Part 4 Leadership Challenges in the 21st Century

Chapter

12

Leading in a
Dynamic
Environment

PowerPoint Presentation by Charlie Cook

The University of West Alabama

Leadership Defined
A responsibility and a process that is an
observable, understandable, learnable set of
skills and practices available to everyone,
anywhere in the organization.
What is leadership
The process of directing and influencing the
task-related activities of group members
122

Implications of leadership

1. Leadership involve other people

2. Leadership involve an unequal distribution
of power
3. Leaders can influence subordinates in a
variety of ways

123

Leadership Significance
Leadership is:
A social influence process.
A responsibility and a process; its not a position, title,

or privilege.
An observable, understandable, learnable set of skills

and practices available to everyone, anywhere in the

organization.
The indirect ability to influence people by inspiring

them to pursue goals for the benefit of the

organization.
124

Leadership and Vision

Leadership involves:
Creating a vision of the future.
Devising strategy for achieve that vision.
Communicating the vision so that everyone

understands and believes in it.

125

There are four important points of

leadership:1. Leadership involves other people
2. Leadership involves unequal distribution of
power
3. Leadership is the ability to use the different
forms of power
4. Leadership is about values

126

The importance leadership

1. To direct and supervise

subordinates
2. To influence and motivates
subordinates
3. To encourage teamwork
4. To enhance cooperation
5. To accomplish org objectives

127

Approaches to the study on leadership

1. Leader centered approach
2. Follower centered approach
3. Interactive approach

128

Leader-Centered Approaches
Leadership Traits and Skills Focus
The assumption that some people are born with

certain physical characteristics, aspects of

personality, and aptitudes that make them successful
leaders.
Physical characteristics: height and appearance
Personality: self-esteem, dominance and emotional
stability
Aptitudes: general intelligence, verbal fluency and
creativity

129

The Trait Approach To Leadership

1. Assumed that leaders were born and not made.
2. Researchers took two approaches :
Compare the traits of leaders and non leaders
II. Compare the traits of effective leaders and
ineffective leaders
I.

3. Examples of desirable traits include wisdom,

courage, honesty and sincerity.
4. Examples of traits compared include physical
characteristics, mental ability, charisma, attitude
5. However the trait theory is inconclusive
because of many conflicting evidence.
1210

Traits of Successful Leaders

Drive
Achievement, sense of responsibility, ambition,

energy, tenacity and initiative.

Motivation
Especially power.

Honesty and integrity

Self confidence
Persuasive, diplomatic and socially skilled.

Conceptual ability
Business knowledge
1211

Table 12.1

The 25 Most Influential Leaders of Our Times

To celebrate the 25th anniversary of the Nightly Business Report (NBR), Wharton and NBR worked
to identify the 25 most influential business leaders of the past 25 years. Their goal was to find
business leaders who created new and profitable ideas; affected political, civic or social change
through achievement in the business/economic world; created new business opportunities or more
fully exploited existing ones; caused or influenced dramatic change in a company or industry;
and/or inspired and transformed others.
1. Mary Kay Ash, founder of Mary Kay Cosmetics

14. Lee Iacocca, former CEO of Chrysler

2. Jeff Bezos, CEO of Amazon.com

15. Steven Jobs, CEO of Apple Computers

3. John Bogle, founder of The Vanguard Group

16. Herb Kelleher, CEO of Southwest Airlines

4. Richard Branson, CEO of Virgin Group

17. Peter Lynch, former manager of Fidelitys Magellan

Fund

5. Warren Buffett, CEO of Berkshire Hathaway

6. James Burke, former CEO of Johnson & Johnson
7. Michael Dell, CEO of Dell Computers
8. Peter Drucker, educator and author
9. Bill Gates, chair of Microsoft
10. William George, former CEO of Medtronics
11. Louis Gerstner, former CEO of IBM
12. Alan Greenspan, chair, U.S. Federal Reserve
13. Andy Grove, former chair of Intel

18. Charles Schwab, founder of Charles Schwab Inc.

19. Frederick Smith, CEO of Federal Express
20. George Soros, founder and chair of Open Society
Institute
21. Ted Turner, founder of CNN
22. Sam Walton, founder of Wal-Mart
23. Jack Welch, former CEO of General Electric
24. Oprah Winfrey, chair of the Harpo group of
companies
25. Mohammed Yunus, founder of Grameen Bank.
1212

Leader-Centered Approaches (contd)

Leadership Behavior Focus
Examines what effective leaders do rather than what

effective leaders are.

