Leadership & Leadership Styles

BSS666: LECT 4
 Definition

•Leadership is defined as the process of directing and

influencing the task related activities of group
members[1] and it is also can be defined as the process
of directing human resource effort toward organizational
objective[2].

•Leadership is the influencing process of leaders and

followers to achieve organizational objectives through
change

[1] Stoner, J.A.F, Management, Prentice Hall, New Jersey, 6th Edition
[2] Schermerhorm, John. R., Management for Productivity, John Willey and Sons, 2nd Edition.
• The leader needs to be decisive and a risk
taker. The personal characteristics of the
leader together with his/her style must be
selected appropriately depending upon the
situation at hand. A leader will involve an
unequal distribution of power and need the
ability to use the different form of power to
influence follower’s behavior.
 Key Elements of Leadership

Influence

Leaders– Leadership Organizational

Followers Objectives

Change People

4
 Four Important Facts

1. Leadership involves people-employees are follower.

2. Leadership involves an equal distribution of power
leaders and group members.
3. Leadership involves the ability to use the different
forms of power to influence follower’s behavior. Such
as power used are reward power, referent power,
expert power and legitimate power or authority.
4. Leadership is about values: moral values, obligations
and responsibilities toward employees.
Leadership is important to organization to:

• make contributions to organization

• enhance and elicit cooperation
• encourage teamwork
• motivate employees to generate good
work
 Leadership and Management
• Leadership is the ability to influence peoples and
gets them to do what the leader has
envisioned[1]. There is a high power distance
indicating a wide gap (power, privileges)
between the leader and his subordinates.
• Authority is normally accepted perhaps as a
result of the Malaysian background of having
hierarchical society. Leaders are expected to
have the knowledge, how, and vision.

[1] Gary A. Yukl, Leadership In Organizations, Prentice-Hall Inc. 1989

 Leadership vs Management

LEADERSHIP MANAGEMENT
• This is the process of setting • an activity, which deals with
objectives and making the short-term problems and takes
most efficient use of financial, place within the internal
human and physical resources hierarchical structure of the
to achieve these objectives. organization.
• The leader must have the • Influencing others to achieve
ability and personality to direct certain aims or objectives.
and guide people, influence
their thoughts and behaviour,
motivate them and control
them to work towards goals
that are regarded by the group
and the organization as
desirable and achievable.
 Leadership vs Management
LEADERSHIP MANAGEMENT
• Leadership can take place • Effective leadership skills
within the internal and external can help a manager to
hierarchical structure of the
organization. A leader is
carry out their duties by
usually viewed as a establish clear targets,
charismatic person who is define standards, and
prepared to take risks and encourage staff
brings about long-term development, undertake
changes in peoples’ attitudes,
behaviour and culture.
appraisals, analyze short-
• Key tasks include planning,
term problems and make
control and co-ordination. short-term decisions
 Managers vs Leaders
(Characteristics)

Manager characteristics Leader characteristics

• Administrate • Innovates
• A copy • An original
• Maintains • Develops
• Focuses on systems and structure • Focuses on people
• Relates on control • Inspires trust
• Short-range view • Long-range perspective
• Asks how and when • Asks what and why
• Eye on the bottom line • Eye on the horizon
• Imitates • Originates
• Accepts the status quo • Challenges the status quo
• Classic good soldier • Own person
• Does thing right • Does the right thing
 Managers vs Leaders
(Qualities)

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
 What do Leaders do?

• Decide upon objectives

for the organisation
• Provide expertise and
set standards fort the
organisation
• Decide upon company
structure and shape the
culture of the business
 What makes a good leader?

