Who comes to mind when you think about

great leaders? Can you identify these people?

And what about business leaders?
 What is leadership?
• Leadership is defined as the
ability to influence people
toward the attainment of goals.
• The right leadership style will
have an impact on employee
productivity and engagement.
• Leaders design corporate culture:
“Culture eats strategy for
breakfast.” - Peter Drucker
 Leadership Theories
• McGregors Theory X and Theory Y
• Trait Theory;
• (Hershey and Blanchard) Situational Theory;
• (Richard Barrett) Value-based Leadership;
• (Kasthuri Henry) Ethical Leadership.
 McGregor's Theory X and Y
You REALLY
• McGregor’s theory proposed the wanna know what
leadership style used by managers will I think about
reflect their perception or assumption allyuh!?
of the character of the workforce.
• Employees are grouped as either
Theory X or Theory Y.
 Theory X Employee
• Inherent dislike for work – naturally
dislike working and will seek to avoid
work if possible.
• Posses little ambition – prefer to avoid
responsibility, and choose security
above everything else.
• Little concern for organisational goals -
Being self-centred, the average person
will not be concerned about the goals
of the organisation.
 Theory X Employee
Methods of leading or motivating Theory 3. Extrinsic rewards - They x managers are
X employee: of the view that money and security are
1. Autocratic leadership style - Managers peoples main motivation to work.
who hold theory x assumptions about 4. Close supervision – employees must be
their employees are likely to have closely supervised in order to perform.
autocratic traits.
2. Coercive Goal accomplishment - They
usually believe the organisations
objectives will be achieved through
coercion, discipline and penalties.
 Theory Y Employee
• Self-direction - Employees will
exercise self-direction and • People possess the skills,
self-control as they seek to fulfil imagination, ingenuity and
the firm’s objectives creativity needed to sole the
• Ambitious - Employees are organisation’s problems’
self-motivated and enjoy the •
challenge of work. Seek
responsibility..
• .
 Theory Y Employee
Methods of leading or motivating: 3. Autonomous work groups -
1. Democratic management style – Managers with this assumption
this leadership style gets have a more collaborative
workers more involved in relationship with their people,
decision making. and motivate them by allowing
2. Frequent opportunities for them to work on their own
promotion -Theory Y initiative, giving them
organizations also give responsibility, and empowering
employees frequent them to make decisions
opportunities for promotion.
 Theory x and y quizz
• Which of the following statements is not an assumption of a
manager who might adopt a Theory X style of management?
a) The intellectual potential of the average person is only
partially utilised
b) The average person avoids responsibility
c) People must be threatened with punishment if the
organisation is to meet its objectives
d) The average person is lazy and has an inherent dislike of work
 Theory x and y quiz
• A Theory Y approach would be more suitable where a job
offers
a) an element of problem solving
b) a high degree of intrinsic satisfaction
c) the ability to exercise initiative
d) all of the above
 Theory x and y quiz
• In which of the following organisations might a Theory X
approach be more likely than a Theory Y approach?
a) A design studio
b) A charitable organisation
c) A research laboratory
d) The army
 Trait Theory
• The trait theory of leadership Advantages:
focuses on identifying different • It is used as a yardstick to assess
personality traits and an individuals leadership traits
characteristics that are linked to Disadvantage
successful leadership across a
• It lends itself to subjectivity
variety of situations.
• The traits needed for one
• Its main assumption is that
organisation may be very
effective leaders are born and
different from those needed for
not made.
another
PHYSICAL CHARACTERISTICS PERSONALITY WORK-RELATED
Energy Self-confidence CHARACTERISTICS
Physical stamina Honesty and integrity Achievement drive, desire
Enthusiasm to excel
Desire to lead Conscientiousness in
pursuit of goals

