Colegio de Dagupan

School of Business and Accountancy

Human Behavior in Organization

MODULE 5: LEADERSHIP

Learning Outcomes:

At the end of this module, the students are expected to:

1. Define what leadership is

2. List the kinds of leadership
3. Describe what prower is and who a leader is
4. List Theories About Leadership, Trait Theories, Behavioral Theories, and Contingency
Theories

What is Leadership

It is the process of guiding and directing the behavior of people in the organization in
order to achieve certain objectives.

The Difference Between Leadership and Management

Managers and leaders are different in the following ways:

1. Managers are rational problem solvers, while leaders are intuitive, more visionary;
2. Managers perform other administrative function such as planning, organizing, decision-
making, and communicating;
3. Leaders are primarily concerned with results; managers are concerned with the
efficiency of results; and
4. Leaders obtain their power from below; managers obtain theirs from above.

Kinds of Leadership

a. Formal Leadership
- It refers to the process of influencing others to pursue official objectives.
- Formal leaders are vested with formal authority.
b. Informal Leadership
- Informal leadership refers to the process of influencing others to pursue
unofficial objectives.
- Informal leaders lack formal authority.

Types of Power in Organizations

Position Power

Power derived as a consequence of the leader’s position

It consists of the following types:

1. Legitimate power is also referred to as authority, this power emanates from a person’s
position in the organization.
2. Reward power emanates from one’s ability to grant rewards to those who comply with a
command or request.
3. Coercive power arises from the expectation of subordinates that they will be punished if
they do not conform to the wishes of the leader. This power uses fear as a motivator.

Personal Power

The leader’s personal power results from his personal characteristics.

Types of personal power:

 1. Expert power – an expert who possess and can dispense valued information generally
exercise expert power over those in need of such information.
2. Referent power – this power refers to the ability of leaders to develop followers from the
strength of their own personalities.

Theories about Leadership

Trait Theories

Trait theories of leadership consider leaders to posses common traits:

1. Sociability
2. Persistence
3. Initiative
4. Knowing how to get things done
5. Self-confidence
6. Alertness to and insight into situations
7. Cooperativeness
8. Popularity
9. Adaptability
10. Verbal facility

Later, researchers drafted a general view of what good leaders have in common.

1. Extraversion – individuals who like being around people and are able to assert
themselves.
2. Conscientiousness – individuals who are disciplined and keep commitments that they
make.
3. Openness – individuals who are creative and flexible
4. Emotional intelligence – individuals who are able to manage their feelings and emotions.

Behavioral Theories

These theories propose that specific behaviors differentiate leaders from non leaders.

Theories related to Leadership Behavior:

1. Ohio State University Studies

The study identified two dimensions of leaders referred to as:
a. Initiating structure – refers to the extent to which a leader is likely to define his and the
employees in the search for goal attainment.
The leader with a high initiating structure tendency focuses on goals and results thus
similar to a production-oriented supervisor.
b. Consideration – describes the degree to which the leader creates an environment of
emotional support, warmth, friendliness, and trust.
The leader’s behavior would be friendly and approachable, looking out for the personal
welfare of the group. The findings of the Ohio studies indicate that successful leaders
are those that are engaged not in one of the two behaviors but in both.

University of Michigan Studies

- The studies identified two distinct type of leadership: Job-centered and

employee centered.
- Job centered managers set tight work standards, organize task carefully,
prescribed the work methods to be followed, and supervised closely.
- Employee- centered managers encouraged group members to participate in
goal setting and other work decisions.

The researchers found out that the most productive work groups tended to have leaders
who were employee-centered rather than job centered.
Yuki Studies

Isolated nineteen specific behaviors of leaders:

1. Performance emphasis emphasizes the importance of performance and tries to improve

productivity and efficiency.
2. Consideration is the extent to which a leader is considerate in his behavior toward
subordinates and tries to be fair.
3. Praise-recognition is the extent to which a leader provides praise and recognition to
subordinates with effective performance.
4. Decision-participation consults with subordinates and otherwise allows them to influence
his or her decisions.
5. Training-coaching determines training needs for subordinates and provides any
necessary training and coaching.
6. Problem solving takes the initiative in proposing solutions to serious work-related
problems and acts decisively.
7. Work facilitation obtains for subordinates any necessary supplies, equipments, support
services, or other resources, eliminates problems in the work environment.
8. Inspiration
9. Structuring reward contingencies
10. Autonomy-delegation
11. Role clarification
12. Goal setting
13. Information dissemination
14. Planning
15. Coordinating
16. Representation
17. Interaction facilitation
18. Conflict management
19. Criticism-discipline

The Managerial Grid

- The managerial grid is a graphic portrayal of a two dimensional view of

leadership developed by Robert Blake and Jane Mouton.
- It is an approach to understanding a manager’s concern for production and
concern for people.
 Sample Managerial Grid

1.1 Impoverish manager, also referred to as the laissez-faire leaders. Leader in this
position have little concern for people or productivity.

1.9 country club manager are leaders that have great concern for people and little concern
for production

9.1 authority- obedience manager are leaders that have great concern for people and little
concern for people

5.5 organization man manager, also called middle-of-the- road manager. leaders in this
position have medium concern for people and production.

9.9 team manager uses a style that is considered to be ideal. He has great concern for both
people and production.

Contingency theories

- The trait and behavioral theories failed to point out that leadership situations
are not similar and no single leadership style that will fit all situations.
- Contingency theories fundamental assumption that successful leadership
occurs when the leader’s style matches the situation.
a. Continuum of Leadership Behavior
o Consists of seven alternative ways for managers to approach decision
making, depending on how much participation they want to allow
subordinates in the decision making process.
b. The Contingency Leadership Model
o It is developed by Fred Fiedler, which proposes that effective group
performance depends on the proper match between the leader’s style
and the degree to which the situation favors the leader.
- The Path-Goal Model
o It is developed by Robert House and Terrence Mitchell.
o It states that the leader’s job is to create a work environment through
structure, support, and rewards that helps employees reach the
organization’s goals.
- The Hersey and Blanchard Model
o It suggests that leader behaviors should vary in response to the
“readiness” of followers.
- The Leader-Member Exchange Approach
o It is developed by George Graen.
o It recognizes that leaders develop unique working relationships with
each group member.
o When a leader, knowingly or unknowingly, creates in-groups and out-
groups within the organization.
- - Normative Decision Model
o It is also known are “the leader participation model” and “decision
making model of leadership”.
it vies leadership as a decision making process in which the leader
examines certain factors within the situation to determine which
decision making style will be most effective.
- - Muczyk-Reimann Model
o It is developed by Jan P. Muczyk and Bernard C. Reimann.
o It suggest that “participation” behavior is concerned with the degree
to which subordinates are allowed to be involved in decision making.
o It process that leaders should be allowed to adapt to different
situations. This paves the way for delegation which covers decision
making and execution.