CHAPTER 16: LEADERSHIP

LEADER AND LEADERSHIP

According to Peter Drucker (1996), there are no leaders without followers. If a leader is one who has followers, leadership must be how the leader acquires and keeps
followers. On the other hand, leadership is a process whereby one individual influences a group of individuals to achieve a common goal.

A simple definition is that leadership is the art of motivating a group of people to act towards achieving a common goal. In a business setting, this can mean directing
workers and colleagues with a strategy to meet the company's needs. This leadership definition captures the essentials of being able to inspire others and being prepared to do so.
Effective leadership is based upon ideas (whether original or borrowed), but won't happen unless those ideas can be communicated to others in a way that engages them enough to
act as the leader wants them to act (Ward, 2019).

THE IMPORTANCE OF STUDYING LEADERSHIP TODAY

 We are not all leaders, but we are all followers. There is always someone whom we defer to, whose orders or suggestions we act upon
 Leadership is more pragmatic, to learn to become a leader or to train future leaders. In the business world, good or bad leadership means effective or ineffective leadership.
The assumption is that leaders are made, not born; otherwise there would be no point in learning or teaching leadership.
 Given that leaders have ranged from prophets to dictators, leaders have, by their greed and corruption, caused large institutions to fall and disappear; organizational
performance is no longer the measure of good and leadership; goodness and badness now has a moral dimension.

PURPOSE AND FUNCTION OF LEADERSHIP

The organizational context will always raise the distinction between a manager and a leader. The distinction was best verbalized by management icon Bob Galvin, “The
manager delivers what we expect; the leader takes us somewhere else.”

 “Visionary Leadership is where all employees are empowered because they have already owned for themselves the vision of their leader,” according to the International
Association of Business and Management Professionals (2012).

For students and practitioners of management, the distinction between managers and leaders is important because, it is leadership that brings an organization and its people to
greater performance.

 Good leadership motivates much more than good management does.

LEADERSHIP THEORIES AND MODELS

Theories have evolved from the assumption that leaders are born to the current belief that leadership can be learned.

 18th – 20th century, Thomas Carlyle, Herbert Spencer, and Francis Galton studied characteristics of great leaders and their families.
 Universalist theories came after which explain leadership in the simplest and earliest attempts.
Two theories falling under this banner:
 Great Man/Woman Theory – leadership is based on one’s natural abilities.
This school of thought espouses that great leaders are born, not made. These individuals come into the world possessing certain characteristics and traits not found
in all people. These abilities enable them to lead while shaping the very pages of history. Under this theory, prominent leaders throughout the course of history were
born to lead and deserved to do so as a result of their natural abilities and talents.
 Trait Theory – there are specific traits, both physical and personality that are commonly found in successful leaders.
The trait theory of leadership is an early assumption that leaders are born and due to this belief, those that possess the correct qualities and traits are better suited to
leadership. This theory often identifies behavioural characteristics that are common in leaders. It is one of the first academic theories of leadership and attempts to
answer why some people are good leaders and others are not.

The following tables of leadership studies categorize the most popular theories.

Table 1.Descriptive Leadership Theories

Theories Key Ideas

McGregor Burns, 1978 True leaders uplift and inspire followers.
(Transformational Leadership) Types of Transformational leadership:
 Individualized Consideration
 Intellectual Stimulation
 Inspirational Motivation
 Idealized Influence

Heifetz, 2009 Leadership is the uneasy task of leading people and sustaining their adaptation to any
(Adaptive Leadership) type of change.
Greenleaf, 1970 Ten characteristics of a servant leader: listening, empathy, healing, awareness,
(Servant Leadership) persuasion, conceptualization, foresight, stewardship, commitment to the growth of
others, building community.
Peters, 2005 Inspire, liberate, achieve.
(Leadership Essentials)
Zaleznik, 2004 Leaders have fresh approaches to daily problems. They understand situations differently
(Leadership vs Management) and are perceived to seek out change despite risks and dangers.
Bennis, 2003 Visionary leaders “create dangerously.” An essential factor in leadership is the ability to
(Traits and Competencies) influence and organize meaning for the organization’s members.
Goleman, 2004 The resonant leader is someone who exhibits attributes of emotional and social
(Leader and EQ) intelligence. He describes four resonant leadership styles: visionary, coaching, affiliative
and democratic; and two dissonant ones: pace-setting and commanding.