Defines a leaders effectiveness based on two
orientations:
Task orientation
Setting performance goals, planning and scheduling work,
coordinating activities, giving directions, setting standards,
providing resources, and supervising performance.
Relations

orientation

Behavior that shows empathy for concerns and feelings,

supportive of needs, showing trust, and similar attributes.

1213

The Behavioral Approach To

Leadership
Assumes that leadership can
be learned
Focused on two aspect of
leadership behavior :
1. Leadership function
2. Leadership style
1214

Behavioral Approach

Leadership Function
A leader performs two major functions:
1. Task related or problem solving functions
2. Group maintenance or social functions.

Examines what effective leaders do rather than

what effective leaders are.

Defines a leaders effectiveness based on two
orientations:

1215

II. Behavioral Approach

Task

orientation or job centered style

focus on closely supervise subordinates

Setting performance goals, giving directions, and
supervising performance.
More concerned with getting the job done to his
satisfaction
Employee

orientation or people centered style

Focus on motivating rather than controlling subordinates

Behavior that shows empathy for concerns and feelings,
supportive of needs, and showing trust.
Friendly and respectful relationship with employees, would
try to motivate subordinates rather than to control them.

1216

II. Behavioral Approach (contd) *

The behavioral approach is supported by below

studies:

Behavioral
Behavioral
Approach
Approach

The
TheOhio
OhioState
State
University
University(OSU
(OSUstudies)
studies)

The
TheManagerial
Managerial Grid
Grid(by
(by
Robert
Robert Blake
Blakeand
andJane
Jane
Mouton)
Mouton)

The
TheUniversity
Universityof
of Michigan
Michigan
(Michigan
(Michigan studies)
studies)
1217

II. Behavioral Approach (contd) *

The
The Ohio
Ohio State
State University
University (OSU
(OSU studies)
studies)
OSU studies concluded that leaders exhibit two main

types of behavior:
I. Structure Behavior (task-oriented)
The leadership activity that establishes
procedures that employees should follow in
performing their tasks or jobs.
II. Consideration Behavior (employee-oriented)
The leadership behavior that shows friendship,
trust, respect and warmth in the relationship
between leaders and employees.

1218

II. Behavioral Approach (contd) *

The
The Ohio
Ohio State
State University
University (OSU
(OSU studies)
studies)
They found that the most effective leadership
styles is High consideration.
However the researchers also found that
effective leadership style also depend on
situational factors. For example Air force
commanders who were rated high on
consideration were less effective

1219

II. Behavioral Approach (contd) *

OSU studies resulted in a model
that shows four leadership styles.
i.e. A high structure/low
consideration leadership style
emphasizes on structure
behavior and place less
attention to consideration
behavior.
Low structure/high consideration
highest employee satisfaction,
lowest turnover rates
High structure/low consideration
had high grievance, high
turnover rates

1220

II. Behavioral Approach (contd) *

The
The University
University of
of Michigan
Michigan (Michigan
(Michigan studies)
studies)

Distinguished between Production

centered (Job Centered) and
Employee centered managers

1221

II. Behavioral Approach (contd) *

The
The University
University of
of Michigan
Michigan (Michigan
(Michigan studies)
studies)
Michigan studies

concluded two types of leader behavior:

I.
Job-centered Behavior

Interested in the job that subordinate is doing and how

well the subordinate performs the job.

Leaders set rigid work standards, prescribe work methods

to be followed, and closely supervise subordinate work.
II. Employee-centered Behavior

Interested to the personal needs of subordinates and build

cooperative work teams that are satisfying to
subordinates.

Leaders encourage subordinates participation and inspire

trust and respect among subordinates.
The most productive work groups have leaders who were
employee-centered rather than job-centered.
1222

II. Behavioral Approach (contd) *

The
The Managerial
Managerial Grid
Grid (Robert
(Robert Blake
Blake && Jane
Jane Mouton)
Mouton)

Managerial Grid identifies five leadership behaviors

based on task-oriented and employee-oriented styles.

