Introduction To Leadership: Definition, Leadership and Management, Leadership and Power, Leadership Theories, Leadership Styles

MGT 597 ETHICS & LEADERSHIP
INTRODUCTION TO LEADERSHIP:
DEFINITION, LEADERSHIP AND
MANAGEMENT, LEADERSHIP AND POWER,
LEADERSHIP THEORIES, LEADERSHIP
STYLES
Neboja J aniijevi
Belgrade University, School of Economics
jnebojsa@eunet.rs
References
Mandatory
Yukl G. (2010).Leadership in Organizations. 7th edition. Upper
Saddle River: Pearson
Supplementary
Northouse P. (2007). Leadership. Thousand oaks: Sage.
J aniijevi N. (2008). Organizaciono ponaanje. Beograd: Data
status.
Nature of leadership
What is leadership: a specialized role with some tasks
and functions, opposed to followers versus shared
influence process, pattern of relationships with no clear
distinctions between leaders and followers
Type of influence process: influence resulting in
enthusiastic commitment by followers versus influence
resulting in indifferent compliance versus reluctant
obedience
Purpose of influence attempts: good, ethical and results
beneficial for followers versus any attempt to influence
regardless of results
Nature of leadership
Base of influence: reason, leadership as a rational
cognitive process versus emotions, leadership as a
emotional process
Direction of leadership: direct versus indirect process
(leadership by indirect communication, structure,
culture, cascading leadership)
Leadership versus management different role or
different people
Definition of leadership
Leadership is the process of influencing others to
understand and agree about what needs to be
done and how to do it, and the process of
facilitating individual and collective efforts to
accomplish shared objectives
Leaders can influence...
the interpretation of events in real world inside and
outside of organization
the choice of objectives and strategies in organization
the motivation of members to achieve these objectives
the mutual trust and cooperation of members
the allocation of resoruces
the development of member skills, learning and sharing
of knowledge
the desing of formal structure and systems
the shared beleives and values (organizational culture)
Leadership as the management of
meanings
People understand world around them and behave in it
through the process of interpretation
The interpretation is the process throuh which people
percept events in the environment and than attach
meanings to them
People dont react to events that surround them as such
but on the basis of meanings that these events have to
them - peoples behavior in reality completely depends
on meanings they attach to it
In social group, like organization, meanings are created
in the social interaction where some actors have more
important role than the others
Leadership as the management of
meanings
Leaders are by definition those people who have
cognitive ability to create meaninngs of reality in social
group and impose them on the other members of the
group
Leaders determine way in which members of social
group understand world inside and outside of the group
as well as way in which they behave in regard to this
world
Leaders
Articulate reality
Create vision
Communicate vision to followers
Motivate, inspire followers to fulfill the vision
Understanding of leadership in this
course
Leadership reglardless of intentions and results
Both direct and indirect leadership
Leadership as a social process not as a specialized role
Leadership as a process not a person
Both cognitive, rational and emotional process
Followers and subordinates: formal authority versus
influence
Criteria of Leadership effectiveness
Who is a good (effective) leader? According to which
criteria we can evaluate leadership effectiveness?
