Principles of Management

Chapter 7
LEADERSHIP
Prepared by:
MARWENA M. DIAZ, DBA
CABA Instructor
Objectives:
At the end of the discussion the following objectives
will be accomplished:
 Know what is leadership;
 Understand the functions of leadership;
 Identify the type of leaders and the different
leadership styles; and
 Apply the different leadership theories.
Definition of Leadership
 Leadership is an interpersonal influence directed toward the
achievement of a goal or goals.
 Interpersonal means between persons. Thus, a leader has more than one
person (group) to lead.
 Influences is the power to affect others. Goal is the end one strives to
attain.
 Leadership is a dynamic relationship based on mutual influence
and common purpose between leaders and collaborators in which
both are moved to higher levels of motivation and moral
development as they affect real, intended change.
 Relationshipis the connection between people.
 Mutual means shared in common.
 Collaborators cooperate or work together.
Functions of Leadership
 (1) To achieve results. Measured in terms of what was intended and
what was actually achieved;
 how and why particular results were achieved;
 how they were viewed at the time and subsequently by posterity; and
 whether this represented a good, and or adequate return on resources
and energy.
 (2) To inspire and energize workers.
 Encourageworkers to engage in productive and effective activities
and harness their talents, capabilities and expertise accordingly.
 (3) Hard work.
 Leadersmust have great stores of energy, enthusiasm, dedication, zeal
and commitment in order to be able to energize and inspire people and
commit resources in pursuit of the desired results.
Types of Leaders
 (1) The Traditional Leader.
 Leader whose position is assured by birth and heredity,
 for example kings and queens and family businesses whereby the
child succeeds the parent as chairman or chief executive when the
parent retires.
 (2) The Known leader.
 The leader whose position is secured by the fact that everybody understands his
position.
 For example,
 kings and queens;
 priests are known to be leaders of their congregations;
 aristocrats are known to be in command of their own domain and it
is know that they will be succeeded bone form their own family or
estate when they die or move on.
 (3) The Appointed Leader.
 The leader whose position is legitimized by virtue of the fact that he or she has
gone through a selection, assessment and appointment process
Types of Leaders
 (4) The Bureaucratic Leader.
 The leader whose position is legitimized by the rank held.
 This is especially true of military structures and is also to be found in
large, complex and sophisticated commercial and public service
organizations.
 (5) The Functional or Expert Leader.
 The leader whose position is secured by-virtue of expertise, command of
technology oi resources.
 (6) The Charismatic Leader.
 The leader whose position is secured by the sheer force of known or
understood personality.
 (7) The Informal Leader.
 The leader whose position is secured by virtue of personality, charisma,
expertise, command of resources, and who is therefore the de facto leader
in a particular situation.
Style of Leadership
 (1) Authoritarian Leadership (Autocratic)
 Authoritarianleaders provide clear expectations for what needs to
be done, when it should be done, and how it should be done.
 There is also a clear division between the leader and the followers.
 Authoritarian leaders make decisions independently with little or no
input from the rest of the group.
 Researchers found that decision-making was less creative under
authoritarian leadership and difficult to move from an authoritarian
style to a democratic style than vice versa.
 Abuse of this style is usually viewed as controlling, bossy, and
dictatorial.
 Authoritarian leadership is best applied to situations where there is
little time for group decision-making or where the leader is the
most knowledgeable member of the group.
Style of Leadership
 (2) Participative Leadership (Democratic)
 Study found that participative (democratic) leadership is
generally the most effective leadership style.
 Democratic leaders offer guidance to group members, but they also
participate in the group and allow input from other group members.
 Participative leaders encourage group members to participate, but
retain the final say over the decision-making process. Group
members feel engaged in the process and are more motivated and
creative.
 (3) Laissez-faire
 Laissez-faireleaders offer little or no guidance to group members
and leave decision-making up to group members.
 While this style can be effective in situations where group members are
highly qualified in an area of expertise, it often leads to poorly defined
roles and a lack of motivation.
Leadership Theories

