CHAPTER 1

INTRODUCTION

1.1

Definition of Leadership
Leadership is a process whereby an individual influences a group of

individuals to achieve a common goal. Defining leadership as a process means

that it is not a trait or characteristic that resides in the leader but rather a
transactional even that occurs between the leaders and the followers. Process
implies that a leader affects and is affected by followers. It emphasizes that
leadership is not linear, one-way event, but rather an interactive event. When
leadership is defined in this manners it becomes available to every one. It is not
restricted to the formally designated leader in a group
An activity or set of activities, observable to others that occurs in a group,
organization or institution involving a leader and followers who willingly
subscribe to common purpose and work together to achieve them. ( Professor
Kenneth Clark). Leadership is the ability to get men to do what they dont like to
do and like it. (Harry S. Truman. Page 5)
Glossary for Management Papers (2004) describes leader and leadership
as follows: Leader n. guide, conductor, pilot, director, pioneer, and shepherd.
Person who influences and guides the direction action, opinions and attitudes of
people. Leader are concerned with doing right the right thing.

1.2.

Leadership According to Scientific Management and Social

Scientific management pioneered by scientist Frederick W. Taylor in the

early 20th century and developed into as ciene of leadership.

Understanding leadership according to some figures:
1. " Activities affecting the people to work together to achieve a
goal that you want" (Ordway Tead, 1935).
2. " The process of directing and task relationships activities
affecting the members of the group" (Stoner,1982).
3. " Leadership is the ability to influence, motivate, and direct
others in order to attain desired objectives" (Don and
John, 1992).
4. " Leadership is the ability to influence people to willingly
follow one's guidance or adhere to one's decisions"
(Leslie and Lloyd, 1995).
5. The effort using a style affects and not forced to motivate
the individual in achieving goals" (Gibson et al., 1997).
6. "Leadership is the moral and intellectual Ability tovisualize
and work for what is best for the company and its employees"
(Mullins, 2001).
While the understanding of leadership according to social sciences according
to some figures:

1. Leadership is the influential increment over and above

mechanical compliance with the routine directives of the
organization. (Katz & Kahn, 1978: 528)
2. Leadership may be considered as the process (act) of influencing
the activities of an organized group in its efforts toward goal
setting and goal achievement. (Stogdill, 1950:3)
From a variety of the above definition, it can be concluded that leadership
is an ability to influence, directing, and motivating of others in order to achieve

the objectives of the organization or group. In leadership, the necessary attitude of

authority, be sensitive to taste, led, and intellectual. While the leader is someone
who has special skills, with or without official recognition can affect his group, to
conduct a joint effort leads to the achievement of specific goals.
1.3

Distinguishing between Leader and Leadership

a.

Leader
A leader has to implement a personal agenda, and the organizational

agenda. The personal agenda consists of the goal close to the leaders heart. The
organizational agenda establishes the framework within which all work is done.
Employees must know what is to be done, when it is to be done, and their part in
making it happen. The good leader must be able to state the agenda in a few
sentences that everyone can grasp. Moreover, a leader needs to have a pragmatic
and understandable operating philosophy. The framework of an operating
philosophy is created from learning, innovating, and deciding.
A leader may not recognize the personal characteristics
that cause people to follow him or her, but the followers
respond to those characteristics (Crosby, 1997).
Since the process of leadership cannot be separated from the person as
leader, the following traits and talents are required for an individual who will
adequately fulfill the role of leader: character, charisma, switching mindsets, and
know-how.
1. Character: Sheehy (1990) argued that character is the most crucial and
most illusive element of leadership. As applied to human beings, it refers
to the enduring marks in our personality which includeour inborn talents

as well as the learned and acquired traits imposed upon us by life and
experience.
2. Charisma: The function of a charismatic leader is the vital part of
leadership. Charismatic leaders are able to express themselves fully. They
also know who they are, what their advantages and disadvantages are, and
how to completely use their advantages and compensate for their
disadvantages. Moreover, they know what they want, why they want it,
and how to communicate what they want in order to gain cooperation and
support from others (Bennis, 1989).
3. Switching mindsets: The leaders success in confronting challenges rests
entirely on the leaders ability to change mindsets, create new realities and
thereby see new alternatives and possibilities. A mindset is a consistent but
unexamined framework of assumptions and viewpoints about the nature of
reality as it pertains to business. It is a lens or a filter that controls your
mind, your thoughts, your perceptions and your actions. Through
switching leaders' mindsets, leaders could alter the entire range of business
actions and solutions available to achieve new success in leadership.
4. Know-how: Leadership in different areas requires different technical
expertise. Bennis (1989) stated that leaders must possess "business
literacy" (p.89). That is, leaders must have knowledge of and be experts at
what they are doing. Leaders must have horizontal and vertical knowledge
of how the business works and a full understanding of what is required to
do the task well.

b.

Leadership
As an adjective, Leadership is deliberately causing people-driven action in

a planned fashion for the purpose of accomplishing the leaders agenda (Crosby,
1997). Leadership means that a leader is selecting people carefully and steering
them in his direction. Leadership is a clear agenda, a personal philosophy,
enduring relationships, and worldliness. However, leadership must be done by a
leader.
Leadership is the accomplishment of a goal through the
direction of human assistants. The man who successfully
marshals his human collaborators to achieve particular ends
is a leader (Prentice, 2005, p.151).
Rost (1993) defined Leadership as "a power and value laden
relationship between leaders and followers who intend real
changes that reflect their mutual purposes and goals" (p.
102).
All forms of leadership must use power. However, power needs not be
coercive, dictatorial or punitive to be affective. Instead, power can also be used in
a non-coercive manner to orchestrate, mobilize, direct and guide members of an
institution or organization in the pursuit of a goal or series of objectives (Thomas,
2011).
Peters and Waterman (1982) stated that "The real role of
leadership is to manage the values of an organization" (p.
255).
All leadership is value laden. Also, all leadership, whether good or bad, is
moral leadership. Leadership is a process of influence which involves an ongoing
transaction between a leader and followers (Hollander, 1978). Leadership,
however, does not exclusively reside in the leader. Rather it is a dynamic
relationship between leaders and followers alike. Leadership is always plural; it
5