INTELLIGENCE AND ABILITY SOCIAL CHARACTERISTICS SOCIAL BACKGROUND

Intelligence, cognitive Sociability, interpersonal Education
ability skills Mobility
Knowledge Cooperativeness
Judgment, decisiveness Tact, diplomacy
 Limitations of Trait Theories
• Not all leaders will have all or the same characteristics but
depending on the situation or organisation they are in, they
will need to possess certain traits.
• It lends itself to subjectivity – which traits are more important
than others
• The traits needed in one organisation may be very different
from those needed for another
 Situational Theory
The Hersey-Blanchard Model suggests:
• no leadership style is better than another.
• managers adapt their leadership style
between levels of supportive or directive
leadership
• leadership styles are related directly to
employees' different maturity categories.
• Leadership style include:
1. Delegating
2. Supporting
3. Coaching
4. Directing
 Situational Theory
1. Directing (S1)
• The S1 leadership style focuses
primarily on providing direction to
employees.
• At the S1 stage, followers lack the
ability and willingness to complete
their tasks, and leaders must clearly
define their responsibilities and ensure
they develop the foundational skills to
be successful.
• Typical S1 leadership methods include
simple instructions, clear explanations,
and careful supervision.
 Situational Theory
2. Coaching (S2)
• The leadership style provides followers
with both direction and personal
support.
• Followers are still unable to perform
their tasks but are motivated to
succeed.
• Therefore, leaders should ensure that
followers are developing the necessary
skills but still maintaining their
self-confidence.
• Ultimately, this results in followers that
can take on personal responsibility for
their tasks.
 Situational Theory
3. Supporting (S3)
• The leadership style focuses on
supporting followers and less
emphasis on providing direction.
• the follower has already developed
the necessary skills to complete
their tasks.
• Therefore, the leader should focus
on providing feedback and
support to motivate the employee
and encourage greater
development.
 Situational Theory
4. Delegating (S4)
• The leadership style involves
minimal direction and support, as
the follower is already capable of
performing their tasks
independently.
• At the level, the leader should
provide support when needed
but also provide the follower
with autonomy over their
responsibilities.
 Situational Theory
Advantages Disadvantages
• One advantage of an adaptive • The model may not work well in
leadership style is that leaders can certain work cultures, industries, or
change at any time. sectors.
• Employees may find a leader who • There is a chance that this model might
adapts to shifts in the workforce as a prioritize relationships and tasks
desirable trait. instead of a company's long-term
goals.
 Value-based Leadership
Richard Barrett’s model
assumptions:
• the values of the leader will drive
the performance of organizations
• people are mostly motivated by
values and live according to these
beliefs.
• Effective leadership aligns
employee’s actual and desired
values.
 Value-based Leadership
1. Increased productivity: Feeling more connected to your organization’s purpose
and mission improves employee morale, making them more enthusiastic about
their work and input to the company’s success.
2. Empowered employees: Increased morale makes employees more confident in
their roles. Value-driven leadership also sets an example for employees, motivating
them to handle strategic challenges in more creative, innovative and responsive
ways.
3. Improved customer satisfaction: As employee satisfaction increases with a
supportive value-based culture, it will show in interactions with customers and
lead to greater customer satisfaction.
 Ethical Leadership
• Ethical leadership means that
individuals behave according to a
set of principles and values that
are recognized by the majority as
a sound basis for the common
good.
• Ethical leadership is leadership
through principles that influences
followers
 Ethical Leadership
Characteristics of ethical leadership 3. Respects everyone equally.
include:: • Respect is a vital element of ethical
1. Leads by example. responsibility. Leaders that are
• Ethical leaders should have the ethical will respect everyone, from
same expectations for themselves their superiors to their employees,
as for those that work for them. equally.
2. Willing to evolve. 4. Communicates openly.
• Good leaders need to be able to • Leaders who have ethics need to
evolve and adapt to the changes excel at communication to make
that are sure to come in the sure their organization is a place of
business world. trust and honesty. Without
communication, issues can go
undetected for a long time.
 Leadership Skills
(c) Leadership skills including:
(i) communication;
(ii) strategic thinking;
(iii) emotional intelligence; and,
(iv) decision-making: problem-solving and critical thinking.
 Communication
▪ Effective leaders must have good • A study found that inadequate
