1. Leading Function
 Meaning – influencing the behavior of others
 Leaders and leadership – person - process
 Leadership Theories – trait, behavioural,
contingency/situational, transactional, transformational, goal
path, managerial grid etc..
 Leadership styles – autocratic, democratic, laissez faire,
 Principles of leadership – know yourself and seek to develop
yourself, build a team, lead the team, be technically proficient,
delegate authority, etc….
Management Fundamentals - Chapter
13
1

2. Management - Chapter 13 2
Leading Function
What is the nature of leadership?
What are the important leadership traits and
behaviors?
What are the contingency theories of
leadership?
What is transformational leadership?
What are current issues in leadership
development?

3. Management - Chapter 13 3
Study Question 1: What is the nature
of leadership?
 Leadership.
– The process of inspiring others to work hard to
accomplish important tasks.
 Contemporary leadership challenges:
– Shorter time frames for accomplishing things.
– Expectations for success on the first attempt.
– Complex, ambiguous, and multidimensional problems.
– Taking a long-term view while meeting short-term
demands.

4. Management - Chapter 13 4
Study Question 1: What is the nature
of leadership?
Visionary leadership.
– Vision
• A future that one hopes to create or achieve in order
to improve upon the present state of affairs.
– Visionary leadership
• A leader who brings to the situation a clear and
compelling sense of the future as well as an
understanding of the actions needed to get there
successfully.

5. Management - Chapter 13 5
Study Question 1: What is the nature
of leadership?
Meeting the challenges of visionary
leadership:
– Challenge the process.
– Show enthusiasm.
– Help others to act.
– Set the example.
– Celebrate achievements.

6. Management - Chapter 13 6
Figure 13.1 Leading viewed in relationship
to the other management functions.

7. Management - Chapter 13 7
Study Question 1: What is the nature
of leadership?
 Power.
– Ability to get someone else to do something you want
done or make things happen the way you want.
 Power should be used to influence and control
others for the common good rather seeking to
exercise control for personal satisfaction.
 Two sources of managerial power:
– Position power.
– Personal power.

8. Management - Chapter 13 8
Study Question 1: What is the nature
of leadership?
 Position power.
– Based on a manager’s official status in the
organization’s hierarchy of authority.
 Sources of position power:
– Reward power.
• Capability to offer something of value.
– Coercive power.
• Capability to punish or withhold positive outcomes.
– Legitimate power.
• Organizational position or status confers the right to control
those in subordinate positions.

9. Management - Chapter 13 9
Study Question 1: What is the nature
of leadership?
 Personal power.
– Based on the unique personal qualities that a person
brings to the leadership situation.
 Sources of personal power:
– Expert power.
• Capacity to influence others because of one’s knowledge and
skills.
– Referent power.
• Capacity to influence others because they admire you and want
to identify positively with you.

10. Management - Chapter 13 10
Figure 13.2 Sources of position power
and personal power used by managers.

11. Management - Chapter 13 11
Study Question 1: What is the nature
of leadership?
 Turning power into influence …
– Successful leadership relies on acquiring and using all
sources of power.
– Use of reward power or legitimate power produces
temporary compliance.
– Use of coercive power produces, at best, temporary
compliance, often accompanied by resentment.
– Use of expert power or referent power has the most
enduring results and generates commitment.

12. Management - Chapter 13 12
Study Question 1: What is the nature
of leadership?
 Keys to building managerial power:
– There is no substitute for expertise.
– Likable personal qualities are very important.
– Effort and hard work breed respect.
– Personal behavior must support expressed values.
 Power and influence are affected by workplace
structures and networks:
– Centrality.
– Criticality.
– Visibility.

13. Management - Chapter 13 13
Study Question 1: What is the nature
of leadership?
Acceptance theory of authority.
– For a leader to achieve true influence, the other
person must:
• Truly understand the directive.
• Feel capable of carrying out the directive.
• Believe the directive is in the organization’s best
interests.
• Believe the directive is consistent with personal
values.

