Leadership Theories in Modern Organizations

Managing Organizations: Leadership Theories and Application in Contemporary Organizations

• Focus on leadership theories, contingency theories, and applying management theories in modern organizations

What is a Theory?

• Theories are based on a set of principles
• Theories are based on explanation
• Acceptable theories are based on evidence
• Experience and research informs how to manage tasks and conduct processes

What are Leadership Theories?

• Frameworks explain the nature of leadership and how effective leaders influence others
• Leadership theories help understand approaches to leadership, nurturing related skills
• Leadership theories have developed across the years, each highlighting different leadership aspects

Leadership Theories

• Trait Theory
• Behavioral Theories
• Contingency/Situational Theories
• Transactional Leadership
• Transformational Leadership
• Charismatic Leadership

Leadership Theories Overview

• Trait Theory suggests inherent characteristics and traits make people natural leaders.
• Traits include intelligence, confidence, charisma, and determination
• Traits are believed to be essential for effective leadership
• Trait theory simplifies leadership, discounting situational effects

Behavioral Theories

• Focus on actions of leaders over innate traits
• Leadership styles divided into task-oriented and relationship-oriented
• Task-oriented leaders focus on achieving objectives, with clear direction
• Relationships-oriented leaders focus on building strong relationships and supporting members

Contingency/Situational Theory

• Effective leadership is contingent
• It depends on situational factors
• It depends on how one's leadership style matches the situation
• It suggests that leadership style depends on situational factors
• Leader-Member Relations are based on degree of confidence, trust, and respect team members have
• Task Structure reflects the extent to which tasks are clearly defined and structured
• Position Power reflects the leader's authority and ability to reward or punish

Transformational Leadership

• Centers on how leaders inspire and motivate followers to achieve results
• Transformational leaders articulate a vision, encourage innovation, and empower members

Transactional Leadership

• Based on an exchange relationship between leader and followers
• Leaders employ rewards and punishments to drive compliance and performance

Charismatic Leadership

• Leaders possess compelling, magnetic personalities that inspire followers
• A sense of enthusiasm and commitment is created, promoting strong emotional bonds

Trait Theory of Leadership

• A leadership concept studies which traits and characteristics associate with effective leaders
• Suggests individuals are born with specific qualities needed to be natural leaders
• Traits of effective leaders include:
• Intelligence
• Confidence
• Charisma
• Determination
• Emotional intelligence
• Integrity
• Trait Theory influenced further theories by considering
• Traits
• Behaviors
• Situational factors
• These must be in order to understand leadership

Traits Associated with Good Leadership

• Include adaptability and flexibility in changing situations
• Assertiveness includes being direct

Behaviors Associated with Good Leadership

• Capacity to motivate inspires and motivates others
• Commitment aligns to group goals
• Creativity fosters creativity within the group
• Decisiveness provides confidence in decisions
• Responsibility accepts responsibility vs blame

More Traits Associated with Good Leadership

• Emotional Stability manages emotions and reactions
• Intelligence moves group forward
• Need for strong achievement to help the group achieve its goals
• People skills involve interpersonal skills
• Perseverance is for resilient leaders
• Self-confidence fosters assurance

Limitations of Trait Theory

• Ignores roles and influence of team members
• Overlooks motivations, strong relationships, and effectively communicating with members
• Limits leadership potential to inherent qualities
• Focuses leadership on consistency and how inherent traits evolve
• Can lead to leader stereotyping
• Overlooks influence of situational and environmental factors on leadership effectiveness
• Does not consider the skills, behaviors, and situational adaptability

Behavioral Theories of Leadership

• Focus shifts from inherent traits to observable behaviors of leaders
• Flexibility and adaptability matter
• Leaderships skills and behaviors become developed
• Effectiveness depends on situation

Important Aspects of Behavioral Theories of Leadership

• Leaders can switch between
  • Task Oriented
    • Goals and Tasks
  • Relationship oriented
    • Strong interpersonal relations with team

Prominent behavioral theories include:

• Iowa Leadership Studies ( University of Iowa)
• Ohio State Studies
• University of Michigan Leadership Studies