• A good leader will be informed and knowledgeable about

matters relating to the business
• A good leader should be self-motivated and desire to
achieve great things
• A good leader should possess an air for authority
• A good leader would have the ability to think creatively
and to solve problems
 Power
• One of the major differences between the leader and the manager
relates to their source of power and the level of compliance it
engenders within followers. Power is the potential ability to influence
the behavior of others.[1] Power represents the resources with
which a leader effects changes in employee behavior. Within
organizations, there are typically five sources of power: legitimate,
reward, coercive, expert, and referent.[2]. Sometimes power comes
from a person’s position in the organization, while other sources of
power are based on personal characteristics.
•
• [1] Hery Mintzberg: Power in and around Organization. Prentice Hall 1983
• [2] (J. R. P. French, J.r, and B. Raven: The Bases of Social Power in Group Dynamics Evanson 1960 pp 607-623)
 Power

Authority

Control over Rewards

Control over POWER

Punishments

Appealing Personal
Characteristics

Expertise
 Leadership Power and Influence

• The social nature is explained in terms of

influence one person has over others. Based on
this source of power, superior influence
subordinates, directing their efforts toward
fulfilling organizational objectives.
• There are five powers can be used to influence
others behavior to accomplish preferred results.
 Legitimate Power

• Power coming from a formal management

position in an organization and the authority
granted to it is called legitimate power.
• For example, once a person has been selected
as a supervisor, most workers understand that
they are obligated to follow his or her direction
with respect to work activities.
• Subordinates accept this source of power as
legitimate, which is why they comply.
 Reward Power

• Another kind of power is reward power, stems

from the authority to bestow rewards on other
people.
• Managers may have access to formal rewards,
such as pay increases or promotions.
• They also have at their disposal such rewards as
praise, attention, and recognition.
• Managers can use rewards to influence
subordinates’ behavior.
 Coercive Power

• The opposite of reward power is coercive power:

It refers to the authority to punish or recommend
punishment.
• Managers have coercive power when they have
the right to fire or demote employees, criticize, or
withdraw pay increases.
• For example, if a salesman, does not perform
as expected, his supervisor has the coercive
power to criticize him, reprimand him, put a
negative letter in his file, and hurt his chance for
a raise.
 Cont’
• Legitimate power and reward powers are most
likely to generate follower compliance.
• Compliance means that workers will obey orders
and carry out instructions, although they may
personally disagree with them and may not be
enthusiastic.
• Coercive power most often generates
resistance.
• Resistance means that workers will deliberately
try to avoid carrying out instructions or will
attempt to disobey orders.
 Expert Power

• Power resulting from a leader’s special

knowledge or skill regarding the tasks performed
by followers is referred to as expert power.
• When the leader is a true expert, subordinates
go along with recommendations because of his
or her superior knowledge.
• Leaders at supervisory levels often have
experience in the production process that gains
them promotion.
• At top management levels, however, leaders
may lack expert power because subordinates
know more about technical details than they do
 Referent Power

• The last kind of power is referent power, comes

from leader personality characteristics that
command subordinates’ identification, respect,
and admiration so they wish to emulate the
leader.
• When workers admire a supervisor because of
the way she/he deals with them, the influence is
based on referent power.
• Referent power depends on the leader’s
personal characteristics rather than on a formal
title or position and is most visible in the area of
charismatic leadership.
 Leadership Theories

• Leadership has been studied in different ways,

dependent on researcher’s conception of leadership and
methodological preferences.
• According to Laurie J Mullions (1996) approaches to
leadership is due to its complex and variable nature
there are many ways of analyzing leadership[1] A
framework suggested is as follow.
– Trait theory (also known as characteristics or Qualities or
Traits Approach)
– Contingency theory (also known as Situational Approach)
– Style theory (also known as behavioural approach)
[1] (Laurie J Mullins:, Management And Organizational Behaviour 4th Edition, Pitman Publishing
1996 pp. 245-283).
Trait theories (also known as Characteristic or Quality
Approach)

