CHAPTER – TWO
LEADERSHIP THEORIES AND STYLES
Leadership
Styles and Their Characteristics
Leadership
Style Definition: refers to the specific manner and approach that a
leader employs when guiding and directing others, executing plans, and
inspiring individuals within a group or organization. The leadership style
adopted by managers is influenced by their beliefs, values, and assumptions,
which are shaped by the organizational culture. It encompasses both explicit
and implicit actions performed by a leader, as observed by employees.
Components of Leadership Style:
1. Motivation Approach:
·
Positive: Recognition,
praise, security, monetary rewards.
·
Negative: Threats,
coercion, fines, suspensions, termination.
2. Decision-Making Style: The degree of decision-making authority granted to
subordinates.
3. Areas of Emphasis in the Work Environment
(Orientation):
·
Task Orientation: Focus
on tasks and objectives.
·
Employee Orientation: Emphasis
on the well-being and satisfaction of employees.
Types of Leadership Styles:
1. Authoritarian/Autocratic Leadership Style:
Ø Associated with the classical approach to
management.
Ø Decision-making is centralized, with the leader
retaining all authority and responsibility. Communication mainly flows downward.
Ø Characterized by a dogmatic leader who motivates
through incentives and fear.
Ø Decision-making is solely by the manager, with
limited input from subordinates.
Ø Task-oriented with minimal consideration for
subordinates' opinions.
Ø Effective in urgent situations but may suppress
employee initiative.
Characteristics:
Ø Work methods that are dictated by the autocratic
leader.
Ø Limited employee participation in most aspects of
work.
Ø Unilateral decision-making by the leader.
Ø The leader plans, organizes, controls, and
coordinates without consent of the subordinates.
Ø Emphasis is on getting the job done without regard
for input from others..
Assumptions:
Ø Assumes subordinate has inherent dislikes of work
and relies on negative motivation.
Ø Views unintelligent subordinates as immature and
unreliable.
Ø Utilized in situations requiring quick, unilateral
decisions or with new subordinates.
Limitations:
Ø Ignores valuable input from subordinates.
Ø May demotivate employees and suppress individual
initiative.
Ø Poor implementation of decisions.
2.
Democratic/Participative
Leadership Style
Democratic or
participative leadership style: the manager involves
subordinates in organizational decision-making, sharing problems and authority
to reach a consensus.
Ø Subordinates actively participate in the
decision-making process through consultation, with the leader delegating
authority while retaining ultimate responsibility.
Ø This leadership style is characterized by active two-way communication, both
upward and downward. The democratic
leader operates based on the Theory Y assumption.
When
to Use the Democratic Style:
·
Managing
employees who are committed to their jobs.
·
Managing
employees who are interested in more responsibility.
·
Managing
experienced and well-trained employees.
Assumptions:
Ø Improved
Understanding: Involvement in
the decision-making process enhances the understanding of the issues for those
who must implement the decisions.
Ø Increased
Commitment: People are more
committed to actions where they are involved in relevant decision-making.
Ø Collaboration: People tend to be less competitive and more
collaborative when working on joint goals.
Ø Social
Commitment: Joint
decision-making increases the social commitment to one another and,
consequently, commitment to the decision.
Ø Better
Decisions: Several people
deciding together tend to make better decisions than one person alone.
Advantages:
·
Actively
involves employees in decision-making.
·
Promotes higher
employee morale.
·
Strengthens
employee commitment to established goals.
·
Allows joint
decision-making with the team proposing decisions.
·
Facilitates
delegation of decisions to the team.
·
Decision-making
is collaborative, with the leader having the final say.
Limitations:
Ø Over-Involvement: Subordinates may be overly involved, influencing the
manager even when unnecessary.
Ø Influence
Challenges: The manager may
struggle to influence subordinates to the extent needed.
Ø Time-Consuming: Consensus-building in decision-making can be
time-consuming.
Ø Participation
Preferences: Not everyone may
be willing to participate in the decision-making process.
3.
Laissez-Faire/Free-Rein
Leadership Style
The
laissez-faire
or free-rein leadership style
involves leaders giving the group complete freedom, providing necessary
materials, participating minimally, and avoiding decision-making whenever
possible.
§ In this style, leaders depend on subordinates to set
their own goals and means of achieving them.
§ The leader's role is primarily seen as aiding the operations of
followers by furnishing information and acting as a contact with the group's
external environment.