Achievement of group or organizational goals or
improvement of group/ organizational performances
Followers attitudes and peceptions of the leader
The leaders contribution to the quality of group
processes
Successful career as a leader
Imediate and delayed outcomes and their consistency
Leadership and power
Influence is the essence of leadership
Influence is the process of changing someones actions
Power is the capacitiy to influence otherss thoughts
and actions
Authority is the right to influence otherss thoughts and
actions
Authority without
power rhight to
influence but no
capacity to do that
Power without
authority capacity
to influence but no
right to do that
POWER
AUTHORITY
Real power and authority
capacity and right to
influence
Definition of power
Power is someones the capability to impose his/her will
on others regardless of their ressistence
A has power over B if A is capabe to make B to do
something B othervise wouldnt do
Power is capability of superior social acter in certain
social relationship to change behavior of inferior social
acter
Social process
Interactive, twodimensional not unidimensional
relationship
Outcomes of influence
Commitment: the target person internaly agree with
agents request and makes a great effort to carry out
this request
Compliance: the target person is willing to do what
agent asks but he is appathetic and makes only minimal
effort
Resistance: the target person is opposed to agents
request and actively trys to avoid carrying it out. The
target person can
Refuse to carry out the request
Pretend to carry out the request but actually to sabotage it
Persuade power agent to give up from the request
Delying in the executing the requests
Asking higher authorities to stop agents request
Sources of accepting power by inferior
acters
Instrumental compliance: the target person carry out a
requested action inorder to obtain some rewards or
avoid punishments controlled by the agent
Internalization: the target person becomes commited to
implement proposal made by the agent because they
appear to be instrisincally desirable or right from the
perspective of targets needs, motives, values and
beleives
Personal identification: the target person imitates the
agents behavior, wants to be like agent or wish to
please agent
Types of power
Legitimate power: stemming from the authority of the
agent but also from the consent of the inferior actor
Reward power: stemming from the perception by the
target that an agent controls impoertant resources and
rewards
Coercive power: based on authority over punishments
Referent power: derived from the desire of the target to
please the agent and from strong feeelings of
attraction, affection, admiration and loyalty to the agent
Expert power: based on taskt relevant knolwedge,
skills, information the agent posses
Perspectives of power resource
perspective
Social exchange theory: exchange between social actors
leads to their mutual dependance
When exchange is unequal than one actor becomes
more dependent on the other than vice versa
Inferior actor is dependent on the superior one for
resources he needs and superior actor controlls
Inferior actor must obey to the orders of superior one in
order to get necessary resources
The source of power is control of rare resources
Relation to French, Raven classification of power
sources
Individual power and power of organizational units
Perspectives of power resource
perspective
Model of resources dependance
Power of the organizational unit stems from its ocntrol of
critical resources
Three factors determine critical resources:
The importance for organizations performance
Relative scarcity
Posibilitiy of supstitution
Model of strategic contingency
Power of the organizational unit stems from its ability to
reduce uncertainty which organization faces
Power of organizational units depends on three factors
Capacity to reduce uncertainty
Centrality of the unit in organization
Posibilitiy of supstitution
Perspectives of power interpretative
perspective
The interpretative power stems from cognitive
dependance of members of social group on leaders in
the process of interpretation of the world
The process of social construction of reality
attachment of meanings to events in the reality through
the social interactions
Leaders are those members of social group whicha are
capable to impose their own view of the reality on the
others
Followers become cognitively dependent on leaders for
the understanding reality that surrounding them
Perspectives of power
Source of
power
Process of
acquiring
creation
Power base
Type of power
Control of
resourcess
Unequal social
exchange
Resource
dependance
Resource power
Leadership ability
Social
construction of
reality
Cognitive
dependance
Interpretative
power
Influence tactics
Rational persuasion: the agent uses logical arguments
and factual evidence to show a proposal or request is
feasible and relevant for attaining important task
objecitves
Apprising: the agent explains how carrying out request
will benefit the tagret personally
Inspirational appeals: the agent makes an appeal to
values or ideas or seeks to arouse the target persons
emotions to gain commitment for request
Consultation: the agent ecourages the target to suggest
improvements in a proposal or to help plan an activity
Influence tactics
Exchange: the agent offers incentive, suggest an
exchange of favors, or indicates willingness to
reciprocate at later time if the target will do what the
agent request
Collaboration: The agent the agent offers to provide
relevant resources and assistance if the target will carry
out a request
Personal appeals: the agent asks the target to carry out
request out of friendship or asks for personal favor
before saying what it is
Ingratiation: the agent uses praise and flattery before
or during influence attempt
Influence tactics
Legitimating tactics: the agent seeks to etsablis
legitimacy of a request or to verify authority to make it
by reffering to rules, policies, contract.
