TOPIC 1: Leadership - Management

Practice - Performance
Prepared by:
Dr. Nazatul Shima Abdul Rani
School of Management
E-mail: shima.rani@aeu.edu.my
Learning Outcomes
By the end of this topic learner should be able:
To define leadership and outline management
practices.
To outline leadership roles, characteristics, and
practices.
To outline unique relationship between leader and
follower.
To identify theories and approaches on leadership.


Introduction
Leadership is more than just an aspect of personality,
tradition, opportunism or appointment.
It is connected with actual behavior and attitudes
towards oneself and others.
It may involves empowering others, and sharing the
leadership burden in many aspects.
All leaders must accept personal responsibility for
success or failure.
The way leadership is carried out is influenced
strongly by cultural factors.

Definition
Leadership is a dynamic process whereby one individual in a
group is not only responsible for the groups results, but
actively seeks the collaboration and commitment of all the
group members in achieving group goals in a particular
context and against the background of a particular national
culture.
Management Practices
Henri Fayol (1841-1925): French industrialist and theorist,
started as young mining engineer, then at the age of forty
seven he became Managing Director.
Outline six key activities such as :
1. technical activities,
2. commercial activities,
3. financial activities,
4. security activities,
5. accounting activities, and
6. managerial activities.

Video Break.
Top 10 difference between leaders and managers
http://www.youtube.com/watch?v=8ubRzzirRKs&feature=related

The difference between leaders and managers
http://www.youtube.com/watch?v=0kCbpwcl0mc&feature=related

Transition from Management to Leadership
Management
Task directed
Operational excellence
Process oriented
Pragmatic
Work in the system
Meticulous
Planning excellence
Instills predictability
Coaches subordinates
Leadership
Risk taker
Humble
Inspire & motivate
Visionary
Change driver
Challenge assumptions
Innovative
Work on the system
Does the right thing
Dreams big
Leadership Role
Leadership role is by using his or her skills and knowledge, one needs to draw on
personal qualities and adhering to principles of integrity and trust, while balancing
the tasks/goals, group members, and situation/environment.
Situation or environment both internal or external is important.
Internal: interactions within the group and with the leaders will affect the
outcomes.
Cultural traditions may need to be considered when the group is not
homogeneous.
External pressures and problems, might affect the group progress due to
insufficient resources to support the group in its efforts.
Good leadership depends on the best use of all the variables even when they are
unfavorable.
When the situation is unfavorable, the leaders must seek help on behalf of the
group.

Are you the leader or just a boss?
http://www.youtube.com/watch?v=wT2rkOVS
RMY

Leadership Characteristics
1. Honesty
2. Competence
3. Being forward looking
4. Inspiration
5. Credibility
Leadership Practices
1. Challenging the process
2. Inspiring a shared vision
3. Enabling others to act
4. Modelling the way
5. Encouraging the heart
Unique Relationship with
Follower
1. Know your follower
2. Stand up for your belief
3. Speak with passion
4. Lead by example
5. Conquer yourself
Approaches to Leadership
Description Assumptions
1. Trait approach Define the factors that result in leadership.
Most of the time and effort were devoted to
constructing lists of the physical and psychological
attributes believed to differentiate leaders from non-
leaders.
A person either does or does not
possess the particular traits that are
considered to be the determinants of
leadership.
2. Situational
approach
Holds that social circumstances that command the
degree to which any persons leadership potential is
exercised.
The crucial determinant of leadership is the social
environment in which leadership is needed.
Certain situations requires certain
types of leadership and the leaders will
be those who best fit the requirements
of a situation. The situational
characteristics are determinants of
leadership.
3. Follower approach The most effective leaders are those most able to satisfy
the needs or desires of a group of followers.
Inadequate because it implies the emergence and
maintenance of leadership is dependent on followers,
not on a leaders own skills.
The needs of group members
determine who will lead. There is
coincidence between the needs of a
membership and the abilities that a
person happens to possess. Members
needs are assumed to be the key
determinants of leadership.
4. Contingency model Combining ideas from the situational approach and the
study of leadership styles. This model maintains that
effective leadership depends not only on a leaders
personal style but also on the characteristics of a
situation. Ignores the leaders personal ability to control
himself or herself and the situation.
Personal styles and situational
characteristics combine to determine
leadership. A match between style
and situations determines who will
lead the group.
Theories of Leadership
Ideas on leadership in management roles ranging from the ideal
approaches of scientific management, the human relations and social
psychological schools, and Coveys principle centered leadership to
the pragmatic approaches of the contingency theorists.
Theories of leadership divided into 3 which are trait theories, style
theories and contingency theories.
Trait Theories
The debate was on practicing managers who were strong
characters in their own right.
Their success highly dependent on personal qualities.
Earlier studies more focus on qualities of effective leaders.
The most common traits of leaders are intelligence, energy
and resourcefulness.
Style Theories
Since 1950s, several theories on leadership or
management style have been studied.
It was expressed in terms of authoritarian vs.
democratic styles, or people oriented vs. task
orientation.
A Continuum of Leadership Styles
Authoritarian Democratic styles
1. D. McGregors
Theory X and
Theory Y
Theory X manager: Tough, autocratic and supporting controls with punishment-reward
systems the authoritarian.
Theory Y manager: benevolent, participative and believing in self-controls the
democrat.
Assumptions: people are the original of Theory X and Theory Y
2. Rensis Likerts
four management
systems
System 1: the exploitive-authoritative system, which is the epitome of the
authoritarian style.
System 2: the benevolent-authoritative system, which is basically a paternalistic style
System 3: the consultative system, which moves towards greater democracy and
teamwork.
System 4: the participative-group system, which is the ultimate democratic style
3. Tannenbaum and
Schmidts model of
a leadership styles
Authoritarian: managers makes decision and announces it; manager sells decision;
manager presents decision and invites questions;
Authoritarian & Democratic: Manager presents tentative decision subject to changes
Democratic: Manager presents problem, gets suggestions makes decisions; manager
defines limits, asks group to make decision; manager permits subordinates to function
within limits defined by superior