The grid identifies a range of management behaviors

based on the various ways that task-oriented and
employee-oriented styles can interact with one another
(each expressed on a scale of 1 to 9).

1223

II. Behavioral Approach (contd) *

Developed by Robert Blake and Jane Mouton
Identifies five types of leadership styles :
Style 1,1- Impoverished mgt. Low concern for both people
and production. Also known as Laissez-faire management.
Style 1,9 - Country club mgt. High concern employees but
low concern for production
Style 5,5 - Middle of the road mgt
Intermediate concern for both production and employees.
Style 9,1 - Autocratic mgt. High concern for production but
low concern for people.
Style 9,9 -Team or democratic mgt. High concern for both
production and employees. This is the most effective style.
1224

II. Behavioral Approach (contd) *

The five leadership styles practiced by managers.

Point 1,1 Impoverished Management

concern for people, concern for
tasks, leader does not play his
leadership role, makes minimum effort
to get work done, also known as
laissez-faire management

Point 1,9 Country Club Management

concern for people, concern for
tasks, this leadership style believes
that giving attention to peoples needs
will lead to a comfortable and friendly
organizational atmosphere

1225

II. Behavioral Approach (contd) *

The five leadership styles practiced by managers.

Point 5,5 Middle-of-theRoad/Organization Man Management

concern for people = concern for tasks,
adequate organization performance is
possible through balancing work and
maintaining morale of employees at a
satisfying level

Point 9,1 Task/Authoritarian/Autocratic

Management
concern for people, concern for
tasks, manager stresses on operating
efficiently through controls, wants work
schedule to be followed, least concern
about employees welfare
1226

II. Behavioral Approach (contd) *

The five leadership styles practiced by managers.

Point 9,9 Team / Democratic /

Participative/ Supportive Management
concern for people, concern for
tasks, work accomplishment is from
committed people, interdependence
through common interests as well as
relationship of trust and respect

Style 9,9 is the most effective

management style - improved

performance, low absenteeism and
turnover, and high employee
satisfaction.

1227

III. Contingency Approach *

1.
1. Path-Goal
Path-Goal Approach
Approach
Formulated by Martin G. Evans and Robert J. House.
Based on expectancy model, which states employees
motivation depends on his expectation of reward or
the attractiveness of the reward.
Managers determine the availability of goals
(rewards) and the paths that will earn those rewards.
Leader can increase employee effort and productivity
by clarifying performance goals and the path to be
taken to achieve those goals.

1228

III. Contingency Approach (contd) *

According to Path-Goal theory of leadership, leaders
show four primary types of behavior:
I.

Directive behavior

Telling followers what to do and how to do it,

leader indicates what performance goals exist
and what must be done to achieve it.

II. Supportive behavior

Being friendly with followers and showing interest

in them as human beings. Leader shows

sensitivity to the personal needs of followers.

1229

III. Contingency Approach (contd) *

III.

Participative behavior

Seeking suggestions from followers regarding

business operations, followers involve in decision
making, help to determine rewards available and
what they must do to earn those rewards.

IV.

Achievement behavior

Aimed at setting challenging goals for followers to

reach and expressing confidence that they will face
up to the challenge. Leader focuses on making
challenging goals for employees to achieve.

Path-goal theory explains why a particular leadership

style is more effective in one situation than in another
and it recommends flexibility in dealing with different
employee problems and situations.
1230

III. Contingency Approach (contd) *

2.
2. Life
Life Cycle
Cycle or
or Situational
Situational Approach
Approach

Developed by Hersey and Blanchard.

Leadership styles should reflect primarily on the

maturity level of the followers.

Maturity is the ability of followers to perform their job

independently, the education/experience and skills a follower
has relevant to particular tasks, to assume additional
responsibility and to desire to achieve success.

Describes how leaders should adjust leadership style

in response to their subordinates desire for
achievement, experience, ability and willingness to
accept responsibility.
1231

III. Contingency Approach (contd) *

Phases in Life-Cycle Approach
PHASE 3

PHASE 2

Phase 1 (HT/LR)

Telling style: the leader

provides specific instructions
and closely supervises
performance.
PHASE 4

PHASE 1

Phase 2 (HT/HR)

Selling style: the leader

explains decisions and
provides opportunities for
clarification.

