effectiveness.
• Leader-member relations the degree of
confidence, trust, and respect employees had
for their leader; rated as either good or poor.
• Task structure  the degree to which job
assignments were formalized and structured;
rated as either high or low.
• Position power  the degree of influence a
leader had over activities such as hiring, firing,
discipline, promotions, and salary increases;
rated as either strong or weak.
LEADERSHIP THEORIES
Exhibit 3: Findings of the Fiedler Model
LEADERSHIP THEORIES
2) 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
LEADERSHIP THEORIES
Hersey and Blanchard’s SLT (con’t):
– 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
LEADERSHIP THEORIES
Hersey and Blanchard’s SLT (con’t):
– 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
LEADERSHIP THEORIES
3) Path-Goal Model
– states that the leader’s job is to assist
followers in attaining their goals and to provide
direction or support needed to ensure that
their goals are compatible with the goals of
the group or organization.
- Identified four leadership behaviors:
• Directive
• Supportive
• Participative
• Achievement-oriented
LEADERSHIP THEORIES
Path-Goal Model :
VIEWS OF LEADERSHIP
Contemporary Views of Leadership:
1. Leader–Member Exchange (LMX) Theory
2. Transformational-Transactional Leadership
3. Charismatic-Visionary Leadership
4. Team Leadership
VIEWS OF LEADERSHIP
1) Leader-Member Exchange (LMX)
Theory
- leaders create in-groups and outgroups and
those in the in-group will have higher
performance ratings, less turnover, and
greater job satisfaction.
- leaders invest their time and other resources in
those whom they expect to perform best.
VIEWS OF LEADERSHIP
2) Transformational – Transactional
Leadership
- Transactional leadership  leaders that guide
or motivate followers to work toward
established goals by exchanging rewards for
their productivity.
- Transformational leadership  leaders that
stimulate and inspire (transform) followers
to achieve extraordinary outcomes. They
inspire followers to go beyond their own self-
interests for the good of the organization.
They have a profound and extraordinary
effect on their followers.
VIEWS OF LEADERSHIP
3) Charismatic-Visionary Leadership
- Charismatic leadership  leaders that are
enthusiastic, self-confident and 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 & follower
needs
• Exhibit behaviors that are out of the ordinary
VIEWS OF LEADERSHIP
Charismatic-Visionary Leadership (con’t)
- Visionary leadership  leaders that create and
articulate a realistic, credible, and attractive
vision of the future that improves upon the
present situation.
- Characteristics of visionary leaders:
• Explain the vision to others
• Express the vision not just verbally but
through behavior
• Extend or apply the vision to different
leadership contexts
VIEWS OF LEADERSHIP
4) Team Leadership
- 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
VIEWS OF LEADERSHIP
Team Leadership Roles:
LEADERSHIP ISSUES:
Leadership Issues in the 21st Century:
1. Managing power
2. Developing trust
3. Empowering employees
4. Leading across cultures
5. Becoming an effective leader
LEADERSHIP ISSUES
1) Managing power
- Power is the capacity of a leader to influence
work actions or decisions
- Sources of power:
• Legitimate power – power a leader has as a result
of his or her position in the organization
• Coercive power – power to punish or control
• Reward power – power to give positive rewards
• Expert power – influence a leader can exert as a
result of his or her expertise, skills, or knowledge
• Referent power – power of a leader that arises be
cause of a person’s desirable resources or
admired personal traits.
LEADERSHIP ISSUES
2) Developing trust
- Credibility (of a leader) is the assessment, by
a leader’s followers, of the leader’s honesty,
competence, and ability to inspire.
- Trust is the belief of followers and others in the
integrity, character, and ability of a leader.
- Five dimensions of the concept of trust:
• Integrity: honesty & truthfulness
• Competence: technical & interpersonal knowledge &
and skills
• Consistency: reliability, predictability & good judgement
in handling situations
• Loyalty: willingness to protect a person, physically and
emotionally
• Openness: willingness to share ideas & information freely
LEADERSHIP ISSUES
Tips for Managers:
Suggestions for Building Trust
LEADERSHIP ISSUES
3) Empowering employees
- Empowerment involves increasing the decision-
making discretion of employees.
- Why empower employees?
• Quicker responses to problems and faster
decisions
• Relieves managers to work on other
problems
LEADERSHIP ISSUES
Empowering employees (con’t):
- 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
LEADERSHIP ISSUES
4) Leading across cultures
- National culture affects leadership style
because it influence how followers will
respond. It is an important situational
variable in determining which leadership style
will be most effective.
- Universal elements of effective leadership:
• Vision
• Foresight
• Providing encouragement
• Trustworthiness
• Dynamism
• Positiveness
• Proactiveness
LEADERSHIP ISSUES
Exhibit 4: Some Selected Cross-Cultural
Leadership
LEADERSHIP ISSUES
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
LEADERSHIP ISSUES
Exhibit 5: Where Female Managers Do
Better: A Scorecard
LEADERSHIP ISSUES
5) Becoming an effective leader
- Organizations need effective leaders.
- Pertinent issues to becoming an effective
leader:
• Leader training
• Substitute for leadership – recognizing that
sometimes being an effective leader means
not leading.
- follower characteristics such as experience, training,
professional orientation or need for independence
can neutralize the effect of leadership.
- unambiguous, routine, intrinsically satisfying jobs
- explicitly formalized goals, rigid rules & procedures,
cohesive work groups