Part 4 Leadership Challenges in the 21st Century

Chapter
12
Leading in a
Dynamic
Environment

PowerPoint Presentation by Charlie Cook

The University of West Alabama
TOPIC 6

Leading in a Dynamic
Environment

12–2
Leadership Defined

A responsibility and a process that is an

observable, understandable, learnable set of
skills and practices available to everyone,
anywhere in the organization.

What is leadership
The process of directing and influencing the
task-related activities of group members
12–3
Implications of leadership

1. Leadership involve other people

2. Leadership involve an unequal distribution
of power
3. Leaders can influence subordinates in a
variety of ways

12–4
Leadership Significance
• Leadership is:
 A social influence process.
 A responsibility and a process; it’s not a position, title,
or privilege.
 An observable, understandable, learnable set of skills
and practices available to everyone, anywhere in the
organization.
 The indirect ability to influence people by inspiring
them to pursue goals for the benefit of the
organization.

12–5
Leadership and Vision
• 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.

12–6
There are four important points of leadership:-

1. Leadership involves other people

2. Leadership involves unequal distribution of
power
3. Leadership is the ability to use the different
forms of power
4. Leadership is about values

12–7
The importance leadership
1. To direct and supervise
subordinates
2. To influence and motivates
subordinates
3. To encourage teamwork
4. To enhance cooperation
5. To accomplish org objectives

12–8
Approaches to the study on leadership

1. Leader centered approach

2. Follower centered approach
3. Interactive approach

12–9
Leader-Centered Approaches
• Leadership Traits and Skills Focus
 The assumption that some people are born with
certain physical characteristics, aspects of
personality, and aptitudes that make them successful
leaders.
 Physical characteristics: height and appearance
 Personality: self-esteem, dominance and emotional
stability
 Aptitudes: general intelligence, verbal fluency and
creativity

12–10
The Trait Approach To Leadership
1. Assumed that leaders were born and not
made.
2. Researchers took two approaches :
I. Compare the traits of leaders and non leaders
II. Compare the traits of effective leaders and
ineffective leaders
3. Examples of desirable traits include wisdom,
courage, honesty and sincerity.
4. Examples of traits compared include physical
characteristics, mental ability, charisma,
attitude
5. However the trait theory is inconclusive
because of many conflicting evidence. 12–11
Traits of Successful Leaders
• Drive
 Achievement, sense of responsibility, ambition,
energy, tenacity and initiative.
• Motivation
 Especially power.
• Honesty and integrity
• Self confidence
 Persuasive, diplomatic and socially skilled.
• Conceptual ability
• Business knowledge

12–12
Leader-Centered Approaches (cont’d)
• Leadership Behavior Focus
 Examines what effective leaders do rather than what
effective leaders are.
 Defines a leader’s effectiveness based on two
orientations:
 Task orientation
– Setting performance goals, planning and scheduling work,
coordinating activities, giving directions, setting standards,
providing resources, and supervising performance.
 Relations orientation
– Behavior that shows empathy for concerns and feelings,
supportive of needs, showing trust, and similar attributes.

12–13
The Behavioral Approach To
Leadership
• Assumes that leadership can
be learned
• Focused on two aspect of
leadership behavior :
1. Leadership function
2. Leadership style

12–14
Behavioral Approach
Leadership Function
A leader performs two major functions:
1. Task related or problem solving functions
2. Group maintenance or social functions.

 Examines what effective leaders do rather than

what effective leaders are.
 Defines a leader’s effectiveness based on two
orientations:

12–15
II. Behavioral Approach
 Task orientation or job centered style
– focus on closely supervise subordinates
– Setting performance goals, giving directions, and
supervising performance.
– More concerned with getting the job done to his
satisfaction
 Employee orientation or people centered style
– Focus on motivating rather than controlling subordinates
– Behavior that shows empathy for concerns and feelings,
supportive of needs, and showing trust.
– Friendly and respectful relationship with employees, would
try to motivate subordinates rather than to control them.

