CHAPTER 6:
Leading
FUNDAMENTALS OF
MANAGEMENT (MGT 162)
o Define leader, leading and leadership.
o Explain the importance of leadership.
o Differentiate the leader-centered
approaches to leadership:
1. The Trait Approach
LEARNING 2. Behavioral Theories
OBJECTIVES o Ohio State Univesity Studies
o Michigan University Studies
o Managerial Grid
3. Contingency Theories
o Hersey Blanchard Life Cycle Theory
o Path Goal Theory
o Describe the types (sources) of power
LEADER
◦ People who can influence the behavior of others without
having to rely on force or those accepted by others.
LEADING
◦ Motivating and directing the members of the organization so
that they contribute to the achievement of the goals of the
organization.
DEFINITION LEADERSHIP
◦ The process of directing the behavior of others toward the
accomplishment of some objectives or causing individuals
to act in a certain way or to follow a particular course.
◦ 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.
◦ Make contributions to organization
IMPORTANCE ◦ Enhance and obtain cooperation
OF ◦ Encourage teamwork.
◦ Motivate employees to generate good
LEADERSHIP work.
The Trait Approach sees the personal characteristic
of an individual as the main determinants of how
successful that individual could be as a leader.
LEADERSHIP
APPROACHES: ◦ Leaders are born, not made.
◦ Researchers have taken two approaches:
The Trait ◦ Comparing the traits of those who have
Approach emerged as leaders with the traits of those
who have not.
◦ Comparing the traits of effective leaders
with those of ineffective leaders.
Comparing Leaders and Non-Leaders:
◦ Leaders have been found to be brighter, extroverted, self-
confident compare to non-leaders.
◦ However, they have largely failed to uncover any traits
that clearly and consistently distinguish leaders from
followers.
…cont… Comparing Effective and Ineffective Leaders
◦ Effective leaders have been found to be intelligence,
initiative, supervisory ability and self-assurance and
these characteristics will associate with high managerial
levels and performance.
◦ However, other studies found that effective leadership
does not depend on a particular set of traits, but rather on
how well the leader’s traits match with the required
situation.
Traits of Successful Leaders
◦ Drive
◦ Achievement, sense of responsibility, ambition,
energy, tenacity and initiative.
◦ Motivation
…cont… ◦ Especially power.
◦ Honesty and integrity
◦ Self confidence
◦ Persuasive, diplomatic and socially skilled.
◦ Conceptual ability
◦ Business knowledge
◦ In The Ohio State University Studies, researchers
LEADERSHIP studied the behaviors of leaders and found two
critical behaviors called:
APPROACHES: ◦ ‘Initiating structure’ (task orientation)
Behavioral leadership behavior
◦ Initiating Structure behavior – establishes
Theories : well-defined procedures that the followers
should adhere to in performing their jobs.
The Ohio State ◦ ‘Consideration’ (employee-oriented) leadership
University behavior.
◦ Consideration behavior – reflects friendship,
Studies mutual trust, respect, and warmth in the
relationship between leader and followers
…cont..
LEADERSHIP
APPROACHES: ◦ In this study, after analyzing information based on
interview with both leaders and followers, the
Behavioral Michigan University Studies pinpointed two basic
types of leader behaviors:
Theories : ◦ Production-Centered Behavior
The Michigan ◦ Employee-Centered Behavior
University
Studies
◦ Production-Centered Behavior:
◦ Is leader behavior that focuses primarily on how well
subordinate performing their job.
◦ Managers set rigid work standards, organized tasks
down to the last detail, prescribe work methods to
be followed, and closely supervised employees’
work.
…cont…
◦ Employee-Centered Behavior:
◦ Is leader behavior that focuses primarily on
subordinates as people.
◦ Managers encouraged employee participation in goal
setting and other work decisions and helped ensure
high performance by inspiring trust and respect.
LEADERSHIP There are five styles of leadership in The Managerial Grid
which comprise of:
APPROACHES: 1. The Indifferent (previously called impoverished) Style (1,1)
Behavioral 2. The Accommodating (previously, country club) Style (1,9)
3. Dictatorial (previously, task management) Style (9,1)
Theories : 4. The Status Quo (previously, middle-of-the-road) Style (5,5)
The Managerial
5. The sound (previously, team management) Style (9,9)
Grid
◦ Managerial Grid (basic diagram)
…cont…
◦ Managerial Grid (comprehensive diagram)
…cont…
The Indifferent (previously called impoverished) Style (1,1)
◦ Evade and elude.
◦ In this style, managers have low concern for both people
and production.
…cont… ◦ Managers use this style to preserve job and job seniority
(Style 1) (length of time served in a job), protecting themselves by
avoiding getting into trouble.
◦ The main concern for the manager is not to be held
responsible for any mistakes, which results in less
innovative decisions.
The Accommodating (previously, country club) Style (1,9):
◦ Yield and comply.
