Chapter -7

Leadership and Influence Processes

The Meaning of Leadership

 Leadership as process-
 use non-coercive influence to shape the group’s or organization’s goals,
 motivate others’ behavior toward goals, and
 help to define organizational culture.

 Leadership as a property—the set of characteristics attributed to someone who is perceived

to use influence successfully.

 Leaders are
- People who can influence the behaviors of others without having to rely on force.
- People who are accepted as leaders by others.

Distinction between Leadership and Management

 Leadership is a quality of influencing people, so that the objectives are attained willingly
and enthusiastically.
 Management is a discipline of managing things in the best possible manner. It is the art
or skill of getting the work done through and with others.
 One of the major difference between leadership and management, is management is for
formal and organized group of people only, whereas leadership is for both formal and
informal groups.

Leadership Activity Management

Establishing direction and vision Creating an agenda Planning and budgeting,

for the organization allocating resources

Aligning people through Developing a human Organizing and staffing,

communications and actions that network for achieving structuring and monitoring
provide direction the agenda implementation

Motivating and inspiring by Executing plans Controlling and problem

satisfying needs solving

Produces useful change and new Outcomes Produces predictability and

approaches to challenges order and attains results

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“All managers are leaders, but all leaders are not managers.”
- Managers must be from an organizing group. A manager has to perform functions,
Planning, Organizing, Staffing, Directing, and Controlling such as to achieve goals.
Leadership is a part of these functions. In order to direct the subordinates, a manager
must motivate, communicate with, supervise, guide, and lead them.
- Leaders may not be from an organized group, rather than there must be some leaders who
belongs to some nor-organized group in the name of boss of terrorist group/mastan group.
Leadership doesn’t require any managerial position to act as a leader. A person can be a
leader by virtue of qualities in him. For example: leader of a club, class, welfare
association, social organization, etc.

Power and Leadership

Types of Power in the Organization

- Power is the ability to affect the behavior of others.
1. Legitimate power is granted through the organizational hierarchy. it is the power
defined by the organization to be accorded to people occupying a particular position.
2. Reward power is the power to give or withhold rewards, such as salary increases,
bonuses, promotions, praise, recognition, and interesting job assignments etc.
3. Coercive power is the capability to force compliance by means of psychological,
emotional, or physical threat. In most organizations today, however, coercion is
limited to verbal reprimands, written reprimands, disciplinary layoffs, fines,
demotion, and termination.
4. Referent power is the personal power that accrues to someone based on
identification, imitation, loyalty, or charisma.
5. Expert power is derived from the possession of information or expertise.

Types of Leadership/ Different Leadership Styles

1. Autocratic or Authoritarian leadership- An autocratic leader centralizes power and

decision-making in himself. He gives orders, assigns tasks and duties without consulting
the employees.
2. Democratic or Participative leadership: Participative or democratic leaders decentralize
authority. It is characterized by consultation with the subordinates and their participation
in the formulation of plans and policies. He encourages participation in decision-making.
3. The Laissez-faire or Free-rein leadership: Free-rein leader use his or her power very
little, if at all, giving subordinates a high degree of independence in their operations.
Such leaders depend largely on subordinates to set their own goals and the means of
achieving them

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Theories of Leadership

1. Trait Theory of Leadership

- Leadership Ingredient
- Leadership traits as complied by Santa Clara University and Tom Peters group.
2. Behavioral approaches to leadership
- Michigan Studies
- Ohio State studies
- Leadership Grid.
3. Situational approaches to leadership
- The leadership continuum model or the model of Robert Tannenbum and Warren H.
Schmidt for decision making
- The Least-Preferred Coworker (LPC) Theory of Leadership
- Path goal theory
- Vroom’s Yetten Jago Model (VYJ) for decision making
- The Leader-Member Exchange Approach (LMX Model)
4. Related Approaches to Leadership
- Substitutes for Leadership
- Charismatic Leadership
- Transformational Leadership- as leadership that goes beyond ordinary expectations by
transmitting a sense of mission, stimulating learning experiences, and inspiring new ways
of thinking.
5. Political Behavior in Organizations
- Common Political Behaviors
- Managing Political Behavior

Traits Approach of Leadership

- The trait approach assumed that a basic set of personal traits that differentiated leaders
from non-leaders could be used to identify leaders and predict who would become
leaders.
- The trait approach was unsuccessful in establishing empirical relationships between traits
and persons regarded as leaders.
- Researchers thought that leadership traits might include intelligence, assertiveness,
above-average height, good vocabulary, attractiveness, self-confidence, and similar
attributes.

Ingredients of leadership:
Four basic ingredients:
i) Leader must know to use power. i.e., Ability to use power effectively and in a
responsible manner.

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 ii) Leader must know his people/follower.

iii) Leader must create an environment conductive to work.

iv) Leader must know arouse motivation among the people.