always occurs within the context of others.Leaders and followers intend real
changes. All forms of leadership are essentially about transformation (Rost, 1993).
Transformation is about leaders and followers intending to pursue real
changes actively. Leadership is not about maintaining the status quo; it is about
initiating change in an organization instead. The process of leadership always
involves a certain number of transactional changes.
The important requirement of the leadership process is for leaders to
remember the followers to pursuit their mutual purposes and goals. Through
education and training, leaders must serve as effective teachers or mentors to
make their followers co-responsible in the pursuit of their mutual purposes and
goals (Nanus, 1989). Leadership is an extension of the leaders beliefs. A highly
personal core competence is only from within the leader. In leadership and the
customer revolution, Rick Tate (2003) said Leadership touches the heart and
soul.
1.4. Principles of leadership
Characteristics of a leader based on the principles of (Stephen r. Coney) as
follows:
1. Lifelong learning
Not only through formal education, but also out side the school. For example,
learn through reading, writing, listening, and observing. Had a good
experience or a bad as a learning resource.

2. Service Oriented
A leader is not served but to serve, and serve with the leader principle based
on a career as a primary goal. In giving service, leaders should have been
more principled on good service.
3. Bring a positive energy
Everyone has energy and passion. Use the positive energy that is based on
sincerity and desire support the success of others. For that it takes positive
energy to building rapport. A leader must be able and willing to work for long
periods of time and the conditions are not specified. Therefore, a leader of the
haras can show a positive energy, such as;
a. Believe in others
A leader of the trust of others including his staff, so that they have the
motivation and keep up the good work. Therefore, the trust must be
followed with concern.
b. Balance in life
A leader must be able to balance its work. Oriented to the principles
of humanity and balance them selves between work and sports, rest and
recreation. Balance also means balanced between the life of the world and the
hereafter.
c. Look at life as a challenge
The word ' challenge ' is often interpreted negatively. In this case the
challenge means the ability to enjoy life and all its consequences. Because life
is a challenge that is needed, to have a sense of security that comes from

within yourself.

Sense

of

security depends

on the

initiative,

skills, creativity, willpower, courage, dynamics and freedom

d. Synergies
Principled people who always lived in synergy and catalyst of change, they've
always overcome the disadvantage for yourself and others. Synergy is a group
work and benefit both sides. According to The New Webster's International
Dictionary Brolier, Synergy is a group work, which give the results more
effective than working individually. A

leader

must

be

able

to

synergist with everyone, staff, boss, colleague.

e. Exercises develop yourself
A leader must be able to renew themselves in order to achieve high
success. So he is not only oriented process. The process in developing
the self is composed of several components that relate to:
1) Understanding of the material;
2) Expand the material through study and experience;
3) Teaching materials to others;
4) Apply the principles;
5) Monitor the results;
6) Reflect the results;
7) Adding new knowledge necessary material;
8) New understanding; and
9) Back to being themselves again.

SUMMARY
While the terms "leadership" and "leader" are different, the definition of
leadership cannot be separated from the person of leader and the task of
leadership. Leadership is the interaction between the leaders characteristics and
the situation. A successful leader always has the special traits and talents to
adequately fulfill the role of leader. A person in the formal role of a leader may
not possess leadership skills nor be capable of leading. A good deal of leadership
can come from people who are not formal leaders.

CHAPTER 2
THEORY OF LEADERSHIP

2.1

Great Man Theory

The Great Man Theory was a popular 19th century idea according to which

history can be largely explained by the impact of "great men", or heroes: highly
influential individuals who, due to either their personal charisma, intelligence,
wisdom, or Machiavellianism utilized their power in a way that had a decisive
historical impact. (Stephen P. Robbins, 2008).
The Great Man Theory hypothesizes that true leaders are born not made.
Leaders have an inherent capacity to rise to the occasion when needed either
through charisma, intelligence, wisdom or some other parameter. The theory was
given prominence by a Scottish writer named Thomas Carlyle in the 1840s. He
felt that heroes used their personal attributes or divine intervention to shape
history. His most famous quote The history of the world is but the biography of
great men, reflected his belief concerning leaders being born not made (Carlyle,
1888).
2.2 Trait Theory
Trait theories can be described as a branch of the Great Man Theory. These
theories hypothesize that the specific traits of an individual give them better
propensity to be a leader. These personality traits or behavioral characteristics are
inherent in the family and passed on genetically. This theory emphasizes that
leaders share many common traits and characteristics that make them successful.
The theory was popularized in the 1937 by Gordon

Alport and Hans

Eysenck (1947). Trait theories of leadership differentiated leaders from nonleaders

by focusing on personal qualities and characteristics. (Stephen P. Robbins, 2008).

10

According to Eysenck (1947) this theory based primarily on physiology and

geneticsinterested in temperament (the aspect of personality that exists from
birth). Divided personality into two biologically-based categories of temperament:
Extraversion/Introversion
a.

Extraversion characterized by being outgoing, talkative, and in need

of external stimulation

b.

Eysenck's arousal theory of extraversioneverybody has certain

optimal level of arousal at which he/she performs best
1.

extraverts chronically under-aroused and need external

stimulation to bring them up to an optimal level of
performance

2.

introverts chronically over-aroused and need peace and quiet to

bring them to an optimal level of performance

Neuroticism/Stability
a. Neuroticism or emotionality characterized by high levels of negative
affect such as depression and anxiety.
b. Neuroticism based on activation thresholds in the part of the brain
responsible for the fight-or-flight response.
1. Activation can be measured by heart rate, blood pressure, cold
hands, sweating, and muscular tension.
2. Neurotic people, who have low activation thresholds and are
unable to control their emotional reactions, experience negative
affect in the face of minor stressors.

11

3. Emotionally stable people, who have high activation thresholds

and good emotional.
The

two

dimensions

(axes),

extraversion-introversion

and

emotional stability instability, define four quadrants:

a.

Stable extraverts (sanguine qualities such as outgoing, talkative,

responsive, easygoing, lively, carefree, good leaders)

b.

Unstable extraverts (choleric qualities such as touchy, restless,

excitable, changeable, impulsive, irresponsible)

c.

Stable introverts (phlegmatic qualities such as calm, even-tempered,

reliable, controlled, peaceful, thoughtful, careful, passive)

d.