When to Use the
Laissez-Faire Style:
·
Leading a team
of highly motivated and skilled individuals.
·
When the team
has a track record of producing excellent work.
·
To empower a
confident, capable, and motivated team to achieve their goals.
Advantages:
Ø Provides substantial freedom for subordinates.
Ø Grants significant responsibility and self-guidance
to subordinates.
Ø Permits self-starters to operate without constant
leader intervention.
Ø Particularly useful in businesses where creative
ideas are crucial.
Limitations:
Ø Lack of Direction: The
group may drift aimlessly without clear direction from the leader.
Ø Potential for Chaos: Things
may become chaotic or out of control without effective guidance.
Leadership Attitudes and Styles
Leadership
attitudes and styles can be categorized based on task orientation versus employee orientation.
Ø Task
orientation: how much a leader is concerned with the task at
hand and
Ø Employee
orientation: how much they are concerned for the people around
them. The combination of these orientations leads to different leadership
styles:
1.
Impoverished
Management (Delegating):
·
Low concern for
the task and low concern for people.
·
Minimal effort,
letting the group handle tasks and maintaining the structure.
"I'll just let them get on with it, I'm sure
they'll do fine, they don't really want me
Interfering anyway"
2.
Country
Club Management (Supporting):
·
Low concern for
the task and high concern for people.
·
Takes care of
the group, creating a comfortable, friendly atmosphere, hoping it leads to task
completion.
"It stands to reason, if they're happy they'll work harder and the work will take care of itself."
3.
Authority/Obedience
Management (Directing):
·
High concern for
the task and low concern for people.
·
Task-oriented,
focusing on getting the work done without much emphasis on the well-being of
the group.
We are here to work, the work needs to be done. If
they're working hard enough they
won’t
have time to feel unhappy, they're not here to enjoy themselves."
4.
Team
Management (Coaching):
·
High concern for
the task and high concern for people.
·
Sees task
completion and group well-being as interdependent, building relationships based
on trust and respect.
"We're in this together. We need to support and help each other to
get this job done."
Style Choice and Leadership Development:
1.
Directing: This
style is suitable for team members who are enthusiastic but lack ability. The
leader provides clear direction, tells them what to do, and guides them through
each task.
2.
Coaching: This
style suits individuals who may lose confidence and motivation over time. The
leader continues to provide guidance and instruction while offering
encouragement and praise.
3.
Supporting: As
team members' abilities improve, the leader transitions to a supportive style.
They seek their opinions, involve them in decision-making, and recognize their
ideas.
4.
Delegating: When
team members are technically competent and confident, the leader can delegate
specific areas of work to them. Less direction and praise are needed as these
individuals can work independently.
Leadership Theories
1.
Great
Man Theory:
This theory suggests that leadership is inherent and
that great leaders are born with innate qualities that distinguish them from
others. Great Man theories often depict leaders as heroic figures who are
destined to rise to leadership when the need arises. During the time these
theories emerged, leadership was primarily associated with males, especially in
military contexts.
2.
Trait
Theory:
Trait Theory: is similar to Great Man theories in that it assumes
certain inherent qualities and traits make individuals better suited for
leadership. Trait theories aim to identify specific personality or behavioral
characteristics shared by leaders.
Researchers have explored various traits, such as
height, weight, appearance, intelligence, disposition, adaptability,
cooperativeness, dominance, persistence, self-confidence, tolerance of stress,
and willingness to assume responsibility. The idea behind trait theory was to
determine whether these traits could predict individuals who would emerge as
leaders.
Challenges and Criticisms of Trait Theory:
1. Failure to
Distinguish Leaders from Non-Leaders:
·
Studies comparing traits of leaders and non-leaders have not consistently
identified traits that clearly distinguish between the two.
·
Leaders as a group may have certain traits, but not all leaders share
these traits, and many non-leaders also possess them.
2. Lack of
Consistent Traits for Effective Leadership:
·
Studies attempting to compare traits of effective and ineffective leaders
have failed to isolate specific traits strongly associated with successful
leadership.
3. Issues with
Universal Traits:
·
Not all leaders possess all identified traits, and many non-leaders may have
most of these traits.
·
No consensus on the magnitude of each trait necessary for leadership.
·
Difficulty in establishing the relationships between traits and instances
of leadership.
4. Chicken-and-Egg
Proposition:
·
Traits may be observed in successful leaders after assuming leadership
positions, making it challenging to determine causality.