14. Management - Chapter 13 14
Study Question 1: What is the nature
of leadership?
 Leadership and empowerment.
– Empowerment.
• The process through which managers enable and help others to
gain power and achieve influence.
– Effective leaders empower others by providing them
with:
• Information.
• Responsibility.
• Authority.
• Trust.

15. Management - Chapter 13 15
Study Question 1: What is the nature
of leadership?
 How leaders can empower others:
– Involve others is selecting their work assignments and task
methods.
– Create an environment of cooperation, information sharing,
discussion, and shared ownership of goals.
– Encourage others to take initiative, make decisions, and use their
knowledge.
– Find out what others think and let them help design solutions.
– Give others the freedom to put their ideas and solutions into
practice.
– Recognize successes and encourage high performance.

16. Management - Chapter 13 16
Study Question 2: What are the important
leadership traits and behaviors?
 Traits that are important for leadership success:
– Drive
– Self-confidence
– Creativity
– Cognitive ability
– Business knowledge
– Motivation
– Flexibility
– Honesty and integrity

17. Management - Chapter 13 17
Study Question 1: What is the nature
of leadership?
Leadership behavior …
– Leadership behavior theories focus on how leaders
behave when working with followers.
– Leadership styles are recurring patterns of behaviors
exhibited by leaders.
– Basic dimensions of leadership behaviors:
• Concern for the task to be accomplished.
• Concern for the people doing the work.

18. Management - Chapter 13 18
Study Question 2: What are the important
leadership traits and behaviors?
 Task concerns
– Plans and defines work to
be done.
– Assigns task
responsibilities.
– Sets clear work standards.
– Urges task completion.
– Monitors performance
results.
 People concerns
– Acts warm and supportive
toward followers.
– Develops social rapport
with followers.
– Respects the feelings of
followers.
– Is sensitive to followers’
needs.
– Shows trust in followers.

19. Management - Chapter 13 19
Study Question 2: What are the important
leadership traits and behaviors?
 Blake and Mouton Leadership Grid
– Team management.
• High task concern; high people concern.
– Authority-obedience management.
• High task concern; low people concern.
– Country club management.
• High people concern; low task concern.
– Impoverished management.
• Low task concern; low people concern.
– Middle of the road management.
• Non-committal for both task concern and people concern.

20. Management - Chapter 13 20
Figure 13.3 Managerial styles in Blake
and Mouton’s Leadership Grid.

21. Management - Chapter 13 21
Study Question 2: What are the important
leadership traits and behaviors?
 Classic leadership styles:
– Autocratic style.
• Emphasizes task over people, keeps authority and information
within the leader’s tight control, and acts in a unilateral
command-and-control fashion.
– Laissez-faire style.
• Shows little concern for task, lets the group make decisions,
and acts with a “do the best you can and don’t bother me”
attitude.
– Democratic style.
• Committed to task and people, getting things done while
sharing information, encouraging participation in decision
making, and helping people develop skills and competencies.

22. Management - Chapter 13 22
Study Question 3: What are the contingency
theories leadership?
 Fiedler’s contingency model.
– Good leadership depends on a match between
leadership and situational demands.
– Determining leadership style:
• Low LPC  task-motivated leaders.
• High LPC  relationship-motivated leaders.
– Leadership is part of one’s personality, and therefore
relatively enduring and difficult to change.
– Leadership style must be fit to the situation.

23. Management - Chapter 13 23
Study Question 3: What are the contingency
theories leadership?
 Fiedler’s contingency model (cont.).
– Diagnosing situational control:
• Quality of leader-member relations (good or poor).
• Degree of task structure (high or low).
• Amount of position power (strong or weak).
– Task oriented leaders are most successful in:
• Very favorable (high control) situations.
• Very unfavorable (low control) situations.
– Relationship-oriented leaders are most successful in:
• Situations of moderate control.

24. Management - Chapter 13 24
Figure 13.4 Matching leadership style
and situation: summary predictions from
Fiedler’s contingency theory.