Unstable introverts (melancholic qualities such as quiet, reserved,

pessimistic, sober, rigid, anxious, moody)

Psychoticism
Further research demonstrated the need for a third category of temperament
is Psychoticism/Socialization. These are people with tendencies to psychosis,
meaning that they are more likely to have problems dealing with reality.
Psychotic people sometimes have hallucinations and often have delusions such as
odd beliefs about being watched. (Hans and Sybil Eysenck, 1947).
2.3

Behavioral Theory
Douglas McGregor (1906 - 1964) is one of the forefathers of management

theory. McGregor developed a philosophical view of humankind with his Theory

X and Theory Y in 1960. His work is based upon Maslow's Hierarchy of Needs, in
that he grouped the hierarchy into lower-order needs (Theory X) and higher-order
needs (Theory Y). He suggested that management could use either set of needs to

12

motivate employees, but better results would be gained by the use of Theory Y,
rather than Theory X. (McGregor, 1960).
These two opposing perceptions theorized how people view human behavior
at work and organizational life :
a.

Theory X
This is the authoritative and traditional style of management. Theory

X managers assume that people are lazy, don't want to work and it is the job
of the manager to force or coerce them to work. People are viewed as a
"cost" that must be monitored and controlled. It is based on three basic
assumptions:
1. The average person inherently dislikes work and will avoid it if at
all possible.
2. Most people have to be coerced, controlled, directed and threatened
to get them to work towards organizational goals.
3. The average person prefers to be directed, avoids responsibility,
isn't ambitious and simply seeks security.
In practice Theory X managers tend to be autocratic and controlling,
and feel it is up to them to ride people and make them do their work. These
managers tend to micro-manage, be extremely task oriented and not put
much emphasis on building positive relationships. Little emphasis is shown
towards developing a positive work environment, and recognition and
appreciation would be rare. People working for these managers tend to be
motivated by fear and feel unappreciated.
b.

Theory Y

13

This is a more dignified and enlightened management style. Theory Y

managers assume people will perform well if treated positively, and that
higher order needs dominate most individuals. People are viewed as "assets"
that should be valued and developed. It is based on six basic assumptions:
1. The physical and mental effort of work is as natural as play, so the
average person does not inherently dislike work.
2. People will exercise self-direction and self-control in order to
achieve objectives.
3. Rewards of satisfaction and self-actualization come from the effort
to achieve objectives.
4. The average person learns not only to accept but to seek
responsibility.
5. Most people have a capacity for imagination, ingenuity and
creativity.
6. The intellectual potential of most people is only partially realized.
In practice Theory Y managers tend to be participative when making
decisions, and value both results and relationships. These managers tend to
delegate and empower their people because they trust them and feel they
will do good work (i.e., managers are "coaches"). Priorities will be given to
developing positive work environments, and expressing regular recognition
and appreciation. These managers will also feel that people are important
and worth developing. People working for these managers tend to feel
appreciated and dignified, and will generally have good morale and feel
motivated.

14

2.4

Situational Theory
Paul Hersey and Ken Blanchard developed situational leadership theory.

The theory was first introduced as Life Cycle Theory of Leadership and was
renamed to situational leadership in the 1970s (1969). The basis for this
theory/style is that there is no one best leadership style. The style employed is
driven by the immediate task and the maturity of the group to which they are
leading.

Hersey and Blanchard characterized leadership style in terms of the amount of

Task Behavior and Relationship Behavior that the leader provides to their
followers. They categorized all leadership styles into four behavior types,
which they named S1 to S4:

15

a.

S1: Telling is characterized by one-way communication in which the

leader defines the roles of the individual or group and provides the
what, how, why,when, and where to do the task.

b.

S2: Selling while the leader is still providing the direction, he is now
using two-way communication and providing the socioemotional
support that will allow the individual or group being influenced to buy
into the process.

c.

S3: Participating this is now shared decision making about aspects of

how the task is accomplished and the leader is providing less task
behaviors while maintaining high relationship behavior.

d.

S4: Delegating the leader is still involved in decisions; however, the

process and responsibility has been passed to the individual or group.
The leader stays involved to monitor progress.
Of these, no one style is considered optimal for all leaders to use all

the time. Effective leaders need to be flexible, and must adapt themselves
according to the situation.
Readiness
According to Hersey and Blanchard, knowing when to use each style
is largely dependent on the readiness of the person or group one is leading.
The four different readiness levels are:
a. R1 People at this level of readiness lack the knowledge, skills, or
confidence to work on their own, and they often need to be pushed to
take the task on. They are unable and unwilling.

16

b. R2 at this level, people might be willing to work on the task, but they
still dont have the skills to complete it successfully. The person is,
therefore, unable but willing or motivated.
c. R3 Here, people are ready to perform the task. They will be called able
but unwilling or insecure.
d. R4 These people are able to work on their own. They have high
confidence and strong skills, and theyre committed to the task. They
are, therefore, able and willing or motivated.
2.5

Contingency theory
Because of the perceived failure by researchers to obtain consistent results

from either the behavioural or trait theories, researchers began to focus on

situational influences. The goal was to match leadership style with work
conditions in order to achieve leadership effectiveness. Isolating the situational
conditions proved to be somewhat difficult. Three of the most successful
contingency theories are presented here.
1) The Fiedler Contingency Model.
One of the first models of this type was developed by Fred Fiedler. It
proposes that effective group performance depends on the proper match
between the leaders style and the degree to which the situation gives control
to the leader.
a) Identifying Leadership Style. Fiedler created the Least Preferred Coworker
(LPC) questionnaire, which purports to measure whether a person is taskor relationship-oriented. High LPC scores indicate a relationship-oriented
leader; low LPC scores indicate a task-oriented leader. Fiedler assumed
that an individuals leadership style is fixed. If the situation and style are

17

not optimal, then the situation needs to be modified or the leader needs to
be replaced.
b) Defining the Situation. Fiedler identified three contingency dimensions
that defined the key situational factors that will determine the appropriate
leadership style.
1) Leader-member relations: the degree of confidence, trust, and
respect members have in their leader. Measured as good or poor.
2) Task structure: the degree to which the job assignments are
structured or unstructured. Measured as high or low.
3) Position power: the degree of influence a leader has over hiring,
firing, discipline, promotions, and salary increases. Measured as
strong or weak.
c) Eight Potential Situations. The combination of the measurements of these
three dimensions creates eight potential situations (octets) that a leader
might face.
d) Matching Leaders and Situations.
1) Task-oriented leaders tend to perform better in situations that are
either very favorable to them or which are very unfavorable
(category I, II, III, VII, or VIII).
2) Relationship-oriented leaders perform better in moderately
favorable situations (categories IV through VI).
3) Recently Fiedler has condensed these eight situations down to
three based on the degree of control: task-oriented leaders
perform best in situations of high and low control while
relationship-oriented leaders perform best in moderate control
situations.
e) Using the Model to Improve Leadership Effectiveness. Because Fiedler
believes an individuals leadership style is fixed, there are really only two
ways to improve leader effectiveness:
1) Change the leader to fit the situation.

