Functions of

Management:
LEADING

Industrial Engineering Department, UBLC

Learning Objectives
After the discussion, students are able to:
• Define the meaning of Leading / leadership
• Determine the importance of Leading, traits and behavior of leaders and
empowering others
• Enumerate models of Contingency approach of Leadership
• Discuss and elaborate issues on leader’s development encountered in
orgaizations
What is Leadership

–The process of inspiring others to

work hard to accomplish important
tasks.
NATURE OF LEADERSHIP

 Contemporary leadership challenges:

– Shorter time frames for accomplishing things.
– Expectations for success on the first attempt.
– Complex, ambiguous, and multidimensional problems.
– Taking a long-term view while meeting short-term demands.
 Visionary leadership.
– Vision
– A future that one hopes to create or achieve in order to improve upon the present state of
affairs.
– Visionary leadership
– A leader who brings to the situation a clear and compelling sense of the future as well as
an understanding of the actions needed to get there successfully.
RELATIONSHIP OF LEADING TO OTHER
MANAGEMENT FUNCTIONS
POWER
 Power.
– Ability to get someone else to do something you want done or make things
happen the way you want.

 Power should be used to influence and control others for the

common good rather seeking to exercise control for personal
satisfaction.
 Two sources of managerial power:
– Position power.
– Personal power.
POWER
POSITION POWER
– Based on a manager’s official status in the organization’s hierarchy of
authority.
 Sources of position power:
– Reward power.
– Capability to offer something of value.
– Coercive power.
– Capability to punish or withhold positive outcomes.
– Legitimate power.
– Organizational position or status confers the right to control those in subordinate
positions.
POWER
PERSONAL POWER
– Based on the unique personal qualities that a person brings to the
leadership situation.
 Sources of personal power:
– Expert power.
– Capacity to influence others because of one’s knowledge and skills.
– Referent power.
– Capacity to influence others because they admire you and want to
identify positively with you.
SOURCES OF POWER USED BY MANAGERS
POWER USED BY MANAGERS
 Turning power into influence …
– Successful leadership relies on acquiring and using all sources of power.
– Use of reward power or legitimate power produces temporary compliance.
– Use of coercive power produces, at best, temporary compliance, often
accompanied by resentment.
– Use of expert power or referent power has the most enduring results and
generates commitment.
POWER USED BY MANAGERS
 Keys to building managerial power:
– There is no substitute for expertise.
– Likable personal qualities are very important.
– Effort and hard work breed respect.
– Personal behavior must support expressed values.
 Power and influence are affected by workplace structures and
networks:
– Centrality
– Criticality
– Visibility
ACCEPTANCE THEORY
Acceptance theory of authority.
 For a leader to achieve true influence, the other
person must:
 Truly understand the directive.
 Feel capable of carrying out the directive.
 Believe the directive is in the organization’s best interests.
 Believe the directive is consistent with personal values.
LEADERSHIP & EMPOWERMENT
Leadership and empowerment.
– Empowerment.
– The process through which managers enable and help others
to gain power and achieve influence.
– Effective leaders empower others by providing them with:
– Information.
– Responsibility.
– Authority.
– Trust.
EMPOWERING OTHERS
– Involve others is selecting their work assignments and task
methods.
– Create an environment of cooperation, information sharing,
discussion, and shared ownership of goals.
– Encourage others to take initiative, make decisions, and use their
knowledge.
– Find out what others think and let them help design solutions.
– Give others the freedom to put their ideas and solutions into
practice.
– Recognize successes and encourage high performance.
TRAITS FOR SUCCESSFUL LEADERSHIP
Drive
Self-confidence
Creativity
Cognitive ability
Business knowledge
Motivation
Flexibility
Honesty and integrity
LEADERS BEHAVIORS
– Leadership behavior theories focus on how leaders behave
when working with followers.
– Leadership styles are recurring patterns of behaviors
exhibited by leaders.
– Basic dimensions of leadership behaviors:
– Concern for the task to be accomplished.
– Concern for the people doing the work.
LEADERS TRAITS & BEHAVIORS
Task concerns People concerns
– Plans and defines – Acts warm and
work to be done. supportive toward
followers.
– Assigns task
responsibilities. – Develops social rapport
with followers.
– Sets clear work
– Respects the feelings
standards.
of followers.
– Urges task – Is sensitive to
completion. followers’ needs.
– Monitors – Shows trust in
performance results. followers.
CONTINGENCY APPROACH TO LEADERSHIP
I. Fiedler’s contingency model.
– Good leadership depends on a match between leadership and
situational demands.
– Determining leadership style:
– task-motivated leaders.
– relationship-motivated leaders.
– Leadership is part of one’s personality, and therefore relatively
enduring and difficult to change.
– Leadership style must be fit to the situation.
CONTINGENCY APPROACH TO LEADERSHIP
I. Fiedler’s contingency model.
– Diagnosing situational control:
– Quality of leader-member relations (good or poor).
– Degree of task structure (high or low).
– Amount of position power (strong or weak).
– Task oriented leaders are most successful in:
– Very favorable (high control) situations.
– Very unfavorable (low control) situations.
– Relationship-oriented leaders are most successful in:
– Situations of moderate control.
Matching leadership style and situation

