LEADERSHIP

Prof.dr.dr.dr.h.c. Constantin BratianuFaculty of Business Administration

Academy of Economic Studies

Learning objectives

To understand the concept of leadership

To distinguish between leaders and managers

To compare different theories about leadership

To identify the most important characteristics of leaders

Managers vs. Leaders

Writers frequently use the two terms synonymously. However, they are not necessarily the same.

Managers are appointed. They have legitimate power to reward and to punish, given by the authority inherent in their formal position in organization.

Leaders may either be appointed or emerge from within a group. They can influence others to perform beyond the actions dictated by formal authority.

Managers vs. Leaders

Managers

Leaders

Inclusion

Managers vs. Leaders

Managers

Leaders

Complementary

Managers vs. Leaders

Managers

LeadersIntersection

Leaders who posses managerial authority

Leaders = people who are able to influence others and who possess managerial authority.

Trait theories of leadership

The search for traits or characteristics that differentiate leaders from nonleaders dominated early research efforts in the study of leadership

Is it possible to isolate a set of traits from individuals we consider leaders, which make the difference from nonleaders?

Is it possible to use this set of traits then as a test in order to separate leaders from nonleaders?

7 traits that make the difference

1.Vision. Leaders have vision and can project their goals into the desirable future.

2.Drive. Leaders have a high desire for achievement. They are

ambitious and display a high level of effort and initiative.

3.Desire to lead. Leaders have a strong desire to influence and to lead others. They want to take responsibility.

4.Honesty and integrity. Leaders build trusting relationships between themselves and followers by being truthful and by showing high consistency between word and deed.

7 traits that make the difference

5.Self-confidence. Leaders must display self-confidence in order to convince followers of the rightness of goals and decisions.

6.Intelligence. Leaders need to be intelligent enough to gather, process and interpret large amounts of information and knowledge. They obtain the best solutions in solving problems and create visions.

7.Job-relevant knowledge. Leaders have a high degree of knowledge about the company, industry and professional problems.

Conclusions to trait theories

Traits alone are not sufficient for explaining leadership. Such kind of explanations ignore situational factors.

Traits are necessary for performing leadership but they are not enough. Possessing the appropriate traits only makes it more likely that an individual will be an effective leader.

What is working in a given situation might not work as well in a different situation.

Behavioral theories of leadership

These theories isolate behaviors that differentiate effective leaders from ineffective leaders.

Kurt Lewin’s studies – University of Iowa

The Ohio State University studies

The University of Michigan studies

Kurt Lewin’s studies

Autocratic style. The leader centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation.

Democratic style. The leader involves employees in decision making process, delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees.

Laissez-faire style. The leader gives employees complete freedom to make decisions and to decide on work methods.

Which is the best style?

Studies showed that laissez-faire style is ineffective, regardless of the criterion used.

Studies showed that autocratic and democratic styles produced similar quantity of work. However, quality of work and employees satisfaction have been higher for democratic styles.

Later studies of autocratic and democratic styles of leadership showed mixed results, depending on the organizational context (contingency factors).

Continuum of leader behavior

Boss-centered

leadership

Employee-centered

leadership

AutocraticParticipative

Consultative Democratic

Laissez-faire

Authority of manager Freedom of subordinates

1 2 3 4 5 6 7

Patterns proposed by R. Tannenbaum & W. Schmidt (1973)

Leadership patterns1.Manager makes decision and announces it.2.Manager “sells” decision.3.Manager presents ideas and invites questions.4.Manager presents tentative decision subject to

change.5.Manager presents problem, gets suggestions,

and makes decision.6.Manager defines limits, and asks group to make

decision.7.Manager permits subordinates to function within

limits defined by superior.

Ohio State University studies

Vision - Initiating structure The leader shows the vision, defines and structures his

or her role and the roles of employees to attain goals.

The leader searches for goal attainment and emphasizes meeting standards performance and tasks deadline.

The leader is concentrated on the work process and on getting the expected results.

Ohio State University studies

Consideration The leader has job relationships characterized

by mutual trust, respect for employees’ ideas, and regard for their feelings.

The leader helps employees in solving their problems.

The leader is friendly with all employees, and takes care of their well-being and satisfaction.

Ohio State University studies

Low High

Initiating structure

Low

H

igh

Con

side

ratio

n L & H H & H

L & L H & L

University of Michigan studies

Employee – oriented leadershipThe leader emphasizes interpersonal relations, takes a personal

interest in the needs of employees, and accepts individual differences.

Production – oriented leadershipThe leader emphasizes the technical aspects of a job, is

concerned mainly with getting tasks done, and regards group members as a means to accomplishing goals.

Researchers strongly favored leaders who were employee-oriented. They were associated with higher group productivity and higher job satisfaction.

The managerial grid

1,9 5,9

9,9

1,8

1,7

1,6

1,5 5,5

1,4

1,3

1,2

1,1 2,1

3,1 4,1

5,1

6,1 7,1 8,1 9,1Concern for production

Con

cern

for p

eopl

e

(Robert Blake & Jane Mouton)

(1,1) Impoverished Management

(9,1) Task Management

(1,9) Country Club Management

(5,5) Middle of the Road Management

(9,9) Team Management

Stocktaking

Leader Traits theories of leadership

Leader FollowersBehavioral theories of leadership

Contingency theories of leadership

Leader Followers Environment

Fiedler contingency model Fiedler developed the least-preferred coworker

(LPC) questionnaire, which claims to measure whether a person is task- or relationship-oriented.

If the least-preferred coworker is described in relatively positive terms (a high LPC score), then the respondent is primarily interested in good relations with the coworker.

If the least-preferred coworker is described in relatively negative terms (a low LPC score), then the respondent is primarily interested in production. He is task-oriented.

Fiedler contingency model Once an individual’s basic leadership style has been

assessed through LPC, it is necessary to evaluate the circumstances and match the leader with the situation.

It is important to note that Fiedler assumes that an individual’s leadership style is fixed.

If the situation requires a task-oriented leader and the person in leadership position is relationship-oriented, either the situation has to be modified or the leader has to be replaced.

Transformational/Transactional Leaders Transformational leaders

Leaders who inspire followers to transcend their own self-interest for the good of the organization and are capable of having a profound and extraordinary effect on followers.

Transactional leadersLeaders who guide or motivate their followers toward established goals by clarifying role and task requirements.

Transformational/Transactional Leaders Transformational leadership is built on

transactional leadership.

Transformational leadership produces levels of employee effort and performance that go beyond what would occur with a transactional approach alone.

The evidence is supporting the superiority of transformational leadership over the transactional leadership.

Credibility & Trust

CredibilityA characteristic attributed to a leader in terms of honesty, competence, and ability to inspire.

The dominant component of credibility is honesty.

In addition to honesty, credible leaders have been found to be competent and inspiring.

Credibility & Trust

TrustThe belief in the integrity, character, and ability of a leader.

Dimensions of trust: - Integrity = Honesty and truthfulness- Competence = Intelligence, knowledge and skills- Consistency = Reliability, predictability, solidity- Loyalty = To be faithful to a person- Openness = Sharing ideas and information freely

Building Trust

Practice openness Be fair Speak your feelings Tell the truth Be consistent Fulfill your promises Maintain confidences Develop communication, negotiating,and other interpersonal skills.