18

2) Change the situation to fit the leader. This can be done by

restructuring tasks or increasing/decreasing the power the leader
has to control factors such as salary increases, promotions, and
disciplinary actions.
f) Fiedler Contingency Model Summary. Considerable evidence supports
substantial parts of Fiedler's model. In the more recent and simplified
version of the model, there is even stronger evidence to support its
conclusions. However, the LPC questionnaire is problematic and the
contingency variables are complex and difficult for practitioners to assess,
making this a difficult model to use on a practical basis.
2) Leader-Member Exchange (LMX) Theory.
Unlike the other leadership theories mentioned thus far, the LMX theory
does not assume that managers treat all workers the same way.
a) Grouping.
Because of time pressures, leaders establish a special relationship with a
small group of their followers: the in-group. These individuals receive a
disproportionate amount of the leaders attention and are more likely to
receive special privileges. Out-group members get less of the leaders
time, fewer of the preferred rewards and have leader-follower relations
based on formal authority interactions.
b) Group Selection.
While the selection process is unclear, leaders tend to choose in-group
members (high LMX) because they have attitude and personality
characteristics that are similar to the leader or a higher level of competence
than do the out-group members (low LMX). While the leader does the
choosing, it is the followers characteristics the drive the leaders
categorizing decision. The selections appear to be relatively stable over
time.

19

c) Maintaining LMX.
Leaders induce LMX by rewarding those employees with whom they want
a closer linkage and punishing those with whom they do not. High LMX
employees are allowed to communicate frequently with the supervisor,
while low LMX employees are discouraged from doing so.
d) LMX Theory Summary.
Research has been generally supportive and may be tied to the concept of
the self-fulfilling prophecy: when leaders expect the best from a set of
employees, they tend to get it. In general, research has shown the
following:
Leaders do differentiate among followers.
The in-group and out-group disparities are not random.
In-group members will have higher performance ratings, lower turnover
intentions, greater satisfaction with their superior, and higher overall
satisfaction.
3) The Path-Goal Theory.
Developed by Robert House, this theory extracts elements from the Ohio
State leadership research as well as the expectancy theory of motivation.
a) The Leaders Purpose. In Path-Goal theory, the leader's job is to provide
followers with information, support, or other resources necessary for them
to achieve their goals. Effective leaders clarify the path to goal
achievement and remove any roadblocks the workers encounter along the
path.
b) Leader Behaviors. Unlike Fiedler, House assumes leaders are flexible and
that the same leader can display any or all of the necessary behaviours for
effectiveness in a given situation. There are four identified leadership
behaviors in this theory:
1) Directive: these leadership behaviors include letting followers
know what is expected of them, scheduling work to be done,
and giving specific guidance as to how to accomplish tasks.
20

2) Supportive: these behaviors include being friendly and showing

concern for the needs of followers.
3) Participative: the leader consults with followers and uses their
suggestions before making a decision.
4) Achievement-Oriented: the behaviors for this type of leader
include setting challenging goals and expecting followers to
perform at their highest level.
c) Contingency Variables. This theory proposes two classes of contingency
variables that moderate leadership behavior:
1) Environmental Variables: factors that are outside the control of
the employee such as task structure, the formal authority system,
and the worker. These variables determine the type of leader
behavior required for outcomes to be maximized.
2) Employee Characteristics: variables such as locus of control,
experience, and perceived ability, which are the interpersonal
characteristics of the employee. These variables determine how
the environment and leader behavior are interpreted.
d) Path-Goal Theory Predictions. The theory proposes the leader behaviour
will be ineffective when it is redundant with the sources of environmental
structure

or

incongruent

with

employee

characteristics.

Specific

predictions (i.e., effective matches between leadership behaviors and

contingency variables) include:
1) Directive leadership behaviors are more appropriate when tasks
are ambiguous or stressful.
2) Supportive leadership is more effective when employees are
performing structured tasks.
3) Directive leadership is inappropriate when employees have high
perceived ability or considerable experience.

21

4) Participative leadership behaviors are more appropriate for

employees with internal locus of control.
5) Achievement-oriented behaviors are appropriate when tasks are
ambiguously structured.
e) Path-Goal Theory Summary. The theory itself, due its complexity, has
received mixed support. While this theory is attractive, it may be quite a
while before we can safely say that it has practical uses in the workplace.
2.6.

Transactional theory
Transactional Leadership, also known as managerial leadership, focuses on

the role of supervision, organization, and group performance; transactional

leadership is a style of leadership in which the leader promotes compliance of his
followers through both rewards and punishments.
Within the context of Maslow's hierarchy of needs, transactional
leadership works at the basic levels of need satisfaction, where transactional
leaders focus on the lower levels of the hierarchy. Transactional leaders use an
exchange model, with rewards being given for good work or positive outcomes.
Conversely, people with this leadership style also can punish poor work or
negative outcomes, until the problem is corrected. One way that transactional
leadership focuses on lower level needs is by stressing specific task performance
(Hargis et al, 2001).

2.7.

Transformational theory
Transformational leadership theory is all about leadership that creates

positive change in the followers whereby they take care of each other's interests

22

and act in the interests of the group as a whole (Warrilow, 2012). The concept of
transformational leadership was introduced by James Macgregor Burns in 1978 in
his descriptive research on political leaders, but its usage has spread into
organizational psychology and management with further modifications by B.M
Bass and J.B Avalio (Jung & Sosik, 2002). Transformational leadership enhances
the motivation, morale, and performance of followers through a variety of
mechanisms. These include connecting the follower's sense of identity and self to
the project and the collective identity of the organization; being a role model for
followers that inspires them and makes them interested; challenging followers to
take greater ownership for their work, and understanding the strengths and
weaknesses of followers, so the leader can align followers with tasks that enhance
their

performance.

