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Leadership and Leadership Styles

Defining a Leader…

  • Think of a leader that you worked for or observed…

What does this person do and what qualities does this person have that make you admire him or her as a leader?

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This is basically a brainstorming question to allow the group to think about what makes good leaders. This allows the group to start thinking about leadership styles.

Leadership - what is it?

“influencing people so that they will strive willingly towards the achievement of group goals” 1

1 Koontz, H. and C. O’Donnell. “Management: A System of Contingency Analysis of Managerial Functions”. McGraw-Hill, New York, 1976.

Transactional

  • Motivate followers by appealing to their own self-interest

  • Motivate by the exchange process.
  • EX: 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 behavior to meet expectations of followers

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Some researchers added to Burns original theory and it is thought by many today that transactional leadership can encompass four types of behavior.

1. Contingent Reward – To influence behavior, the leader clarifies the work needed to be accomplished. The leader uses rewards or incentives to achieve results when expectations are met.

 

2.  Passive Management by Exception - To influence behavior, the leader uses correction or punishment as a response to unacceptable performance or deviation from the accepted standards.

 

3. Active Management by Exception - To influence behavior, the leader actively monitors the work performed and uses corrective methods to ensure the work is completed to meet accepted standards.

 

4.   Laissez-Faire Leadership – The leader is indifferent and has a “hands-off” approach toward the workers and their performance. This leader ignores the needs of others, does not respond to problems or does not monitor performance.

 

Transactional leadership behavior is used to one degree or another by most leaders. However, as the old saying goes, “if the only tool in your workbox is a hammer…you will perceive every problem as a nail”. A leader should not exclusively or primarily practice transactional leadership behavior to influence others! Here are a few common problems of those who do so. Some use transactional leadership behavior as a tool to manipulate others for selfish personal gain. It can place too much emphasis on the “bottom line” and by its very nature is short-term oriented with the goal of simply maximizing efficiency and profits. The leader can pressure others to engage in unethical or amoral practices by offering strong rewards or punishments. Transactional leadership seeks to influence others by exchanging work for wages, but it does not build on the worker’s need for meaningful work or tap into their creativity. If utilized as the primary behavior by a leader it can lead to an environment permeated by position, power, perks and politics. The most effective and beneficial leadership behavior to achieve long-term success and improved performance is transformational leadership.

When to use Transactional

  • Leader wants to be in control
  • When there are approaching deadlines that must be met
  • Relationship is short term

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“If I do this for you…what can you do for me?”

Music to your ears? Probably not!, but it is something you might hear from a Transactional Leader!

So, when would we want to hear those words?

Most of the consideration of when the style would be used is based on the leader themselves. Since the transactional leader views the leader-follower relationship as a process of exchange, they would choose to use it in situations where relationships are of little importance and are short-lived.

You might be noticing a trend among some of the leadership styles by now. The Transactional leadership style closely parallels some of the ideas, pertaining to relationships, as the autocratic, bureaucratic, and coercive styles.

Let’s look now at the other style, often studied in conjunction with Transactional Leaders…Transformational…

Transformational

  • Charismatic and visionary

  • Inspire followers to transcend their self-interest for the organization

  • Appeal to followers' ideals and values

  • Inspire followers to think about problems in new or different ways

  • Common strategies used to influence followers include vision and framing

Research indicates that transformational leadership is more strongly correlated with lower turnover rates, higher productivity, and higher employee satisfaction.

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Transformational leadership is about hearts and minds, about empowering people not controlling them. 

4 theories of Transformational Leadership included: 

  • Management by Command — Unsophisticated management in which subordinates are told what to do and have little say in what and when. 

  • Management by Objectives — Process management in which subordinates are given goals and decide how to achieve them. 

  • Management by Communication — Sophisticated organizations in which skilled subordinates deduce their own goals by learning about the needs of the organization. 

4. Management by Vision — In which management is about inspiring people to achieve what only they know they can achieve by concentrating on what is possible. 

Transformational leaders are more visionary and inspirational in approach. They tend to communicate a clear and acceptable vision and goals, with which employees can identify and tend to engender intense emotion in their followers. Rather than exchanging rewards for performance, transformational leaders attempt to build ownership on the part of group members, by involving the group in the decision process. When transformational leaders are successful, they are able to move followers from external to internal control.

Transformational cont.

  • Instils feelings of confidence, admiration and commitment
  • Stimulates followers intellectually, arousing them to develop new ways to think about problems.
  • Uses contingent rewards to positively reinforce desirable performances
  • Flexible and innovative.

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While it is important to have leaders with the appropriate orientation defining tasks and managing interrelationships, it is even more important to have leaders who can bring organizations into futures they have not yet imagined. Transformational leadership is the essence of creating and sustaining competitive advantage.

