Leadership

Topic 10
Dr Hugh Bainbridge

LEARNING OUTLINE
1. Why is leadership important?
Leadership defined
Leaders versus managers
Arguments for and against the importance of leadership
2. To what extent does trait theory help to explain leadership?
Discuss what research has shown about leadership traits
3. What is the contribution of behavioural theories of leadership?
Contrast the findings of the behavioural leadership theories
4. How do contingency theories enhance our understanding of what
leaders do and why they do it?
Fiedlers theory of leadership
Situational leadership theory
Leader participation model
Path-goal theory

1. Leadership is

The behaviour of an individual directing the activities of a group towards a shared goal
(Hemphill & Coons, 1965, pg. 7)
The
influential
increment
over
andmechanical
above mechanical
compliance
the routine
directives(Kalz
of &
The influential
increment
over and
above
compliance with
the routinewith
directives
of the organisation
Kahn,
1978, pg. 528)(Katz & Kahn, 1978, pg. 528)
the
organisation
Exercised when persons mobilize institutional, political, psychological, and other resources
so as to arouse, engage and satisfy the motives of followers (Burns, 1978, pg. 18)
Realized in the process whereby one or more individual succeed in attempting to frame and
define the reality of others (Smircich & Morgan, 1982, pg. 258)
The process of influencing the activities of an organized group towards goal achievement
(Rauch & Behling, 1984, pg. 46)
About articulating visions, embodying values, and creating the environment within which things
can be accomplished (Richards & Engele, 1986, pg. 206)
A process of giving purpose (meaningful direction) to collective effort, and causing willing effort
to be expended to achieve purpose (Jacobs & Jaques, 1990, pg. 281)
The ability to step outside the culture to start evolutionary change processes that are more
adaptive (Schein, 1992, pg. 2)
The process of making sense of what people are doing together so that people will understand
and be committed (Drath & Palus, 1994, pg. 4)
The ability of an individual to influence, motivate, and enable others to contribute towards the
effectiveness and success of an organization (House et al., 1999, pg. 184)

Leaders and managers

Managers

Leaders

Are appointed
toposition
their position
appointed to their

Are appointed or emerge from

within a work group

Can influence people only to the

extent of the formal authority of
their position

Can influence other people and

have authority

Do not necessarily have the skills

and capabilities to be leaders

Do not necessarily have the skills

and capabilities to be managers

Leadership is the process of influencing a group toward the

achievement of goals.

Argument for the impact of leadership

What leaders can influence

The
interpretation
ofevents
external
events by employees
The interpretation
of external
by employees

The choice of objectives and strategies to pursue

The motivation of employees to achieve their objectives

The mutual trust and motivation of employees

The organisation and coordination of work activities

The allocation of resources to activities and objectives

The development of employee skills and confidence

The learning and sharing of new knowledge by employees

The enlistment of support and cooperation from outsiders

The design of formal structure, programs, and systems

The shared beliefs and values of employees

Leadership in practice

Managers views on the importance of leadership

Matthew Ayers - Group Director, Strategy & Innovation, Lend Lease

A global property group structured along several business lines: Retail

owning, operating & building, mixed-use urban renewal, public-private
partnerships, construction, and project and investment management

Leigh Cowan - CEO, Launch Engineering

25 years as marketing executive preparing marketing plans for 3M, CSR,

AGL, TNT, King Gee, Federal Publishing, AMA etc.

Product launch & marketing advice to vastly increase sales & profits

Vision: To be recognized as a world-leading consultancy in business

strategy and marketing management

Mission: To empower organizations with marketing science

Leadership in practice

The relationship between leadership & culture

Sally Anne Lister - General manager, Group Sales & Service support,

Commonwealth Bank of Australia (CBA)

Commonwealth Bank of Australia: One of Australias leading providers of
integrated financial services including retail banking, premium banking,
business banking, institutional banking, funds management, insurance,
superannuation, and investment and sharebroking products and services.

Strengths: Brand, Scale, & Diversified business mix.

Vision: To be Australias finest financial services organisation through

excelling in customer service

Group Sales and Service Support division: Responsible for providing

leadership support for the implementation of the sales and service tools
and processes including sales and service training programs, reporting,
Internal Customer Service Measurement, communications, reward and
recognition, systems and processes.

Leadership in practice

High performing leaders (Jack Welch)

Jack Welch. General Electric (1960-2001). CEO (1981-2001)

Through the 1980s, Welch worked to streamline GE, divesting business

and improving the productivity of those which were retained. GE acquired
NBC (1986) and during the 1990s, shifted GEs focus from manufacturing
to financial services through numerous acquisitions.

In 1980, the year before Welch became CEO, GE recorded revenues of

roughly $26.8 billion. In 2000, the year before he left, the revenues
increased to nearly $130 billion.