Warrilow

(2012)

identified

four

components

of

transformational leadership style:

(1) Charisma or idealised influence: the degree to which the leader
behaves in admirable ways and displays convictions and takes
stands that cause followers to identify with the leader who has a
clear set of values and acts as a role model for the followers.
(2) Inspirational motivation: the degree to which the leader articulates a
vision that is appeals to and inspires the followers with optimism
about future goals, and offers meaning for the current tasks in hand.
(3) Intellectual stimulation: the degree to which the leader challenges
assumptions, stimulates and encourages creativity in the followers by providing a framework for followers to see how they connect to

23

the leader, the organisation, each other, and the goal] they can
creatively overcome any obstacles in the way of the mission.
(4) Personal and individual attention: the degree to which the leader
attends to each individual follower's needs and acts as a mentor or
coach and gives respect to and appreciation of the individual's
contribution to the team. This fulfils and enhances each individual
team members' need for self-fulfilment, and self-worth - and in so
doing inspires followers to further achievement and growth.

Comparison of Transactional and Transformational Leadership (Hay, 2012)

24

Transactional Leadership

Transformational Leadeship

Leadership is responsive

Leadership is proactive

Works within the organisational

culture

Works to change the organisational

culture by implementing new ideas

Employees achieve objectives

through

Employees achieve objectives through

higher ideals and moral values

rewards and punishments set by

leader
Motivates followers by appealing to
their

Motivates followers by encouraging them

to put

own self interest

group interests first

Management-by-exception: maintain
the

Individualised consideration: Each

behaviour is

status quo; stress correct actions to

improve

directed to each individual to express

consideration

performance.

and support.
Intellectual stimulation: Promote creative
and
innovative ideas to solve problems.

SUMMARY
The theory of leadership that most suitable to be applied in Indonesia is
situational theory which states that there is no one best style of leadership. but
leadership theory should be applied conditionally, like what is happening today,
Mr. Jokowi has been selected as Indonesia's president 2014-2019 period, because
people need a leader who is close to citizens.
CHAPTER 3
TYPES OF LEADERSHIP

25

3.1

Autocratic leadership style

A leadership style where the leader makes all decisions independently or

without consulting with others

Advantages

: Good in certain circumstances, such as urgent tasks or military

actions

Disadvantages : Poor decisions, poor level of employee motivation

High degree of dependency on the leader
Can create de-motivation and alienation of staff
May be valuable in some types of business where decisions need to be
made quickly and decisively.
In the autocratic style, the leader makes decisions without consulting with
others. In Lewins experiments he found that caused the greatest discontent.
An autocratic style works best when:
a) There is no need for input on the decision.
b) Where the decision would not change as a result of input actions
would not be affected whether they were or were not involved in the
3.2

decision-making.
Democratic leadership style: persuasive or consultative
A leadership style where a leader encourages employee participation in

decision-making
Can be persuasive or consultative
Consultative : Process of consultation before decisions are taken
Persuasive

: Leader takes decision and seeks to persuade others that the

decision is correct

Advantages

: Better decisions, employee motivation

26

May help motivation and involvement

Improves the sharing of ideas and experiences within the business
Can delay decision making
Workers feel ownership of the firm and its ideas
Disadvantages : Delayed decision, long consultation
In the democratic style, the leader involves the people in decision making,
although the process for the final decision may vary from the leader having the
final say to them facilitating consensus in the group
Democratic decision making usually appreciated by the people, especially
if they have been used to autocratic decisions with which they disagreed.
Democratic style can be problematic when there are wide range of
opinions and there is no clear way of reaching an equitable final decision.
3.3

Laissez-faire leadership style

A leadership style where employees are encouraged to make their own

decisions within limits.

Advantages

: More freedom for employees

Relies on good team work
Relies on good interpersonal relations
Can be very useful in businesses where creative ideas are
important
Can be highly motivational, as people have control over their
working life
Can make coordination and decision making

Disadvantages : Few guidelines, little incentive, poor motivation, maybe a mess

Time-consuming and lacking in overall direction
Free-reign leadership when leader believes in minimal supervision,
leaving most decisions to subordinates. Empowerment when practice in which
managers lead employees by sharing power, responsibility, and decision making
with them. Let it be the leadership responsibilities are shared by all

27

The laissez-faire style minimizes the leaders involvement in decision

making. Laissez-faire works best when people are capable and motivated in
making their own decisions, and where there is no requirement for a central
coordination.
Autocratic

Democratic

Leadership
With manager

Leadership
Share between

(Laissez-faire)
With employees

of power

manager and

minimal supervision

Decision

employees
By manager and

By employees

employees
Two way

Widespread and as

Employees

It is a time

needed
Not suitable for lesser

cannot question

consuming

experienced employees

decisions

affair

Team agreement

Team

When team members

is not necessary

Agreement is

are able to analyze the

needed

situation

Concentration

By manager

making
Communication From top down
flow
Limitation

Agreement

3.4

Free-Reign Leadership

Bureaucratic leadership
The bureaucratic leader believes more in very structure procedures and

tends to bend over the pre-established measures rather it was successful or not.
This type of leadership has no space to explore new ways to solve problems and is
usually slow paced to ensure adherence to the ladders stated by the company.
Leaders ensure that all the steps have been followed prior to sending it to the next
level of authority. Universities, hospitals, banks and government usually require
28

this type of leader in their organizations to ensure quality, increase security and
decrease corruption. Leaders who would like to speed up the process will
experience frustration and anxiety and are not welcome (Weber, 1905).
3.5

Charismatic leadership
The charismatic leader leads by infusing energy and eagerness into their

team members. A charismatic leader is someone who is often on the run. they is
not someone who feels pleased with any type of stationary situation. This type of
leader has to be committed to the organization for the long run. If the success of
the division or project is attributed to the leader and not the team, charismatic
leaders may become a risk for the company by deciding to resign for advanced
opportunities. It takes a company time and hard work to gain the employees
confidence back with other type of leadership after they have committed
themselves to the magnetism of a charismatic leader (Weber, 1905)
3.6
Transactional leadership
The transactional leader is given power to perform certain tasks and
reward or punish for a teams performance. It gives the opportunity to the
manager to lead the group and the group agrees to follow his lead to accomplish a
predetermined goal in exchange for something else. Power is given to the leader
to evaluate, correct and train subordinates when productivity is not up to the
desired level and reward effectiveness when expected outcome is reached (Burns,
1978).
3.7

Transformational leadership
The transformation leader motivates its team to be effective and efficient.

