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Week Two

Leadership theories

Leadership for SMEs

LD9616

Objectives of this session

To discuss leadership theories

Leadership Theories

As with management there is no single model for success and many approaches have been introduced.

Great Man Theory

The identification of the Organisation or Nation with one figure

Often based on charisma and the valediction of successful leadership

Simplistic rendition of reality

Trait theory

Based of the assertion that certain individuals possess particular qualities that separate them from followers

Thomas Carlyle GMT originated the focus on personality and traits

Francis Galton in Hereditary Genius (1869) argued that leadership was a unique property of extraordinary individuals

Cowley (1931) commented that the approach to the research of leadership has usually been and should always be through the study of traits (Cowley, 1931).

This trait perspective of leadership was widely accepted until Stogdill (1948) criticised trait theory as insufficient in predicting leader effectiveness

1950s American Research

American post-war research focussed on organisational efficiency and effectiveness

The role and impact of the leader was researched by University of Ohio State and University of Michigan

Michigan’s research into ‘relation-oriented’ and ‘task-oriented’ behaviours led to Blake and Mouton’s Management grid

Blake and Mouton’s Management grid

Contingency theory

Fielder (1964) argued that stress is a key determinant of leadership effectiveness

Fielder’s work built on earlier research (Hawthorne Studies) that identified how situational factors impacted on employees

Fielder looked at how leaders altered their behaviour given the prevailing situation

Fielder’s work drew attention to relationships

Situational Leadership

The situational leadership model was Paul Hersey and Ken Blanchard

The theory was initially introduced as "Life Cycle Theory of Leadership".

Effective leadership is task-dependent, with the most successful leaders being those who modify their style to the individual or group they are attempting to lead or influence.

Effective leadership varies, not only with the group that is being led, but it also depends on the task being undertaken

Path-Goal Leadership Theory

The path–goal theory was developed by Robert House, in 1971 and revised in 1996.

The theory states that a leader's behaviour is related to the satisfaction, motivation and performance of their subordinates.

The revised version also argues that the leader engages in behaviours that complement subordinate's abilities and compensate for deficiencies.

The path–goal model can be classified as one form of Transaction leadership theory.

Vroom-Yetton Decision-making Model of Leadership

This model suggests that a leader should make a selection from a range of 5 leadership styles when making a group-based decision. The 5 leadership styles are:

Autocratic Type 1 (AI) Leader makes own decision using information that is readily available to them at the time. This type is completely autocratic.

Autocratic Type 2 (AII) Leader consults the team to get the required information, then make their own decision.

Consultative Type 1 (CI) Leader shares problem to relevant followers individually and seeks their ideas and suggestions. Then make the final decision alone.

Consultative Type 2 (CII) Leader shares problem to relevant followers as a group and seeks their ideas and suggestions. Then make the final decision alone.

Group-based Type 2 (GII) Leader discuss problem and situation with followers as a group and seeks to reach a consensus . The leader’s role is mostly facilitative, assisting team members to reach a mutually-agreed decision.

Factors to Consider

Decision Quality

Team Commitment

Time Constraints

Consultative/ Collaborative Approach:

You need information from others to solve the problem

The problem can’t be easily defined

Team members’ buy-in to the decision is important

You have enough time available to manage a group decision

Autocratic

You have greater expertise on the subject than others

You are confident about acting alone

The team will accept your decisions

There is little time available

Leader-Member Exchange (LMX) theory

The leader-member exchange theory of leadership focuses on the two-way, dyadic relationship between a leader and their subordinates.

The theory claims leaders develop an “exchange” with each of their subordinates, and that the quality of these leader-member exchange (LMX) relationships influences their performance.

Team building can be enhanced with the correct mix of individuals

Transactional Leadership

Transactional Leadership focuses on the role of the supervision and organization of workers and prioritises organisational performance

Transactional leadership is a ‘contract-based’ relationship leadership where the leader demands compliance from their followers through both rewards and punishments.

Transactional leaders are not looking to change the future, they are looking for conformance to job roles and orders

Transformational Leadership Theory

Transformational leadership is where the leader is preoccupied with identifying the need for change, the creation a vision of the future strategy, and the implementation of change.

Transformational theory was developed by MacGregor Burns and Bass and claims to enhance the motivation, morale, and job performance of followers.