Pressure: the agent uses demands, threats, frequent
checking, or persistent reminders
Coalition tactics: the agent seeks the aid of others to
persuade the target to do something or uses support of
others as a reason for the target to agree.
Influence tactics
Effects
Influence tactics
Resistance Obedience Commitment
Consultation 18% 27% 55%
Rational persuation 47 30 23
Inspirational appeal 0 10 90
Ingratiation 41 28 31
Coalition 53 44 3
Pressure 56 41 3
Legitimating 44 56 0
Personal appeal 25 33 42
exchange 24 41 35
Leadership and management
Manager
Resource power stems
from the resource control
Planning, organizing,
controling
Maintains status quo
Predictability, order
Efficiency: to do things
right
Stable conditions
Leader
Interpretative power stems
from the management of
meanings
Creating vision, inspiring,
leading
Creates changes
Inovations, creativity
Effectiveness: to do right
thing
Turbulent conditions
Leadership and management
Leaders and managers are qualitatively different and
mutually exclusive they are different persons with
different values, personalities and skills
Leadership and management are different processes
and roles in organization but managers and leaders are
not (always) different type of person or different
persons
Both management and leadership are necesarry in
organization in the right balance depending of the
situation (change or stability)
How many leaders an organizaiton needs?
Leadership variables
Leader trait
and skills
Leader
behaviour
Influence
variables
Followers
attitudes
and
behaviour
Performance
outcomes
Situational
variables
Approaches and theories of leadership
Trait approach: research of leaders traits, skills,
motives, values
Behavioral approach: reserach of leaders behaviour,
pattern of activities, responsibilities, functions, time
spending
Power influence approach: reserach of influence
process between leaders and followers, unidirectional
and multidirectional
Contigency approach: research of contextual factors
which determine leadership effectiveness like task
complexity, power structure, follower skills and
motivation, organizational culture
Integrative approach: research of more than one
leadership variable
Trait approach to leadership
Basic assumption: leaders are born
The task of scientist is to find out which traits are
attached to effective leaders so it would be possible to
recognize those people with the leadership traits and
chose them to lead organizations or society
The method was to identify traits, skills and motives
which have all (effective) leaders and which dont have
non leaders
Generaly, this approach failed to find out traits
exclusively related to (effective) leaders
Leadership traits
High energy level and stress tolerance help leaders to
cope with hectic pace, long hours of work, stressful
conditions etc.
Self confidence (self esteem, self efficacy) help
leaders to make influence attempts and to be
successfull in those attempts, to take initiatives, to lead
changes, to solve problems. Problems with excessive
self confidence: unreasonable risk taking, premature
decisions
Internal locus of control beleive that events in their
lives are under their own control, depend on their own
actions, they are more future and proactive oriented
Leadership traits
Emotional stability and maturity- accurate picture of the
self, accurate perception of owen strenghts and
weaknesess, more self control, less self centered
actions
Power motivation- orinetation toward influencing people
Personal integrity a persons behavior is consistent
with espoused values, a person is hones, trustworthy
and ethical
Narcissism strong need for self esteem (prestige,
status, attention, admiration), related with low
emotional maturity, integrity and personalized power
orietation. Leaders with strong narcissism chose
associates who are loyal, uncritical.
Leadership skills
Tehnical skills: knowledge about methods, techniques,
processes, procedures of conducting a specialized
activity and ability to use tools and equipment relevant
to this activity
Interpersonal skills: knowledge about human behaviour
and interpersonal processes, ability to understand
feeilings, motives, needs of others, ability to
communicate effectively, ability to establish effective
relationship
Conceptual skills:analytical ability, logical thinking,
conceptializationof complex reality, articulation of
events, ability for problem solving, ability to perceive
and analyze trends
Leadership skills
Emotional intelligence extent to which a person is
attuned to his /her own feelings and feelings of tohers
and is able to integrate emotions and reason.