25. Management - Chapter 13 25
Study Question 3: What are the contingency
theories leadership?
Hersey-Blanchard situational leadership
model.
– Leaders adjust their styles depending on the
readiness of their followers to perform in a
given situation.
• Readiness — how able, willing and confident
followers are in performing tasks.

26. Management - Chapter 13 26
Figure 13.5 Leadership implications of
the Hersey-Blanchard situational leadership
model.

27. Management - Chapter 13 27
Study Question 3: What are the contingency
theories leadership?
Hersey-Blanchard leadership styles:
– Delegating.
• Low-task, low-relationship style.
• Works best in high readiness-situations
– Participating.
• Low-task, high-relationship style.
• Works best in low- to moderate-readiness situations.

28. Management - Chapter 13 28
Study Question 3: What are the contingency
theories leadership?
Hersey-Blanchard leadership styles (cont.):
– Selling.
• High-task, high-relationship style.
• Work best in moderate- to high-readiness situations.
– Telling.
• High-task, low-relationship style.
• Work best in low-readiness situations.

29. Management - Chapter 13 29
Study Question 3: What are the contingency
theories leadership?
House’s path-goal leadership theory.
– Effective leadership deals with the paths
through which followers can achieve goals.
– Leadership styles for dealing with path-goal
relationships:
• Directive leadership.
• Supportive leadership.
• Achievement-oriented leadership.
• Participative leadership.

30. Management - Chapter 13 30
Figure 13.6 Contingency relationships in
the path-goal leadership theory.

31. Management - Chapter 13 31
Study Question 3: What are the contingency
theories leadership?
 House’s leadership styles:
– Directive leadership.
• Communicate expectations.
• Give directions.
• Schedule work.
• Maintain performance standards.
• Clarify leader’s role.
– Supportive leadership.
• Make work pleasant.
• Treat group members as equals.
• Be friendly and approachable.
• Show concern for subordinates’ well-being.

32. Management - Chapter 13 32
Study Question 3: What are the contingency
theories leadership?
 House’s leadership styles:
– Achievement-oriented leadership.
• Set challenging goals.
• Expect high performance levels.
• Emphasize continuous improvement.
• Display confidence in meeting high standards.
– Participative leadership.
• Involve subordinates in decision making.
• Consult with subordinates.
• Ask for subordinates’ suggestions.
• Use subordinates’ suggestions.

33. Management - Chapter 13 33
Study Question 3: What are the contingency
theories leadership?
When to use House’s leadership styles:
– Use directive leadership when job assignments
are ambiguous.
– Use supportive leadership when worker self-
confidence is low.
– Use participative leadership when performance
incentives are poor.
– Use achievement-oriented leadership when task
challenge is insufficient.

34. Management - Chapter 13 34
Study Question 3: What are the contingency
theories leadership?
Substitutes for leadership.
– Aspects of the work setting and the people
involved that can reduce the need for a leader’s
personal involvement.
– Possible leadership substitutes:
• Subordinate characteristics.
• Task characteristics.
• Organizational characteristics.

35. Management - Chapter 13 35
Study Question 3: What are the contingency
theories leadership?
Vroom-Jago leader-participation theory.
– Helps leaders choose the method of decision
making that best fits the nature of the problem
situation.
– Basic decision-making choices:
• Authority decision.
• Consultative decision.
• Group decision.

36. Management - Chapter 13 36
Figure 13.7 Leadership implications of
Vroom-Jago leader-participation model.

37. Management - Chapter 13 37
Study Question 3: What are the contingency
theories leadership?
Decision-making options in the Vroom-
Jago leader-participation theory:
– Decide alone.
– Consult individually.
– Consult with group.
– Facilitate.
– Delegate.

38. Management - Chapter 13 38
Study Question 3: What are the contingency
theories leadership?
 Contingency factors in the Vroom-Jago leader-
participation theory:
– Decision quality.
• Who has the information needed for problem solving.
– Decision acceptance.
• Importance of subordinate acceptance to eventual
implementation.
– Decision time.
• Time available to make and implement the decision.