The idea of follower loyalty is important, with the leader constructing a trusting relationship that is built on the 4 Is (see the diagram)

Ethical Leadership

Ethical leadership is characterised by a concern for others an a moral context to decision-making

Virtue ethics is based on the idea of moral character promoting ethical outcomes

Virtue ethics can be traced back to Ancient Greece and the writing of Aristotle and Plato

Virtue ethics is one of the three major approaches to ethics, often contrasted to deontology, which emphasizes duty to rules, and consequentialism, which derives rightness or wrongness from the outcome of the act itself.

Servant Leadership Theory

Origins can be traced back to Ancient China, but academic work originates from Robert K. Greenleaf (1970)

Servant leadership transforms the leader-follower binary

The servant becomes all important, not the goals of the organisation

Authentic Leadership Theory

Another idea borrowed from ancient Greece, authentic leadership is based on the idea that leadership is built on a leader’s legitimacy through honest relationships

Authentic leaders aim to build trust are positive about people and promote openness.

Four qualities describe AL:

Self-awareness and reflection

Relational transparency and sharing thoughts with others

Balanced processing- treating all fairly

An internalised moral perspective and an ethical belief-system

Distributed leadership Theory

Also known as dispersed or shared leadership, this transforms that nature of leadership into an quality of the organisation, not of a person, built on team-work

Distributing leadership may be short-term, task-driven or it may become embedded

DL has been criticised as power continues to reside with those who direct teams

Key issues to consider

Is leadership a process, or a characteristic of a person or an quality inherent with an organisation?

Is it possible to define leadership, or leaders?

Is leadership separate from management?

To what extent are views on leadership essentially ideological constructs?

Is it possible to ascribe a value to leadership?

Aspects of Leadership

Doing things (profession or activities)

Managing processes (provide direction, inspiration, encourage performance)

Many of us drawn to ‘doing things’

Performance is judged by activities, achievements…

Leading requires us to be assertive, persuasive, considerate, resilient, self-confident

Leadership Traits

The term trait refers to individual attribute including aspects of personality, temperament, needs, motives and values

They are relatively stable and describe an individuals disposition to behave in a certain way

Include: self confidence, emotional maturity, and energy levels

Yukl (2013)

Traits related to Leadership Effectiveness

High energy level and stress tolerance

Internal locus of control orientation

Emotional maturity

Personal integrity

Socialised power motivation

Moderately high achievement orientation

Moderately high self confidence

Moderately low need for affiliation

(Yukl 2013)

Personality traits…. Motives…. Cognitive factors (DuBrin 2010)

Peter Drucker

Nelson Mandela

Napoleon Bonaparte

Helmut Schmidt

Multiple Intelligences of Leadership

cognitive

emotional

social

cultural

moral

spiritual

behavioural

(Gill 2011)

Leadership

Armstrong and Stephens (2004) consider effective leaders to have three essential roles:

Define the task

Clarity

Goals

Forming teams

Achieve the task

Ensure purpose is fulfilled

Coaching/Feedback/Mentoring/Resourcing

Maintain effective relationships throughout the task

Lead, not manage, there is an important difference. Many an institution is very well managed and very poorly led.

Leadership focuses on doing the right things, management focuses on doing things right. Leadership makes sure the ladders we are climbing are leaning against the right wall, management makes sure we are climbing the ladders in the most efficient ways possible. (Covey, 1996)

Leaders look beyond the manager's operating plans. Leaders look both outside and inside, managers do mostly the latter. Leaders communicate obsessively. (Kotter, 1999a)

Management is about coping with complexity (particularly as a result of the emergence of large organisations). Good management brings a degree of order and consistency to key dimensions like the quality and profitability of products.

Manager/headship = a person formally appointed to a role in the organisational hierarchy, associated with which is the formal authority (within prescribed limits) to direct the actions of subordinates. Among other things the role is concerned with some combination of planning, organising, directing and controlling the activities of human resources towards the achievement of set organisational objectives (Rollinson, 2002)

Leader Characteristics or Traits (Bennis, 1989)

Leader Characteristics:

Innovates An original Develops Focuses on people Inspires trust Long range perspective Asks what and why Eyes on the horizon Originates Challenges status quo Own person Does the right thing

Leadership

The qualities required of leaders as outlined by Adair include:

Enthusiasm

Confidence

Toughness

Integrity

Warmth

Humility

Lead, not manage, there is an important difference. Many an institution is very well managed and very poorly led.

Leaders look beyond the manager's operating plans. Leaders look both outside and inside, managers do mostly the latter. Leaders communicate obsessively. (Kotter, 1999a)

Leadership

A survey conducted the Industrial Survey (now the Work Foundation) showed that good leaders require the following leader behaviour (ranked in order of importance). These are considered essential in a continually improving local authority.