12–16
II. Behavioral Approach (cont’d) *
 The behavioral approach is supported by below
studies:
Behavioral
Approach

The Managerial Grid (by

The Ohio State
Robert Blake and Jane
University (OSU studies)
Mouton)

The University of Michigan

(Michigan studies)

12–17
II. Behavioral Approach (cont’d) *
The Ohio State University (OSU studies)
 OSU studies concluded that leaders exhibit two main
types of behavior:
I. Structure Behavior (task-oriented)
 The leadership activity that establishes
procedures that employees should follow in
performing their tasks or jobs.
II. Consideration Behavior (employee-oriented)
 The leadership behavior that shows friendship,
trust, respect and warmth in the relationship
between leaders and employees.

12–18
II. Behavioral Approach (cont’d) *
The Ohio State University (OSU studies)

They found that the most effective leadership

styles is High consideration.
However the researchers also found that
effective leadership style also depend on
situational factors. For example Air force
commanders who were rated high on
consideration were less effective

12–19
II. Behavioral Approach (cont’d) *
 OSU studies resulted in a model
that shows four leadership
styles.
 i.e. A high structure/low
consideration leadership style
emphasizes on structure
behavior and place less
attention to consideration
behavior.
 Low structure/high consideration
– highest employee satisfaction,
lowest turnover rates
 High structure/low consideration
– had high grievance, high
turnover rates
12–20
II. Behavioral Approach (cont’d) *
The University of Michigan (Michigan studies)

•Distinguished between Production

centered (Job Centered) and
Employee centered managers

12–21
II. Behavioral Approach (cont’d) *
The University of Michigan (Michigan studies)
 Michigan studies concluded two types of leader behavior:
I. Job-centered Behavior
 Interested in the job that subordinate is doing and how
well the subordinate performs the job.
 Leaders set rigid work standards, prescribe work methods
to be followed, and closely supervise subordinate work.
II. Employee-centered Behavior
 Interested to the personal needs of subordinates and build
cooperative work teams that are satisfying to
subordinates.
 Leaders encourage subordinates participation and inspire
trust and respect among subordinates.
 The most productive work groups have leaders who were
employee-centered rather than job-centered.
12–22
II. Behavioral Approach (cont’d) *
The Managerial Grid (Robert Blake & Jane Mouton)

 Managerial Grid identifies five leadership behaviors

based on task-oriented and employee-oriented styles.
 The grid identifies a range of management behaviors
based on the various ways that task-oriented and
employee-oriented styles can interact with one
another (each expressed on a scale of 1 to 9).

12–23
 II. Behavioral Approach (cont’d) *
• Developed by Robert Blake and Jane Mouton
• Identifies five types of leadership styles :
Style 1,1- Impoverished mgt. Low concern for both people
and production. Also known as Laissez-faire management.
Style 1,9 - Country club mgt. High concern employees but
low concern for production
Style 5,5 - Middle of the road mgt
 Intermediate concern for both production and employees.
Style 9,1 - Autocratic mgt. High concern for production but
low concern for people.
Style 9,9 -Team or democratic mgt. High concern for both
production and employees. This is the most effective style.

12–24
II. Behavioral Approach (cont’d) *
 The five leadership styles practiced by managers.

 Point 1,1 – Impoverished Management

↓ concern for people, ↓ concern for
tasks, leader does not play his
leadership role, makes minimum effort
to get work done, also known as
laissez-faire management
 Point 1,9 – Country Club Management
↑ concern for people, ↓ concern for
tasks, this leadership style believes
that giving attention to people’s needs
will lead to a comfortable and friendly
organizational atmosphere

12–25
II. Behavioral Approach (cont’d) *
 The five leadership styles practiced by managers.

