Lecture 2

Early Leadership
Theories

Are Leaders Born or

Made?

What Is Leadership?
Many theories (trait, behavioral, etc.)
Is it the same as management?
A definition of leadership
Formal and informal leaders
Leadership and management

Early Theories of Leadership

The
The33Leadership
Leadership Theory
Theory

::

Classifications
ClassificationsInclude
Include

Contingency

Trait
Behavioral

 Trait theories:
Is there a set of characteristics
that determine a good leader?

Personality?
Dominance and personal presence?
Charisma?
Self confidence?
Achievement?
Ability to formulate a clear vision?

 Trait theories:
Are such characteristics
inherently gender biased?
Do such characteristics
produce good leaders?
Is leadership more than
just bringing about change?
Does this imply that leaders are born not bred?

Trait Theory
Leadership Traits:
Traits represent the personal characteristics

that differentiate leaders from followers.

Historic findings reveal that leaders and followers

vary by
- intelligence
- dominance
- self-confidence
- level of energy and activity
- task-relevant knowledge

Contemporary findings show that

- people tend to perceive that someone is a leader when he or

she exhibits traits associated with intelligence, masculinity,
and
dominance
- people want their leaders to be credible
- credible leaders are honest, forward-looking, inspiring, and
competent
8

Trait Theory (continued)

Gender and leadership

- men and women were seen as displaying more
task and
social leadership, respectively
- women used a more democratic or participative
style than men, and men used a more autocratic
and directive style than women
- men and women were equally assertive
- women executives, when rated by their peers,
managers and direct reports, scored higher than
their male counterparts on a variety of
effectiveness criteria
9

Great Man (Person) Approach

Sought to identify
the traits effective
leaders possessed

10

Locus
Locus of
of
Control
Control
High
High energy
energy

Dominance
Dominance
Self-confident
Self-confident

Integrity
Integrity

9
Traits of
Effective
Leaders
Stability
Stability

Flexibility
Flexibility
Sensitivity
Sensitivity
to
to others
others
Intelligence
Intelligence

11

Key Leadership Traits to

Develop
Self-Confidence
Trustworthiness
Assertiveness
Emotional Stability
Sense of Humor
Self-Awareness and Self-Objectivity
Cognitive Skills
Emotional Intelligence
Passion and Enthusiasm
12

Trait Theories

Limitations
Limitations
No
Nouniversal
universaltraits
traitsfound
foundthat
thatpredict
predictleadership
leadership
ininall
allsituations
situations
Unclear
Unclearevidence
evidenceofofthe
thecause
causeand
andeffect
effectofof
relationship
relationshipofofleadership
leadershipand
andtraits
traits
Better
Betterpredictor
predictorofofthe
theappearance
appearanceofofleadership
leadership
than
thandistinguishing
distinguishingeffective
effectiveand
andineffective
ineffective
leaders
leaders

13

Leadership

14

 Behavioural Theory:
Imply that leaders can be trained focus on
the way of doing things
Structure based behavioural theories focus on
the leader instituting structures task orientated
Relationship based behavioural theories focus
on the development and maintenance of
relationships process orientated

15

Iowa State University

Leadership Styles

Autocratic...........................Democratic

16

The University of Michigan

One-Dimensional Two
Leadership Styles Model
Job Centered........Employee Centered

17

Types of Leadership Style

18

Types of Leadership Style

Autocratic:
Leader makes decisions without reference to
anyone else
High degree of dependency on the leader
Can create de-motivation and alienation
of staff
May be valuable in some types of business where
decisions need to be made quickly and decisively

19

Types of Leadership Style

Democratic:
Encourages decision making

from different perspectives leadership may

be emphasised throughout
the organisation
Consultative: process of consultation before
decisions are taken
Persuasive: Leader takes decision and seeks to
persuade others that the decision
is correct

20

Types of Leadership Style

Democratic:
May help motivation and involvement
Workers feel ownership of the firm
and its ideas
Improves the sharing of ideas
and experiences within the business
Can delay decision making