 (1) Great Man Theories

 Great Man theories assume that the capacity for leadership is
inherent that great leaders are born not made.
 These theories often portray great leaders as heroic, mythic,
and destined to rise to leadership when needed.
 The term “Great Man" was used because, at the time,
leadership was thought of primarily as a male quality,
especially in terms of military leadership.
Leadership Theories
 (2) Trait Theories
 Similar in some ways to "Great Man" theories, trait assumes that people inherit
certain qualities and traits that make no best way for managers to lead.
 Trait theories often identify particular personality or behavioral characteristics
shared by leaders.
 Characteristics or Traits of an Effective Leader:
 (a) Physical traits include being young to middle-aged, energetic, tall, and
handsome. Social background traits include being educated at the “right” schools
and being socially prominent or upwardly mobile.
 (b) Social characteristics include being charismatic, charming, tactful, popular,
cooperative, and diplomatic.
 (c) Personality traits include being self-confident, adaptable, assertive, and
emotionally stable.
 (d) Task-related characteristics include being driven to excel, accepting of
responsibility, having initiative, and being results-oriented.
Leadership Theories
 (3) Contingency Theories
 Contingency theories of leadership focus on particular variables related
to the environment that might determine which particular style of
leadership is best suited for the situation.
 According to this theory, no leadership style is best in all situations.
 Success depends upon a number of variables, including the leadership
style, qualities of the followers, and aspects of the situation.

 Successful leaders must be able to identify clues in an environment and

adapt their leader behavior to meet the needs of their followers and of
the particular situation.
 Even with good diagnostic skills, leaders may not be effective unless they
can adapt their leadership style to meet the demands of their
environment.
Leadership Theories
 (4) Fiedler’s Contingency Model
 Fred Fiedler’s Contingency theory postulates that there is no
best way for managers to lead.
 The same leadership style may not works in a very dynamic
environment.
 Fiedler looked at three situations that could define the condition
of a managerial task:
 (1) Leader member relations: How well do the manager and the
employees get along?
 (2) The task structure: Is the job highly structured, fairly
unstructured, or somewhere in between?
 (3) Position power: How much authority does the manager
possess?
Aspects of Contingency Model Theory
 (1) Relationship oriented manager vs. task oriented manager
 Relationship oriented managers do better in all other situations.
 Thus, a given situation might call for a manager with a different style or a manager
who could take on a different style for a different situation.
 Task oriented managers tend to do better in situations that have good
leader-member relationships, structured tasks, and either weak or strong
position power.
 They do well when the task is unstructured but position power is strong.
 Also, they did well at the other end of the spectrum when the leader member
relations were moderate to poor and the task was unstructured.

 (2) Task oriented style vs. relationship orientation style

 Task oriented style is preferable at the clearly defined extremes of
"favorable" and "unfavorable" environments.
 Relationship orientation excels in the middle ground. Managers could
attempt to reshape the environment variables to match their style.
Aspects of Contingency Model Theory
 (3) Leader-Member relations, task structure, and position
power
 Leader-member relations are the amount of loyalty, dependability, and
support that the leader receives from employees.
 Itis a measure of how the manager perceives him or her and the group of
employees is getting along together. In a favorable relationship the manager
has a high task structure and is able to reward and or punish employees
without any problems.
 In an unfavorable relationship the task is usually unstructured and the leader
possesses limited authority. The spelling out in detail (favorable) of what is
required of subordinates affects task structure.
 Positioning power measures the amount of power or authority the
manager perceives the organization has given him or her for the purpose
of directing, rewarding, and punishing subordinates.
 Positioning power of managers depends on the taking away (favorable) or
increasing (unfavorable) the decision-making power of employees.
Aspects of Contingency Model Theory
 (4) Task-motivated style leader vs. relationship-oriented
leaders
 The task-motivated style leader experiences pride and satisfaction
in the task accomplishment for the organization, while the
relationship-motivated style seeks to build interpersonal relations
and extend extra help for the team development in the organization.
 There is no good or bad leadership style.
 Each person has his or her own preferences for leadership.
 Task motivated leaders are at their best when the group performs
successfully such as achieving a new sales record or outperforming the
major competitor.
 Relationship-oriented leaders are at their best when greater
customer satisfaction is gained and a positive company image is
established.
Leadership Theories
 (5) Situational Theories
 Situational theories propose that leaders choose the best course of action based upon
situational variable.
 Different styles of leadership may be more appropriate for certain types of decision-making.
 The Hersey-Blanchard Situational Leadership theory is based on the amount of
direction (task behavior) and amount of socio-emotional support (relationship
behavior) a leader must provide given the situation and the "level of maturity" of the
followers.
 Task behavior is the extent to which the leader engages in spelling out the duties and
responsibilities to an individual or group.
 This behavior includes telling people what to do, how to do it, when to do it, where to do it,
and who's to do it.
 In task behavior the leader engages in one-way communication

