Principles of

Management

BAC 3 & BPSAF 3

GSU 08102
Bwachele Victor
Developing Leadership Skills

Think of the leaders that you most

admire. What unique leadership does he
or she posses?
(Class Activity)

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Applying management skills

Leadership is probably researched and

discussed than any other topic in the
field of management. New suggestions,
methods, and tips for improving
leadership skills are offered each year.
Everyone seems to acknowledge the
importance of leadership to managerial
and organizational success.

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 Power, Authority,
and Leadership

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Power, Authority, and Leadership
Before undertaking a study of leadership, a
clear understanding must be developed of the
relationship among Power, Authority and
Leadership. Power can be defined as the
capacity to secure dominance of one’s goal
and beliefs.
The use of or desire of power is often viewed
negatively in our society because power is
often linked to the concepts of punishment,
dominance, and control.
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David C. McClelland has observed, “In
American societies in general, individuals
are proud of having a high need to
achieve, but dislike being told that they
have a high need of power.” McClelland’s
work let him to study managers at AT&T
where he found that managers are high
in need of power when they joined the
company were more successful 16 years
later if they were low in need of affiliation
and high in self control. He concluded
that Power can have a both negative and
positive form.
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Positive power results when the
exchange is voluntary and both parties
feel good about exchange.
Negative power results when the
individual is forced to change. Power in
organization can be exercised upward,
downward or horizontally. It does not
necessarily follow the organizational
hierarchy from top to bottom.

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The following is the summary of several
sources of power in organizations.
Organizational sources Basis
Reward power Capacity to provide
rewards
Coercive power Capacity to punish
Legitimate Power Person’s position
in an organizational

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Personal sources Basis
Expert power The skill, expertise,
and knowledge an
individual posses
Referent power The personal
characteristics of an
individual that make
Other people want
to associate with the person

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Authority

Authority can be defined as the right to

command. It is the right to give orders and the
power to exact obedience. It is the power to
give orders and make sure that these orders
are obeyed.
A policeman directing traffic has the authority
to direct the driver of a car to go in a particular
direction and the driver is expected to obey
these orders.

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Authority can be retained by top
management which makes policies and
decisions and then it is passed on to the
lower levels through hierarchical structure
for action.
Authority can be delegated to proper
subordinates who can make decision in
relation to their operations.
While authority may be delegated to
subordinates, the responsibility for their
action must lie with each superior.
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 Types of Authority
 Legal (Formal) Authority
 Traditional Authority
 Charismatic Authority

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Leadership is the ability to influence
people to willingly follow one’s guidance or
adhere to one’s decisions. Obtaining
followers and influencing them in setting
and achieving objectives makes a leader.
Leaders use power in influencing group’s
behavior. For instance, political leaders
often use referent power. Informal leaders
in an organization generally combine
referent power and expert power. Some
managers rely only on authority, while
others use different combination of power.
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 Leadership and Management

(Reading Assignment)

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Leader Attitudes

Douglas McGregor developed two attitude

profiles, or assumptions, about the basic
nature of people. The attitudes were
termed as Theory X and Theory Y;
McGregor maintained that many leaders
in essence subscribe to either Theory X or
Theory Y and behave accordingly. A
Theory X leader would likely use as much
more authoritarian style of leadership
than a leader who believes in Theory Y
assumptions.
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 The real value of McGregor work was
the idea that a leader’s attitude
towards human nature has large
influence on how that person behaves
as a leader.

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The relationship between the leader’s
expectations and the resulting
performance of subordinates has received
much attention. Generally, it has been
found that if a manager’s expectations are
high, productivity is likely to be high. On
the other hand, if the manager’s
expectations are low, productivity is likely
to be poor. McGregor called this
phenomenon the self-fulfilling prophecy.
It has also been called Pygmalion in
management.
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THEORY X
•The average human being has an average
dislike of work and will avoid if it is
possible.
•Because of their dislike of work, most
people must be coerced, controlled,
directed, or threatened with punishment
to get them to put forth adequate effort
towards the achievement of the
organizational objectives.
•The average human being prefers to be
directed, wishes to avoid responsibility,
has relatively little ambition, and wants
security above all.
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THEORY Y
•The expenditure of physical and mental
effort in work is as natural as play or
rest.
•External control and the threat of
punishment are not only the means for
bringing about effort toward
organizational objectives. Workers will
exercise self direction and self control in
the services of objectives to which they
are committed.
•Commitment to objectives is the
function of the rewards associated with
their achievement.
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•The average human beings learn, under
proper conditions, not only to accept but
to seek responsibility.
•The capacity to exercise the relatively
high degree of imagination, ingenuity, and
creativity in the solution of organizational
problems is widely, not narrowly,
distributed in the population.
•Under the conditions of the modern
industrial life, the intellectual
potentialities of the average human being
are only partially utilized.
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Basic Leadership Styles
Other studies dealt with the studies of the
leader. They found three basic leadership
styles: autocratic, laissez-faire,
democratic. The main differences among
these styles is the where the decision
making function rests. Generally, the
autocratic leader makes more decision
for the group, the laissez faire leader
allows people within the group to make all
decisions, and the democratic leader,
guides and encourage the group to make
decisions.
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More details of this leadership is
discussed later. In the later
explanation it implies that the
democratic style is the most desirable
and productive.

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Autocratic Style

Leader
•The individual is very conscious of his or
her position.
•He or she has little trust and faith in
members of the group.
•This leader believes pay is just a reward
for working and the only reward that will
motivate employees.
•Orders are issued to be carried out, with
no question allowed and no explanations
given.
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Group Members

•No responsibility is assumed for

performance, with people merely doing
what they are told.
•Production is good when the leader is
present, but poor in the leaders absence.

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Laissez-Faire Style

Leader
•Does not set goals for the group
Group members
•Decisions are made by whomever in the
group is willing to do it.
•Productivity generally is low, and work
is sloppy.
•Individuals have little interest in their
work.
•Morale and team work generally are
low.
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Democratic Style

Leader
•Decision making is shared between the
leader and the group.
•When the leader is required or forced to
make a decision, his or her reasoning is
explained to the group.
•Criticism and praise are given
objectively.

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Group Members

•New ideas and changes are welcomed.

•A feeling of responsibility is developed
within the group.
•Quality of work and productivity
generally are high.
•The group generally feels successful.

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 THANK YOU!

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