21

Types of Leadership Style

Laissez-Faire:
Let it be the leadership responsibilities
are shared by all
Can be very useful in businesses
where creative ideas are important
Can be highly motivational,
as people have control over their working life
Can make coordination and decision making
time-consuming and lacking in overall direction
Relies on good team work
Relies on good interpersonal relations

22

The Ohio State & University of

Michigan
Ohio StateLeadership
University
Two-Dimensional
High
Styles

C
O
N
S
I
D
E
R
A
T
I
O
N

Low Structure
and
High Consideration
Consideration

Low Structure
Structure
and
Low Consideration
Consideration
Low

High Structure
and
High

High
and
Low

Initiating Structure
Low

High

3-5

High
C
O
N
C
E
R
N
P
E
O
P
L
E

Lo
w

Blake, Mouton, and McCanse

Leadership Grid
1,9
9,
Country Club
Team Leader
9
5,5
Middle of the Road
Impoverished

Authority-Compliance

1,1
1
Low
High

CONCERN for PRODUCTION

9,
1 9
3-7

Contingency
Leadership
Theories
25

Contingency Leadership
Framework Variables

Followers
Capability
Motivation

Leader
Personality traits
Behavior
Experience

Situation
Task
Structure
Environment

5-3

Contingency Leadership Model

Used to determine if
ones style is task or
relationship oriented
and if the situation
matches the leaders
style to maximize
performance.
27

The Contingency Leadership

Model Variables Within
The Contingency Leadership
Framework
Leader
Followers

Leader / Member
Relations

Situation

Leadership
Styles
Task
Relationship

Task Structure
Position Power

5-5

Leadermember
relations

Task structure

33
Variables
Variables of
of
Situational
Situational
Favorableness.
Favorableness.

Position power

5-6

 Contingency Theories:
Leadership as being more flexible different
leadership styles used at different times
depending on the circumstance.
Suggests leadership is not a fixed series of
characteristics that can be transposed into
different contexts

30

 Leadership are depend on these

situations:
Type of staff
History of the business
Culture of the business
Quality of the relationships
Nature of the changes needed
Accepted norms within the institution
31

The Leadership Continuum Model

Used to determine which one of seven
styles to select based on ones use of
boss-centered versus subordinate
centered leadership to meet the situation.

5-7

Tannenbaum and
Schmidts
Autocratic
Leadership Continuum
Participative
Model
1.
Leader
makes
decision
and
announc
es it to
employe
es
without
discussio
n.

2.
Leader
makes a
decision
and sells
it to
employe
es.

3.
Leader
presents
ideas
and
invites
employe
e
question
s.

5.
4.
6.
Leader Leader
Leader
presents presents defines
tentativeproblem, limits
decision gets
and asks
subject suggestio
ns, and
to
employe
change. makes
es to
decision. make a
decision
.

7.
Leader
permits
employe
es to
make
ongoing
decision
s within
defined
limits.

5-8

House Path-Goal
Leadership Model

Situational
Factors
Subordinate
authoritativ
e
locus of
control
ability

Environment
task
structure
formal
authority
work group

Leadership
Styles

Goal
Achievement

Directive
Supportive
Participative
Achievementoriented

Performance
Satisfaction

5-10

35

Robert House and Path-Goal Theory

Claim that way leader behaves with respect to goals and
followers influences the leadership impact

Leadership effectiveness is shaped by situational

circumstances

In line with contemporary theories at the time, focus on

leaders consideration of followers needs and the task
structure

Situations of ambiguity draw more on directional leadership

and repetitive work contexts require more consideration and

encouragement

Transactional nature of early work led House to reformulate

theory to be more aligned with new leadership ideas

36

The Situational Leadership Model

Variables Within
The Contingency Leadership
Framework Variables
Leader
None

Followers
Follower
Maturity

LShip Styles
Telling
Selling
Participating
Delegating

Situation
Task

5-11

38

Substitute for Leadership

Variables Within the Contingency
Leadership Framework Variables

Followers

Leader

Subordinates

None

Situation
Task
Organization

5-12

Inspirational Approaches to
Leadership

Charismatic Leadership Theory

Followers make attributions of heroic or extraordinary

leadership abilities when they observe certain behaviors.

Charismatic
Charismaticleaders:
leaders:
1.1.
2.2.

