Third Edition Dr. Wasim Al-Habil. Chapter Strategic Management in the Public Sector

2 Chapter Nine Leadership

3 Key Topics What is Leadership? What is Leadership? Leadership and Management Leadership and Management Trait Theories Trait Theories Transactional & Contingency &Transformational Leadership Transactional & Contingency &Transformational Leadership Moral Leadership. Moral Leadership.

4 Leadership is “ The exercise of authority, whether formal or informal, in directing and coordinating the work of others. ”

5 What is leadership? The best leaders are those who can simultaneously exercise both kinds of leadership: The best leaders are those who can simultaneously exercise both kinds of leadership: 1. the formal, based on the authority of rank or office, 2. and the informal, based on the willingness of others to give services to a person with special qualities of authority.

6 Leadership & Management There is a difference between leadership and management. There is a difference between leadership and management. Management involves power (formal authority) bestowed on the occupation of a position by a higher organizational authority. Management involves power (formal authority) bestowed on the occupation of a position by a higher organizational authority. Leadership, in contrast, cannot be bestowed by a higher authority – it must be earned. Leadership, in contrast, cannot be bestowed by a higher authority – it must be earned.

7 What is charisma? Charisma is leadership based on the compelling personality of the leader rather than upon formal position. Charisma is leadership based on the compelling personality of the leader rather than upon formal position. The word “ charisma ” is derived from the Greek word for diving grace. The word “ charisma ” is derived from the Greek word for diving grace. The concept was first developed by Max Weber, who distinguished charismatic authority from both the traditional authority of a monarch and the legal authority given to someone by law. The concept was first developed by Max Weber, who distinguished charismatic authority from both the traditional authority of a monarch and the legal authority given to someone by law.

8 Power and Leader There are five major bases of power that a leader might have: There are five major bases of power that a leader might have: 1. Expert power: Based on special knowledge or expertise. 2. Referent power: Based on the follower ’ s liking or admiring. 3. Reward power: Based on the leader ’ s ability to reward followers. 4. Legitimate power: Based on the perception that the leader has the legitimate right or authority to exercise influence over others. 5. Coercive power: Based on the follower ’ s fear to be punished.

9 Functions of Leaders Chester Bernard in his 1938 The Functions of the Executive, defined three essential functions of leaders or executives: Chester Bernard in his 1938 The Functions of the Executive, defined three essential functions of leaders or executives: 1. To provide a system of communication. 2. To promote the securing of essential efforts. 3. To formulate and define the purposes of goals of an organization.

10 Trait Theories Trait theory is an approach to leadership that assumes leaders possess traits that make them fundamentally different from followers. Trait theory is an approach to leadership that assumes leaders possess traits that make them fundamentally different from followers. Advocates of trait theory believe that some people have unique leadership characteristics and qualities that enable them to assume responsibilities not everyone can execute. Advocates of trait theory believe that some people have unique leadership characteristics and qualities that enable them to assume responsibilities not everyone can execute. Therefore they are “ born ” leaders. Therefore they are “ born ” leaders.

11 Transactional Approaches Transactional approaches are any means of analyzing leadership style that focuses on how leaders interact, how they treat, those they seek to lead. Transactional approaches are any means of analyzing leadership style that focuses on how leaders interact, how they treat, those they seek to lead.

12 Contingency Approaches Contingency theory is an approach to leadership asserting that leadership styles will vary in their effects in different situations. Contingency theory is an approach to leadership asserting that leadership styles will vary in their effects in different situations. The situation (not trait or styles themselves) determine whether a leadership style or a particular leader will be effective. The situation (not trait or styles themselves) determine whether a leadership style or a particular leader will be effective.

13 Contingency Approaches Contingency theory stresses: Contingency theory stresses: 1. The type, structure, and purpose of the organization 2. The external environment in which the organization functions 3. The orientation, values, goals, and expectations of the leader, his superiors, and subordinates. 4. The expert or professional knowledge required of the position.

14 Transformational Leadership Transformational leadership strives to change organizational culture and directions. Transformational leadership strives to change organizational culture and directions. It reflects the ability of a leader to develop a values-based vision for the organization, to convert the vision into reality, and to maintain it over time. It reflects the ability of a leader to develop a values-based vision for the organization, to convert the vision into reality, and to maintain it over time.

15 Micromanagement