Social intelligence: ability to determine requirements for
ladership in particular situation and select appropriate
response. Consist of: social perceptiveness and
behavioral flxibility
System thinking: understanding complex
interdependences among elments of a system
Ability to learn from experience and adapt to change
Leadership motives
McClelands clasiffication of motives
Need for affiliation a person is concerned about being liked
and accepted by others, seeks social interaction, enjoyes
woring in teams - relatively low
Need for power: satisfaction in exercising influence ovewr
attitudes, emotions and behavior of others, in winning an
argument, defeating an opponenteliminating a rival, directing a
group efforts
Socialized power orientation self control very high
Personalized power orinetation satisfying the need for power in
selfish way - low
Need for achievement: satisfaction form experiencing success
in accomplishing a dificult task, attaining a standard of
excellence, developing the better way of doing something,
having autonomy on work, creating new things moderately
high
Leadership competences
Management of attention
Management of meanings
Management of trust
Management of self
Behavior approach
Basic assumption: leaders are not born, behavior make
a leader, so leadership can be taught
The task of researchers is to find out behavioral styles
wich differentiate effective leaders from non effective
ones and from non leaders, so it would be possible to
teach new leaders to acquire those beahvioral styles
The behavioral apporach has been operationalised
through identification of typical behavioral leadership
patterns
Ohio state leadership studies
Consideration
leaders concern for subordinate, their needs and feelings,
leaders acting in supportive manner toward subordinates
Listening to the subordinate and his problems
Consulting with subordinates
Initiating structure
leaders concern for acomplishing the task,
leaders effort to structure work in order to attain the goal
Assinging taks to subordinate
Asking subordinate to follow standards and procedures
Paying attention to deadlines
Michigan leadership studies
Task oriented behavior
Planning, scheduling the work
Coordinating subordinate activities
Providing necessary resources for acomplishing tasks
Providing necessary technical assistance to subordainate
Relation oriented behavior
Showing trust and confidence toward subordinates
Acting friendly and considerate
Traying to understand subodrinates problems
Helping development of subordinate
Leadership Grid
Concern
for
people
Low
Low
Concern for results
1,9 9,9
5,5
1,1 9,1
High
High
Taks behaviors of an effective leader
Planning work activities
Indetify necessary action steps
Identify optimal sequence of action steps
Estimalte time needed for carry out each step
Determine who will be accountabe for each step
Clarifiying role objectives
Defining role rersponsibilities
Assigning Work
Setting performance goals
Monitoring operations and performance
Identify and measure key perfomance indicators
Measure progress against plans and budgets
Develop source of information about performance
Observe operations directly
Conductperiodic progress review meeetings
Relations behaviors of an effective
leader
Supporting
Show acceptance and positive regard
Be polite, not rude
Treat subordinate as an individual
Express confidence in the person
Provide assistance with the work when it needed
Developing
Provide constructive feedback about subordinates performance
Suggest specific things thatsubordiante could improve
Express confidence in subordinates ability to learn
Recognizing
Recongize a variety of contributions
Actively search for contributions to recognize
Recognize improvements in performances
Recognize efforts that failed
Leadership participative styles
Autocratic decisions manager makes decisions alone
without asking for the opppinions or suggestions of
other people
Consultation the manager asks other people for their
oppinions and ideas, then makes the decisions alone
seriously considering their suggestions
J oint decisions the manager meets with others to
discuss the decisions together, manager has no more
influence over the final decision than any other
participant
Delegation ther manager gives an individual or group
tha authority and responsibility for making decision
Likert styles of leadership
Exploatative authoritatian
Benevolent authoritarian
Participative
Democratic
Likert styles of leadership in a Serbian
company
7,7
15,4
35,4
41,5
30,1
21,8
26,9
21,2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Idealan stil rukovoenja Stvarni stil rukovoenja
Demokratski
Participativan
Benevolenento autoritarni
Eksploatativno autoritarni
Vroom, Yetton normative decision
model
AI you solve the problem or make the decision by
yourself sing information avaiable to at the time
AII You obtain the necessary information from your
subordinates, then decidethe solution by yourself
CI you share the problem with the relevant
subordinates individually, getting their ideas and
suggestions, without bringing them together as a group
CII you share the problem with your subordinates as
a group, obtaining their collecctive ideas and
suggestions
GII you share problem with your subordinates as a
group. Together you generate and and evaulate
alternatives and attempt to reach agreement
(conesensus) on a solution. Your role isd like a
chairman.