◦ This style has a high concern for people and a low concern
for production.
…cont… ◦ Managers using this style pay much attention to the
security and comfort of the employees, in hopes that this
(Style 2) will increase performance.
◦ The resulting atmosphere is usually friendly, but not
necessarily very productive.
The Dictatorial (previously, task management) Style (9,1):
◦ Control and dominate.
◦ With a high concern for production, and a low concern
for people.
◦ Managers using this style find employee needs
…cont… unimportant; they provide their employees with money and
expect performance in return.
(Style 3 ) ◦ Managers using this style also pressure their employees
through rules and punishments to achieve the company
goals.
◦ This style is often used in case of crisis management.
The Status Quo (previously, middle-of-the-road) Style
(5,5):
◦ Balance and compromise.
…cont… ◦ Managers using this style try to balance between company
goals and workers' needs.
(Style 4) ◦ By giving some concern to both people and production,
managers who use this style hope to achieve suitable
performance but doing so gives away a bit of each concern
so that neither production nor people needs are met.
The Sound (previously, team management) Style (9,9):
◦ Contribute and commit.
◦ In this style, high concern is paid both to people and
production.
…cont… ◦ As suggested by the propositions of Theory Y, managers
choosing to use this style encourage teamwork and
(Style 5) commitment among employees.
◦ This method relies heavily on making employees feel
themselves to be constructive parts of the company.
LEADERSHIP
APPROACHES:
The Hersey Blanchard Life Cycle describes how leaders
Contingency should adjust their leadership style in response to their
Theories : subordinates’ situation that evolving desire for
achievement, experience, ability and willingness to accept
Hersey responsibility
Blanchard Life
Cycle Theory
…cont…
There are four phases of leadership styles under this theory.
◦ 1st Phase (Telling/ Directing)
◦ Followers must be instructed on what, how, when and where to do various
tasks.
◦ The manager initiates decision-making.
◦ 2nd Phase (Selling/ Coaching)
◦ Leader still provides a great deal of direction but attempts to hear
followers’ feelings about decision, ideas and suggestions.
◦ Control over decision-making remains with the leader.
…cont… ◦ 3rd Phase (Participating/Supporting)
◦ Employees have more ability and achievement motivation.
◦ Actively seeking greater responsibility.
◦ Leaders provide recognition and actively listen and facilitate problem
solving.
◦ Decision-making and problem solving shifts from leader to follower.
◦ 4th Phase (Delegating)
◦ Followers no longer need direction from managers.
◦ Leaders can reduce the amount of support and encouragement.
◦ Decision making totally delegated to the follower.
The Path-Goal Theory emphasizing on the leader’s role in
clarifying for subordinates how they can achieve high
LEADERSHIP performance and its associated rewards.
◦ Developed by Martin G. Evans and Robert J. House.
APPROACHES: ◦ Individual’s motivation depends on his/her
expectation of rewards and the attractiveness of the
Contingency rewards.
Theories : ◦ Leaders clarify paths through which followers can
achieve both task-related and personal goals.
The Path Goal ◦ The most effective leadership style in motivating
followers depends on the types of rewards they most
Theory desire.
◦ Directive Behavior
◦ leader behavior aimed at telling followers what to do and how
to do it. The leader indicates what performance goals exist
and precisely what must be done to achieve them.
◦ Supportive Behavior
◦ leader behavior aimed at being friendly with followers and
The Path Goal
showing interest in them as human being. Through supportive
behavior, the leaders show sensitivity to the personal needs of
followers.
Theory: ◦ Participative Behavior
4 primary types of ◦ leader behavior in which suggestions from the follower are
sought regarding business operations with the result that are
behavior: involved in making important organizational decision.
◦ Achievement Behavior
◦ leader behavior aimed at setting challenging goals for
followers to reach and expressing and demonstrating
confidence that followers will meet the challenge
Definition of Power
◦ Ability to marshal human, information, or
material resources to get something done.
POWER
◦ An individual’s capacity to influence
decisions.
Two major types (sources)of power:
◦ Position Power
◦ is inherent in the formal position that the
leader holds which includes:
◦ Legitimate
◦ Information
◦ Coercive
Types (Sources) ◦ Reward
of Power ◦ Personal Power
◦ is derived from interpersonal relationship
between a leader and his follower that
comprises of:
◦ Referent
◦ Expert
Position Power Personal Power
Legitimate Referent
• Power from formal authority due • Ability to influence others based
to his/her position in the on the person’s personality --
organization e.g. security guard personal liking, charisma &
reputation e.g. politicians,
…cont…
Information
entertainers or sport figures
• Control over information e.g.
librarian Expert
Coercive • Power to influence another person
• Power to discipline, punish & because of his/her expertise--
knowledge and competence e.g.
withhold rewards e.g. lecturers-
doctor, engineer or lawyer
students
Reward
• Control over tangible benefits
example promotion, work
schedule e.g. Rector UiTM