 Point 5,5 – Middle-of-the-

Road/Organization Man Management
concern for people = concern for tasks,
adequate organization performance is
possible through balancing work and
maintaining morale of employees at a
satisfying level
 Point 9,1 – Task/Authoritarian/Autocratic
Management
↓ concern for people, ↑ concern for
tasks, manager stresses on operating
efficiently through controls, wants work
schedule to be followed, least concern
about employees welfare

12–26
II. Behavioral Approach (cont’d) *
 The five leadership styles practiced by managers.

 Point 9,9 – Team / Democratic /

Participative/ Supportive Management
↑ concern for people, ↑ concern for
tasks, work accomplishment is from
committed people, interdependence
through common interests as well as
relationship of trust and respect
 Style 9,9 is the most effective
management style - improved
performance, low absenteeism and
turnover, and high employee
satisfaction.

12–27
III. Contingency Approach *

1. Path-Goal Approach
 Formulated by Martin G. Evans and Robert J. House.
 Based on expectancy model, which states employee’s
motivation depends on his expectation of reward or
the attractiveness of the reward.
 Managers determine the availability of “goals”
(rewards) and the “paths” that will earn those rewards.
 Leader can increase employee effort and productivity
by clarifying performance goals and the path to be
taken to achieve those goals.

12–28
III. Contingency Approach (cont’d) *
According to Path-Goal theory of leadership, leaders
show four primary types of behavior:
I. Directive behavior
 Telling followers what to do and how to do it,
leader indicates what performance goals exist
and what must be done to achieve it.
II. Supportive behavior
 Being friendly with followers and showing interest
in them as human beings. Leader shows
sensitivity to the personal needs of followers.

12–29
III. Contingency Approach (cont’d) *
III. Participative behavior
 Seeking suggestions from followers regarding
business operations, followers involve in decision
making, help to determine rewards available and what
they must do to earn those rewards.
IV. Achievement behavior
 Aimed at setting challenging goals for followers to
reach and expressing confidence that they will face
up to the challenge. Leader focuses on making
challenging goals for employees to achieve.
 Path-goal theory explains why a particular leadership
style is more effective in one situation than in another
and it recommends flexibility in dealing with different
employee problems and situations.

12–30
III. Contingency Approach (cont’d) *
2. Life Cycle or Situational Approach
 Developed by Hersey and Blanchard.
 Leadership styles should reflect primarily on the
maturity level of the followers.
 Maturity is the ability of followers to perform their job
independently, the education/experience and skills a follower
has relevant to particular tasks, to assume additional
responsibility and to desire to achieve success.

 Describes how leaders should adjust leadership style

in response to their subordinates’ desire for
achievement, experience, ability and willingness to
accept responsibility.

12–31
III. Contingency Approach (cont’d) *
Phases in Life-Cycle Approach
PHASE 3 PHASE 2  Phase 1 (HT/LR)
Telling style: the leader
provides specific instructions
and closely supervises
performance.
 Phase 2 (HT/HR)
PHASE 4 PHASE 1
Selling style: the leader
explains decisions and
provides opportunities for
clarification.

12–32
III. Contingency Approach (cont’d) *
Phases in Life-Cycle Approach
PHASE 3 PHASE 2  Phase 3 (LT/HR)
Participating style: the leader
shares ideas and maintains
two-way communication to
encourage and support the
skills subordinates have
PHASE 4 PHASE 1 developed.
 Phase 4 (LT/LR)
Delegating style: the leader
provides subordinates with
few task or relations
behaviors.

12–33
Likert System Four Management
Developed by Rensis Likert
1. Proposed that there are four types of
management style
1. Autocratic authoritative - Management make all
decisions. Subordinates do not have any rights to
contribute ideas.
Benevolent Authoritative - Subordinates are given
some latitude to contribute ideas but management
still makes the final decisions.
Consultative- Subordinates contributions are
encourage.
Participative - Team or democratic styles

12–34
Leader-Centered Approaches (cont’d)
• Leadership Power Focus
 Power: the ability to use human, informational, or
material resources to get something done—to get
results.
 Authority: the officially (organizationally) sanctioned
right to get something done.