• Qualities or Trait Approaches assume that individual is important

than situation. According to Stephen Robbins (1998) trait theories
that sought personality, social, physical or intellectual traits that
differentiated leaders from non-leaders. However to find every
characteristic would seem to be an impossible task. The only
common traits found in leaders were intelligence and initiatives.
Individuals who become leaders come from difficult background and
culture. Therefore the traits posses by them are different. Effective
leadership does not depend upon a particular set of traits. Whether
leaders managing factories or construction is effective or not is
actually depend how well the leaders traits match the requirement of
the situation that he or she in.[1]
•
[1] Stephen P. Robbins, Organizational Behaviour 8th Edition, Prentice Hall. Inc. 1998 pp.346-393
 List of Successful Leader
Source: Shamil Naoum: “People and Organization Management in Construction”
Thomas Telford pp. 196-197.

• Vision. Good leaders display an ideological vision that is congruent with the deeply held values of followers, a
vision that describes a better future to which the followers have a moral right.

• Intelligence. Good leaders should be above average but not of genius level. They should be particularly good at
solving complex and abstract problems.

• Decisiveness. Good leaders should have the ability to make calculated decisions and act swiftly according to the
situation.

• Confidence. This implies that good leaders should be confident in themselves and in the ability of their followers
to meet a high-performance outcome.

• Supervision. Good leaders should have' the ability to watch and direct individuals and the group.
• Individuality. Individual leaders can have there own ways of doing things. It might appear weird sometimes but it
helps to give the leader a degree of uniqueness, which can pay off when managing people.

• Integrity. Good leaders having the quality of being honest and upright in their character.
• Image building. Outstanding leaders are self-conscious about their own image. They recognize that followers
must perceive them as competent, credible and trustworthy. This image building will set the stage for effective
role modeling because followers identify with the values of role models that are perceived positively.

• Inspirational communication. Outstanding leaders often, but not always, communicate their messages in an
inspirational manner using vivid stories, slogans, symbols and ceremonies.

• Sociability. This refers to good leaders who have the ability of mixing with their people and have a social
relationship with them.
 Whether a leader is born or?

• As to the question of whether a leader is born with these characteristics or

made for them, previous studies of trait theories were not consistent in their
conclusions. While some writers believe that people are born with
leadership qualities, other writers have stated that leadership cannot be
created or promoted and cannot be taught or learned. It is safe then to say
that there are certain characteristics, which a good leader can learn by
experience throughout his/her professional career, such as the ability to
have a vision or planning an effective company strategy. These can be
called interpersonal characteristics. On the other hand, there are other
characteristics which a leader is born with and which are difficult (though not
impossible) to learn, such as intelligence or integrity. These could be called
personnel characteristics. An outstanding leader needs to have a
combination of these two types of characteristics. However, the degree
of need depends on the situation that he/she is dealing with at the time,
such as the task and the people to be led.
 Contingency theories (also known as Situational
Approach)

• The trait theories and the style theories discussed above fall short in
establishing a significant relationship between leadership behaviour and
successful performance. Neither theory takes into account the situational
factors, which the leader is likely to face at the time. This led theorists to
apply the concept of contingency theory into leadership effectiveness.
Contingency theory states that there is no one best way to organize or to
manage the organization. Effective management is contingent upon the
purpose that the organization is seeking to fulfill and upon the nature of the
tasks that have to be managed.
• According to proponents of the situational approach to leadership,
universally important traits and behaviors don’t exist. They believe effective
leader behaviors vary from situation to situation. The leader should first
analyze the situation and then decide what to do. In other words, look
before you lead.[1]
•
[1] Bateman Snell: Management Building Competitive Advantage 4th Edition Irwin Mc Graw Hill 1999 pp. 404 437
Style theories (also known as Behavioural Approach)