Communication is the base for goal achievement focusing the group in the final
desired outcome or goal attainment. This leader is highly visible and uses

29

chain of command to get the job done. Transformational leaders focus on the big
picture, needing to be surrounded by people who take care of the details. The
leader is always looking for ideas that move the organization to reach the
companys vision (Burns, 1978)
3.8

People-oriented leadership
The people-oriented leader is the one that, in order to comply with

effectiveness and efficiency, supports, trains and develops his personnel,

increasing job satisfaction and genuine intert to do a good job (Fiedler, 1967)

3.9

Servant leadership
The servant leader facilitates goal accomplishment by giving it steam

members what they need in order to be productive. This leader is an instrument

employees use to reach the goal rather than a commanding voice that moves to
change. This leadership style, in a manner similar to democratic leadership, tends
to achieve the results in a slower timeframe than other styles, although
employee engagement is higher (Greenleaf, 1977).
3.10

Environmental leadership
The environmental leader is the one who nurtures group or organizational

environment to affect the emotional and psychological perception of an

individuals place in that group or organization. An understanding and application
of group psychology and dynamics is essential for this style to be effective. The
leader uses organizational culture to inspire individuals and develop leaders at all
levels. This leadership style relies on creating an education atmosphere where

30

groups interactively learn the fundamental psychology of group dynamics and

culture from each other. The leader uses this psychology and complementary
language, to influence direction through the members of the inspired group to do
what is required for the benefit of all (Carmazzi, 2005 )
3.11

Visionary Leadership Type

Early ideas on visionary leadership were developed via the sociologist

Max Webers notions of charisma and the transformational and charismatic

leadership theories of the historian James MacGregor Burns and the management
scholar Robert House. Other theorists, such as Bernard Bass, Ben Avolio, Warren
Bennis, Burt Nanus, Jay Conger, and Rabindra Kanungo also developed theories
with vision communication components. Visionary leadership is said to have
positive effects on follower outcomes, resulting in high trust in the leader, high
commitment to the leader, high levels of performance among followers, and high
overall organizational performance.
3.12

Transactional Leadership style

Motivate followers by appealing to their own self-interest. Motivate by the

exchange process. Example : business owners exchange status and wages for the
work effort of the employee, Focuses on the accomplishment of tasks & good
worker relationships in exchange for desirable rewards, Encourage leader to adapt
their style and behaviour to meet expectations of followers.
When this style used: Leader wants to be in control, When there are
approaching deadlines that must be met, Relationship is short term.

31

3.13

6 Types of Leadership Style by Goleman

32

Leadership Styles cont.

Impact on

Directive

Visionary

Affiliative

Participative

Pacesetting

Coaching

Negative

Most strongly

Positive

Positive

Negative

Positive

Climate

positive

Comments

Flexibility

Most

Builds

hardest hit
effective style
emotional bonds

People feel
Visionary;
Positively
disrespected

Sense of
responsibility

evaporates
Leaves

motivates people effects

by making clear

how work fits into

larger vision.

Standards

communication
Trust

Builds trust,

Sets high

Help

respect, and

standards, looks to do employees identify

commitment by

things better,

getting input and

pinpoints poor

their unique strengths

and weaknesses
Establish

building buy-in
performers

By listening
Paradoxical, long-term goals and

increases flexibility
Gives positive leader learns how to would think above

people alienated
feedback
and
rewards
clear.

Sometimes

Celebrates

Gives
it will work, e.g., a
successes
people leeway to
Style

build morale

Can lead to
endless meetings

Can delay

improves results,
instead it destroys
climate

help employees see

how to reach them

Excel at
delegating

Powerful tool

33

turnaround or

devise means to

hostile takeover

but particularly when conflict

Works best
looming
want to build team,

Can break most situations

when leader is
increase
trust,
etc.

Does not

May not focus uncertain or need to

failed business
work in all
habits
on performance; use generate ideas and
situations, e.g.,
with other styles
followers are
team of experts
competent.

meet vision
Works in

generally works well decisions and escalate

Employees

but not often used

Employees

overwhelmed and
know what is
feel untrusted.

Guidelines

expected and how it

often not made clear. fits vision

Good when

Commitment
& flexibility decline. employees want to be

Works well
coached
Leader must
when all employees
are self-motivated

have expertise to help

and competent.

employee

SUMMARY

34

In the leadership style, that must be combine to make our strategy or our action can be success. Someone or leader cant be stand
just had one style in their company field. That means if the leader just on use one style, the company cant be survive in the future. Not
only just in leader, but in employee, organization also happen like that

35

CHAPTER 4
A WAY TO BUILD THE LEADERSHIP SOUL

Leadership is an ability to influence a person or group of people towards

to achieve their objectives, in this very dynamic world an organizations need a
capable leaders to challenging the status quo, to create visions of the future and
inspire the members of the organization to have the desire to achieve their visions
(Robbins, 2001; Appelbaum et al., 2004).
Because there are no one can deny the important of leadership to a success
of an organization. The ability of the leadership of the organization is a major
factor in building a work ethic within the organization (Bass &Avolio, 1994).
Defined by Stoner, Freeman and Gilbert (1995), Leadership is the process
of directing and influencing the members in terms of the various activities that
must be performed. The leader can be defined as someone who has the ability to
influence the behavior of others without the use of force, so they lead people to
accept him / her as someone who is worthy to lead them.
Leadership is developed, not discovered. People who are born as a true
leader will always stand out, but to remain consistent, natural leadership
characteristics must be developed. According to John Maxwell, in his book
Developing Leadership that: "An optimal leadership is a result of training /
practice, it wasnt born just like that. So it should be seized, not given.
All people are born as a leader ,everyone can develop leadership and skills.
Everyone can benefit from using them. First, take time to honestly analyze your
self. Learn to understand yourself. Its the first step tounder standing others.