A continuum of leadership styles (adapted from Tannenbaum and Schmidt, Harvard Business Review, 1957)
People Task Orientations
1950s, high productivity managers vs. low productivity managers.
Findings: high productivity managers- employee oriented; low
productivity managers- production centered.
1. Michigan
Studies
1950s on Leader Behavior Description, found out 2 groups which
are consideration (concern on relationship or employees
feelings) and initiating structure (concerned on work process).
2. Ohio
Studies
Professor Reddin of New Brunswick University, Canada, takes the Blake-type
grid a stage further and introduces a 3-dimensional perspective. Adds to the
flexibility of leadership styles by including factor of effectiveness in the
dimensions. Reddins Grid able to consider aspects of a situation in which
leadership is exercised, and also concerned for people (Relationship
Oriented-RO) and concerned for production (Task Oriented-TO).
3. The 3-D
Theory
Harvard researchers study a small group behavior and identified 2
distinct groups of leaders.
Task leader (concern for structuring of activities) and socio emotional
leader (concern for supportive relationships).
4. The Harvard
Studies
Contingency Approaches
Approaches Descriptions
1. Functional
or action
centered
approaches
The concept of leadership was developed by John Adair. It is based on the theory that leadership is more a question of
appropriate behavior than of personality or of being in the right place at the right time. Adairs model of leadership
incorporates the concern for task and concern for people that has featured in all the theories. Functional model distinguishes
the concern for individuals from the concern for groups, and stresses that effective leadership lies in what the leader does to
meet the needs of task, group and individuals. The functional model nearer to the contingency approaches of modern
theorists, whose concern is with the variety of factors-task, people and situation-which have a direct bearing on leadership and
leadership styles.
Functional model of leadership:
1. task, group and individual needs are fulfilled in the context of a total leadership situation. An effective leader is one who
is aware of these priorities and can act in accordance with them
2. Task functions, directed towards task needs include activities such as the setting of objectives, the planning of tasks, the
allocation of responsibilities and the setting of appropriate standards of performance.
3. Group maintenance functions are directed towards group needs including activities such as team building and
motivation, communication, discipline, and acting as a group representative.
4. Individual maintenance functions are directed towards the needs of individuals, including activities such as coaching,
counseling, motivation and development.
2. Contingency
leadership
F.E. Fiedler(1967) viewed group performance is contingent upon the leader adopting an appropriate style in the light of the
relative favorableness of the situation. 3 variables to be considered:
1. Leader-member relations: good leader-member relations (favorable) vs. he is disliked (least favorable).
2. Degree of structure in task : task is highly structured vs. task unstructured.
3. Power and authority of the position: powerful position vs. little position power.
Task motivated leaders: tended to perform most effectively in situations which were either favorable or unfavorable.
Relationship motivated leaders: tended to perform most effectively in situations that were intermediate in terms of
favorableness.
Summary of Leadership Theories
Source Title Characteristics Dimensions
D McGregor Theory X/Theory Y Authoritarian vs. democratic either/or
R Likert System 1-4 Authoritarian vs. democratic either/or
Tannenbaum & Schmidt Leadership continuum Authoritarian vs. democratic either/or
Michigan Studies - Employee-centred vs.
production centres
either/or
Ohio Studies - consideration and
initiating structure
Both
Blake & Mouton Managerial Grid concern for people and
concern for production
Both
W Reddin 3-D Theory Relationships and task
orientations; effectiveness
All three
Harvard Studies - task leaders vs. socio-
emotional leaders
either/or
J Adair Functional Theory Task, group and individual
needs; adaptive behavior
Multiple
F E Fiedler Theory of leadership
effectiveness
favorableness of the
situation; adaptive behavior
multiple
S. Cover Principle centred Adoption of key moral
principles
multiple
Principle Centred Leadership
To align their values to the correct principles, of which there
are 4: trustworthiness, trust, empowerment, alignment.
For 4 different levels:
personal (relationship with oneself, trustworthiness key
principle)
Interpersonal(interaction with others, trust is key principle)
Managerial (getting job done, empowerment is key
principle)
Organizational (building teams, developing structures,
strategies and systems, alignment is key principle)

Thank you