• According to Laurie J Mullins (1996) leadership style is the way in which the
functions of leadership are carried out, the way in which the manager typically
behaves towards member of the group. The style of managerial leadership
towards subordinate staff and the factory of power can be classified as
Authoritarian (Autocratic), Democratic style and a genuine laissez-faire style.[1]
• To be effective, project managers will need to apply certain management skill
like the theory of win-win negotiations. Art of Conflict management, Public
Relation Skills in inter human relationship, management by objectives (MBO)
and creative synergy whether to be autocratic, democratic and genuine laissez-
faire style it will depends on situation and the level of organization structure
which the Project Manager deal with it.
• A leader should also have a style of leadership, which distinguishes him/her
from other managers and can influence the people to do the specific task
willingly. The styles are usually referred to as a continuum between ‘autocratic’
and ‘democratic’ dimensions. With an autocratic leadership, the power of
making a decision is placed in the centre by the leader who alone exercises
this authority. In a democratic leadership system, the power is shared among
members of the working group.
•
[1] (Laurie J Mullins:, Management And Organizational Behaviour 4th Edition, Pitman Publishing 1996 pp.
245-283).
 Leadership Styles …

• There are four basic categories of

leadership style…
Autocratic or authoritarian leadership
Paternalistic leadership
Democratic or participative leadership
Laissez-Faire or Free-rain leadership
 Authoritarian or Autocratic Leadership

• Autocratic leaders are task-oriented people, working towards targets

and deadlines. This works centered approach tends to look at
workers as one if the factors of production that have to be managed
like machines and money.

• Autocratic leader would want to know about everything that is going

on within the organization. They would want to make practically all
the decisions and have the final say. Communication flow tends to
be one way only, with the leader ordering his subordinates about.
There us minimal information flow from bottom up. If at all it
happens, it could be status reports or answers to specific inquires
the leader may have asked. The following figure illustrates this;
 Autocratic Leadership Style

LEADER

Subordinate Subordinate Subordinate

Source: Tannenbaum and Schmidt “How to Choose the

Leadership Pattern”
• An autocratic style has its pluses and minuses in a project management
context. On the plus side, the autocratic approach may be appropriate for
routine, low risk projects, where the staff merely carries out the plan exactly
as specified. In such a situation, feedback from staff is not as crucial as in a
high-risk, high flux project. The autocratic approach is also effective when
quick decisions need to be made. Since autocrats are not concerned with
achieving consensus and gathering large amounts of data on which to base
their decision, they are able to make decisions speedily.
• On the minus side, the autocratic approach may lead to demoralization of
the staff, since they contribute no meaningful input into the decision making
process. Creative and intelligent knowledge workers want their views to
count, if they determine that their bosses don’t want to hear their views, they
will be unhappy. Another drawback of the autocratic approach is that it may
lead to bad decision making, since the boss often bases his or her decisions
on insufficient outside information.
 Conclusion....

Such leaders would have considerable sympathy with the

views expressed by Taylor.
Such leaders…
• Take decisions with little involvement of junior
employees
• Allocate tasks
• Set objectives
• Will contain total control throughout
 Authoritarian Ctd…
Such leaders, use a one-way
communication system, downwards from
leader to subordinate.
This style of leadership may be
appropriate when quick decisions are
required, or when large numbers of un-
skilled employees are involved.
 Paternalistic Leadership
• This is a leadership style which is quite
dictatorial, yet decisions are taken in the
best interests of the employees.
• Leader acts as a ‘father figure’
• Paternalistic leader makes decision but
may consult
• Believes in the need to support staff
 Conclusion…
• This style’s key features include…
–This form of leadership explains
decisions
–It also ensures employees’ social
and leisure needs are met.
 Democratic/Participate Leadership

• Democratic leaders believe in letting people have say in

decision making. A multiple directional flow of
information takes place in an organization that has this
type of leadership. Subordinates are allowed to speak
their mind.