This led to the development of Behavioral theories that aim to explore leadership behavior instead of focusing on inborn and given characteristics of successful leaders.
Behavioral theories highlight leadership actions and how they elicit participation from their followers.

 Concepts of initiating structure (task orientation) and consideration (relationship-orientation) were introduced.
 Behavioral theories also include style and participative theories – variations of autocratic and democratic leadership behaviors.
 Autocratic – command and control their followers
 Democratic – allow their followers some authority and freedom
 Laissez-faire – complete freedom for followers

Table 2.Prescriptive Leadership Theories

Leadership Theories Key Ideas

th
Machiavelli, 15 century To build an enduring political or social structure, one must be ready to act immorally,
(The Prince) that is use deceit or brute force methodically.
McGregor, 1960 Theory X is leadership through reward and punishment. Theory Y assumes that each
(Theory X, Theory Y) individual is self-motivated and self-managed.

Blake and Mouton, 1964 The managerial grid is a two-dimensional grid where the x-axis is concern for
(The Managerial Grid) production and y-axis is concern for people.
1. Country Club Leadership: High People Low Production
2. Produce or Perish Leadership: High Production Low People
3. Impoverished: Low Production Low People
4. Middle of the road: Medium Production Medium People
5. Team Leadership: High Production High People

Ken Blanchard, 1992 To increase productivity, job satisfaction and personal prosperity managing one’s time
(One Minute Manager) and hose of the employees is essential.
John Adair, 1973 All leadership situations require serious attention to 3 elements: the achievement of a
(Action Centered Leadership) goal or task, the group of people performing the task and each individual member of the
group performing the task.
Kouzes and Posner, 2002 Yielded the leadership practice inventory which assesses what studies have found
(Leadership Challenge) followers look for in most leaders today: challenging the process, inspiring a shared
vision, enabling others to act, modeling the way, and encouraging the heart.

Contingency theories build on their earlier proposed behavioral theories. Theories under this classification suggest that there is no single best way to lead an organization
because leading well involves the capacity to adjust one’s methods and skills to the contingent requirements of the situation and the follower.

Table 3.Contingency Leadership Theories

Prescriptive Leadership Key Ideas

Vroom, 1973 Autocratic Types I and II, Consultative Types I and II, Group-Based Type II.
(Normative Model)
Fiedler, 1964 Leader-Member relation, Task Structure, Leader’s Position-Power, Focuses on the
(Contingency Theory) leader’s task of problem solving.

Tannenbaum, 1958/1973 The leadership continuum behavior ranges from a boss-centered leadership style to a
(Leadership Continuum) subordinate-centered leadership style.

Reddin, 1983 “The 1-D theories suggest one particular style is better than another; the 2-D theories
(3D Leadership Grid) suggest that a variety of styles may be appropriate; the 3-D theory shows how and when
each style is effective.”

Hersey and Blanchard, 1969 Four types of leadership: telling/directing, selling/coaching, participating/supporting,
(Situational Leadership) delegating/observing.
Four levels of Maturity: unable and unwilling, unable and willing, able and willing but
reluctant, able and willing
LMX (Graen & Uhl-Bien, 1995) Effective leaderships depends on the interaction of a leader with his/her subordinates, as
interaction between leaders and members vary across levels in an organization.

The aforementioned theories do not exhaust all the leadership models that are in circulation. These are the ones most often cited in western articles, journals, and leadership
training programs. It must be noted that these studies were based on years of observation, experimentation, and documentation on the human and social nature or leaders and
followers.

CULTURE AND LEADERSHIP

We are witnessing the phenomenon of globalization – more workplaces now have multicultural environments.

