Strategic Management

and Leadership
Topic 3

Learning outcomes
LO-2. Be able to apply management and
leadership theory to support
organizational direction

Assessment Criteria
2.1. Learner need to review the impact that
selected theories of management and
leadership have on organizational strategy

Trait Theories

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
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Trait Theories (Cont.)

Limitations:
No universal traits found that predict
leadership in all situations.
Traits predict behavior better in weak
than strong situations.
Unclear evidence of the cause and effect
of relationship of leadership and traits.
Better predictor of the appearance of
leadership than distinguishing effective
and ineffective leaders.
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Behavioral Theories
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
Trait theory: Leaders are born, not made.
Behavioral theory: Leadership traits can be
taught.

Ohio State Studies

Initiating Structure
The extent to which a leader is likely to
define and structure his or her role and
those of sub-ordinates in the search for goal
attainment.
Consideration
The extent to which a leader is likely to
have job relationships characterized by
mutual trust, respect for subordinates
ideas, and regard for their feelings.
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University of Michigan Studies

Employee-Oriented Leader
Emphasizing interpersonal relations; taking
a personal interest in the needs of
employees and accepting individual
differences among members.
Production-Oriented Leader
One who emphasizes technical or task
aspects of the job.

Transactional vs. Transformational Leaders

Transactional Leadership
Emphasizes getting things done within the
umbrella of the status quo
In opposition to transformational leadership
By the book" approach - the person works
within the rules
Commonly seen in large, bureaucratic

Transformational Leaders
Creates and sustains a context that
maximizes human and organizational
capabilities;
Facilitate multiple levels of transformation;
and
Align them with core values and a unified
purpose to respond to a dynamic
environment
Make change happen in:
Self, Others, Groups, and Organizations
Charisma a special leadership style
commonly associated with transformational9

Charismatic Leadership
Charismatic leadership
Charisma is a strong form of referent
power
Influence is based on individual
inspirational qualities rather than formal
power
Followers or subordinates identify with
charismatic leaders because of these
exceptional qualities

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Contingency Theories
Fiedlers Contingency Model
The theory that effective groups depend on a proper
match between a leaders style of interacting with
subordinates and the degree to which the situation
gives control and influence to the leader.
Least Preferred Co-Worker (LPC)
Questionnaire
An instrument that purports to measure whether a
person is task- or relationship-oriented.

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Contingency Theory (Fiedler

1978)
Leadership effectiveness is determined by the
interaction between the leader's personal
characteristics and the characteristics of the
situation
Leaders are classified as person-oriented or taskoriented (which type will be more effective
depends on the leader's degree of situational
control)
Control depends on relationship between
leader/followers, the degree of task structure,
and the leader's authority (position power)
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Fiedlers Model: Defining the Situation

Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
The degree to which the job assignments are
procedurized.
Position Power
Influence derived from ones formal structural
position in the organization; includes power to hire,
fire, discipline, promote, and give salary increases.
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Contingency Theory (Fiedler

1978)
The task-oriented leader will be effective
in extremely favorable or extremely
unfavorable situations
The person-oriented leader will be more
effective in moderately favorable
situations
Criticisms include most of research was
in the lab
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The LPC Scale

Least Preferred Coworker Scale, or LPC
scale.
Think of the person whom you least like to
work with
LPC score measures attitudes of the leader
it is rating given by leaders about the
person with whom they could work least
well.

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The LPC Scale (Cont.)

He or she may be someone you work with
now or someone you knew in the past.
This coworker does not have to be the
person you like least but should be the
person with whom you had the most
difficulty in getting a job done.
High LPC score Interpersonal relationship
orientation
Low LPC score task- oriented leader

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Situational Theory - Hersey and

Blanchard (1978)
Situational leadership based on the
readiness level of people.
Readiness means followers have the ability
and willingness to accomplish a specific
task and how ready the individual is to
perform a particular task.

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Contingency Theories
Leader Participation Model (Vroom and
Yetton)
leader behavior must be adjusted to
reflect the task structurewhether it is
routine, non-routine, or in between
based on a sequential set of rules
(contingencies) for determining the form
and amount of follower participation in
decision making in a given situation.

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Contingency Theories (Cont.)

Base their analysis on two main aspects of
a leaders decision.
Decision quality or rationality is the effect
that the decision has on group
performance.
Decision acceptance refers to the
motivation and commitment of group
members in implementing the decision.
A third consideration is the amount of time
required to make the decision.
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Contingency Theories (Cont.)

The Vroom and Yetton model suggests five
main management decision styles:
Autocratic
AI: Leader solves the problem or makes the
decision alone using information available
at the time.
A II: Leader obtains information from
subordinates but then decides on solution
alone

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Contingency Theories (Cont.)

Consultative
C I: The problem is shared with relevant
subordinates. The leader then makes the decision.
C II: The problem is shared with subordinates as a
group. The leader then makes the decision to
reach on a solution.
Group
G II: the problem is shared with subordinates as a
group. The leader acts as chairperson. Together
the leader and subordinates to reach on a
solution.
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Tri-dimensional Leadership Theory

Yukls tri-dimensional theory suggests

that management and leadership
heavily relies on
1. effectiveness and efficiency,
2. human resource relations and
3. innovation & adaptation.

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Tri-dimensional Leadership Theory

1. effectiveness and efficiency,

. If managements focus is effectiveness and
efficiency, its strategy will be task-oriented.
. To improved efficiency first step is that everyone
should know his roles and responsibilities.
. This clear cut job assignment will help an
employee concentrate on his job and facilitate
managers to evaluate employees performance.
. This will improve sense of responsibility which
will improve their effectiveness and efficiency.

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Tri-dimensional Leadership Theory

Human resource relation

Management will try to build good relations with
employees in order to come closer with them,
understand their views and negotiate with them.
This helps management obtain 1st hand
knowledge of employees problems and come up
with solutions that will win the hearts of
employees.
This involvement of employees and their
participation in decision making will help them
do their tasks with more motivation and achieve
organizational goals and objectives.
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Tri-dimensional Leadership Theory

Innovative and adaptation style

It is required when an organization is in
need of change.
Management will sort out new ways of
doing things.
This needs strong thinking and analysis
followed by careful decision making.

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Discussion
2.1 Selected leadership theories
(at least three)
What theory says?
What are the limitations ?

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