• They very nature of democratic leadership allow for a

bigger role on the part of subordinates in the running of
the organization. Feedback from subordinates is always
encouraged because it is not only good for the
subordinate but also provides for better decision making
as well.
 Democratic Leadership Style

LEADER

Subordinate Subordinate Subordinate

Source: Tannenbaum and Schmidt “How to Choose the Leadership

Pattern”
• A democratic group decision – making would appear
to offer a number of advantages:
• Provided a pooling of resources, and can bring
together a range of complementary knowledge
and expertise.
• Interaction among members can have a
‘snowball’ effect and provoke future thoughts and
ideas in the minds of others.
• Group discussion leads to the evaluation and
correction of possible decision.
• Provided full participation, decisions will have the
acceptance of most members and they are more
likely to be committed to decisions made and
their implementation.
 Conclusion.....
This form of leadership involves running a
business on the basis on the majority of
decisions.
This methods main features include…
 This form of leadership encourages
employees to take part in decision-making
 This method also uses delegation
 Democratic Leadership Ctd…
There is a two-way communication between senior and junior
employees.

• Bill Gates was a man, famous for his democratic management style
at Microsoft.
• He has actively involved employees in key management and
strategic decisions.
• Most of his time is devoted to meeting with customers and staying in
contact with Microsoft employees around the world via e-mail.
 Laissez-Faire or Free-rain leadership

• ‘Let it be’ – the leadership responsibilities

are shared by all
• Can be very useful in businesses
where creative ideas are important
• Can be highly motivational,
as people have control over their working life
• Can make coordination and decision making
time-consuming and lacking in overall direction
• Relies on good team work and interpersonal relations
 Conclusion…
• Leader allows employees to make the decisions.
• Leader is still responsible for the decisions.
• Employees analyze the situation and determine
what needs to be done and how to do it. Leader
sets priorities and delegates.
• Leader has little control.
• Team has little direction or motivation.
 Douglas McGregor’s
Theory X and Y

o In 1964, Douglas published ‘The Human Side of

Enterprise.’
o This book is famous for discovering how leaders’
attitudes may influence their behaviour.
o The book is noted for its comparison of two types
of leader that McGregor called ‘TheoryX’ and
‘TheoryY’ leaders.
 Theory X Leaders Believe…
• The average employee dislike work and will avoid it if at
all possible
• People must be controlled and directed and punished, if
necessary, to put in a real effort at work
• The typical worker wants to avoid responsibility and has
little ambition
• Employees look for security above all else at work
 Theory Y Leaders Believe…
• Working is as natural as play or rest for the average
employee
• The typical worker does not have an in-built dislike for
work
• Other means exist to motivate workers rather than
control and punishment
• In the right circumstances, workers seek responsibility
• Most employees have imagination and creativity that
may be used to help organisations achieve their goals
 Management by Objectives
• Peter Drucker published ‘The Practice of
Management,’ which included his theory of
Management by Objectives.
Drucker’s theory of Management

According to Drucker’s theory of

management, managers should;
Identify and agree targets for achievement
with sub-ordinates
Negotiate the support that will be required
to achieve these targets
Evaluate over time the extent to which
these objectives are met
 Advantages of MBO
• It can improve the communication within the organisation
as the target-setting and evaluation process takes place
• Employees may be motivated by understanding what
they are trying to achieve, and how it helps the business
achieve its overall goal.
• MBO can highlight training needs for managers and sub-
ordinates, improving their performance and productivity
 Disadvantages of MBO
• Some employees may see the setting of targets as
threatening. A manager might set targets that the
subordinate considers unachievable
• All employees within the organisation must be committed
to the technique if it is to succeed and benefit the
business
• Modern businesses operate in a business environment
that changes rapidly. Objectives can quickly become out
of date.
 Issues in Leadership