The following surveys on leadership qualities are attempts to understand which qualities are universal and most desired by followers and which qualities are culture-
specific. Some studies attempted to identify culture-specific preferences for leadership effectiveness. Dorfman and Howell (1998), in Leadership in Western and Asian Countries:
Commonalities and Differences in Effective Leadership, studied a sample of 1,598 managers and professionals in the US, Mexico, Japan, South Korea and Taiwan. They found
that leader supportivenes, contingest rewards and charisma showed universally postiive impacts in all five countries. Contingent punishment had negative impact in all chantries.
However, being participative had positive impact only in the US and South Korean samples. Participation meant asking followers for suggestions, giving consideration to follower
inputs and modifying plans according to these follower objections. In Mexico and Taiwan, leadership directiveness is related to greater followers’ satisfaction, less role ambiguity,
and improved organizational commitment. The authors suggest that both countries had strong military history emphasizing strong central command and low individualism. In
Japan, directive leadership has no impact on follower outcomes. Rather, Japanese managers facilitate rather than command. They allow their groups to solve problems, listens to
the group’s solutions before implementation but the problem remains with the group. Overall, the study suggests that culture should be one of the situational variables that leaders
must consider. (Doofman, et al 1997)

LEADERSHIP STUDIES IN ASIA AND THE PHILIPPINES

Effective Asian leaders possessed emotional competencies. (Ateneo Center for Organization Research and Development)

Based on the frameworks of Salovey and Mayer (1990), a construct capturing “the ability to process emotional information critical to effective leadership” in the Asian
context was developed and called the Asian Institute of Management Emotional Intelligence Measure (AIM-EIM). It identified seven factors of emotional intelligence among
Asian managers:

- Self-confidence – belief in oneself and in one’s power and abilities

- Self-management – taking responsibility of one’s behavior and well-being
- Self-motivation – force that drives someone to do things
- Dynamism- the quality of being characterized by vigorous activities and progress
- Collaboration- working jointly on an activity; and
- Social consciousness- undue awareness of oneself
While intended primarily as a personal development tool, there are indications that the instrument predicts effective managerial performance, if not effective leadership.

In the same vein, Nolasco (2008) conducted a study differentiating managerial styles sof ninety Asian and Western managers working in Philippine-based multinational
companies. She affirmed that Asian managers are more collectivist and Western managers are more individualistic. She concluded that, “In a collectivist setting, a leader is not
only the boss, he or she Is supposed to act like a parent and take care of employees’ personal lives.” On the other hand, “the individualistic Western manager is more likely to rely
on formal organization contracts and relationships” (Nolasco, 2008) and to strictly maintain superior-subordinate relationship with employees. These results validate earlier studies
of Ozake (1984) which stated that “One of the fundamental differences lies in the concept of enterprise. In many Asian nations, the enterprise tends to be regarded as a community
of people, who are bound by bonds of reciprocal moral obligations and a sense of sharing a common destiny. The same is not so in Western enterprises where people are generally
considered to be bound by contracts.” Another finding Nolasco (2008) shared is that Asians may sometimes attribute performance to luck, a factor that is little recognized by
Westerners. In the end Nolasco (2008) recommended enhancing cross-cultural sensitivity between the expatriate and the host company through orientation programs and sharing
the experiences of other expatriates. Then again, the author reminds us that instead of just looking at differences, we should also highlight common values and ideals in the
workplace.

In her study of the impact of leadership among Filipino workers in 2005, Francisco validates the importance of transformational leadership and their relationship with
emloyees’ attitudinal outcomes of job satisfaction, trust in leader, organizational commitment, and organizational citizenship behavior. She concluded, “When a leader challenges,
enables, inspires, models, and encourages, he or she creates opportunities and conditions for work to serve a high sense of purpose. This elevates mundane and routine daily
activitiy into something that can satisfy higher order needs” (Francisco 2005). Beyond this she pointed out, “although the term is Western in origin, the key elements of
transformational leadership are fairly similar to the Filipino concept of gabay (guide)” (Francisco 2005). Likewise, Jocano (1999) said that “Filipino leaders are expected to behave
like guides;” they must be credible and good role models.