  • When leaders want members to be an active part of the organization and have ownership to it

  • When leaders are building a sense of purpose

  • When the organization has a long term plan

  • When people need to be motivated

When to use Transformational

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Today, the phrase, “the only constant is change,” seems truer and truer. Change is inevitable, therefore, we should seek leadership and use leadership styles that embrace change.

Changing organizations to be motivational when members are resistant, to be purposeful when members are not directed, and to be visionary for long term goals. Transformational leadership can be one of the best resources for organizational change.

Because it lends itself to successful change, the latest paradigm shift has directed scholars toward focusing on transformational leadership more than they ever have.

Analysis of leadership effectiveness

Define and measure some criteria of organizational effectiveness

Assess leadership style of organization’s leaders

Attempt to correlate organizational performance with leadership styles

How important is a leader?

  • In most cases, people will perform at about 60% of their potential with no leadership at all
  • Thus, an additional 40% can be realized if effective leadership is available

40%

60%

capability

utilization

Contribution due to leadership

ability of manager

Default contribution due to

need for a job, peer pressure, etc.

The 2 dimensions of management

Economic or productivity-based

“concern for production”

Employee condition and morale

“concern for people”

The 2 dimensions of management

These can also be thought of as:

Initiating structure (get it done)

Consideration (human condition)

Initiating structure

Consideration

X

X

X

X

Styles of leadership

X

Styles of leadership

concern for production 

concern for

people

Laissez-faire

Leader

(L)

Benevolent

Leader

(Y)

Autocratic

Leader

(X)

Team

Leader

(Z)

9

9

1

Theory “L”: Laissez-faire leader

  • Uninvolved - “leave them alone”
  • Sees main role as passer of information
  • Lets others make decisions
  • Basically abdicates responsibility for team or unit

Theory “X”: Autocratic leader

  • Lacks flexibility
  • Controlling and demanding
  • “carrot and stick” approach
  • Focused solely on productivity

Management/

Leader

Staff/

Followers

Alan Chapmen

Tight control, lots of rules, no freedom

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Theory X is the traditional view of direction and control by managers.

1. The average human being has an inherent dislike of work and will avoid if he or she can.
2. Because of this human characteristic of dislike of work, most people must be controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives.
3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security above all.

Theory X leads naturally to an emphasis on the tactics of control - to procedures and techniques for telling people what to do, for determining whether they are doing it, and for administering rewards and punishment. Theory X explains the consequences of a particular managerial strategy. Because its assumptions are so unnecessarily limiting, it prevents managers from seeing the possibilities inherent in other managerial strategies. As long as the assumptions of Theory X influence managerial strategy, organizations will fail to discover, let alone utilize, the potentialities of the average human being.

Theory “Y”: Benevolent leader

  • Very people oriented; encouraging
  • Organizes around people
  • Can be paternalistic
  • “country club” atmosphere: non-competitive

Alan Chapmen

Management/

Leader

Staff/

Followers

Lots of freedom, creativity & responsibility

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Theory Y is the view that individual and organizational goals can be integrated.

1. The expenditures of physical and mental effort in work are as natural as play or rest.
2. External control and the threat of punishment are not the only means for bringing out effort toward organizational objectives.
3. Commitment to objectives is a function of the rewards associated with their achievement.
4. The average human being learns, under proper conditions, not only to accept but also to seek responsibility.
5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems in widely, not narrowly, distributed in the population.
6. Under the condition of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

Theory Y's purpose is to encourage integration, to create a situation in which an employee can achieve his or her own goals best by directing his or her efforts toward the objectives of the organization. It is a deliberate attempt to link improvement in managerial competence with the satisfaction of higher-level ego and self-actualization needs. Theory Y leads to a preoccupation with the nature of relationships, with the creation of an environment which will encourage commitment to organizational objectives and which will provide opportunities for the maximum exercise of initiative, ingenuity, and self-direction in achieving them.

Theory “Z”: Team leader

  • Balances production and people issues
  • Builds a working team of employees
  • Team approach: involves subordinates
  • Organization is a vehicle for carrying out plans

Results of leadership styles

Theory L: “missing management”

Very low productivity

Theory X: “my way or the highway”

Job stress; low satisfaction; unions form

Theory Y: “country club”

Low achievement; good people leave

Theory Z: “good manager”

High productivity, cooperation, low turnover, employee commitment

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Hersey-Blanchard Situational Leadership

To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behavior and increase relationship behavior until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behavior but also relationship behavior.

Once the maturity level is identified, the appropriate leadership style can be determined. The four leadership styles are telling, selling, participating, and delegating. High task/low relationship behavior (S1) is referred to as "telling." The leader provides clear instructions and specific direction. Telling style is best matched with a low follower readiness level. High task/high relationship behavior (S2) is referred to as "selling." The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level. High relationship/low task behavior (S3) is referred to as "participating." With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level. Low relationship/low task behavior (S4) is labelled "delegating." This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level.

Origins of leadership

  • BOTH. Evidence that both inherent personality and environment are factors

Are leaders born or made?

What kind of leader would you be?