Pro et contra participative decision
making
Benefits
Decision quality
Decision understanding and acceptance
The implementation of decision
Development of participants skills
Costs
Time for decision making
Insufficient information and/ or knowledge
Coordination and control of decisions
Contingency approach
Basic assumption: there is no ideal leadership style,
appropriate leadership behavior depends on a situation,
in different situations leaders have to use different
styles
Taks of a researcher is to find out which factors have
impact on leadership, which factors determine
effectiveness of leadership
Open question: is it possible for leaders to change their
behavior as situation changes? Does an organization
needs different leaders for different contingencies or
one leader is capable to adjust his /her style according
to situation?
Fiedlers LPC contingency model
LPC least preffered coworker
Low LPC indicates a leader who is primarily oriented
toward tasks
High LPC indicates a leader who is primarily orineted
toward interpersonal relations
Situational factors
Leader follower relations extent to which are subortinates
are loyal and realtions with them are friendly and cooperative
Position power the extent to which a leader has authority to
evaluate subordinate performance and administer rewards and
punishments
Task structure the extent to which standard operating
procedure are in place to accomplish the taks, along with the
detailed description of the finished product
Fiedlers LPC contingency model
LPC
High
Low
Leaders orineted
toward taks are ore
effective
Leaders oriented toward
interpersonal relations are
more effective
Taks
structure
Leaders power
position
Leader
follower
relationship
Good
Structured
Structured
Unstructured Unstructured
Strong Strong Strong Strong Weak Weak Weak Weak
Good Good Good Weak Weak Weak Weak
Path goal theory
Supportive leadership - giving consideration to the
needs of subordinate, displying concern for their
welfare and creating a friendly climate in the work unit
Directive leadership letting subordinates to know what
tey are expected to do, giving a specific guidance,
asking siubordinates to follow rules and procedures
Participative leadership consulting with subordinates
and taking their oppinions into account
Achievement oriented leadership setting chanllenging
goals, seeking better performances, emphasizing
excellence
Path goal theory
Situational variables
Characteristics of subordinates
Charcteristics of tasks
Directive style is effective when tasks are unstructured
and complex and subodrinates are inexperienced
Supportive style is effective when task is stresfull,
tedious, boring
Directive style is less effective when subordinates are
competent, experienced
Participative style is more effective when subordinates
have internal locus of control
Achievent oriented style is more effective when tasks
are unstructured and unclear
Path goal theory
Leadership behavior Characteristics of
subordinates
Characteristics of task
Directive
Providing guidance
Oriented toward
authority
Uncertain, unclear,
complex rules
Supportive
Providing concern
Unsatisfied
Need for affiliation
Simple, boring,
mechanic
Participative
Providing inclusion
Authonomy, internal
locus of control
Uncertain,
unstructured
Achievement
oriented
Providing challenge
High expectations
Need for achievement
Challenging,
unstructured, unclear,
new
Situational leadership theory
Hersey and Blanchard
Leadership behavior
Task oriented
Realtions orineted
Situational factors maturity of subordinates
Motivation to perform tasks psychological maturity
Capacity to perform tasks skill maturity - knowledge and
experience
M1 M2 M3 M4
Subordinate maturity
Low
High
Amount
of
behavior
Little
Much
Task behavior
Relationship
behavior
Subordinate
motivation
Low
High
Low Subordinates capacity to perform tasks High
High Leaders taks support needed Low
High task behavior
Low relations
behavior
High
Low
Low task behavior
Low relations
behavior
High task behavior
High relations
behavior
Low task behavior
High relations
behavior
Leader - member exchange theory
The basic proposition is that a leader develops separate
exchange relationship with each subordinate
Over time, a leader develops high exchange
relationships with smal number of trusted subordinates
(in group) and low exchange relationships with all other
subordinates (out group)