36

Before knowing the step to be a good leader, there are several questions that must
be answered by ourselves. Consider these important questions:
1. What kind of leader am I? One who helps solve problems? A leader who
helps people get along? How do others see me as a leader?
2. What are my goals, purposes, and expectations in working with this
particular group?
Identify areas for improvement. Ask yourself these questions:
1.
2.
3.
4.
5.
6.
7.
8.

Do I try to be aware of how others think and feel?

Do I try to help others perform to the best of their abilities?
Am I willing to accept responsibility?
Am I willing to try new ideas and new ways of doing things?
Am I able to communicate with others effectively?
Am I a good problem solver?
Do I accept and appreciate other perspectives and opinions?
Am I aware of current issues and concerns on campus or in my
community?

Then after analyzing your strengths and weaknesses ,take action. Devise a
strategy for upgrading your skills. Here are a few strategies to consider:
Based on The Undefeated Mind by dr.Lickerman, he explains that there are
several requirements for someone to be a leader. Among them:
1) Be confident.
Requiring an entire post unto itself, suffice it to say for the purpose of this
post that a world of difference exists between saying, "I don't
know" nervously and uncertainly and saying "I don't know" confidently.
To say "I don't know" nervously and uncertainly communicates
incompetence. To say "I don't know" confidently not only communicates
competence but also that it's perfectly acceptable that you don't know the
answer to the specific question you were asked. I listen to medical students

37

say "I don't know" all the time. The ones who say it confidently do tend to
be more competent than those who say it nervously and uncertainly. Not
knowing something doesn't make you a bad leader. Allowing that lack of
knowledge to sap your confidence, or worse, not having confidence in the
first place, does.
2) Be kind but firm.
Being a leader means having to set boundaries, but boundaries can be set
angrily and condescendingly or gently and compassionately. Do it gently
and compassionately and people will not only respect the boundaries you
set but you as well.
3) Be an expert.
However long it takes, whatever you have to do, know what you're talking
about. Don't ever try to fake content knowledge. If you don't know what
you need to know, find it out.
4) Be decisive.
A great leader listens to a diversity of opinions, asks probing questions,
debates issues, challenges positions---but when the time to discuss and
debate is over, makes a decision and moves on.

5) Be willing to have people disagree with you.

If you're setting appropriate boundaries and taking strong positions, some
people may not only disagree with you but actively dislike you. But that's
more about them than it is about you. Don't take it personally.

38

6) Know when to spend time building a consensus and when to make an

executive decision.
Sometimes everyone (or almost everyone) involved needs to agree before
progress can be made. Other times waiting for a consensus risks failure.
Learn to recognize when it's time to take over.
7) Have a vision.
A vision that excites the people who follow you, that inspires them in such
a way that they perform (or want to perform) at a level they didn't know
they could.
8) Care about the people you lead.
Genuine concern is always perceived and appreciated---and far more
motivating than any punitive measure could ever be.
9) Mentor people.
Great leaders always have people who want to learn from them. Someone
is always watching you, whether you realize it or not. If you're ever unsure
about what decision to make, think about what each of your choices will
teach the people around you. Try to pick the choice that demonstrates the
greatest virtue.
10) Fully visualize every repercussion of each of your decisions in
advance. Plans often fail because of unforeseen consequences. Follow the
predicted results of your decisions into every nook and cranny and take a
360 degree look around in your mind. The more concretely you can do
this, the more likely you'll be able to predict results no one else can.
Communication Skills in Leadership

39

Skill Category
Interpersonal Communication
Active hearing
Public Speaking
Interview
Written Communication
Computer Skills
Advocate Media
Sensitivity of Culture
Feed Back
Delegation
Framing
Dialogue
Meeting Skills
Health Communication
Social Marketing
Mentoring
Conflict Resolution
Negotiate
Source: Rowitz, Louis(2012)

Leadership

Leadership is being a good listener and talking about a situation or a

problem expands can improved our understanding about the situation. And keep
your team informed so they will understand their role in the organization and will
tend not to be confused. Generally, people would like to have too much to do than
not enough to do. They lose self-esteem if they are not kept busy, and then
productivity falls off dramatically.

SUMMARY
Everyone can be leader but not of all leaders have a leadership
characteristic. A person who have a leadership not always as a leader in their
group or workplace, but they influence the others, of course in the positive ways.
A leader have to develop their skills ,because a leadership is not given , but a
result of developing and practicing to be a better personal.

40

CHAPTER 5
DIFFERENCES BETWEEN MANAGER AND LEADERSHIP

41

The development of the transformational theories of leadership stimulated

a reconsideration of the concept of leadership and management and initiated
drawing distinctions between the two. These differences have not been entirely
clear, as there has been great confusion in terminology, and these distinctions may
be largely academic rather than practical in nature. Many authors seems to use the
words almost interchangeably at times while others are quick to illustrate the
distinctions between management and leadership as if represent a litmus test of
the truly effective executives.
Although there do seem to be a set of practical and important tasks that fall
under management and a set that belong under the heading of leadership,
some actions that have passed for leadership in health system, organization, and in
the literature really represent management skill. Before refocusing on leadership
skill, it is important to note that some management aspect of a public health
practitioners work can not be exchanged for leadership. There is great inherent
value to enabling people and ideas to interact to establish strategies and make
decisions. It is not leadership alone that makes public health systems function.
Although the distinction is primarily an academic one, the difference between
leadership and management behaviors raises many questions. The context itself
may contribute much to the evaluation and categorizing of behaviors; some fall
more cleanly into the two groups.
In essence, management holds a primary allegiance to the organizations
and fulfills certain roles because they are attached to the position. Managers may
set productions goals for an organization, assign workloads, and ensure that
workers have the requisite skills and materials necessary to complete their

42

assigned task. Leadership, on the other hand, is the way managers get things done
by inspiring the best performance and building the internal capacity of an
organization in something no tangible ways. Although a central role of
administration, leadership is merely one role of management. However, the peril
is that public health leaders will engage only in management and not in leadership
because of lack of training and experience or benefit from leadership skills, he or
she must not simultaneously relinquish his or management duties. An ability to
seamlessly execute both when necessary is a skill that is vital to successful public
health leaders.
The current academic thinking holds that while management talent is an
important component of administration, it is quite different from those of
leadership. Traditional management follows a transactional model, in which work
is exchanged for rewards. Here, the leader works to maintain the status quo and
preserve the current working criteria. Playing within the rules, maximizing
personal rewards, and providing incentives commensurate with performance are
thought

to

support

only

ordinary

performance

in

organizations.

