1. Basic Approaches to Leadership
Chapter 11
Basic Approaches to Leadership

2. Michael Chaney - Wesfarmers
‘Consistent strategy – in terms
of how it is developed, executed and
communicated – and consistent performance
are hallmarks of an effective chief executive.
Wesfarmers has been one of Australia’s most
consistent companies in recent years’.

3. Wal King – Leighton Holdings
‘Respondents to the Most Admired
survey nominated King for his “excellent blend of
vision and management skills” and Leighton’s
“courageous growth”, a reference to long-term
growth achieved despite the criticism of analysts.
Others mentioned King’s longevity, Leighton’s
record on shareholder returns, and its reshaping of
the competitive landscape’.

4. What Is Leadership? Leadership
The ability to influence a group toward the achievement of goals.
Management
Use of authority inherent in designated formal rank to obtain compliance from organizational members.

5. Leaders v. Managers
‘There are so many ways to define leadership and management that the question becomes meaningless. There is certainly an overlap between the two…Do we need to know anyhow? In your working life you are not required to suddenly switch; you are both at the same time’ (AGSM, 2001)
‘leadership is also different from management, since “many managers could not lead a squad of seven year olds to an ice cream counter”’
(Bolman & Deal, 2001)

6. Perspectives on Leadership
Trait
Perspective
Leadership
Perspectives
Behaviour
Perspective
Romance
Perspective
Contingency
Perspective
Transformational
Perspective

7. Trait Theories Traits Theories of Leadership Leadership Traits:
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
Leadership Traits:
Ambition and energy
The desire to lead
Honest and integrity
Self-confidence
Intelligence
High self-monitoring
Job-relevant knowledge

8. Trait Approach
Era of popularity – up to 1940s, with comeback in 1990s-
Assumptions: leaders have physical traits, individual behaviours and personality characteristics which distinguish them from non-leaders; competencies indicate leadership potential
Criticisms: inconsistent evidence concerning importance of cited traits
Seven competencies characterise effective leaders (Kirkpatrick & Locke, 1991; Gregerson et al, 1998; House & Aditya, 1997) – drive, leadership motivation, integrity, self-confidence, intelligence, knowledge of the business, emotional intelligence

9. Four Leadership Styles Derived from the Ohio State Studies
Low structure, high consideration
Less emphasis is placed on structuring employee tasks while the leader concentrates on satisfying employee needs and wants.
High structure, high consideration
The leader provides a lot of guidance about how tasks can be completed while being highly considerate of employee needs and wants.
High
Consideration
Low structure, low consideration
The leader fails to provide necessary structure and demonstrates little consideration for employee needs and wants.
High structure, low consideration
Primary emphasis is placed on structuring employee tasks while the leader demonstrates little consideration for employee needs and wants.
Low
Low
High
Initiating Structure

10. Significant Australian Leadership Traits (Hunt, 2000)
Leaders differentiate themselves from their colleagues by possessing:
a strong need to achieve results
an ability to see the big picture
the ability to exercise initiative
an ability to persuade and influence others
having high internal work standards
maintaining sound overall business sense

11. Behavioral Theories Behavioral Theories of Leadership
Theories proposing that specific behaviors differentiate leaders from nonleaders.
Trait theory: Leaders are born, not made.
Behavioral theory: Leadership traits can be taught.

12. Behavioural Perspectives of Leadership
Era of popularity – 1940s-1960s
Assumptions: emphasis on training rather than selecting leaders – developing the ‘one best style’; 2 key behavioural styles as shown in Blake & Mouton’s Managerial Grid:
People-oriented behaviours - showing mutual trust and respect; concern for employee needs; desire to look out for employee welfare
Task-oriented behaviours - assign specific tasks; ensure employees follow rules; push employees to reach peak performance
Argued that effective managers were “strong” on both styles
Criticisms: lack of attention to impact of situation; overly focused on formal leaders, not informal or political processes; inconsistent results

13. Blake-Mouton Managerial Grid

14. Scandinavian Studies Development-Oriented Leader
One who values experimentation, seeking new ideas, and generating and implementing change.
Researchers in Finland and Sweden question whether there are only two dimensions (production-orientation and employee-orientation) that capture the essence of leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-oriented behavior.

15. Contingency Perspectives of Leadership
Era of popularity – late 1960s – early 1980s
Examples: Hersey & Blanchard’s Situational Leadership Model – telling, selling, participating, delegating; path- goal theory
Assumptions: situation affects leader effectiveness; leaders should analyse situations and choose a style which matches the situation
Criticisms: disputes about validity of measuring ‘situation’; research evidence is mixed

16. Fiedler’s Contingency Model
Situational Control
High Control Situations
Moderate Control Situations
Low Control Situations
Leader-member relations
Task Structure
Position Power
Good Good Good
High High High
Strong Weak Strong
Good Poor Poor
Low High High
Weak Strong Strong
Poor Poor
Low Low
Strong Weak
Situation
I II III
IV V VI
VII VIII
Optimal Leadership Style
Task Motivated Leadership
Relationship Motivated Leadership
Task Motivated Leadership

17. Hersey and Blanchard’s Situational Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’ readiness.
Unable and Unwilling
Unable but Willing
Able and Unwilling
Able and Willing
Follower readiness: ability and willingness
Leader: decreasing need for support and supervision
Supportive Participative
Directive
High Task and Relationship Orientations
Monitoring

18. Leadership Styles and Follower Readiness (Hersey and Blanchard)
Unwilling
Willing
Supportive Participative
Able
Monitoring
Leadership Styles
High Task and Relationship Orientations
Unable
Directive

20. Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

21. Path-Goal Theory
The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

22. Path-Goal Theory in Action
Directive Supportive Participative Achievement
Employee
Contingencies
Skill/Experience low low high high
Locus of Control external external internal internal
Environmental
Contingencies
Directive Supportive Participative Achievement
Task Structure nonroutine routine nonroutine ?
Team Dynamics –norms low cohesion + norms ?

23. Leader-Participation Model
Leader-Participation Model (Vroom and Yetton)
A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.