Have
Haveaavision.
vision.
Are
Arewilling
willingtototake
takepersonal
personalrisks
riskstotoachieve
achievethe
the
vision.
vision.
3.3. Are
Aresensitive
sensitivetotofollower
followerneeds.
needs.
4.4. Exhibit
Exhibitbehaviors
behaviorsthat
thatare
areout
outofofthe
theordinary.
ordinary.

40

Key Characteristics of Charismatic

Leaders

1. Vision and articulation. Has a visionexpressed as an

idealized goalthat proposes a future better than the status quo;
and is able to clarify the importance of the vision in terms that are
understandable to others

2. Personal risk. Willing to take on high personal risk, incur high

costs and engage in self-sacrifice to achieve the vision

3. Environmental sensitivity. Able to make realistic

assessments of the environmental constraints and resources
needed to bring about change

4. Sensitivity to follower needs. Perceptive of others abilities

and responsive to their needs and feelings

5. Unconventional behavior. Engages in behaviors that are

perceived as novel and counter to norms

41

Beyond Charismatic Leadership

Level 5 Leaders
Possess a fifth dimensiona paradoxical blend of personal
humility and professional willin addition to the four basic
leadership qualities of individual capability, team skills,
managerial competence, and the ability to stimulate others
to high performance
Channel their ego needs away from themselves and into the
goal of building a great company

42

BORN NOT MADE

RES
EAR
CH

Theory Z MADE NOT BORN

NO ONE BEST STYLE

Fiedlers

Managerial Grid
Hersey-Blanebards

LMX Leadership

WISDOM

MILLIENIUM THEORY

Moral Leadership

U. Michigan
NEW THEORY
Theory X, Y

Path-Goal
Toxic Leadership

Ohio State

KNOWLEDGE ERA

ACTION

Servant Leadership

Heoric Leadership

BEHAVIOURAL
THEORIES

Agnatic Leadership

Level 5, Good to Great

Leadership

Super Leadership
Authentic Leadership
WHAT

INDUSTRALIZATION ERA

TRAIT THEORY

Fiedlers Model

HOW
SITUATIONAL/
CONTIGENCY THEORIES

PRIMITIVE ERA

1930s

1950s 1960s

1970s 1980s

Visionary Leadership

Transformational
Leadership
Transactional Leadership

1990s

2000 Current

43

Leader-Member Exchange Theory

44

Overview
LMX Theory Description
LMX Theory Perspective
Early Studies
Later Studies
Phases in Leadership Making
How Does the LMX Approach Work?

45

Definition

Leader-member exchange (LMX) theory:

conceptualizes leadership as a process

that is centered on the interactions between a leader and
subordinates

Some theories focus on leaders:

trait approach, skills approach and style approach

Other theories focus on the follower and the

context:

situational leadership, contingency theory, and pathgoal theory.

46

Dimensions of Leadership
LMX theory makes the dyadic relationship
between leaders and followers the focal point
of the leadership process

47

LMX Theory Description

Perspective

Development - LMX theory first described by

Dansereau, Graen, & Haga (1975), Graen &
Cashman (1975), and Graen (1976)

Revisions - Theory has undergone a number of

revisions since its inception and continues to be

of interest to researchers

Assumption - LMX theory challenges the

assumption that leaders treat followers in a

collective way, as a group.
LMX - Directed attention to the differences that might
exist between the leader and each of his/her followers
48

Early Studies
First studies of
LMX called
Vertical Dyad
Linkage (VDL)

Focus on the
vertical linkages
leaders formed
with each of their
followers
Leaders
relationship to a
work unit viewed
as a series of
vertical dyads

The
Vertical
Dyad

Vertical
Dyads

49

Early Studies
Leaders work unit as a whole was viewed as a series of
vertical dyads; leader forms unique relationship with
each subordinate

50

Early Studies, contd.

Researchers found two general types of linkages (or
relationships) those based on:
Expanded/negotiated role responsibilities (extra-roles) = ingroup
Relationships marked by mutual trust, respect, liking,
and reciprocal influence
Receive more information, influence, confidence, and
concern than out-group members
Formal employment contract (defined-roles) = out-group
Relationships marked by formal communication based
on job descriptions

51

Early Studies, contd.