summary predictions from Fiedler’s contingency theory.

CONTIGENCY APPROACH TO LEADERSHIP
II. Hersey-Blanchard situational leadership model.
– Leaders adjust their styles depending on the
readiness of their followers to perform in a given
situation.
– Readiness — how able, willing and confident followers are
in performing tasks.
CONTIGENCY APPROACH TO LEADERSHIP
II. Hersey-Blanchard leadership
styles:
– Delegating.
– Low-task, low-relationship style.
– Works best in high readiness-
situations
– Participating.
– Low-task, high-relationship style.
– Works best in low- to moderate-
readiness situations
– Selling.
– High-task, high-relationship
style.
– Work best in moderate- to high-
readiness situations.
– Telling.
– High-task, low-relationship style.
– Work best in low-readiness
situations.
CONTINGENCY APPROACH TO LEADERSHIP
III. House’s path-goal leadership theory.
– Effective leadership deals with the paths through which
followers can achieve goals.
– Leadership styles for dealing with path-goal relationships:
– Directive leadership.
– Supportive leadership.
– Achievement-oriented leadership.
– Participative leadership.
Contingency relationships in the path-goal
leadership theory
CONTINGENCY APPROACH TO LEADERSHIP
III. House’s leadership styles:
– Directive leadership.
– Achievement-oriented leadership.
– Communicate expectations.
– Set challenging goals.
– Give directions.
– Expect high performance levels.
– Schedule work.
– Emphasize continuous improvement.
– Maintain performance standards.
– Display confidence in meeting high
– Clarify leader’s role. standards.
– Supportive leadership. – Participative leadership.
– Make work pleasant. – Involve subordinates in decision
– Treat group members as equals. making.
– Consult with subordinates.
– Be friendly and approachable.
– Ask for subordinates’ suggestions.
– Show concern for subordinates’ well-
being. – Use subordinates’ suggestions.
CONTINGENCY APPROACH TO LEADERSHIP
When to use House’s leadership styles:
– Use directive leadership when job assignments are
ambiguous.
– Use supportive leadership when worker self-confidence is
low.
– Use participative leadership when performance incentives
are poor.
– Use achievement-oriented leadership when task challenge
is insufficient.
CONTINGENCY APPROACH TO LEADERSHIP
Substitutes for leadership.
– Aspects of the work setting and the people involved that
can reduce the need for a leader’s personal involvement.
– Possible leadership substitutes:
– Subordinate characteristics.
– Task characteristics.
– Organizational characteristics.
CONTINGENCY APPROACH TO LEADERSHIP
IV. Vroom-Jago leader-participation theory.
– Helps leaders choose the method of decision making that
best fits the nature of the problem situation.
– Basic decision-making choices:
– Authority decision.
– Consultative decision.
– Group decision.
CONTINGENCY APPROACH TO LEADERSHIP
Decision-making options in the Vroom-Jago leader-
participation theory:
– Decide alone.
– Consult individually.
– Consult with group.
– Facilitate.
– Delegate.
Leadership implications of Vroom-Jago leader-
participation model
CONTINGENCY APPROACH TO LEADERSHIP
Contingency factors in the Vroom-Jago leader-
participation theory:
– Decision quality.
– Who has the information needed for problem solving.
– Decision acceptance.
– Importance of subordinate acceptance to eventual
implementation.
– Decision time.
– Time available to make and implement the decision.
CONTINGENCY APPROACH TO LEADERSHIP
According to Vroom-Jago leader-participation theory, a
leader should use authority-oriented decision methods
when …
– The leader has greater expertise to solve a problem.
– The leader is confident and capable of acting alone.
– Others are likely to accept and implement the decision.
– Little or no time is available for discussion.
CONTINGENCY APPROACH TO LEADERSHIP
According to Vroom-Jago leader-participation theory, a
leader should use group-oriented and participative
decision methods when …
– The leader lacks sufficient information to solve a problem
by himself/herself.
– The problem is unclear and help is needed to clarify the
situation.
– Acceptance of the decision and commitment by others is
necessary for implementation.
– Adequate time is available for true participation.
CLASSIFICATION OF LEADERSHIP
1. AUTOCRATIC STYLE – one takes all decisions by himself and
expects to be obeyed by his subordinates. The subordinates
have no scope to question the superior. This style usually
applies when quick decisions are made and subordinates are
inexperienced.