1232

III. Contingency Approach (contd) *

Phases in Life-Cycle Approach
PHASE 3

PHASE 4

PHASE 2

PHASE 1

Phase 3 (LT/HR)

Participating style: the leader

shares ideas and maintains
two-way communication to
encourage and support the
skills subordinates have
developed.
Phase 4 (LT/LR)

Delegating style: the leader

provides subordinates with
few task or relations
behaviors.
1233

Likert System Four

Developed by Rensis Likert
Management
1. Proposed that there are four types of
management style1. Autocratic authoritative Mgt make all decisions. Subordinates do not have
any rights to contribute ideas.
2. 2.Benevolent Authoritative - Subordinates are
given some latitude to contribute ideas but mgt
still makes the final decisions.
3. 3.Consultative- Subordinates contributions are
encourage.
4. 4.Participative - Team or democratic styles

1234

Leader-Centered Approaches (contd)

Leadership Power Focus
Power: the ability to use human, informational, or

material resources to get something doneto get

results.
Authority: the officially (organizationally) sanctioned
right to get something done.

1235

Power
Categories of Power
Position power
Power

derived from the

opportunities inherent in a
persons position in an
organization.
Personal power
Power derived from the
interpersonal relationships
between leaders and followers.

1236

Types of Position Power

Legitimate power
Stems from formal authority.
Some people accept this power, as long as it is not

abused, because they attribute legitimacy to the

formal position and to the person who holds that
position.

Coercive power
The power to discipline, punish and withhold rewards.
Coercive power is important largely as a potential,

rather than an actual, influence.

For example, the threat of being disciplined for not
getting to work on time may be effective in changing
an employees behavior.
1237

Types of Position Power

Reward power
Control over tangible benefits, such as a promotion, a

better job, a better work schedule, or some form of

recognition.
For reward power to be influential, the employee must
value the rewards.

Information power
Control over information that involves the leaders

power to access and distribute information that is

either desired or vital to others.
1238

Types of Personal Power

Expert power
The power influence another person because of expert knowledge

and competence.
Computer specialists often have substantial expert power in
organizations because they have technical knowledge that others
need.

Referent power
The ability to influence others based

on personal liking, charisma and

reputation.
Much of the power wielded by strong
political leaders, professional
athletics, musicians, and artists is
referent power.
1239

Power Orientation
Personalized Power Orientation
Associated with a strong need for esteem and status;

power is often used impulsively.

Socialized Power Orientation

The use of power for the benefit of others to make

subordinates feel strong and responsible.

1240

Follower-Centered Approaches
Self-leadership (Followership) Focus
A paradigm founded on creating an organization of

leaders who are ready to lead themselves.

Requires each employee to be accountable for his or
her own behavior.
Views individual, task and organizational
characteristics as possible leadership substitutes.

1241

Characteristics of Self-Leaders
The capacity to motivate themselves and stay focused
on tasks.
Integrity that demands both loyalty to the organization
and the willingness to act according to beliefs.
Understanding of the organization and their contributions
to it.
Willingness to take the initiative to deal with problems.
Versatility, skillfulness and flexibility to adapt to a
changing environment.
Responsibility for their careers, actions and
development.
1242

Leadership substitutes
Variables that tend to outweigh or prevent the
leader from having an effect on a follower
performance.
Also known as Neutralizer.

1243

Figure 12.3

Leadership Substitutes

1244

Interactive Approaches
Another method of examining leadership
effectiveness is to look at how leaders interact
with their followers.
Interactive Approaches:
Situational leadership model
Empowerment
Transformational leadership

1245

Interactive Approaches (contd)

Situational Leadership Model
Examines the interaction between leadership

behavior, the situation, and the followers readiness.

Readiness:

the extent to which a subordinate

possesses the ability and willingness to complete a
specific task.

Task

behavior: the extent to which a leader

organizes and defines the role of followers by
explaining what each person must do and when,
where, and how tasks are to be accomplished.

1246

Interactive Approaches (contd)

4 Styles of Situational Leadership Behavior
Telling style: the leader provides specific instructions

and closely supervises performance.

Selling style: the leader explains decisions and

provides opportunities for clarification.

Participating style: the leader shares ideas and

maintains two-way communication to encourage and

support the skills subordinates have developed.
Delegating style: the leader provides subordinates

with few task or relations behaviors.