39. Management - Chapter 13 39
Study Question 3: What are the contingency
theories leadership?
 According to Vroom-Jago leader-participation
theory, a leader should use authority-oriented
decision methods when …
– The leader has greater expertise to solve a problem.
– The leader is confident and capable of acting alone.
– Others are likely to accept and implement the decision.
– Little or no time is available for discussion.

40. Management - Chapter 13 40
Study Question 3: What are the contingency
theories leadership?
 According to Vroom-Jago leader-participation
theory, a leader should use group-oriented and
participative decision methods when …
– The leader lacks sufficient information to solve a
problem by himself/herself.
– The problem is unclear and help is needed to clarify the
situation.
– Acceptance of the decision and commitment by others
is necessary for implementation.
– Adequate time is available for true participation.

41. Management - Chapter 13 41
Study Question 4: What is transformational
leadership?
 Benefits of participative decision methods:
– Help improve decision quality.
– Help improve decision acceptance.
– Helps develop leadership potential.
 Potential disadvantages of participative decision
methods:
– Lost efficiency.
– Not particularly useful when problems must be solved
immediately.

42. Management - Chapter 13 42
Study Question 4: What is transformational
leadership?
Superleaders.
– Persons whose vision and strength of
personality have an extraordinary impact on
others.
Charismatic leaders.
– Develop special leader-follower relationships
and inspire others in extraordinary ways.

43. Management - Chapter 13 43
Study Question 4: What is transformational
leadership?
Transactional leadership.
– Someone who directs the efforts of others
through tasks, rewards, and structures
Transformational leadership.
– Someone who is truly inspirational as a leader
and who arouses others to seek extraordinary
performance accomplishments.

44. Management - Chapter 13 44
Study Question 4: What is transformational
leadership?
Characteristics of transformational leaders:
– Vision.
– Charisma.
– Symbolism.
– Empowerment.
– Intellectual stimulation.
– Integrity.

45. Management - Chapter 13 45
Study Question 5: What are current issues in
leadership development?
Emotional intelligence.
– The ability of people to manage themselves and
their relationships effectively.
– Components of emotional intelligence:
• Self-awareness.
• Self-regulation.
• Motivation.
• Empathy.
• Social skill.

46. Management - Chapter 13 46
Study Question 5: What are current issues in
leadership development?
Gender and leadership.
– Both women and men can be effective leaders.
– Women tend to use interactive leadership.
• A style that shares qualities with transformational
leadership.
– Men tend to use transactional leadership.
– Interactive leadership provides a good fit with
the demands of a diverse workforce and the
new workplace.

47. Management - Chapter 13 47
Study Question 5: What are current issues in
leadership development?
Gender and leadership (cont.).
– Future leadership success will depend on a
person’s capacity to lead through :
• Openness.
• Positive relationships.
• Support.
• Empowerment.

48. Management - Chapter 13 48
Study Question 5: What are current issues in
leadership development?
Drucker’s “old-fashioned” leadership.
– Leadership is more than charisma; it is “good
old-fashioned” hard work.
– Essentials of “old-fashioned” leadership:
• Defining and establishing a sense of mission.
• Accepting leadership as a “responsibility” rather
than a rank.
• Earning and keeping the trust of others.

49. Management - Chapter 13 49
Study Question 5: What are current issues in
leadership development?
 Moral leadership.
– Ethical leadership adheres to moral standards meeting
the test of “good” rather than “bad” and “right” rather
than “wrong.”
– All leaders are expected to maintain high ethical
standards.
– Long-term, sustainable success requires ethical
behavior.
– Integrity involves the leader’s honesty, credibility, and
consistency in putting values into action.

50. Management - Chapter 13 50
Study Question 5: What are current issues in
leadership development?
 Moral leadership (cont.).
– Leaders with integrity earn the trust of their followers.
– Leaders have a moral obligation to build performance
capacities by awakening people’s potential.
– Authentic leadership activates performance through the
positive psychological states of confidence, hope,
optimism, and resilience.
– Authentic leadership helps in clearly framing and
responding to moral dilemmas, and serving as ethical
role models.