In-group/out-group status based on how well

subordinate works with the leader and how well the leader
works with the subordinate

How subordinates involve themselves in expanding

their role responsibilities with the leader determines

whether they become in-group or out-group participants

Becoming part of the in-group involves subordinate

negotiations in performing activities beyond the formal job

description

52

In-Group & Out-Group Subordinates

In-Group
S

Out-Group

In-Group
S

Leader
S

S
S
S

S
S

more information, influence,

confidence & concern from
Leader
more dependable, highly
involved & communicative
than out-group

Subordinate

Out-Group

less compatible with Leader

usually just come to work,
do their job & go home

Later Studies (Graen & Uhl-Bien, 1995)

Initial research primarily addressed differences

between in-groups and out-groups; later research

addressed how LMX theory was related to
organizational effectiveness
Later research focus on the quality of leader-member
exchanges resulting in positive outcomes for:
Leaders
Followers
Groups
Organizations in general

Later Studies (Graen & Uhl-Bien, 1995)

Researchers found that high-quality leader-member

exchanges resulted in:

Less employee turnover

More positive performance evaluations
Higher frequency of promotions
Greater organizational commitment
More desirable work assignments
Better job attitudes
More attention and support from the leader
Greater participation
Faster career progress

Leadership Making

Leadership Making
(Graen & Uhl-Bien, 1995)

A prescriptive approach to leadership that

emphasizes that a leader should develop high-quality

exchanges with all of her or his subordinates, rather
than just a few.

Three phases of leadership making

which develops over time:
(a) stranger phase
(b) acquaintance phase
(c) mature partnership phase

Phases in Leadership Making

Graen & Uhl-Bien (1995)

Scripted
One Way
Low Quality
Self

Leadership Making
Graen & Uhl-Bien (1995)

Phase 1

Stranger

Interactions within the leader-subordinate dyad are generally rule

bound
Rely on contractual relationships
Relate to each other within prescribed organizational roles
Experience lower quality exchanges
Motives of subordinate directed toward self-interest rather than good
of the group

Leadership Making
Graen & Uhl-Bien (1995)

Phase 2
Acquaintance
Begins with an offer by leader/subordinate for improved career-oriented social
exchanges
Testing period for both, assessing whether
- the subordinate is interested in taking on new roles
- leader is willing to provide new challenges
Shift in dyad from formalized interactions to new ways of relating
Quality of exchanges improve along with greater trust & respect
Less focus on self-interest, more on goals of the group

Leadership Making Graen & Uhl-Bien (1995)

Phase 3

Mature Partnership

Marked by high-quality leader-member exchanges

Experience high degree of mutual trust, respect, and obligation toward each other
Tested relationship and found it dependable
High degree of reciprocity between leaders and subordinates
May depend on each other for favors and special assistance
Highly developed patterns of relating that produce positive
outcomes for both themselves & the organization
Partnerships are transformational moving beyond self-interest to

accomplish greater good of the team & organization

Prescriptively:

How does LMX

theory work?

Best understood within the Leadership Making Model

(Graen & Uhl-Bien)
Leader forms special relationships with all subordinates
Leader should offer each subordinate an opportunity for new
roles/responsibilities
Leader should nurture high-quality exchanges with all subordinates
Rather than concentrating on differences, leader focuses on ways to
build trust & respect with all subordinates resulting in entire work
group becoming an in-group

Strengths
LMX theory validates our experience of how people
within organizations relate to each other and the leader

LMX theory is the only leadership approach that makes

the dyadic relationship the centerpiece of the
leadership process

LMX theory directs our attention to the importance of

communication in leadership

Solid research foundation on how the practice of LMX

theory is related to positive organizational outcomes

Criticisms
Inadvertently supports the development of privileged
groups in the workplace; appears unfair and
discriminatory

The basic theoretical ideas of LMX are not fully

developed
How are high-quality leader-member exchanges
created?
What are the means to achieve building trust,
respect, and obligation? What are the guidelines?

Because of various scales and levels of analysis,

measurement of leader-member exchanges is being

questioned