2. BUREAUCRATIC STYLE – is more followed by government

departments. The bureaucrats often follow rules and
regulations in totality. Takes decision by strictly following
formalities. Subordinates are often not consulted.
CLASSIFICATION OF LEADERSHIP
3. CONSULTATIVE STYLE – leader consults his subordinated
before taking a decision. The leader feels, that it is always
advisable to consult the subordinates. Leader is more open
minded and welcome suggestions from subordinates before
decision making.

4. PARTICIPATIVE STYLE – leader not only consultS the

subrdinates but allows them to take part in decision making. Both
leader and worker share responsibility in decision making.
Relations are informal.
CLASSIFICATION OF LEADERSHIP
5. LAISSEZ STYLE – leader shares the problem with the group. He
acts more as a chairperson generating and evaluating alternatives
in search of group consensus. The superior acts more as a guide in
arriving in a decision. Relations is very informal.

6. PETERNALISTIC STYLE – style aims creating a family atmosphere

within the organization. The leader is respected and treated as
father figure by subordinates. Leader consult the subordinates,
leader takes the decision. Usually followed in Japanese
organization. Relations are very homely.
CLASSIFICATION OF LEADERSHIP
7. MISSIONARY STYLE –leaders attempt to run their organization like a social
club. they believe that good fellowship or friendship is more important than
productivity. The leader takes the decision by keeping the interest of
subordinates, the organization interest may be secondary

8. NUEROCRATIC style – leader is like Adolf Hitler. Highly task oriented and
wants to get things done at any cost. He is sensitive and gets quickly upset
at failures.

9. SITUATIONAL STYLE – leadership style varies depending on the situation.

Leader may be autocrat at times, consultative at times, participative as times
depending on the decision and situation.
ISSUES ON LEADERS DEVELOPMENT
 Emotional intelligence.
– The ability of people to manage themselves and their relationships effectively.
– Components of emotional intelligence:
– Self-awareness.
– Self-regulation.
– Motivation.
– Empathy.
– Social skill.

 Gender and leadership.

– Both women and men can be effective leaders.
– Women tend to use interactive leadership.
– A style that shares qualities with transformational leadership.
– Men tend to use transactional leadership.
– Interactive leadership provides a good fit with the demands of a diverse workforce and the new
workplace.
ISSUES ON LEADERS DEVELOPMENT
 Gender and leadership
– Future leadership success will depend on a person’s capacity to lead through :
– Openness.
– Positive relationships.
– Support.

 Empowerment. Drucker’s “old-fashioned” leadership.

– Leadership is more than charisma; it is “good old-fashioned” hard work.
– Essentials of “old-fashioned” leadership:
– Defining and establishing a sense of mission.
– Accepting leadership as a “responsibility” rather than a rank.
– Earning and keeping the trust of others.
ISSUES ON LEADERS DEVELOPMENT
 Moral leadership.
– Ethical leadership adheres to moral standards meeting the test of “good” rather than “bad”
and “right” rather than “wrong.”
– All leaders are expected to maintain high ethical standards.
– Long-term, sustainable success requires ethical behavior.
– Integrity involves the leader’s honesty, credibility, and consistency in putting values into
action.
– Leaders with integrity earn the trust of their followers.
– Leaders have a moral obligation to build performance capacities by awakening people’s
potential.
– Authentic leadership activates performance through the positive psychological states of
confidence, hope, optimism, and resilience.
– Authentic leadership helps in clearly framing and responding to moral dilemmas, and serving
as ethical role models.
CASE ACTIVITY
Situation:
You are assigned in tough activity, Outgoing Quality Control
activities.
Show your leadership in a
1) day to day situation.
2) In difficult situation such that majority of the lots are affected
of major quality defect that will HOLD the whole shipment of
your company to your customer by 5PM, and it’s almost 3PM.