Iowa Leadership Styles

• Autocratic leaders centralize authority, make independent decisions, and enforce them
• Democratic leaders involve employees, delegate authority, and encourage input until the community decides
• Laissez-faire leaders provide help as needed, allowing members to make decisions

The Ohio State Leadership Studies

• The Ohio State Leadership Studies were conducted at Ohio State University in the late 1940s and early 1950s
• Aimed to identify key dimensions of leadership behavior and their impact on group and organizational effectiveness
• Identified two leader behavior dimensions
• Initiating structure
• Consideration

Ohio State Leadership Studies- Dimensions of Leadership Behavior

• Consideration's emphasis lies on the well-being, development, and relationships of team members
• Initiating structure reflects tasks and clarity in tasks

The University of Michigan Leadership Studies

• The University of Michigan Studies on leadership were conducted in the late 1940s to better understand how leadership behaviors affect organizational effectiveness
• Sought to identify leadership behaviors and styles that build productive work environment

Dimensions of Leadership identified in the Michigan Studies

• Employee orientation emphasizes building positive relationships and being supportive
• Production orientation focuses on task accomplishment, goal achievement, and organizational efficiency

Situational/Contingency Leadership Theories

• Suggests that there's no single leadership approach
• Effectiveness varies, depending on how style or behavior resonates
• Evolved from theories focusing on traits

Factors to Consider in Contingency Leadership

• Situational Factors, such as industries, size, culture, environment, and demographics, are a factor
• Task Complexity is a factor
• Leader-Member Relationship, which determines the level of trust, is a factor
• Follower Readiness and skills affects what leadership style is adopted
• Organizational Culture influences how leadership is perceived

Contingency/Situational Leadership Models

• Include:
  • Fred Fiedler's Contingency Model or LPC
  • Situational Leadership Theory by Hersey and Blanchard
  • Path-Goal Theory by House
• Each theory adapts leadership depending on situations

Common Management Theories

• Fiedler's contingency model, Hersey-Blanchard situational leadership theory, and Path-Goal theory.
• Fred Fiedler proposed the effectiveness of a leader depends on degrees of match between leadership style and favorableness
• Kenneth Blanchard suggests leadership depends on readiness and maturity
• Robert House says leaders should adjust based on characteristics

Fiedler Contingency Model

• Developed by Fred Fiedler in the 1960s, it focuses on matching leadership and situational context
• The theory states it is essential to align leaders to respective leadership roles
• Suggests group performance depends on matching style and degree of influence leader exerts

Fiedler's Contingency Model

• Leaders must understand style before evaluating if it suits their situation
• Determining style relies on whether the approach to team tasks or team building is natural leadership style

Components of The Fiedler Contingency Model

• Natural Leadership Styles
• Situational Variables

Leadership Style

• Task-oriented focus on directing for task execution.
• Relationship-oriented focus on team cohesion

Situational Variables

• Leader-Member Relations reflect the trust and confidence between leader and group
• Task Structure refers to how the tasks are clear to achieve
• Position Power refers to the role's ability to exert influence over members.

Fiedler's Least Preferred Coworker (LPC) Questionnaire

• Assesses leadership style
• Helps determine if leader is task oriented or relationship oriented
• Involves leaders thinking least well of coworkers, and how preferred to work
• LPC, leader must rate their coworker using series of bipolar adjectives
• Responses are needed to derive LPC score, which will reveal leader's tendencies

Fiedler's Least Preferred Coworker (LPC) and Contingency Model Relationship

• High-scoring LPC suggests a relationship-oriented leader.
• A low LPC score indicates a task-oriented leader

Applying Fielder's (Correct - Fiedler's) Contingency Theory on Situational Circumstance 1

• Imagine starting working replacing a leader replacing one who retired, and leading a distrusting team
• LPC Leadership Theory dictates that
• Relational-oriented and strong at synergy is not the best option
• Task-oriented with strong command is best
• In these situations, an approach is best

Applying Fielder's (Correct - Fiedler's) Contingency Theory on Situational Circumstance 2

• Leading a team that respects you, on a creative project, requires less position to lead
• LPC dictates Relational leaders are prefered
• Fostering relationships requires creating chemistry
• In these situations, a relationship approach is best