Leadership

"If the blind lead the blind, both shall fall

in the ditch."
- Matthew 15:14

1 Prepared by Asfaw Wassie

 Introduction
 An effective leader is capable of inspiring and motivating even the most
inefficient employees to strive towards attaining the goals of the organization.
 “Failing organizations are usually over-managed and under-led”

Warren G. Bennis

“Leadership is generally defined as influence, the art of process of

influencing people so that they will strive willingly towards the
achievement of group goals.” Koontz O’Donnell.

“Leadership is the lifting of man’s visions to higher rights, the raising of

man’s performance to higher standards and the building of man’s
personality beyond its normal limitations.” Peter F. Drucker.

2 Prepared by Asfaw Wassie

 Distinction between Leadership and Management
 Leaders take a personal and active interests in achieving goals whereas
managers tend to play a relatively passive/reactive role in accomplishing the
goals.
 Managers need power to be entrusted to them by the organization to deal with
people
 Leaders have power within themselves and the required drive to lead people and
motivate them to work enthusiastically towards achieving goals.
 Managers limit their interactions with people to the minimum extent required
to carry out their managerial responsibilities.
 Leaders interact with people frequently and in a more natural way. In the
process they inspire people, motivate them and lead them.

3 Prepared by Asfaw Wassie

 Leaders Managers
achieving goals accomplishing the goals.
proactive Reactive/passive
Leaders have power within Managers need power
themselves towards achieving towards achieving goals.
goals.
Leaders interact with people Managers limit their
frequently interactions with people

4 Prepared by Asfaw Wassie

 Leadership Theories
There are three main theories that attempt to explain
Leadership.
 Personality Trait Theories
 Behavior theories
 Contingency Theories
According to the trait theories, leaders possess some
personality traits that non leaders do not possess at all, or
possess only to small extent.
The behavior theories explain the behavior characteristics of
the leaders.
Contingency deals with leadership in different situations

5 Prepared by Asfaw Wassie

 Trait Theory
Earlier researchers believed that there were certain
unique characteristics in people that made them leaders
. According to them , a person must possess certain
unique personality traits that are essential for effective
leadership.
One of the trait theories is the “Great Person “ theory
which emphasized that leaders might not be born with
the desired leadership traits but can be acquired by
learning and experience.
Researchers also tried to study the relationship between
physical traits and leadership, but were unsuccessful to
establish a valid relationship.
6 Prepared by Asfaw Wassie
 Traits of Effective Leaders
 Although there are no specific characteristics that can define the leadership
qualities in a person , most researches have shown that there are certain traits
that differentiate leaders from non-leaders.
Few Leadership Traits
 Initiative
 Ambition
 Desire to lead
 Self confidence
 Analytical ability
 Knowledge – process, technology, industry, etc
 Creative
 Flexibility

7 Prepared by Asfaw Wassie

 Behavior Theories
The behavioral theorists concentrated on the unique
behavioral aspects found in leaders that enabled them
to attain effective leadership. Following are the main
behavior theories of leadership

1. The Ohio State studies

2. University of Michigan studies
3. Managerial Grid

8 Prepared by Asfaw Wassie

 The Ohio State Studies
 In 1945 researchers from various fields conducted studies on leadership at Ohio
State university.
 The research was based on a questionnaire called ‘Leader Behavior Description
Questionnaire’.
 They narrowed down to two independent dimensions along which an individual’s
leadership behavior could be studied.
1. Initiating Structure his own task as well as the subordinates tasks and also
accomplish them– Individual’s ability to define in time. People who score high
in this dimension put pressure on subordinates to meet deadlines and maintain
certain level of performance.
2. Consideration – This refers to the extent to which a leader cares for his
subordinate, respects their ideas and feelings and establishes work relations
which are characterized by mutual trust and respect.
The studies revealed that the people who scored high on both the dimensions were
9
able to achieve higher performance as well as job satisfaction.
Prepared by Asfaw Wassie
 University of Michigan studies
 A research was conducted at the Survey Research Centre at the University of
Michigan..
 During the study , researchers also interviewed 24 supervisors and 400 workers.
And following was observed.
1. Employee-oriented dimension
2. Production-oriented dimension
Researchers concluded that leaders with an inclination towards employee-oriented
dimension resulted in higher job satisfaction and greater productivity.
Leaders who were employee oriented emphasize on interpersonal relations, they
took a personal interest in the needs of employees, and accept individual
differences among their members.
 The production oriented leaders emphasize the technical or task aspects of
the job
 Their main concern was accomplishing their group’s task, and the group
members were a means to that end

10 Prepared by Asfaw Wassie

 Contingency Theories
 According to the contingency approach of leadership, a single leadership style
is not applicable to all situations.
 Every leader is to carefully analyze the situation before adopting a style
that best suits the requirements of the situations. Below are the 4 contingency
models of leadership styles.