GE went from a market value of $14 billion to one of more than $410
billion at the end of 2004, making it the most valuable and largest
company in the world.

2. EARLY LEADERSHIP THEORIES

Trait theories (1920s-30s)

Early research that focused on identifying personal characteristics that

differentiated leaders from non-leaders.
characteristic
Physical
Physical
characteristics

Personality
Personality
Aptitude
Aptitude

Later research on the leadership process identified 7

traits associated with successful leadership:

Drive, Desire to lead, Self-confidence, Intelligence,

Job-relevant knowledge, Extraversion,
Honesty & integrity

Kirkpatrick, S. A., & Locke, E. A. (1991). Leadership: Do traits matter? Academy of

Management Executive, 2, 48-60.

Leadership in practice

Australian Prime Ministerial views on leadership

John Winston Howard, AC. The 25th Prime Minister of Australia (1996-2007)

Treasurer in the government of Malcolm Fraser 1977-1983. Leader of the

Liberal Party and Coalition Opposition 1985-1989. Re-elected as Leader
of the Opposition (1995-2007).

Led the Liberal-National Coalition to victory at the 1996 federal election.

The Howard Government was re-elected in 1998, 2001 and 2004.

Major issues for the Howard Government included taxation, industrial

relations, immigration, the Iraq war, and Aboriginal relations.

Howard's coalition government was defeated at the 2007

election by the Australian Labor Party led by Kevin Rudd

Credibility and trust

Credibility (of a leader)

Assessment of a leaders honesty, competence, and ability to inspire by

his or her followers

Trust

Belief of followers and others in integrity, character, and ability of leader

Dimensions of trust:
Integrity: Honesty
and truthfulness
Integrity:
Honesty
and truthfulness

Competence: Technical and interpersonal knowledge

Consistency: Reliability, predictability, and good judgment

Loyalty: Willingness to protect and save face for a person

Openness: Willingness to share ideas and information freely

Schindler, P. L. & Thomas, C. C. (1993). The structure of interpersonal

trust in the workplace. Psychological Reports, 73, 563-573.

Behavioural leadership theories

University of Iowa Studies (Kurt Lewin)

3 leadership styles:

Autocratic
centralized
authority,
Autocratic style:style:
Centralized
authority, low
participationlow participation

Democratic style: involvement, high participation, feedback

Laissez faire style: hands-off management

Research findings:

Ohio State Studies

2 dimensions of leader behaviour

Initiating structure: the role of the leader in defining his or her role and
the roles of group members

Consideration: the leaders mutual trust and respect for group members
ideas and feelings.

Research findings:

Behavioural leadership theories (contd)

University of Michigan Studies

Identified two dimensions of leader behaviour

Employee oriented: emphasising personal relationships

Production oriented: emphasising task accomplishment

Research findings:

Managerial grid

3. CONTINGENCY THEORIES OF LEADERSHIP

Theories that seek
to define
leadership
and answer:
'if' the situation,style
' then' this
is the best
style to useif
Theories
that
seek
to style
define
leadership
and
answer:

this situation, then this is the best style to use.

Contingency theories

Fiedler model

Hersey-Blanchard situational theory

Leader-participation model (e.g., time driven model)

Path-goal theory
Outcome

Leader

Contingency theories of leadership

a) The Fiedler Model

Proposes that effective group performance depends upon the proper

match between the leaders style of interacting with followers and the
degree to which the situation allows the leader to control and influence

A key factor in leadership success was an individuals basic

leadership style, which he classified as either task-oriented or

relationship oriented.
oriented
Task
Task-oriented

Relationship
Relationship
orientedoriented

Least-preferred co-worker (LPC) questionnaire

Contingency theories (contd)

a) The Fiedler Model (contd)
Situational factors in matching leader to the situation:

1. Leader-member relations - Degree of confidence, trust + respect

subordinates have in their leader.

2. Task structure - Degree that job assignments are procedurised

3. Position power - Influence leader has over power variables such as

hiring & firing.

Findings of Fieldler model

Fiedler, F. E. (1982). A theory of

leadership effectiveness. New
York, McGraw Hill.

Contingency theories (contd)

b) Hersey and Blanchards Situational Leadership Theory
Describes two leadership dimensions
Task
Task
behaviour
behavior

Relationship
behaviour
Participation behavior

Which combined, lead to four leadership styles...

Telling: High task, low relationship behaviour

Selling: High task, high relationship behaviour
Participating: Low task, high relationship behaviour
Delegating: Low task, low relationship behaviour

Followers readiness varies from level 1 to 4

(1) Unable and unwilling to (4) Able and willing

Leaders evaluate subordinates readiness and adopt the right

style

Contingency theories (contd)

Hersey, P. & Blanchard, K. (1982). Management of

Organizational Behavior: Utilizing Human Resources
(4th Ed.). Englewood Cliffs, NJ: Prentice Hall.