Shows enthusiasm

Supports other people

Recognises individual effort

Listens to individuals ideas and problems

Provides direction

Demonstrates personal integrity

Practices what he/she teaches

Encourages team work

Actively encourages

Develops other people

Lead, not manage, there is an important difference. Many an institution is very well managed and very poorly led.

Leaders look beyond the manager's operating plans. Leaders look both outside and inside, managers do mostly the latter. Leaders communicate obsessively. (Kotter, 1999a)

Leadership

Furthermore, continually improving organisations will require transformational leaders.

Transformational Leaders are so called because such individuals ‘transform followers’:

“self interests for the good of the group, organisation, or society, while also enhancing followers’ expectations and abilities, and their willingness to take risks” Bass & Avolio, 1993

Lead, not manage, there is an important difference. Many an institution is very well managed and very poorly led.

Leaders look beyond the manager's operating plans. Leaders look both outside and inside, managers do mostly the latter. Leaders communicate obsessively. (Kotter, 1999a)

Five Characteristics of Transformational Leadership

Challenging the process

Inspiring a shared vision

Enabling others to act

Modelling the way

Encouraging the heart Kouzes & Posner (1987)

Idealized Influence – act as role models, attract admiration, respect and trust, put needs of others before own, take risks and demonstrate high standards of ethical conduct

Inspirational Motivation – motivate and inspire by providing meaning and challenge, arouse team spirit, show enthusiasm and optimism, communicate expectations, demonstrate commitment

Intellectual Stimulation – question assumptions, reframe problems, adopt new ways, encourage innovation and creativity

Individualized Consideration – attend to individual needs for growth and achievement, act as coach and mentor, create new learning opportunities, accept individual differences, avoid close monitoring

(Bass & Avolio, 1994)

Characteristics of Transformational Leadership

Visionary

Charismatic

Transformational

Leadership: Complementary Disciplines

Transformational Leadership Transactional Leadership

Creating agenda

Planning & Budgeting: Developing a plan – a detailed map of how to produce results

Establishing Direction: Developing direction – a vision which describes a future state along with a strategy

Developing

Organisation and staffing: Which individual best fits each job and what part of the plan fits each individual

Aligning people: A major communication challenge getting people to understand and believe the vision

Execution

Controlling & Problem-solving: monitoring results; identifying deviations from the plan and solving the ‘problems’

Motivating & Inspiring: satisfying human needs for achievement, recognition, belonging, self-esteem, control etc

Outcomes

Produces degrees of predictability and order

Produces change: often to a dramatic degree

Kotter, J - A force for change, 1990

Three functions common to much of the literature (Bennis & Nanus (1985), Kotter (1990), Covey, 1996)

establishing direction

aligning people

motivating and inspiring people

Establishing direction involves: establishing a vision of a clear and compelling goal (Bennis & Nanus, 1985, cited by Boak); establishing direction: developing a vision of the future and strategies for producing the changes needed to achieve the vision (Kotter, 1990, cited by Boak); pathfinding - tying together the organisation's value system and vision with the needs of customers and other stakeholders through a strategic plan/pathway (Covey, 1996)

Aligning people involves: communicating the vision effectively to others, to win their support and co-operation (Bennis & Nanus, 1985, cited by Boak); communicating the vision to all those whose co-operation may be needed, and influencing the creation of teams and coalitions that will support the vision (Kotter, 1990, cited by Boak); ensuring that the organisational structure, systems, and operational processes all contribute to achieving the mission and vision of meeting the needs of customers and other stakeholders. (Covey, 1996)

Motivating and inspiring people involves: motivating and inspiring: energising people to overcome major barriers to change (Kotter, 1990, cited by Boak); Empowering - people have enormous talent, ingenuity, intelligence, and creativity. Most of it lies dormant. (Covey, 1996)

But management (transactional leadership) is essential! Managers perform functions in organisations and hold a particular, formal, title and/or fulfil a role (Brooks, 2003:150)

Alternative view:

Management Leadership

Planning Vision and Strategy

Organising Creating Shared Values

Directing Facilitating

Focus on Objects Focus on People

Budgeting Inspiring and Developing

Maintaining stability Creating Change

Controlling Influencing

Limitations of the Trait Approach

Compelling argument for this approach – why?

But

Does not tell us which traits are absolutely needed in which leadership situations

How much of the trait or motive is the right amount?

It can breed an elitist conception of leadership

A leader with certain traits may be effective in one situation but not in another; two leaders with different traits can be successful in the same situation.