1. Fiedler’s Contingency Model

2. Hersey and Blanchard’s situational theory
3. Leadership-participation model
4. Path Goal Theory

11 Prepared by Asfaw Wassie

 Fiedler’s Contingency Theory
 The Fiedler contingency model is a leadership theory of industrial and organizational
psychology developed by Fred Fiedler
 Fiedler (1967) emphasised the fact that differing roles, traits and behaviours of
leaders did not just require a specific understanding of interactions with subordinate,
it also required favourable conditions.
 Fiedler's model assumes that group performance depends on: Leadership style,
described in terms of task motivation and relationship motivation.

12 Prepared by Asfaw Wassie

Situational favourableness, determined by three factors:
 1. Leader-member relations - Degree to which a leader is accepted and
supported by the group members.
 2. Task structure - Extent to which the task is structured and defined, with
clear goals and procedures.
 3. Position power or the leader’s position - The ability of a leader to
control subordinates through reward and punishment.
 High levels of these three factors give the most favourable situation, low
levels, the least favourable situation. Relationship-motivated leaders are
most effective in moderately favourable situations. Task-motivated leaders
are most effective at either end of the scale.
 Task motivated/ oriented leaders tend to perform better in situations that
were very favourable to them and in situations that were very unfavourable
 Fiedler suggests that it may be easier for leaders to change their situation to
achieve effectiveness, rather than change their leadership style.

13 Prepared by Asfaw Wassie

 Matching leadership style and situation: summary
predictions from Fiedler’s contingency theory.

14 Prepared by Asfaw Wassie

Fiedler predicted when faced with a category, I, II, III,or
VIII situation, task oriented leaders perform better.
Relationship oriented leaders, however, perform better in
moderately favorable situations –categories IV through VI
He said that task oriented leaders tend to perform best in
situations of high and low control, while relationship
oriented leaders perform best in moderate control situations

15 Prepared by Asfaw Wassie

 Hersey and Blanchard’s situational theory
 The situational leadership model focuses on the fit of leadership style and
followers maturity .
 In contrast to Fiedler’s contingency leadership model and its underlying
assumption that leadership style is hard to change, the Hersey-Blanchard
situational leadership model suggests that successful leaders do adjust their styles.
 The situational leadership model views leaders as varying their emphasis on task
and relationship behaviours to best deal with different levels of follower maturity.
 The two-by-two matrix shown in the figure indicates that four leadership styles
are possible.
Telling Style — giving specific task directions and closely supervising work;
this is a high-task, low-relationship style.
Selling Style —explaining task directions in a supportive and persuasive
way; this is a high-task, high-relationship style.
Participating Style —emphasizing shared ideas and participative decisions
on task directions; this is a low-task, high-relationship style.
Delegating Style —allowing the group to take responsibility for task
decisions; this is a low-task, low-relationship style.
16 Prepared by Asfaw Wassie
17 Prepared by Asfaw Wassie
 Vroom and Yetton’s leader-participation theory.
Helps leaders choose the method of decision
making that best fits the nature of the problem
situation.
Basic decision-making choices:
Authority decision.
Consultative decision.
Group decision.

18 Prepared by Asfaw Wassie

 Leadership implications of Vroom-Yetton
leader-participation model.

19 Prepared by Asfaw Wassie

 Decision-making options in the Vroom-Yetton
leader-participation theory:
Decide alone.
Consult individually.
Consult with group.
Facilitate.
Delegate.

20 Prepared by Asfaw Wassie

 House's Path Goal Theory
 This theory was developed by Robert House.
 Here the leader provides the necessary support and guidance to his followers
and help them achieve organizational goals.
 Leader defines the individual (or groups) goals and help them achieve them.
 As per the theory – Leaders are accepted by the subordinates when
they find that the satisfaction of their needs depend upon their effective
performance.
They are provided with guidance ,support, and rewards needed for effective
performance.
Robert House suggested 4 types of leadership by this model
1. Directive leadership
2. Supportive leadership
3. Participative leadership
4. Achievement-oriented leadership.
21 Prepared by Asfaw Wassie
 Path-Goal Theory

22 Prepared by Asfaw Wassie

  House’s leadership styles:
Directive leadership.
Communicate expectations.
Give directions.
Schedule work.
Maintain performance standards.
Clarify leader’s role.

Supportive leadership.
Make work pleasant.
Treat group members as equals.
Be friendly and approachable.
Show concern for subordinates’ well-being.

23 Prepared by Asfaw Wassie

 Achievement-oriented leadership.
Set challenging goals.
Expect high performance levels.
Emphasize continuous improvement.
Display confidence in meeting high standards.