Great man theory vs trait theory
The great man theory of leadership suggests that effective leaders are
born with inherent traits and qualities that make them exceptional. On the
other hand, the trait theory of leadership focuses on identifying the specific
traits or personal qualities that contribute to effective leadership.
The great man theory emphasizes that effective
leaders are born with inherent qualities, while the trait theory suggests that
leadership traits can be developed and acquired through learning and
experience.
3.
Behavioral Leadership Theory:
This
theory suggests that leadership is not innate but
can be learned through teaching and
observation.
Ø It focuses on the actions and behaviors of leaders
rather than their inherent qualities or internal states.
Ø The goal was to understand what effective leaders do
and how their behaviors influence subordinates emotionally and behaviorally.
Two major dimensions of leader
behavior
§ Task-Oriented Behavior: This
dimension focuses on how leaders get the job done, including task assignment,
monitoring, and performance evaluation.
§ Relationship-Oriented Behavior: This
dimension deals with how leaders treat and interact with their subordinates,
emphasizing support, communication, and building positive relationships.
4. Contingency
Leadership Theory:
Contingency theories of
leadership emphasize that no single leadership
style is universally effective. Instead, the
most appropriate leadership style depends on the
specific variables and characteristics of the
situation.
Ø The success of a leader depends on factors such as
the leadership style used, the qualities, and behaviors of
the followers, and aspects of the situation.
Ø Situational
leadership theory is a specific type of contingency theory that
suggests the effectiveness of a particular leadership style is contingent upon
the situation. Different situations may require different leadership styles.
Ø Contingency theory recognizes that relevant
situational characteristics, such as job characteristics, organizational
policies, leader-member relations (the support the leader receives from group
members), and position power (the amount of power given to the leader to accomplish
tasks), interact with the behaviors and competencies of both leaders and
followers.
Transformational, transactional
and servant leaders
A. Transformational leaders:
Ø Transformational
leaders lead employees by aligning employee goals with the
leader's goals. Thus, employees working for transformational leaders start
focusing on the company's well-being rather than on what is best for them as
individual employees.
Ø Transformational leaders have four tools in their possession, which they use to influence employees and create commitment to the company goals.
1.
Charisma: Transformational
leaders demonstrate charismatic behaviors that inspire confidence, commitment,
and admiration towards the leader.
2.
Inspirational motivation: They
come up with a vision that is inspiring to others.
3.
Intellectual stimulation: They
challenge organizational norms, encourage creative thinking, and motivate
employees to work harder.
4.
Individualized consideration: They
show personal care and concern for the well-being of their followers.
B. Transactional
leaders:
Ø Transactional leaders ensure that employees
demonstrate the right behaviors because the leader provides resources in
exchange. They focus on supervision, organization, and group performance.
Ø Transactional leaders use three methods:
1.
Contingent rewards: Rewarding
employees for their accomplishments.
2.
Active management by exception: Leaving
employees to do their jobs without interference but proactively predicting and
preventing potential problems.
3.
Passive management by exception: Leaving
employees alone until something goes wrong before intervening.
Which leadership
style do you think is more effective, transformational or transactional?
Ø Research shows that transformational leadership is a
powerful influence over leader effectiveness and employee satisfaction.
Ø Transformational leaders increase intrinsic
motivation, build effective relationships, enhance performance and creativity,
improve team performance, and create commitment to organizational change
efforts.
Ø Transactional leadership styles, except for passive
management by exception, are also effective and have positive influences on
leader performance and employee attitudes.
Ø To maximize effectiveness, leaders are encouraged to
demonstrate both transformational and transactional styles and avoid passive
management by exception.
Why is
transformational leadership more effective?
Ø The key factor may be trust, as transformational
leaders tend to inspire greater trust among followers.
Ø Transformational leaders demonstrate concern for
people's well-being and appeal to their values, leading followers to believe
the leader has a trustworthy character.
C. Servant
leaders:
Ø Servant leadership focuses on increasing service to
others rather than oneself.
Ø Servant leaders prioritize developing employees and
helping them reach their goals.
Ø They put employees first, understand their needs,
empower them, and aid their career development.
Ø Servant leaders have an explicit focus on ethics,
community development, and self-sacrifice.
Ø Research shows that servant leadership has a
positive effect on employee commitment, citizenship behaviors, and job
performance.
Ø Servant leaders create a climate of fairness,
leading to higher levels of interpersonal helping behavior.