51. Management Fundamentals - Chapter
13
51

52. Welcome to the presentation on
“Leadership Styles”

53. A leader is one who inspires,
motivates and leads people to
accomplish organizational goals

54. Leadership is all about
influencing a group of people

55. Characteristics of effective leader

56. Take the challenges to grow

57. Take
calculated
risks

58. Adopt the leadership style that fits
you and your personality

59. Have courage at the time of
controversies

60. Accept their mistakes

61. Communicate frequently

62. Be approachable

63. Understand the situation
and the fact

64. Essential requisites of
leadership are

65. Trust

66. Collaboration

67. Confidence

68. Competence

69. Competitive Spirit

70. How do you define leadership
style?

71. Types of Leadership Styles

72. 1. Democratic/ Participative
Leadership Style

73. When to use Democratic
Leadership Style?

74. Team Agreement is needed

75. Greater motivation and
commitment

76. Knowledgeable and skillful team
members

77. Limitation of Democratic
Leadership Style

78. It is a time consuming affair

79. 2. Autocratic Leadership
Style

80. When to use Autocratic
Leadership Style?

81. When quick decisions are
needed

82. No need for others input

83. Team agreement is not
necessary

84. When high level of
management control is needed

85. Limitations of Autocratic
Leadership

86. Employees cannot question
decisions

87. Little opportunity to give
suggestions

88. 3. Laissez-Faire/ Free Rein
Leadership Style

89. When to use Laissez Faire/
Free Rein Style?

90. When the team is highly
capable

91. When team members are able
to analyze the situation

92. When close monitoring of a
decision is not needed

93. When there is full trust and
confidence in the team
members

94. Limitations of Laissez Faire/
Free Rein Leadership Style

95. Not suitable for lesser
experienced employees

96. Lack of motivation

97. Poor productivity

98. What are the factors for
selecting leadership style?

99. Objectives that need to be achieved

100. Followers

101. Situation

102. Apply the appropriate
leadership style and
techniques

103. Leadership style is the approach for
providing the right way to the team
members, implementing planning
strategies and motivating people by
including all the three leadership
styles.

104. Effective leadership is not
about making speeches or
being liked; leadership is
defined by results not
attributes.
Peter
Drucker

105. Management Fundamentals - Chapter
13
105

106. Leadership Theories

107. Theories
 Trait Approach
 Skills Approach
 Style Approach
 Situational Approach
 Contingency Theory
 Path-Goal Theory
 Leader Member
Exchange
 Transformational
 Transactional
 Team Leadership

108. Style Approach
Emphasizes the behavior of the leader
Style approach seeks to explain how leaders
combine task and relationship behaviors to
influence subordinates in their efforts to reach a
goal.
Style Approach reminds leaders that their
actions toward others occur on a task level and a
relationship level. Some situations demand
more task orientated style and others a more
relationship style based orientation.

109. Style Theory
Two General kinds of behaviors
– Task behaviors - facilitate goal
accomplishment
– Relationship behaviors - help
subordinates feel comfortable with
themselves, with each other, and with the
situation they find themselves

110. Style Approach
Ohio State
Leader Behavior Description Questionnaire
(LBDQ) - composed of 150 questions
Found that there are two general types of
leader behavior
Initiating structure - task behaviors
Consideration- relationship behaviors

111. Style Approach
 University of Michigan Studies
Research identified two types of leadership behaviors
Employee orientation- behavior of leaders who
approach subordinates with strong human
relations emphasis (similar to consideration)
Production orientation- leadership behaviors
that stress the technical and production aspects
of a job (similar to production orientation)