The basis for establishing high exchange relationship is
the leaders controle over outcomes that are desirable
to a subordinate: rewrads, interesting tasks, delegation
of power, sharing information, participating in decision
making
High exchange realtionship
High level of mutual trust and respect
Mutual dependance of the leader and the subordinate
Reciprocity of influence betwen the leader and the subordinate
Intensive two direction communication
Emotional relations between the leader and the subordinate
Low exchange relationship
Low level of mutual trust and respect
Unidimensional influence of leader on subordinate
Unidimensional dependance of the subordinate on the leader
Unidimensional communication
Trere is no emotional relationship between the leader and the
subordinate
Member of in group is expected
to work harder
to be more commited to the task
to bi more loyal to the leader
to share some leaders duties
Member of out group is expected
to comply with formal role requirements
To get standard benefits for the job
Members of in group are
More motivated
Less likely to leave organization
Less absent from the work
More likely to get a promotion and a bonus
More satisfied with a job
The high echange relationship between a leader and
subordinates develops gradually over time
The high exchange relationship has benefits and costs
for the leader
Benefits: more loyal and trused coworkers
Costs: attention and response to in group subordinates needs
The criteria for differentiation beetween in group and
out group subordinates are: personal compatibility and
subordinates competence
The ethical dillema: isit right for the leader to
differentiate beetwen subordinates?
Transformational and charismatic
leadership
Transformational versus transactional leadership
Transformational leadership appeal to the moral values of
followers in an attempt to rise their consciousness about etical
issues and to mobilize their energy to reform institutions
Transactional leadership motivates followers by appealining to
their self interests and exchange of benefits
Traditionally, transformational leadership is conected
with charisma, transformational leader is harismatic one
Atrribution theory of charismatic
leadership
Followers atrubite charisma to the leader depending on
his behaviors
Charismatic leader advocate a vision which is different from
status quo at reasonable extent (not incrementaly or too
radically)
Charismatic leader uses unconventional ways to fulfill the
vision
Charimatic leaders make personal sacrifices, take personal risks
and in that way are more trusted by followers
Charismatic leaders are more confident about their gaols and
visions
Charismatic leaders inspire followers with personal appeal
Charismatic leaders have ability to see opportunities which
other people dont
Primary influence process of charismatic leader is
personal identification followers want to be like a
leader, to please him and to imitate him
Self concept theory of charismatic
leadership
The basic propistion: people act in accordance to their
self concept
Charismatic leadership behavior
Articulating an appealing vision
Usin strong, expressive forms of communication
Taking personal risks
Communicating high expectations
Expresing an optimism and confidence in followers
Modeling behavior consistent with the vision
Managing followers impressions of the leaderempowering
followers
Transformational leadership
With the transformational leadership, followers feel
trust, admiration, loyalty and respect toward leader and
they are motivated to do more thatn originally expected
to do
The transformational leader transforms and motivates
followers by
Making them more aware of importance of taks outcomes
Inducing them to transcend their own self interestsfor the sake
of organization
Activating their higher order needs and motives
Transformational leadership
Transformational behavior of a leader
Idealized influence aroses strong followers emotions and
identification with a leader
Intelectual stimulation increases followers awareness of the
problem and stimulates them to understand the problem from
the different perspective
Individual consideration providing support, encouriging and
coaching followers
Inspirational motivation communicationg appealing vision
and using symbols to focus followers attention

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