In the Philippines, Lanuza and Wells (2005) found that the following nine positive traits were common to Filipino business leaders:

1. Finance and business interest- the involvement of an individual or their family members in any trade or profession, along with any direct interest they may have in
any company providing goods or services.
2. Desire to lead- leaders have a strong desire to influence others. They demonstrate a willingness to take responsibility and possess the self-confidence required to
convince their team of the rightness of goals and decisions.
3. Desires challenge- a person who is willing to do things that involve danger or risk in order to achieve a goal.
4. Takes initiative- to be the first one to do something, esp. to solve a problem.
5. Wants autonomy- when a group wants to govern itself or a person wants to make independent decisions.
6. Optimistic- an optimistic person thinks the best possible thing will happen, and hopes for it even if it's not likely.
7. Enthusiastic- having or showing intense and eager enjoyment, interest, or approval.
8. Authoritative- able to be trusted as being accurate or true; and
9. Ability to think creatively and experimentally- means looking at something in a new way. It is the very definition of “thinking outside the box.
Using the lens of Implicit Leadership Theory, Ellamil (2011) surveyed 1,141 Filipino employees’ to describe their ideal boss and yielded related conclusions. Being
“makatao (concerned with people), may kakayahang mamuno (competent to lead partnered with mentoring skills) and hindi mayabang o arogante (humble leader)” came out as
their top desired virtues.

Leadership theories attempt to be as universal as possible. In some cases there are differences in terminology but there are more commonalities than we think. Years of
leadership sstudies point to the conclusion that the leadership effectiveness ultimately means the leader’s ability or skill to elicit the best from followers, to motivate them, and to
work within the contingencies of the employees’ varying situations and the tasks at hand. Increasingly, workplaces are becoming multicultural, multiracial, and multigenerational.
The Internet and social media are slowly overcoming traditional barriers–even religious and political differences and physical disabilities. Thus, inclusive and culture-transcending
leadership theories are needed. As Hechanova et al. put it, leaders must be able to “evolve their leadership styles, provide opportunities for development, and ensure good job-
employee fit” (Hechanova, Franco and Alampay 2008).

FAMILY ORIENTATION IN ASIAN ORGANIZATIONS: A LEADER'S CHALLENGE

 Family owned and family run enterprises dominate the business landscape in the Philippines and most of Asia. Thus, in the practice of leadership, Asian leaders include
habit and familiarity, familial ways of eliciting desired behavior or of sanctioning behavioral detrimental to the company.
 Likewise, professionals who intend to work as managers in the family corporation must recognize that positions of leadership in the company may not entirely be based on
job performance or technical ability but also earning the owner-family’s trust.

“The best Asian managers have integrated the essence of kinship and family centeredness into the culture of their organizations. They demand loyalty, obedience, respect,
trust and diligence.” –Mendoza (2008)

 In another chapter, Mendoza gave the example of Sony’s Akio Morita, who agrees with the need to appeal to family values in motivating Asian workers:

“I agree with Morita that it is not goods alone that bring about efficiency. Making the Asians work hard, work conscientiously, work efficiently and effectively will require
sharing with him the manager’s visions and aspirations. In short it will require bringing him into the family. Make the Asian feel that he belongs, that he is family and you
can make him do anything, achieve everything.” –Mendoza (2008)

 In the Philippine culture, Jocano (2001) Observed that family honor comes first before individual honor.
 Successful companies in the Philippines appear to have embodied in their management styles the principles of the family system.
 The corporation is managed like one big family.
 In China, leaders have to work through a similar but rather more extended sphere of relationships called the guan xi, which is the membership to a social network that is
bound by reciprocity.
  The larger one’s sphere is, the stronger the leader is.
 In Asia, family system is not impenetrable.
- Workers who are non-family members at treated with respect as family members.
- If there is mutual respect, discipline, and clear delineation of roles and responsibilities, the positive outcomes far outweigh the negative.

LEADING FAMILY CORPORATIONS

- Many family corporations rely on implicit rules and perceptions and often avoid the uncomfortable step of confronting issues and documenting the consensus derived
from family discussions.
- Asian Institute of Management (AIM) observed that families who take time to sort through these sensitive issues together become more comfortable and begin to take
more pride in belonging to the corporation (AIM FAMCOR GROUP 2002 AND 2007).