communication skills in order to communication can cost large companies an
influence workers. average of $64.2 million per year, while
smaller organizations are at risk of losing
▪ Poor communication skills can lead to
$420,000 annually. (Harvard Business Online,
problems like: 2019)
▪ misinterpreted information
▪ poor worker relationships
▪ Low morale
▪ Lost sales
▪ Increased costs
▪ Effective managers spend about 80% of
their time communicating with others.
 Communication
Important communication skills include: 3. Proper Body Language
1. Ability to Adapt Your Communication Style • The body language should send the proper
• Every employee’s motivations are different, cues to the listeners and not contradict
so knowing how to tailor your verbal and other messages.
communication is essential to influencing
others and reaching organizational goals. 4. Enabling Upward Communication channels
• There must be feedback from employees to
2. Clarity enure the message is received with clarity.
• When communicating with employees,
speak in specifics. The more clear you are,
the less confusion there will be around
priorities. Employees will know what
they’re working toward and feel more
engaged in the process.
 Strategic Thinking
• Strategic thinking is the ability to
evaluate problems and
opportunities and make good
decisions that support your overall
goals.
• Effective strategic thinking leaders
posses the ability to:
– analyze and understand the big picture
of a team or project,
– anticipate potential challenges and
opportunities, and
– make informed decisions that align
with long-term goal.
 Strategic Thinking
Strategic thinking skills include:
1. Analytical skills:
• Having access to and interpreting data
accuratley to make informed decisions.
This initial analysis is crucial to creating
a strategy that aligns with the current
reality facing your organization.
2. Planning and management skills:
• Once data has been analyzed, the
problem is understood, and a solution
has been identified, strong planning
and management skills to bring
effectively implement the solution
 Decision Making
• Leaders must possess the skills to • Problem-solving skills: Strategic
make the best decisions which will planning is often used to solve
have a positive impact on the firms problems or address challenges,
success. This requires them to be such as missed financial targets,
critical thinkers and problem inefficient workflows, or an
solvers. emerging competitor.
Critical/ thinking • Implementing a strategy that
– thinking logically and not being addresses the central challenge you
influenced by personal wants or face requires you to
desires. first understand the problem and its
– Asking appropriate questions in order potential solutions. From there, you
to ascertain relevant information and can craft a strategy that solves it
drawing logical conclusions.
 Emotional Intelligence
• Emotional intelligence is defined • In fact, 71 percent of employers
as the ability to understand and value emotional intelligence
manage your emotions, as well more than technical skills when
as recognize and influence the evaluating candidates. (Harvard
emotions of those around you. Business Review)
• Employees with high emotional
intelligence are more likely to
stay calm under pressure, resolve
conflict effectively, and respond
to co-workers with empathy.
 Emotional Intelligence
Benefits of emotional intelligence as a 2. Better Communication
leadership skill: • Because emotionally intelligent
1. Improved Job Satisfaction leaders have strong self-awareness
• Emotionally intelligent leaders are and awareness of others, they are
skilled at helping their employees typically good at communicating
feel heard and valued, Perry said, with their employees in ways that
which can boost job satisfaction. work for them.
These leaders are not afraid to seek
out advice or new ideas and are
skilled at understanding their
employees and their emotions.
 Emotional Intelligence
3. Increased Performance and 4. Less Conflict
Productivity • When a leader is emotionally
• high emotional intelligence in intelligent, they are better aware of
leadership and workers have more their own emotional triggers and
effective individual interactions and those of their team members,
higher rates of productivity • “If you’re aware of your own
• “A 2018 study in the Journal of emotions and tendencies and start
World Business, for example, found to become aware of other people’s,
that workers reporting to leaders you can head off conflict before it
with high emotional intelligence are starts,” she said.
more likely to be high performers
and have more job satisfaction than
workers without a high EQ leader
 Emotional Intelligence
• Emotional intelligence is typically
broken down into four core
competencies:
– Self-awareness
– Self-management
– Social awareness
– Relationship management
 Emotional Intelligence
1. Self-Awareness • According to research by
• It describes your ability to not only organizational psychologist Tasha