 Relationship behavior is the extent to which the leader engages in two-way or multi-
way communications.
 This includes listening, facilitating, and supportive behaviors.
 In relationship behavior the leader engages in two-way communication by providing socio-
emotional support.
Leadership Theories
 (5) Situational Theories - continuation
 Maturity is the willingness and ability of a person to take
responsibility for directing his or her own behavior.
 People tend to have varying degrees of maturity, depending on the specific
task, function, or objective that a leader is attempting to accomplish
through their efforts.
 To determine the appropriate leadership style to use in a given
situation, the leader must first determine the maturity level of the
followers in relation to the specific task that the leader is
attempting to accomplish through the effort of the followers.
 As the level of followers' maturity increases, the leader should begin to
reduce his or her task behavior and increase relationship behavior until
the followers reach a moderate level of maturity.
 As the followers begin to move into an above average level of maturity,
the leader should decrease not only task behavior but also relationship
behavior.
Leadership Theories
 (6) Behavioral Theories
 Behavioral theories of leadership are based upon the belief
that great leaders are made, not born.
 Rooted in behaviorism, this leadership theory focuses on the
actions of leaders, not on mental qualities or internal states.
 According to this theory, people can learn to become leaders
through teaching and observation.
 The behavioral theorists identified determinants of
leadership so that people could be trained to be leaders.
 They developed training programs to change managers'
leadership behaviors and assumed that the best styles of
leadership could be learned.
Leadership Theories
 (7)Theory X and Theory Y
 Douglas McGregor described Theory X and Theory Y in his book, The Human Side
of Enterprise.
 Theory X and Theory Y each represent different ways in which leaders view
employees.
 Theory X managers believe that employees are motivated mainly by money, are lazy;
uncooperative, and have poor work habits.
 Theory Y managers believe that subordinates work hard, are cooperative, and have
positive attitudes.
 Theory X is the traditional view of direction and control by managers.
 The average human being has an inherent dislike of work and will avoid if he or she can.
 Because of this human characteristic of dislike of work, most people must be controlled,
directed, and threatened with punishment to get them to put forth adequate effort toward
the achievement of organizational objectives.
 The average human being prefers to be directed, wishes to avoid responsibility, has
relatively little ambition, wants security above all.
Leadership Theories
 (7)Theory X and Theory Y - continuation
 Theory Y is the view that individual and organizational goals can
be integrated.
 (a) The expenditures of physical and mental effort in work are as natural as play
or rest.
 (b) External control and the threat of punishment are not the only means for
bringing out effort toward organizational objectives.
 (c) Commitment to objectives is a function of the rewards associated with their
achievement.
 (d) The average human being learns, under proper conditions, not only to accept
but also to seek responsibility.
 (e) The capacity to exercise a relatively high degree Of imagination, ingenuity,
and creativity in the solution of organizational problems in widely, not narrowly,
distributed in the population.
 (f) Under the condition of modern industrial life, the intellectual potentialities of
the average human being are only partially utilized.
Leadership Theories
 (7)Theory X and Theory Y - continuation
Theory X Theory Y
Assumption (a) Humans inherently dislike working (a) People view work as being as natural as play
and will try to avoid it if they can. and rest. Human expend the same amount of
physical and mental effort in their work as in
their private lives.
(b) Because people dislike work they
have to be coerced or controlled by (b) Provided people are motivated, they will be
management and threatened so they self directing to the aims of the organization.
work hard enough. Control and punishment are not the only
mechanisms to make people work.
(c) Average employees want to be (c) Job satisfaction is key to engaging employees
directed. and ensuring their commitment.
(d) People learn to accept and seek
(d) Average humans are clear and responsibility. Average humans, under the proper
unambiguous and need security at conditions, will not only accept but even
work. naturally seek responsibility.
(e) People are imaginative and creating. Their
ingenuity should be used to solve problems at
work
Leadership Theories
 (7)Theory X and Theory Y – continuation

Theory X Theory Y
Application Shop Floor, Mass Manufacturing Professional Services, Knowledge
Production Worker Workers
Managers and Professionals