-Estate Planning

-Risk Management

-Succession
OWNERSHIP
STRUCTURE -Professionalization
-Individuation
-Corporate Culture
-Power
-Boards and Governance
-Family Theories
-Management of Transitions
BUSINESS
-Conflict Management FAMILY DYNAMICS
STRATEGY
LEADERSHIP IN NON- PROFIT ORGANIZATION

A nonprofit organization is a business that has been granted tax-exempt status by the Internal Revenue Service (IRS) because it furthers a social cause and provides a public
benefit. Donations made to a nonprofit organization are typically tax-deductible to individuals and businesses that make them, and the nonprofit itself pays no tax on the received
donations or on any other money earned through fundraising activities (Kenton, 2019).

Non- profit organization such as the government, development organizations, parish- based organization, school clubs, parent- teacher association, industry association, or
social enterprises requires specific leadership skills. It is difficult to measure the leadership effectiveness in these cases. What is certain is that vision is the key to leadership for
non- profit organization.

“There is no more powerful engine driving organization towards excellence and long- range success than an attractive, worthwhile, achievable vision for the future, widely
shared.” (Nanus, 1992)

Not all non- profit organizations have the luxury and facility to use common tools or reward and motivation such as financial success or intellectual reward, often they rely
solely on the empathy of their followers, their identification with organizational vision, and their sense of urgency in solving problems. As seen on religious leaders like Mother
Teresa of Calcutta and World leaders like Nelson Mandela of South, leaders may have little resources to offer but they are willing to sacrifice their own lives.

LEADERSHIP IN TIMES OF CHANGE

Leadership of change has tended to generate behaviors according to research of Marcus and Pringle, “Change mastery, managing resistance, appetite to learn, and influence
without authority.”

8 steps to leading change (Kotter, 1996):

1. Create Urgency means communicating to an individual or team that is imperative to act promptly, decisive, and without delay.
2. Form a powerful coalition of powerful, enthusiastic, team of volunteers from across an organization. An effective team is comprised of individuals from across the
organization that brings unique skills, experiences, perspectives, and networks to the table.
3. Create a vision for change. For change to happen, it helps if the whole company really wants it. Develop a sense of urgency around the need for change.
4. Communicate the vision. A vision has be shared in order to do what is meant to do, which is to inspire, clarify, and focus on the work.
5. Remove obstacles. There is an obstacle standing between the company and success. If someone cannot overcome the obstacle, you will never have what you desire.
 6. Create short- term wins. A short-term win is an organizational improvement that can be implemented in months. It is a significant organizational improvement.
7. Build on the change. The “powerful coalition” needs to work as a team, continuing to build momentum around the need for change.
8. Anchor the changes in corporate culture. To anchor change in the culture, the change effort itself must have brought positive results to the organization.

Instructor-led Training (ILT) Studies- reveal differences in follower’s schema, they might also have separate set of schema for leadership of organizational change.

Implicit Change Leadership Theory (ICLT)- focuses on schemas of change leaders.

Table 4. Implicit Change Leadership Schema

Factors Competencies and Characteristics

Strategic and Technical Pro- active Innovative & Creative

Open minded Analytical
Strategic Visionary Knowledgeable

Execution Decisive Action/result oriented

Inspiring Drives execution and accountability
Persuasive Hardworking
Strong-willed Not a micro- manager
Effective coach/mentor

Social Suportive People-oriented

 Emphathetic Effective communicator
Participatory Shows trust in people
Approachable Not bossy

Character Honest Credible/Respected

Lead by example

Resilience Positive Composed under pressure

Optimistic Not emotional or sensitive
Adaptable
Flexible

Strategic and Technical Competencies these are the key to a leader’s effectiveness in adapting organization’s work and the action of its employees to the changing needs of its
environment . (Ford, 2005)

Execution means positively associated with job satisfaction and organizational commitment, underlining the critical connection between strategy and execution. (Cole, Harris, &
Bernadeth, 2006)

Social Competencies includes broad array of skills for social processes: communicating, building trust, practicing empathy, giving support, or just by a simple act of being
approachable.

Resilience

- It does not appear on ILTs but emerged on ICLT.

- It is manifested by a leader’s ability to remain, positive, adaptable, composed, and not emotional under pressure. (Magsaysay & Hechanova, 2017)