In

transformational leadership, however, upsetting the status quo to create new rules
that optimize the system using an independent structure are purposed to create
extraordinary result
Kotter draws even further distinctions between management and
leadership skill. According to Kotter, management copes with complexity while
leadership copes with change. An important management skill is to plan and
budgeting, while the leadership counterpant is to set direction. Managers use
organizing and staffing to achieve the institutional plan while leaders align people

43

to achieve organizational objective. Controlling and problem solving skills are

employed by managers to ensure that plans are accomplished while leaders
motivate and inspire people to achieve the mutual visions.
Transactional vs Transformational Leadership:
Differences Between Manager and Leader

Performance
Goal
Goal arise out
of

Emphasis
Attitudes
towards goal
Incentives
Locus of
rewards
Requires

View work as
Tactics
employed

Transactional Leader or
Manager Skills
Considered by leadership
writers to produce ordinary
performance
To maintain the status quo
by playing within the rules
Necessity, are reactive, and
respond to ideas. They are
deeply imbedded in the
organizations history and
culture
Rationality and control,
limits choices, focuses on
solving problems
Impersonal, if not passive
attitudes
Based on exchange of needs
Maximize personal benefits
Persistence, toughmindedness, hark work,
intelligence, analytical
ability, tolerance, and good
will
Enabling processes, ideas,
and people to establish
strategies and make
decisions
Negotiate and bergain, use of
rewards, punishment, and
other forms of coercion.
Strive to convert win-lose
into win-win situations as
part of the process of
reconciling differences
among people and

Transformational Leader
or Leader Skills
Considered by leadership
writers to produce
extraordinary performance
To change the status quo by
changing the rules
Desires; they are active,
shaping ideas; may be a
departure from
organizations history and
culture
Innovation, creativity to
develop fresh approaches to
long-standing problems, and
open issue to new options
Personal and active attitudes
Based on the greater good
Optimize systemic benefit

Genius and heroism

Creative, energizing, and

emerging
Inspire followers, create
shared vision, motivate.
Strive to create new
situations and new directions
without regard to reconciling
groups or power.

44

maintaining balances of
power.
SUMMARY
The leader is the one who brings change with the ideas or new inspiration
while a manager is someone who leads an organization or group according to the
rules of the existing organizations.

CHAPTER 6
INDICATOR OF THE LEADERSHIP EFFECTIVENESS

According to J.T. Wren (1995), there is no possible way to measure the

effectiveness of leadership for the reason that an individual's leadership style
varies from person-to-person and is determined by the methodology in which

45

he/she handles the situation. Leadership is often measured by an individual's

ability to motivate and influence change within an organization or community.
Consequently, leadership effectiveness is primarily predicated upon a leader's
ability to receive adequate results whether the leader is a positive influence or a
negative influence on followers.
Gary Yukl (2009) explained that the criteria of selected to evaluate
leadership effectiveness reflect a researchs explicit or implicit conception of
leadership. Most research evaluate leadership effectiveness in terms of the
consequences of influence on a single individual, a team or group, or an
organization.
The most commonly used measure of leader effectiveness is the extent to
which the performances of the team or organizational unit is enhanced and the
attainment of goals is facilitated. Examples of objective measures such as
productivity. Subjective measures of effectiveness include ratings obtained from
the leaders superiors, peers, or subordinates.
Follower attitudes and perceptions of the leader are another common
indicator of leader effectiveness. How well does the leader satisfy their needs and
expectations? Do followers like, respect, and admire the leader? Do followers
trust the leader and perceive him or her to have high integrity? Are followers
strongly committed to carrying out the leaders requests or will they resist, ignore
or subvert them? Does the leader improve the quality of work life, build the self
confidence of followers, increase their skills, and contribute to their psychological
growth and development? Follower attitudes, perceptions, and beliefs are usually
measured with questionnaires or interviews. Such aspect of follower behavior also

46

provide an indirect indicator of dissatisfaction and hostility toward the leader

such as absent of the employee.
Leader effectiveness is occasionally measured in terms of the leaders
contribution to the quality of group processes, as perceived by followers or by
outside observes. Does the leader enhance group cohesiveness, member
cooperation, member commitment, and member confidence that the group can
achieve its objectives? Does the leader enhance problem solving and decision
making by the group, and help to resolve disagreements and conflicts in
constructive way? Does the leader contribute to the efficiency of role
specializations, the organization of activities, the accumulation of resources, and
the readiness of the group to deal with change and crises?
A final type of criterion for leadership effectiveness is the extent to which
a person has a successful career as a leader is the person promoted rapidly to
positions of higher authority? Does the person serve full term in a leadership
position, or is he or she removed or forced to resign? For elected positions in
organizations, is a leader who seeks re-election successful?
There is no simple answer to the question of how to evaluate leadership
effectiveness. The selection of appropriate criteria depends on the objectives and
values of the person making the evaluation and people have different values.
In determining a leader's effectiveness would assess whether he/she is a
transformational

or

transactional

leader.

According

to

Bass

(1990)

transformational leaders inspire employees to exceed the expected by embracing a

vision and striving to achieve that vision. Transformational leaders demonstrate
specific behaviors and actions: attributed charisma, inspirational motivation,

47

intellectual stimulation, and individualized consideration. Attributed charisma

occurs when leaders demonstrate behaviors that engender respect and trust.
Leaders who display charisma demonstrate interest in the well-being of others,
stay calm in crisis situations, formulate decisions that benefit the group as a
whole, demonstrate competence, and earn followers' respect.
SUMMARY
There isnt certain indicator to measure the effectiveness of leadership.
Leadership effectiveness observable the way of she/he influence subordinate
person in which related with performance of the team or organizational unit is
enhanced and the attainment of goals.

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