Conducive to Large scale efficient operations Management of Professionals,

participative Complex Problem solving

Management Authoritarian, hard Management Participative, Soft Management

Style

 McGregor sees Theory Y as the preferable model and

management method, however, he felt Theory Y was difficult to
use in large-scale operations.
Leadership Theories
 (8) Participative Theories
 Participative leadership theories suggest that the ideal leadership style is one that
takes the input of others into account.
 The leaders encourage participation and contributions from group members and
help group members feel more relevant and committed to the decision-making
process.
 In participative theories, however, the leader retains the right to allow the
input of others.
 The Vroom, Yetton, Jago leader-participation model relates leadership behavior
and participation to decision making.
 The model provides a set of sequential rules to determine the form and amount of
participative decision making in different situations.
 It is a decision tree, requiring yes and no answers incorporating contingencies about task
structure and alternative styles.
 The leaders encourage participation and contributions from group members and help
group members feel more relevant and committed to the decision-making process.
 In participative theories, however, the leader retains the right, to allow the input of
others.
Leadership Theories
 (9) Management Theories
 Management theories (also known as "Transactional theories") focus on
the role of supervision, organization, and group performance.
 (a) These theories base leadership on a system of reward and punishment.
 Managerial theories are often used in business; when employees are
successful, they are rewarded;
 when they fail, they are reprimanded or punished.
 (b) Transactional leaders guide followers in the direction of established
goals by clarifying role and task requirement.
 (c) Transactional leadership occurs when one person takes the initiative
in making contact with others for the purpose of an exchange of valued
things. The exchange could be economical or political or psychological in
nature.
Leadership Theories
 (10) Relationship Theories
 Relationship theories (also known as "Transformational theories") focus
upon the connections formed between leaders and followers.
Transformational leadership blends the behavioral theories with a little
bit of trait theories.
 (a) Leaders motivate and inspire people by helping group members see the
importance and higher good of the task.
 (b) Leaders are focused on the performance of group members, but also want each
person to fulfill his or her potential.
 (c) Transformational leaders, who are charismatic and visionary, can inspire
followers to transcend their own self-interest for the good of the organization.
 (d) Transformational leaders appeal to followers' ideals and moral values and
inspire them to think about problems in new or different ways.
 (e) Transformational leadership is more strongly correlated with lower turnover
rates, higher productivity, and higher employee satisfaction.
Leadership Theories
 (10) Relationship Theories - continuation
 (f) A transformational leader instills feelings of confidence, admiration and
commitment in the followers. He or she is charismatic, creating -a special bond
with followers, articulating a vision with which the followers identify and for
which they are willing to work. Each follower is coached, advised, and delegated
some authority.
 (g) The transformational leader stimulates followers intellectually, arousing them
to develop new ways to think about problems.
 (h) The leader uses contingent rewards to positively reinforce performances that
are consistent with the leaders wishes. Management is by exception.
 (i) The leader takes initiative only when there are problems and is not actively
involved when things are going well.
 (j) The transformational leader commits people to action and converts followers
into leaders.
 (k) Transformational leaders and followers raise one another to higher levels of
motivation by creating and sharing a vision and goals for the organization.
How will you manage?
Consider the following skills and abilities which are commonly needed in managerial
and leadership situations. Your success in arts management will be enhanced by
attention to the following:
 (a) Oral communication
 The ability to communicate with a variety of types of people, including board
members, volunteers, staff members, donors, government authorities and other
people in the community.
 The manager must understand what information each person or group needs, how
they will receive the information, and how to present the information in the way it
will be most clearly understood.
 (b) Written communication
 Managers must be able to clearly articulate, in a minimum of words, an
organizational mission, vision, objectives of an organization.
 It's not just about good English (although that is important!); it's about being able
to say what you mean to say, in the most persuasive way, in the number of words
appropriate to the situation.
How will you manage?
 (c) Delegation
 With the number of activities of the managers, the ability to assign tasks to others, give them
clear instruction and follow through in a way that creates the most possibility for success is a
valuable skill for managers.
 (d) Organization
 If you function best underneath loads of paper and disorder, you may well know where
everything is, but what happens when you're working on a task with others?
 The ability to organize, not only one's own workspace, but a list of tasks and duties, is prized
management ability.
 (e) Public speaking
 Whether it is a news conference, a public announcement, a report to the Board or a defense of a
grant application, a manager needs to be able to stand in front of various groups of people and
speak with clarity, intelligence and confidence.
 (f) Ability to run a meeting
 The ability to run an orderly meeting is a skill that is highly prized but often underestimated.
 If you've ever been to a meeting where someone present was allowed to ramble on without
stopping, if the meeting went on longer than expected, or turned on to an unscheduled topic,
you know how people appreciate well-run meetings.