Traits of a good Leader

Compiled by the Santa Clara University and the Tom Peters Group
1. Honest -Display sincerity, integrity, and candor in all your actions. Deceptive behavior
will not inspire trust.
2. Competent - Base your actions on reason and moral principles. Do not make decisions
based on childlike emotional desires or feelings.
3. Forward-looking - Set goals and have a vision of the future. The vision must be owned
throughout the organization. Effective leaders envision what they want and how to get it.
They habitually pick priorities stemming from their basic values.
4. Inspiring - Display confidence in all that you do. By showing endurance in mental,
physical, and spiritual stamina, you will inspire others to reach for new heights. Take
charge when necessary.
5. Intelligent - Read, study, and seek challenging assignments.
6. Fair-minded - Show fair treatment to all people. Prejudice is the enemy of justice.
Display empathy by being sensitive to the feelings, values, interests, and well-being of
others.
7. Broad-minded - Seek out diversity.
8. Courageous - Have the perseverance to accomplish a goal, regardless of the seemingly
insurmountable obstacles. Display a confident calmness when under stress.
9. Straightforward - Use sound judgment to make a good decisions at the right time.
10. Imaginative - Make timely and appropriate changes in your thinking, plans, and
methods. Show creativity by thinking of new and better goals, ideas, and solutions to
problems. Be innovative.

Behavioral approaches to leadership

- Attempts to identify behaviors that differentiate effective leaders from non-leaders

Early Studies in Behavioral

Approaches to Leadership

The Michigan The Ohio The

Studies State Studies Leadership
Grid

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Michigan Studies
Based on Researchers at the University of Michigan, led by Rensis Likert, in the late 1940s,
identified two forms of leader behavior
 Job-centered behavior—managers who pay close attention to subordinates’ work,
explain work procedures, and are keenly interested in performance.
 Employee-centered behavior—managers who focus on the development of cohesive
work groups and employee satisfaction.
The two forms of leader behaviors were considered to be at opposite ends of the same
continuum.

Ohio State Studies

Ohio State studies also suggested that there are two basic leader behaviors or styles:
 Initiating-structure behavior—the leader clearly defines the leader-subordinate role
expectations, formalizes communications, and sets the working agenda.
 Consideration behavior—the leader shows concern for subordinates and attempts to
establish a friendly and supportive climate.

Initial assumption was that the most effective leaders who exhibit high levels of both behaviors.
Subsequent research indicated that:

 Employees of supervisors ranked high on initiating structure were high performers, yet
they expressed low levels of satisfaction and higher absenteeism.
 Employees of supervisors ranked high on consideration had low- performance ratings,
yet they had high levels of satisfaction and less absenteeism.
 Other situational variables make consistent leader behavior predictions difficult. There is
no universal or “one best way” model of leadership.

Similarities between Leadership Models and Their Contributions

University Task oriented style People oriented style

University of Michigan Job-centered Employee-centered
Ohio State University Initiating structure Consideration

Differences between Leadership Models and Their Contributions

- The Ohio State and University of Michigan leadership models are different in that the
University of Michigan places the two leadership behaviours at opposite ends of the same
continuum, making it one-dimensional. The Ohio State University Model considers the
two behaviours independent of one another, making it two-dimensional.
- University of Michigan’s one dimensional model proposed two leadership styles (1)
employee-centred and (2) job-centred while Ohio State leadership model has four

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 leadership styles as follows, (1) low initiating structure and high consideration, (2) high
initiating structure and high consideration, (3) low initiating structure and low
consideration, and (4) high initiating structure and low consideration.

The Leadership Grid

The Leadership Grid is a method of evaluating leadership styles. The Grid is used to train
managers so that they are simultaneously more concerned for people and for production.

High
1,9 9,9
Concern for people

5,5
1

1,1
9,1

Low 1 2 3 4 5 6 7 8 9
9
Low Concern for production High

1. Improvised Leadership (1,1): exhibits minimal concern for both production and people.
Here production is very Low and people are not satisfied.

2. Authority-Compliance Leadership (9,1): Highly concerned about production but

exhibits little concern for people;. Here, production is very high but people are not
satisfied.

3. Country Club Management (1,9): Thoughtful attention to the needs of people for
satisfying relationships leads to a comfortable, friendly organization atmosphere and
work tempo. Here, production is low but people are enjoying using the space.

4. Team Management (9,9): Maximum concern for both people and production. Work
accomplishment is from committed people. Here, production is very high and people are
satisfied and running with good team spirit.

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 5. Middle-of-the-Road Management (5,5): maintains adequate concern for both people
and production. Adequate organization performance is possible through balancing the
necessity to get out work with maintaining morale of people at a satisfactory level.

Situational Approaches to Leadership

- Assume that appropriate leader behavior varies from one situation to another situation

- Seek to identify how key situational factors interact to determine appropriate leader
behavior

The Leadership Continuum Model

- The model of Robert Tannenbaum and Warren H. Schmidt that underlies research in this field.

The LPC Theory of Leadership

- Least-Preferred Coworker Theory, developed by Fred Fiedler, was the first truly
situational theory of leadership.
- This theory suggests that, the appropriate style of leadership varies with situational
favorableness (from the leader’s viewpoint).
- Assumes a task or relationship focus for leaders
 High LPC (Least Preferred Coworkers) leaders are more concerned with
interpersonal relationships
 Low LPC leaders are more concerned with task relevant problems

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 - Contingency variables determining situational favorableness:
 Leader-member relations—the nature of the relationship between the leader and
the work group.
 Task structure—the degree to which the group’s task is defined.
 Position Power—the power vested in the leader’s position.

Variables Situation

Or, Relationship-oriented

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