understand your strengths and Eurich, 95 percent of people think
weaknesses, but to recognize your they’re self-aware, but only 10 to 15
emotions and their effect on you percent actually are, and that can
and your team’s performance. pose problems for your employees.
Working with colleagues who aren’t
self-aware can cut a team’s success
in half and, according to Eurich’s
research, lead to increased stress
and decreased motivation.
 Emotional Intelligence
2. Self-Management
• Self-management refers to the
ability to manage your emotions,
particularly in stressful situations,
and maintain a positive outlook
despite setbacks.
• Leaders who lack
self-management tend to react
and have a harder time keeping
their impulses in check.
 Emotional Intelligence
3. Social Awareness • Global leadership development firm
• Social awareness describes your DDI ranks empathy as the number
ability to recognize others’ emotions one leadership skill, reporting that
and the dynamics in play within leaders who master empathy
your organization. perform more than 40 percent
• Bing empathetic and considerate of higher in coaching, engaging others,
others and decision-making.
• In a separate study by the Center for
Creative Leadership (pdf),
researchers found that managers
who show more empathy toward
their direct reports are viewed as
better performers by their bosses.
 Emotional Intelligence
4. Relationship Management
• Relationship management refers
to your ability to influence,
coach, and mentor others, and
resolve conflict effectively.
Leadership styles
 Leadership Styles
(d) Leadership styles/behaviours:
i. transactional; and,
ii. transformational.
iii. Democratic
iv. Autocratic
v. Laissez-faire
 Transactional Leadership
• Transactional leadership, also • The leader believes in motivating
known as managerial leadership, through a system of rewards and
is a leadership style where punishment.
leaders rely on rewards and • If a subordinate does what is
punishments to achieve optimal desired, a reward will follow, and
job performance from their if he does not go as per the
subordinates. wishes of the leader, a
• The power of transactional punishment will follow. Here, the
leaders comes from their formal exchange between leader and
authority and responsibility in follower takes place to achieve
the organization. routine performance goals.
 Transactional Leadership
Assumptions: Examples of Transactional
• Employees are motivated by Leadership
reward and punishment. • Transactional leadership works
• The subordinates have to obey best in situations when rules
the orders of the superior. must be followed and hierarchy is
• The subordinates are not critical, and there’s not much
self-motivated. They have to be emphasis on innovation. Types of
closely monitored and controlled organizations that employ
to get the work done from them transactional leadership are the
military, big corporations and NFL
coaching
 Transactional Leadership
Transactional leadership pros: Transactional leadership cons:
• Rewards those who are motivated by • Rewards the worker on a practical level
self-interest to follow instructions only, such as money or perks
• Provides an unambiguous structure for • Creativity is limited since the goals and
large organizations, systems requiring objectives are already set
repetitive tasks and infinitely • Does not reward personal initiative
reproducible environments
• Achieves short-term goals quickly
• Rewards and penalties are clearly
defined for workers
 Transformational Leadership
• Transformational leadership is a model • Motivates using enthusiasm and
of leadership that relies on the charismatic inspiration
encouragement of a team to realize • Focused on commitment
overall success. By raising a team’s • More focused on long-term success
morale and self-confidence, the team
can then align itself to an overall vision • Uses intrinsic rewards (esteem, pride,
or common purpose. etc.)
• Transformational leaders inspire
followers to believe in the leader
personally and create a better future
for the organization.
• Transformational leaders create
significant change in both followers and
the organization
 Transformational Leadership
Researchers have found that this style of leadership can have a positive
effect on the group. Some of these effects include:
1. Better performance: Those led by transformational individuals have
better performance and are more satisfied than those in groups with
different types of leaders.3
2. Better well-being: Employees who identified a higher level of
transformational leadership in their employers also reported higher
levels of well-being. The effect stayed significant even after researchers
controlled for factors linked to well-being, such as job strain, education,
3. Sense of empowerment: This is attributed to the fact that
transformational leaders believe that their followers can do their best,
leading group members to feel inspired and empowered.
 Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the organizational culture Work to change the organizational