112. Style Approach
Blake and Mouton’s Managerial Grid
 9,1 Authority compliance- heavy emphasis on task
and job requirements and less emphasis on people
 1,9 Country Club Management- low concern for task
accomplishment coupled with high concern for
interpersonal relationships
 1,1 Impoverished Management- unconcerned with
both task and interpersonal relationships
 5,5 Middle of the Road Management- leaders who are
compromisers
 9,9 Team Management- strong emphasis on both tasks
and interpersonal relationships

113. Style Approach
 Pros
– Expanded research to include what leaders did and how
they acted
– Research has been validated by several studies and
researchers
– Task and relationship behaviors work together to form
the core of the leadership process
– Leaders can learn a lot about themselves by looking at
their behaviors in the light of task and relationship
dimensions

114. Style Approach
Cons
– Research has not shown the connection from
leader’s styles to performance outcomes
– Theory fails to find a universal style of
leadership that could be effective in almost
every situation
– Theory implies that 9,9 is most effective
leadership style however that may not be the
case in all situations

115. Situational
Approach

116. Situational Approach
 Focuses on leadership in situations
 Composed of a directive and supportive dimension
 A leader must match his or her style to the competence
and commitment of the subordinates.
 Effective leaders are those who can recognize what
employees need and then adapt their own style to meet
those needs
 Effective leadership occurs when the leader can
accurately diagnose the development level of the
subordinates in a task situation and then exhibit the
prescribed leadership style that matches that situation

117. Situational Approach
Directive Behavior
helps group members accomplish goals by
giving directions, defining roles, setting time
lines, evaluating and showing how goals will be
met.
Explains what is to be done, how it is to be
done, and who is responsible for doing it
One way communication

118. Situational Approach
Supportive Behavior
helps coworkers feel comfortable
about themselves, their coworkers and
the situation.
Asking for input, praising, listening,
sharing information about oneself
Two way communication

119. Situational approach
Four Leadership Styles
High supportive High Directive and
And low directive High Supportive
Behavior Behavior
(Supporting) (Coaching)
Low Supportive and High Directive and
Low Directive Behavior low supportive
(Delegating) Behavior
(Directing)
↑
S
U
P
P
O
R
T
I
V
E
↓
←Directive Behavior→

120. Situational approach
Four Development Levels
Low competence variable competence
and some commitment and high
commitment
High commitment and High commitment and
high competence some competence
↑
H
I
G
H
L
O
W
↓ ←Developed Developing→
High Moderate Low

121. Situational Approach
Constructed around the idea that employees
move forward and backward along the
developmental continuum
In any situation the leader must first determine
the nature of the situation
– Leader asks him/herself questions like:
What is the task I need to ask the subordinates
complete?
How complex is the task?
Are the subordinates sufficiently skilled to complete
the task?

122. Situational Leadership: A Brief
Questionnaire
Situation 1:
Because of budget restrictions imposed on your department it is
necessary to consolidate. You are thinking of asking a highly
capable and experience member of your department to take charge
of the consolidation. This person has worked in all areas of your
department and has the trust and respect of most of the staff. She is
willing to help with the consolidation.
A. Assign the project to her and let her determine how to accomplish it
B. Assign the task to her, indicate to her precisely what must be done,
and supervise her work closely.
C. Assign the task to her and provide support and encouragement as
needed.
D. Assign the task to her and indicate to her precisely what needs to be
done and make sure you incorporate her suggestions

123. Situational Approach
Pros
– Has stood the test of time in the marketplace
• More than 400 fortune 500 companies use it in training
programs
– It is practical and has straight forward approach
– It is prescriptive – it tells you what you should and
should not do in various contexts
– Emphases leader flexibility – leaders need to find
out about their subordinates needs and adapt their
style accordingly
– Forces leader to treat each subordinate differently
based on the task at hand

124. Situational Approach
Cons
– Only a few research studies have been completed on
this approach
– Not a clear connection between commitment and
competency or how this is determined
– Why do subordinates who learn a task (become
more competent) become less committed?
– Fails to take into account certain demographics
(education, experience, age, and gender)
– Also fails to address how one on one leadership vs
group leadership is taken into account- Should the
leader match each subordinate or the overall group