There are a number

of important factors
which influence the
day-to-day leadership
approach used by
managers
 Team-based leadership
• Teamworking occurs when production is organised into
substantial units of work.
• Teamworking is common within organisations and often
companies delayering
• Businesses may assemble teams to solve problems and
propose new working methods
• A correct balance of people within the team is essential
 Team-based leadership
• Individuals must not only be multi-skilled, but their skills
and personalities must blend together and be
complimentary
• Successful teams need people with drive and motivation,
as well as people with administrative skills to ensure all
tasks are completed
Quality Circles: teams of employees drawn from all levels in
the organisation to solve operational problems
 Problems with teams
• It is important for leaders to make sure that teams are all
pursuing the organisation’s objectives
• Teams may become too competitive
• Teams may become confident to their own success, an
unaware of changes taking place out side the team. This
may result in failure to meet targets
 Single Status
• Team-based leadership may also require
the implementation of single status into
the workplace
• This leads to the removal of all barriers
distinguishing between different grades of
staff within the organisation
Under single status all employees within an
organisation…

• Use the same canteen and other facilities

• Work similar hours
• Are entitled to similar holiday
arrangements
• Wear the same clothing

The only distinction remaining should be the level of pay

received by various grades of employees
 Delegation and Consultation

Important elements of an individuals style of

leadership

Delegation: Managers give junior

employees the authority to carry out
particular tasks

Consultation: occurs when managers ask

for, and take into account, views of
subordinates
 Advantages of Delegation

• Frees senior managers for other matters

• May breed a sense of responsibility and
help to motivate
• Controlling subordinates is expensive and
supervisors may be required
• Individuals may develop skills and careers
 Disadvantages of Delegation

• Trusting subordinates can be risky and responsibility

remains with the senior manager
• Delegation may involve expensive training for
subordinates
• Once trust is given, it is impossible to remove it without
loss of face
• Some managers may be reluctant to use delegation as
they have to relinquish control
 Leadership Theories
• Are explanations of some aspects of
leadership
• Have practical value because they are
used to better understand, predict, and
control successful leadership

60
 Leadership Paradigm
• Is a shared mindset that represents a
fundamental way of thinking about,
perceiving, studying, researching, and
understanding leadership
• Has changed over the last 60 years
during which it has been studied

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Leadership Theory Classifications

The four leadership

theory classifications
include:

Trait Contingency

Behavioral Integrative
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 Leadership Trait Theories
• Attempt to explain distinctive characteristics accounting
for leadership effectiveness to identify a set of physical
and psychological traits that all successful leaders
possess
• Examples:
– High energy level
– Appearance
– Aggressiveness
– Persuasiveness
– Dominance
– Self-reliance

63
Behavioral Leadership Theories
• Attempt to explain distinctive styles used
by effective leaders, or to define the
nature of their work
• What the leader actually does on the job
(behavior)

64
 Contingency Leadership
Theories
• Attempt to explain the appropriate
leadership style based on the leader,
followers, and situation
• Are called “universal theories”
• Try to predict which traits and/or
behaviors will result in leadership success
given the situational variables

65
Integrative Leadership Theories
• Attempt to combine the trait, behavioral,
and contingency theories to explain
successful, influencing leader–follower
relationships

66
 Discussion Question #1

Some people say the hard skills

(finance, quantitative analysis) are
more important for managers than soft
skills (developing relationships,
leadership), and some say the opposite
is true. What do you think?

67
 From the Management to the
Leadership Theory Paradigm
• Is a shift from the older autocratic
management style to the newer
participative leadership style of
management

68
The Old Management Paradigm
Managers:
• Were autocratic
• Made all decisions
• Maintained tight controls over employees

69
 The New Leadership Paradigm
Managers:
• Are primarily participative
• Focus on leadership
• Share management functions with
employees
• Have good relationships with followers
• Realize that people are the most
important asset
70
 Leaders vs. Managers
• Successful leaders are also good
managers
• Successful managers are also good
leaders
• The leadership and management
paradigms overlap

71
 Discussion Question #2

Is leadership ability universal, or is a

good leader in one environment also
effective in another? For example, can
a leader in one industry (e.g., a
hospital) be successful in another
industry (e.g., a bank)?

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