Leadership skills and
competencies
A skill is
an acquired ability that an individual develops in relation to a specific task.
It is not necessarily innate and is demonstrated through performance rather
than potential.
Leadership skills are
the abilities that a leader must possess to influence and inspire followers to
achieve desired objectives and goals. These skills are acquired through
learning, observation, and imitation of other successful leaders.
Personality trait of effective
leader
A. General
personality trait
A general personality trait
in the context used here is a trait that would be observable within or outside
the context of work.
1.
Self-Confidence: Realistic
self-confidence is important for leaders to remain composed and confident under
pressure.
2.
Humility: Being
humble and admitting mistakes contributes to leadership effectiveness and
fosters trust among team members.
3.
Trustworthiness: Leaders
must display honesty, integrity, and credibility to build trust with their team
members. Leaders who "walk the talk" and conduct themselves in an
honest manner are more effective.
4.
Extroversion: Being
extroverted contributes to leadership effectiveness, as extroverted individuals
are more likely to assume leadership roles and actively participate in group
activities.
5.
Assertiveness: Leaders
who are assertive in expressing demands, opinions, feelings, and attitudes can
effectively confront group members, demand higher performance, and make
legitimate demands on higher management.
6.
Emotional Stability: The
ability to control one's emotions and respond appropriately to different
situations is important for maintaining consistency in how team members are
treated.
7.
Enthusiasm: Enthusiasm
is contagious and can positively influence team members, acting as a reward for
their constructive behavior. It also helps build good relationships within the
team.
8.
High Tolerance for Frustration: Leaders
encounter numerous frustrations, and having a high tolerance for frustration
enables them to cope with obstacles and maintain focus on goal attainment.
B. Task-related
personality traits
These
traits are closely associated with task accomplishment and include:
1.
Passion for the Work and the People: Effective
leaders are passionate about their work and the people who help them achieve
their goals.
2.
Emotional Intelligence: Managing
one's emotions and understanding others' emotions enhances leadership
effectiveness. Emotional intelligence includes self-awareness, self-management,
social awareness, and relationship management.
3.
Flexibility and Adaptability: Leaders
must be flexible and adaptable to cope with change and facilitate
organizational change.
4.
Internal Locus of Control: Leaders
with an internal locus of control believe they have control over their own
destiny, which contributes to their perceived power and influence.
5.
Courage: Leaders need the
courage to take risks, show initiative, and take responsibility for their
actions.
Good vs. Bad Leadership
A.
Good
Leadership: is characterized by fostering a positive work
environment, treating employees with respect, and involving them in
decision-making. Key traits include:
1. Listening: Actively
listen to employees, addressing their complaints, suggestions, concerns, and
personal issues at work.
2. Coaching: Good
leaders coach their employees when necessary to help them reach higher
standards and improve their performance.
3. Trust: Good
leaders trust their employees to do their work effectively and make meaningful
contributions to the organization.
4. Inclusive Decision-Making: Instead of giving orders
or setting visions, goals, and objectives on their own, good leaders involve
employees in the decision-making process.
5. Direction and Communication: Good
leaders provide direction when needed to ensure everyone is aligned and working
towards the same goals..
B.
Bad
Leadership: is characterized by
attempts to control employees through authoritative measures, disregarding
their input and stifling creativity. Key characteristics include:
- Authoritarian
Control: the use of orders, policies, rules,
goals, and targets to control employees, restricting autonomy and
creativity.
- Lack of Listening: Failing to listen or only
superficially listening to employee complaints and suggestions.
- "Do
as I Say" Mentality: Exhibiting
a "Do as I say, not as I do" mentality, creating a sense of
double standards.
- Inadequate Support: Providing insufficient support for
employees to excel in their roles.
- Information
Withholding:
Withholding information,
keeping employees in the dark about crucial matters.
- Disrespectful
Treatment:
Treating employees as if they
don't want to improve, don't care about their work, or don't want to
accept responsibility.
- Fear and Lack of
Discipline:
Creating an environment of
fear, avoiding discipline, and not addressing performance issues.
- Isolation: Staying in the office or in
meetings, disconnected from employees at lower levels.
- Us vs. Them
Mentality:
Fostering an "Us versus
Them" mentality, blaming employees for performance issues.
Bad leadership hampers
creativity, demotivates employees, and creates a knowledge barrier, leading to
misguided directives. It often stems from a top-down, command-and-control
management style that neglects employees' need to be heard and respected.