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1. BUSINESS LEADERSHIP
LEADERSHIP THEORIES

2. BUSINESS LEADERSHIP
UNIVERSALISTIC APPROACH
(Trait, Behaviour, Relationships)

3. BUSINESS LEADERSHIP
A common understanding of leadership is to
describe its qualities such as charisma, intelligence,
enthusiasm, courage etc.
While many of the "leaders" seemed to possess
and exhibit some or many of these quality traits,
the researchers could not find with certainty a
common set of traits that differentiated leaders
from non-leaders and effective leaders from
the ineffective
Trait Theory of Leadership

4. BUSINESS LEADERSHIP
• Stamina / Energy
• Sociability / Relationship Skills
• Intelligence / Knowledge
• Self-Confidence / Enthusiasm
• Education
• Drive to Achieve
• Persistence

5. BUSINESS LEADERSHIP
Drive - leaders have a relatively high desire for
achievement; they are ambitious and possess a lot of
energy; they are persistent and show initiative
Desire to lead - leaders have a strong desire to
influence and lead others; they demonstrate a
willingness to assume responsibility for their actions
Honesty and Integrity - leaders build trusting
relationships between themselves and others; they are
truthful and non-deceitful, and they show high
consistency between word and deed
Trait Theory of Leadership

6. BUSINESS LEADERSHIP
Self-Confidence - leaders show self-confidence in
order to convince their followers of the rightness of
goals and decisions.
Intelligence - leaders are intelligent enough to
gather, synthesize and interpret large volumes of
information; they are able to create visions, solve
problems and make correct decisions.
Trait Theory of Leadership

7. BUSINESS LEADERSHIP
Job-relevant knowledge - leaders have sufficient
job-related knowledge about the company and
industry; they make well-informed decisions and
understand implications of such decisions.
Trait Theory of Leadership

8. BUSINESS LEADERSHIP
Traditional Leadership Styles
 Autocratic
 Benevolent (Paternalistic)
 Consultative
 Participative
 Consensus-making

9. BUSINESS LEADERSHIP
Concern for Production
ConcernforPeople
Low High
High
Low
Country Club
(1,9)
Team
(9,9)
Impoverished
(1,1)
Task
(9,1)
Middle of
the Road
(5,5)
The Leadership Grid

10. BUSINESS LEADERSHIP

11. BUSINESS LEADERSHIP
Managerial Factors
These are the manager's attitudes about control,
delegation etc.
These may include factors such as personal value
system, trust and confidence etc.
Factors affecting Leadership Styles

12. BUSINESS LEADERSHIP
Subordinate Factors
These represent the degree to which subordinates
will trust and respect the manager and consequently
are influenced by him.
These may include desire for independence and
responsibility, acceptance of uncertainty, interest,
comprehension etc.
Factors affecting Leadership Styles

13. BUSINESS LEADERSHIP
Situational Factors
These include factors such as the type of the
organisation, nature of problem, effectiveness of
groups, time pressures etc.
Factors affecting Leadership Styles

14. BUSINESS LEADERSHIP
CONTINGENCY APPROACH

15. BUSINESS LEADERSHIP
LEADER
FOLLOWER SITUATION
NEEDS
MATURITY
TRAINING
COHESION
TASK
STRUCTURE
SYSTEMS
ENVIRONMENT
STYLES
TRAITS
BEHAVIOUR
POSITION

16. BUSINESS LEADERSHIP
According to Fred Fiedler (1967), effective
group performance depends on the proper
match between the leader's style of interacting
with employees and the degree to which the
situation gives control and influence to the
leader.
Contingency Theory of Leadership

17. BUSINESS LEADERSHIP
Leader-member relations
Degrees of confidence, trust, and respect
employees have in their leader
Task structure
The degree to which a task is structured or
unstructured
Position power
The degree of influence a leader has over power
variables such as hiring, firing, discipline,
promotions
Contingency Theory of Leadership

18. BUSINESS LEADERSHIP
Contingency Theory of Leadership
Task-oriented leaders are more
effective when the situation is highly
favourable or highly unfavourable.
Relationship-oriented leaders are more
effective when the situation is
moderately favourable.

19. BUSINESS LEADERSHIP
Situational Leadership model focuses on the followers.
Since it is the followers who accept or reject a leader,
the focus reflects the reality. Here, the emphasis is on
how a leader should adjust his leadership style in
accordance with the readiness (ability and willingness)
of followers.
Situational Theory of Leadership
Paul Hersey & Kenneth Blanchard, 1988

20. BUSINESS LEADERSHIP
Readiness can be in four stages:
Stage 1 - follower both unable and unwilling
Stage 2 - follower unable but willing
Stage 3 - follower able but unwilling
Stage 4 - follower able and willing
Situational Leadership

21. BUSINESS LEADERSHIP
Contingency Theory of Leadership

22. BUSINESS LEADERSHIP
Low-Task / Low-Relationship (S4)
Turn over responsibility for decisions and
implementation
Low-Task / High-Relationship (S3)
Share Ideas and facilitate decision-making
Situational Leadership

23. BUSINESS LEADERSHIP
High-Task / High-Relationship (S2)
Explain decisions and provide support
High-Task / Low-Relationship (S1)
Provide specific instructions and monitor
closely
Situational Leadership

24. BUSINESS LEADERSHIP
The path-goal theory (Robert House, 1971) is
derived from the belief that effective leaders
clarify the path to help their followers get from
where they are to achieve their goals and make
the journey easier by reducing the roadblocks
and hindrances.
Path-Goal Theory of Leadership

25. BUSINESS LEADERSHIP
Path-Goal Theory of Leadership

26. BUSINESS LEADERSHIP
Supportive Leadership
giving consideration to the needs of the
followers; displaying concern for their welfare;
creating friendly climate at the work place
Directive Leadership
letting followers know what they are expected to
do; giving specific guidelines; scheduling and
coordinating work
Path-Goal Theory of Leadership

27. BUSINESS LEADERSHIP
Participative Leadership
consulting with followers; taking their opinions
and suggestions
Achievement-Oriented Leadership
setting challenging goals and targets;
emphasising excellence in performance;
showing confidence
Path-Goal Theory of Leadership

28. BUSINESS LEADERSHIP
Subordinate Characteristics
Ability - knowledge, skills, competence
Locus of Control - Internal and External
Needs - level of hierarchy of needs
SITUATIONAL CONTINGENCIES

29. BUSINESS LEADERSHIP
Task Structure
Structured –
stressful, boring, tedious, repetitive
Unstructured –
clarify goals, define expectations
SITUATIONAL CONTINGENCIES