1. The Leadership Equation

2. Learning Points
Part One of this course contains answers to these questions:
Which variables determine leadership effectiveness?
Do you possess the 10 qualities of a leader?
How susceptible are you to leadership influence?
What is your level of interpersonal trust?
In which situations are you likely to lead?
What is your natural kind of intelligence?

3. Introduction
Researchers have been trying to answer these questions for years:
What does it take to be a successful leader?
What is the most effective leadership style?
Early studies were based on two theories:
Trait Theory (focuses on leader qualities)
Behavior Theory (focuses on leader actions)

4. Leadership Trait Theory
Sir Francis Galton
One of the earliest leadership theorists
Wrote “Hereditary Genius” pub. 1869
Believed leadership qualities were genetic
This theory assumes physical and psychological characteristics account for effective leadership
Basic intelligence
Clear and strong values
High personal energy

5. Leadership Trait Theory
Edwin Gheselli identified six traits for effective leadership:
Need for achievement
Intelligence
Decisiveness
Self-confidence
Initiative
Supervisory ability

6. Trait Theory Applied Paul Von Hindenburg
First Chancellor of Germany, post WWI
Used the trait theory for selecting and developing military leaders
Primary qualities for leadership ability
Intelligence (bright vs dull)
Vitality (energetic vs lazy)

7. Examples of Trait Theory
Bright, lazy—staff officer
Energetic, dull—frontline soldier
Bright, energetic—field commander
Lazy, dull—left to find their own level of effectiveness

8. Leadership Behavior Theory
In the 1930s, emphasis on behaviorism moved researchers in the direction of leadership behavior
Kurt Lewin trained assistants in behaviors indicative of three leadership styles:
Autocratic: tight control of group activities, decisions made by the leader
Democratic: group participation, majority rule
Laissez-faire: little activity of any type by the leader

9. Leadership Behavior Theory
In the 1940s, research focused on leader behaviors
Assumed that leaders take distinct actions
Ralph Stogdill at Ohio State University
Helped develop the Leader Behavior Description Questionnaire (LBDQ)
Respondents described leaders’ behavior in two dimensions:
Initiating structure
Showing consideration

10. Leadership Behavior Theory
Findings of a Leader Behavior Description Questionnaire (LBDQ) study:
The Democratic style was more beneficial for group performance
The leader’s behavior impacted the performance of followers

11. Initiating Structure Leaders taking action to define the:
Relationship between themselves and staff
Role each staff member will assume
Measures of initiating structure:
Trying out new ideas
Encouraging slow workers to work harder
Meeting deadlines
Meeting at scheduled times
Making sure everyone works to capacity

12. Showing Consideration
Showing consideration means… taking action to develop trust, respect, support, and friendship with subordinates
Measures of consideration:
Being helpful
Treating all people as equals
Willing to make changes
Standing behind subordinates
Doing things to make group membership pleasant

13. Leadership Behavior Theory
Rensis Likert at the University of Michigan conducted leadership studies
Studied leaders’ behaviors related to worker motivation and group performance
Identified two dimensions of behavior:
Job centered (initiating structure)
Employee centered (showing consideration)

14. Leadership Behavior Theory
Robert Blake and Jane Mouton
Developed a managerial grid reflecting Ohio and Michigan dimensions
The ideal leader has high concern for both production and people

15. Managerial Grid Major management styles and concerns:
Impoverished: low production, low people
Sweatshop: high production, low people
Country Club: high people, low production
Status Quo: medium production, medium people
Fully Functioning: high production, high people

16. Managerial Grid Two additional styles
Paternalistic: high concern for production, use of rewards for compliance and loyalty
Opportunistic: promotes his/her own advancement

17. Behavior Theory Applied
Margot Morrell documented Ernest Shackleton’s endurance expedition and the lessons he learned:
Leading by example
Communicating a vision
Keeping morale up
Maintaining a positive attitude
Successful leaders execute these points

18. Leadership Contingency Theory
Both trait and behavioral theories tried to identify the one best leader or style for all situations
By the late 1960s, it became apparent that there is no such universal answer
Leadership effectiveness depends on a combination of the:
Leader
Followers
Situational factors

19. Leadership Contingency Theory
In the past 50 years, more than 65 leadership classification systems have been developed
Most agree that leadership effectiveness depends on the leader, the followers, and situation variables
Leaders in different situations need different interests, values, and skills
A leader in a bank differs from one on a farm
Experienced vs new followers have different needs
Situational factors include the job performed, the workplace culture, and task urgency

20. Leadership Contingency Theory
Leadership results when… the ideas and deeds of the leader match the needs and expectations of the follower in a particular situation
Examples:
Gen. George Patton
Nelson Mandela
Adolf Hitler
For leadership to take place, the leader, followers, and situation must match

21. Transformational Leadership
Charismatic leaders
Inspire others and bring forth loyalty
Max Weber’s definition of charisma:
A quality that sets an individual apart from ordinary people
To be treated as if endowed with exceptional powers or qualities
Charisma is a gift or power of leadership

22. Theory of Charismatic Leadership
This theory was published by R.J. House in 1976
Charismatic leaders exhibit a combination of personal characteristics and behavior:
Dominant
Ambitious
Self-confident
Sense of purpose

23. Behaviors of Charismatic Leaders
Are role models
Demonstrate ability that elicits respect
Have ideological goals with moral overtones
Communicate high expectations and show confidence in meeting them
Ignite the motives of followers
Types of motives…
Affiliation, power, and achievement

24. Transformational Leadership
Charismatic leaders emerge in every walk of life
Football coach Vince Lombardi generated respect and following of others through charisma
He cared
He worked hard
He knew the right answers
He believed
He kept the bar high
He knew people

25. Transformational Leadership
According to James MacGregor Burns, “charisma” has overlapping meanings:
Leaders’ magical qualities
An emotional bond between the leader and the led
Dependence on a powerful figure by the masses
Assumption that a leader is omniscient and virtuous
Popular support for a leader that verges on love

26. Transformational Leadership
Transformational leaders raise aspirations and transform individuals through:
Optimism
Charm
Intelligence
Other personal qualities

27. Transformational Leadership
Transformational leadership was first discussed by J. V. Downton
However, identification of these leadership types is credited to James MacGregor Burns:
Transformational leadership
Transactional leadership

28. Transformational Vs Transactional
Transformational leaders
Focus on the potential relationship between the leader and the followers
Engage the full person of the follower
Tap the motives of the followers
Transactional leaders
Focus on exchanges between leaders and followers
Emphasize exchanging one thing for another