12–35
Power
• Categories of Power
 Position power
 Power derived from the
opportunities inherent in a
person’s position in an
organization.
 Personal power
 Power derived from the
interpersonal relationships
between leaders and followers.

12–36
Types of Position Power
• Legitimate power
 Stems from formal authority.
 Some people accept this power, as long as it is not
abused, because they attribute legitimacy to the
formal position and to the person who holds that
position.
• Coercive power
 The power to discipline, punish and withhold rewards.
 Coercive power is important largely as a potential,
rather than an actual, influence.
 For example, the threat of being disciplined for not
getting to work on time may be effective in changing
an employee’s behavior.
12–37
Types of Position Power
• Reward power
 Control over tangible benefits, such as a promotion, a
better job, a better work schedule, or some form of
recognition.
 For reward power to be influential, the employee must
value the rewards.

• Information power
 Control over information that involves the leader’s
power to access and distribute information that is
either desired or vital to others.

12–38
Types of Personal Power
• Expert power
 The power influence another person because of expert
knowledge and competence.
 Computer specialists often have substantial expert
power in organizations because they have technical
knowledge that others need.
• Referent power
 The ability to influence others
based on personal liking,
charisma and reputation.
 Much of the power wielded by
strong political leaders,
professional athletics, musicians,
and artists is referent power.
12–39
Power Orientation
• Personalized Power Orientation
 Associated with a strong need for esteem and status;
power is often used impulsively.
• Socialized Power Orientation
 The use of power for the benefit of others to make
subordinates feel strong and responsible.

12–40
Follower-Centered Approaches
• Self-leadership (Followership) Focus
 A paradigm founded on creating an organization of
leaders who are ready to lead themselves.
 Requires each employee to be accountable for his or
her own behavior.
 Views individual, task and organizational
characteristics as possible leadership substitutes.

12–41
Characteristics of Self-Leaders
• The capacity to motivate themselves and stay focused
on tasks.
• Integrity that demands both loyalty to the organization
and the willingness to act according to beliefs.
• Understanding of the organization and their contributions
to it.
• Willingness to take the initiative to deal with problems.
• Versatility, skillfulness and flexibility to adapt to a
changing environment.
• Responsibility for their careers, actions and
development.

12–42
Leadership substitutes
• Variables that tend to outweigh or prevent the
leader from having an effect on a follower
performance.
• Also known as Neutralizer.

12–43
Figure 12.3 Leadership Substitutes

12–44
Interactive Approaches
• Another method of examining leadership
effectiveness is to look at how leaders interact
with their followers.
• Interactive Approaches:
 Situational leadership model
 Empowerment
 Transformational leadership

12–45
Interactive Approaches (cont’d)
• Situational Leadership Model
 Examines the interaction between leadership
behavior, the situation, and the follower’s readiness.
 Readiness: the extent to which a subordinate
possesses the ability and willingness to complete a
specific task.
 Task behavior: the extent to which a leader
organizes and defines the role of followers by
explaining what each person must do and when,
where, and how tasks are to be accomplished.

12–46
Interactive Approaches (cont’d)
• 4 Styles of Situational Leadership Behavior
 Telling style: the leader provides specific instructions
and closely supervises performance.
 Selling style: the leader explains decisions and
provides opportunities for clarification.
 Participating style: the leader shares ideas and
maintains two-way communication to encourage and
support the skills subordinates have developed.
 Delegating style: the leader provides subordinates
with few task or relations behaviors.