1247

Hersey and Blanchards Situational

leadership theory(life-cycle theory)
Formulated by Paul Hersey and Kenneth
Blanchard
1.Hold that the most effective leadership style
varies with the maturity of subordinates.
2.Maturity is not define in terms of age or
emotional stability but a desire for achievement,
etc.

1248

Stage 1 - Telling Stage

High Task A directive leadership is needed. A
non directive leader will create anxiety and
confusions among new workers
Low relationship Managers and
subordinates are in the process of knowing
each other.

Stage 2 - Selling Stage

High Task Detail instructions is still essential
because subordinates are not yet able to
function without the structure
High Relationship Subordinate need the
support and encouragement from the leader
1249

Stage 3 - Participating Stage

Low Task - Subordinates have more
ability.Therefore the leader will no longer need
to be as directive.
High Relationship The leader will still have to
be supportive.

Stage 4 - Delegating Stage

Low Task, Low Relationship
Subordinates become more confident, self
directing and experienced.
Followers no longer need direction.They are
on their own.
1250

Interactive Approaches (contd)

Empowerment
The interaction of the leader giving away or sharing

power with those who use it to become involved and

committed to independent, high-quality performance.
Successful empowerment means that everyone has

been convinced that he or she makes a difference to

the success of the organization.

1251

Interactive Approaches (contd)

Transformational Leadership
Is a leaders ability to influence employees to achieve

more than was originally expected, or thought

possible.
Generates feelings of trust, admiration, loyalty and

respect from followers through:

Idealized influence

Inspirational motivation

Intellectual stimulation

Individualized considerations

e.g Leaders promotes innovation and creativity and subordinates

should try new approaches

1252

Table 12.2

Primary Dimensions of Transformational Leadership

Dimension

Leaders Specific Behavior

Followers Behavior

Individualized
consideration

Acts as mentor; is attentive to

achievement and growth needs.

Is motivated; feels valued.

Intellectual
stimulation

Promotes innovation and creativity;

reframes problems.

Is encouraged to be novel
and try new approaches.

Inspirational
motivation

Provides meaning and challenge

through prosocial, collective action.

Is motivated by team spirit;

enthusiastic; optimistic.

Idealized
influence

Shares risks; is considerate of

others over own needs; is ethical
and moral.

Shows admiration; respect;

trust.

1253

What is the situational

approaches to
leadership?
The situational approaches to
leadership focuses on the situational
factors influencing managerial style.
It assumes that there is no one best
leadership style i.e. effective leadership
depends on situational factors

1254

Situational Factors in
Leadership Effectiveness
1.The leaders personality, past experiences
and expectations.
2.The expectations and behavior of superiors
3.Subordinates characteristic, expectations
and behaviors
4.Task requirements
5.Organizational culture and policies
6.Peers expectation and behavior

1255

Current Perspectives on Leadership

Emotional Intelligence (EI)
The capacity to effectively manage ourselves and our

relationships.
Components of EI:
Personal competence: the ability to understand
your own feelings, emotions, and their impact and
to understand your strengths and weaknesses
(based on the concept of self-awareness).
Social competence: the ability to understand what
others are feeling (the concept of social
awareness) and having the skills to work effectively
with others (based on social skill).
1256

Table 12.3

The Emotional Intelligence Competency Framework

Personal Competence
Self-management
Self-control
Trustworthiness
Conscientiousness
Adaptability
Achievement orientation
Initiative
Self-awareness
Emotional self-awareness
Accurate self-assessment
Self-confidence

Social Competence
Social awareness
Empathy and insight
Political awareness
Service orientation
Social skill
Developing others
Visionary leadership
Influence
Communication
Change catalyst
Conflict management
Building bonds
Teamwork and collaboration
Synergy in teamwork

Sources: D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence (Boston: Harvard
Business School Press, 2003); D. Goleman Leadership That Gets Results, Harvard Business Review (March/April 2000): 7890.
1257

Current Perspectives on Leadership

(contd)

Gender and Leadership

Female leaders are more empathic, persuasive, better

listeners and more willing to consider others points of

view.
Male leaders show higher levels of resilience and
thoroughness than women leaders.
Both men and women executives believe that women
have to be exceptional to succeed in business.
Women leaders feel they must struggle harder than
men to succeed.
Women are more likely to use behaviors that are
associated with transformational leadership.
1258