culture by implementing new ideas

Transactional leaders make employees Transformational leaders motivate and

achieve organizational objectives empower employees to achieve
through rewards and punishment company’s objectives by appealing to
higher ideals and moral values

Motivates followers by appealing to their Motivates followers by encouraging

own self-interest them to transcend their own interests for
those of the group or unit
Autocratic leaders vs. democratic leaders
 Democratic or participative leadership
Advantages Disadvantages
❑ The leader allows employees to
share their ideas and suggestions and
participate in the decision-making Helps to motivate staff Decision making tends
process. Suitable for complex to be slow
❑ The leader delegates authority to decisions that require May not be best for
subordinate but retains ultimate specialist skills some types of
responsibility. Employees are allowed decisions that need a
to be intuitive quick response
❑ Facilitates two-way communication
Encourages team Requires a skilled
and the employees input is highly
building labour force for
regarded.
informative decisions
 Autocratic/authoritative/directive leadership
❑ a leadership style characterized
by individual control over all
decisions and little input from
group members.
❑ Centralized decision making
❑ Employees have little or no say
❑ One-way communication
❑ Close supervision
 Autocratic leadership
Advantages Disadvantages
1. It provides for quick decision-making 1. Subordinates are forced to follow the
because here only one person i.e., the directions given by the leader blindly
leader takes decisions. 2. The success of this type of leadership
2. Mostly subordinates like to work depends entirely upon the efficiency
under centralized authority and strict of the leader.
supervision. 3. Subordinates tend to evade
3. As there is no consultation with responsibility and initiative.
subordinates, confidential matters 4. Full potential of subordinates and
can be kept secretly. their creative ideas are not utilized
Laissez faire Leadership
❑ leaders are hands-off and allow group
members to make the decisions.
❑ generally the leadership style that leads
to the lowest productivity among group
members
❑ Complete freedom for followers to
make decisions
❑ Group members are expected to solve
problems on their own
 Laissez Faire leadership
• Best Suited when:
❑ When team members have the skills to succeed. Laissez-faire
leadership can be effective in situations where group members are
highly skilled, motivated, and capable of working on their own.
❑ When group members are experts. The delegative style can be
particularly effective in situations where group members are
actually more knowledgeable than the group's leader.
❑ When independence is valued. This autonomy can be freeing to
some group members and help them feel more satisfied with their
work.
 Other leadership Styles
• Paternalistic Leadership
❑ a dominant authority figure who
acts as a ‘parent’ and treats
employees and partners as
though they are members of a
large, extended family
❑ Adv – close working relationships
fulfilling social needs
 Other leadership styles
• Bureaucratic Leadership
❑ leadership based upon fixed
official duties under a hierarchy
of authority, applying a system of
rules for management and
decision-making
❑ Most suitable for some
government offices and private
workplaces
 Factors influencing the choice of leadership style
❑ Time pressures – the length of ❑ Attitude of subordinates
time available ❑ Skill level of labour force – highly
❑ Organisational culture – the way skilled labour force can be
in which things are normally trusted to share ideas and
done. complete tasks.
❑ Staff size – the larger the staff the ❑ Personality of the leader
more centralised decisions ❑ The nature of the task – the level
making of urgency or impact on the
organisation.
 Personal Leadership Quiz
Mostly True Mostly False
1. I am a modest, unassuming person
2. When a part of a group, I am more concerned about how the group does than
how I do
3. I prefer to lead with quiet modesty rather than personal assertiveness
4. I feel personally responsible if the team does poorly
5. I act with quiet determination
6. I resolve to do whatever needs doing to produce the best result for the group
7. I am proactive to help the group succeed
8. I facilitate high standards for my group’s performance
 Personal Leadership Quiz
• Scoring and Interpretation:
• Give yourself 1 point for every item marked Mostly True
• If you scored 3 or 4 on either humility or will, you are on the right track to level 5
leadership, which says that ordinary people often make excellent leaders
• Will: Items 5,6,7,8
• Humility: Items 1,2,3,4

• A recent view of leadership called the Level Five Leadership says that the most
successful leaders have two prominent qualities: humility and will..
 Informal Leadership
❑ Informal leaders have the ability to
lead without formal power, perhaps
because of their experiences,
personality or special knowledge.
❑ They have more influence over
activities of the group than formal
leaders especially if the latter are
just seen as positions rather than
leaders.
❑ Ideally managers should attempt to
work with the informal leaders to
help achieve the aims of the
business.
 Informal Leadership
Advantages Disadvantages
❑ Can motivate the workforce which ❑ The informal leader could use his
could eventually improve productivity influence to resist changes in the firm
❑ Tends to improve the employees social ❑ Could result in employees being ill
relationships informed about matters within the
❑ Suggestions from informal leaders organisation.
coule be implemented by management
❑ Informal leaders often know how to
get the word out and can be used as a
communication tool