12–47
Stage 1 - Telling Stage
• High Task – A directive leadership is needed.
A non directive leader will create anxiety and
confusions among new workers
• Low relationship – Managers and
subordinates are in the process of knowing
each other.
Stage 2 - Selling Stage
• High Task – Detail instructions is still essential
because subordinates are not yet able to
function without the structure
• High Relationship – Subordinate need the
support and encouragement from the leader
12–48
Stage 3 - Participating Stage
• Low Task - Subordinates have more ability.
Therefore the leader will no longer need to be
as directive.
• High Relationship – The leader will still have
to be supportive.
Stage 4 - Delegating Stage
• Low Task, Low Relationship
• Subordinates become more confident, self
directing and experienced.
• Followers no longer need direction. They are
on their own.
12–49
Interactive Approaches (cont’d)
• Empowerment
 The interaction of the leader giving away or sharing
power with those who use it to become involved and
committed to independent, high-quality performance.
 Successful empowerment means that everyone has
been convinced that he or she makes a difference to
the success of the organization.

12–50
Interactive Approaches (cont’d)
• Transformational Leadership
 Is a leader’s ability to influence employees to achieve
more than was originally expected, or thought
possible.
 Generates feelings of trust, admiration, loyalty and
respect from followers through:
 Idealized influence
 Inspirational motivation
 Intellectual stimulation
 Individualized considerations
 e.g Leaders promotes innovation and creativity and subordinates
should try new approaches

12–51
Table 12.2 Primary Dimensions of Transformational Leadership

Dimension Leader’s Specific Behavior Follower’s Behavior

Individualized Acts as mentor; is attentive to Is motivated; feels valued.

consideration achievement and growth needs.

Intellectual Promotes innovation and creativity; Is encouraged to be novel

stimulation reframes problems. and try new approaches.

Inspirational Provides meaning and challenge Is motivated by team spirit;

motivation through prosocial, collective action. enthusiastic; optimistic.

Idealized Shares risks; is considerate of Shows admiration; respect;

influence others over own needs; is ethical trust.
and moral.

12–52
What is the situational
approaches to leadership?
The situational approaches to
leadership focuses on the situational
factors influencing managerial style.
It assumes that there is no one best
leadership style i.e. effective leadership
depends on situational factors

12–53
Situational Factors in Leadership
Effectiveness
1. The leader’s personality, past experiences
and expectations.
2. The expectations and behavior of superiors
3. Subordinate’s characteristic, expectations
and behaviors
4. Task requirements
5. Organizational culture and policies
6. Peers expectation and behavior

12–54
Current Perspectives on Leadership
• Emotional Intelligence (EI)
 The capacity to effectively manage ourselves and our
relationships.
 Components of EI:
 Personal competence: the ability to understand
your own feelings, emotions, and their impact and
to understand your strengths and weaknesses
(based on the concept of self-awareness).
 Social competence: the ability to understand what
others are feeling (the concept of social
awareness) and having the skills to work effectively
with others (based on social skill).

12–55
 Table 12.3 The Emotional Intelligence Competency Framework

Personal Competence Social Competence

Self-management Social awareness
Self-control Empathy and insight
Trustworthiness Political awareness
Conscientiousness Service orientation
Adaptability Social skill
Achievement orientation Developing others
Initiative Visionary leadership
Self-awareness Influence
Emotional self-awareness Communication
Accurate self-assessment Change catalyst
Self-confidence Conflict management
Building bonds
Teamwork and collaboration
Synergy in teamwork
Sources: D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence (Boston: Harvard
Business School Press, 2003); D. Goleman “Leadership That Gets Results,” Harvard Business Review (March/April 2000): 78–90.
12–56
Current Perspectives on Leadership (cont’d)
• Gender and Leadership
 Female leaders are more empathic, persuasive,
better listeners and more willing to consider others’
points of view.
 Male leaders show higher levels of resilience and
thoroughness than women leaders.
 Both men and women executives believe that women
have to be exceptional to succeed in business.
 Women leaders feel they must struggle harder than
men to succeed.
 Women are more likely to use behaviors that are
associated with transformational leadership.

12–57