Leadership in practice

Leadership at the NSW Fire Brigade

The Fire Brigade has 7000 fulltime employees, 338 fire stations,

880 fire engines, and responds to 120,000 calls per year.

It prevents and responds to fires, road accidents, building
collapses, rescues, hazardous material spills, salvage, and
natural and manmade disasters.

Q1: Do you think that everyone has potential to be a leader?

Q2: What is the difference between leadership and management?

Q3: Why is corporate vision an important aspect of leadership?

Q4: How would you handle a promotion where you are now leading your
former peers?

NSW Fire Brigade

http://www.nswfb.nsw.gov.au/

Contingency theories (contd)

c) Leader Participation Model (Vroom and Yetton)

Argues that leader behaviour must be adjusted to reflect the task

structure (whether it is routine, non-routine, or in between) based on a
sequential set of rules (contingencies) for determining the form and
amount of follower participation in decision making in a given situation.

Time-Driven Model
Decision-making

contingencies (High or Low):

Decision
significance
Decision significance

Importance of commitment

Leadership expertise

Likelihood of commitment

Group support for objectives

Group expertise

Team competence

Vroom, V. (2000). Leadership and the

decision making process. Organizational
Dynamics, 28, 82-94.

Contingency theories (contd)

d) Path-goal theory
Theory that says it is a leaders job to assist followers and to provide
direction and support that are needed to attain goals.
Leader behaviour:
Outcome:
Directive
Performance
Supportive
Satisfaction
Participative
Achievement:

Four leadership behaviours

House, R. J.
(1971). A path-goal
theory of leader
effectiveness.
Administrative
Science Quarterly,
16, 321-338.

Directive leader: Lets subordinates know what is expected of them, schedules work to
be done, and gives specific guidance on how to accomplish tasks.
Supportive leader: Is friendly and shows concern for subordinates needs.
Participative leader: Consults with subordinates and uses their suggestions before
making a decision.
Achievement-oriented leader : Sets challenging goals and expects subordinates to
perform at their highest level

Contingency theories (contd)

Environmental contingency factors:
Task structure
Formal authority
Work groups
Leader behaviour:
Directive
Supportive
Participative
Achievement:

Outcome:
Performance
Satisfaction

Subordinate contingency factors:

Locus of control
Experience
Perceived ability
House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16, 321-338

Cross-cultural differences and leadership

Universal elements of effective leadership (Hartog, et al. 1999

GLOBE study)

Vision
Vision

Foresight
Foresight

Providing encouragement

Trustworthiness

Dynamism

Positiveness

Proactiveness

Den Hartog, D. N., House, R. J., Hanges, P. J., Ruiz-Quintanilla, S.

A. et al. (1999). Culture specific and cross-culturally generalizable
implicit leadership theories: Are the attributes of
charismatic/transformational leadership universally endorsed?
Leadership Quarterly, 10, 219-256.

Malaysian leaders: Compassion with an autocratic style.

Kennedy, J. C. (2002). Leadership in Malaysia: Traditional values,
international outlook. Academy of Management Executive, 16, 15-26.

Factors that make leadership less critical

Substitutes for leadership

Follower characteristics

Job characteristics

Experience, training, professional orientation, or the need for

independence

Routine, unambiguous,
and satisfying
jobs
Routine,
unambiguous,
and satisfying
jobs

Organisation characteristics

Explicit formalised goals, rigid rules and procedures, or cohesive work

groups

Leadership in practice

Questioning the impact of leaders (Jack Welch)

Jack Welch. General Electric (1960-2001). CEO (1981-2001)

Through the 1980s, Welch worked to streamline GE, divesting business

and improving the productivity of those which were retained. GE acquired
NBC (1986) and during the 1990s, shifted GEs focus from manufacturing
to financial services through numerous acquisitions.

In 1980, the year before Welch became CEO, GE recorded revenues of

roughly $26.8 billion. In 2000, the year before he left, the revenues
increased to nearly $130 billion.

GE went from a market value of $14 billion to one of more than $410
billion at the end of 2004, making it the most valuable and largest
company in the world.

LEARNING REVIEW
1. Why is leadership important?
Definition, importance and the contrasting the concepts of leaders and
managers
2. Early leadership theories (trait theory)
Research on leadership traits
3. Early leadership theories (Behavioural explanations)
Findings of the behavioural leadership theories
4. Contingency theories of leadership
How do Fiedlers theory, Situational leadership theory, The leader
participation model, and Path-goal theory explain leadership?