Participative leadership.
Involve subordinates in decision making.
Consult with subordinates.
Ask for subordinates’ suggestions.
Use subordinates’ suggestions.

24 Prepared by Asfaw Wassie

 Leadership Styles
Authoritarian
A style of leadership in which the leader uses strong, directive, controlling
actions to enforce the rules, regulations, activities and relationships in the
work environment.
o Organizational Behavior, Nelson & Quick

 Sets goals individually

 Engages primarily in one-way, downward communication
 Controls discussions of followers
 Sets policy and procedures unilaterally
 Dominates interaction
 Personally directs the completion of tasks
 Provides infrequent positive feedback
 Rewards obedience and punishes mistakes
 Exhibits poor listening skills
 Uses conflict for personal gain
25 Prepared by Asfaw Wassie
Democratic
A style of leadership in which the leaders takes collaborative, responsive,
interactive actions with followers concerning the work and the work
environment.
o Organizational Behavior, Nelson & Quick
 Involves followers in setting goals
 Engages in two-way, open communication
 Facilitates discussion with followers
 Solicits input regarding determination of policy and procedures
 Focuses interaction
 Provides suggestions and alternatives for the completion of tasks
 Provides frequent positive feedback
 Rewards good work and uses punishment only as a last resort
 Exhibits effective listening skills
 Mediates conflict for group gain
26 Prepared by Asfaw Wassie
 • Laissez-Faire
(“leave them alone”)
A style of leadership in which the leader fails to accept the
responsibilities of the position.
o Organizational Behavior, Nelson & Quick
 Allows followers free rein to set their own goals
 Engages in noncommittal, superficial communication
 Avoids discussion with followers to set policy and procedures
 Avoids interaction
 Provides suggestions and alternatives for the completion of tasks only
when asked to do so by followers
 Provides infrequent feedback of any kind
 Avoids offering rewards or punishments
 May exhibit either poor or effective listening skills
 Avoids conflict
27 Prepared by Asfaw Wassie
 Current issues in leadership development?

 Transactional leadership
 Someone who directs the efforts of others through tasks, rewards, and
structures
guide followers in the direction of established goals by
clarifying role and task requirements
 Transformational leadership
 Someone who is truly inspirational as a leader and who arouses others to
seek extraordinary performance accomplishments.
charismatic and visionary, can inspire followers to transcend
their own self-interest for the good of the organization

28 Prepared by Asfaw Wassie

 Leadership Model

29 Prepared by Asfaw Wassie

 Trust and Leadership
Trust – a psychological state that exists when you agree
to make yourself vulnerable to another because you have
a positive expectation for how things are going to turn
out.
Key attribute associated with leadership
Followers who trust their leader will align their actions and
attitudes with the leader’s behaviors/requests
 When trust presents, followers are willing to do as the
leader asks and engage in behaviors that are for the benefit
of the organization. In short, followers will do a lot more
for a leader they trust than for one that does not hold their
trust

30 Prepared by Asfaw Wassie

 How is Trust Developed?

31 Prepared by Asfaw Wassie

 Finding and Creating Effective Leaders

32 Prepared by Asfaw Wassie

 Gender and leadership.

Both women and men can be effective leaders.

Women tend to use interactive leadership.
A style that shares qualities with transformational
leadership.
Men tend to use transactional leadership.
Interactive leadership provides a good fit with the
demands of a diverse workforce and the new
workplace.

33 Prepared by Asfaw Wassie

 Global Implications
These leadership theories are primarily studied in
English-speaking countries
GLOBE does have some country-specific insights
Brazilian teams prefer leaders who are high in
consideration, participative, and have high LPC
scores(people oriented, understanding people, working with
people rather than task focus or low LPC)
French workers want a leader who is high on initiating
structure and task-oriented
Egyptian employees value team-oriented, participative
leadership, while keeping a high-power distance
Chinese workers may favor a moderately participative style
Leaders should take culture into account
34 Prepared by Asfaw Wassie
 Mandela’s Inspirational Quotes:
 "Real leaders must be ready to sacrifice all for the freedom of
their people.“
 "Everyone can rise above their circumstances and achieve
success if they are dedicated to and passionate about what they
do.“
 Education is the most powerful weapon which you can use to
change the world.“
 "Lead from the back — and let others believe they are in front.“
 Do not judge me by my successes, judge me by how many
times I fell down and got back up again.“
"A good head and a good heart are always a formidable
combination."

35 Prepared by Asfaw Wassie

 In Memory of Mandela
“Death is something inevitable. When
a man has done what he considers to be
his duty to his people and his country,
he can rest in peace. I believe I have
made that effort and that is, therefore,
why I will sleep for the eternity.” ~
Nelson Mandela 1996

36 Prepared by Asfaw Wassie