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CFMD, DE&M
Misgana A.
 Module Title
2

Leadership theories
and practices

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 Chapter 1
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Nature and meaning

of leadership

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 Contents
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 Defining leadership

 Differences between management & leadership

 Sources of leadership power

 Framework for understanding leadership

 Purpose of leadership

 The roles of a leader

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 1.1.What is Leadership?
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 “…is influence-nothing more, nothing less.” (Maxwell).

 “… is the ability to influence people towards the accomplishment of goals.”
(Chandan)
 “…the ability of a superior to influence the behavior of a subordinates or
group & persuade them to follow a particular course of action.” (Chester
Bernard)
 “…the art of influencing & directing people in such a way that will win their
obedience, confidence, respect & loyal cooperation in achieving common
objectives.” (U.S. Air force) 12/8/2019
 What is Leadership ...
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 “… is speaking, listening & acting in a way that mobilizes self &

others to take effective action to realize vision, possibilities &
dreams.” (Friedman)

 “The superior leader gets things done with very little motion. He/she
imparts instruction not through many words but through a few deeds.
He keeps informed about everything but interferes hardly at all. He is
a catalyst.” (Lao Tse, Tao TeChing)
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 What is Leadership …
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 among all the definitions of they may not otherwise do.

leadership three images stand out-  those people who improve the

 people, lives of affiliated individuals &

organizations.
 Influence, and  the people who create, grow,
& transform organizations.
 Goals
 persons whose acts affect
 Who is a Leader? other people more than other
 someone who people chose to people’s acts affect them.
follow: nothing more nothing less.  agents of change

 influences others to do things that

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 What is Leadership …
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Influence: How to Influence?

 the ability to affect the perceptions,  By:
beliefs, attitudes, motivation, and/or  having the right intention
behavior of others.  valuing your followers
 the ability to persuade, convince, or
 being exemplary
impact others to get them to go along
with or support your agenda.  walk the talk
 is about grabbing someone’s attention
 Beliefs & actions line up
& passing on something they want to  Be few steps ahead
hear.  Live your message

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 What is Leadership …
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 Leadership is one of the organizational tools that makes d/ce b/n

 success & failure;

 stability & crisis,

 survival & bankruptcy; and so on.

 …is meaningless without its connection to common purposes & collective

needs.

 Organizations today require extraordinary leadership.

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 1.2. Key Elements of Leadership Definition
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 Some of the most common elements that appear in the leadership definitions are:
 Influencing
 Motivating & inspiring
 Helping others realize their potentials
 Leading by example & selflessness
 Making a difference
 Others
 key elements of leadership are leader, follower, common goal/objective &
situations. 12/8/2019
What do you know about them?
• Martin Luther, Teresa, Abraham Lincoln, Gandhi, George Washington, MandelaExemplary
11Leaders.docx

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 Why leadership is important?
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 Organization to survive, have to meet the needs of a rapidly changing world.

 The difference b/n chaos & a smoothly functioning organization is leadership.
 Leadership:
 is the most critical ingredient.
 is the cause for success or failure
 You can buy

 people’s time;
 their physical presence at a given place;
 even a measured number of their skilled muscular motions per hour.
 But you cannot buy

 the devotion of their hearts, minds, or souls.

 You must earn these through your leading skill.
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 Why leadership is important…
The importance of leadership in an organization
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 Initiates action way they have to perform.

o Leader is a person who starts the work  Creating confidence- expressing the work
by communicating the policies and plans. efforts
 Motivating others  Building morale- morale booster by
o with economic & non-economic rewards. achieving full cooperation
 Providing guidance  Creates/ builds conducive work
o A leader has to not only supervise but environment- efficient work environment
also play a guiding role for the  Coordination-reconciling personal interests
subordinates. with organizational goals.
o means instructing the subordinates the
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 1.3. Leadership Vs Management
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 1.3. Leadership Vs…
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 1.3. Leadership Vs…
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Point of comparison
Management Leadership
Planning & budgeting- Establishing direction-developing a vision of
What each the future,
Does? Organizing & staffing- Aligning people- communicating the
direction
How each Does? Controlling & problem solving- Motivating & inspiring-
Outcomes Produce a degree of predictability Produces change, often to a dramatic
& order, & has potential of degree, & has the potential of
consistently producing key results producing extremely useful change
expected by stakeholders (e.g., (e.g., new products that customers
being on budget, etc.) want, new approaches to staff r/ns
that help the organization to
develop).
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 1.3. Leadership Vs…
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The Manager The Leader

1. Administers 1. Innovates
2. Is a copy 2. Is an original
3. Maintains 3. Develops
4. Focuses on systems 4. Focuses on people
5. Relies on control 5. Inspires trust
6. Short range view 6. Long range view
7. Asks how and when 7. Asks what and why
8. Eye on the bottom line 8. Eye on the horizon
9. Imitates 9. Originates
10. Accepts the status quo 10. Challenges/changes the status quo
11. Obeys orders without question 11. Obeys when appropriate but thinks
12. Does things right 12. Does the right things
13. Operates within the culture 13. Creates the culture 12/8/2019
 1.3. Leadership Vs…
Manager Leader
 Drives others  Coaches others
 Inspires fear  Inspires enthusiasm
 Blames others  Helps to fix it
 Says ‘I’  Says ‘We’
 Knows how it is done  Shows how it is done
 Depends on authority  Depends on goodwill/friendship
 Uses people  Develops people
 Takes credit  Gives credit
 Commands  Asks
 Says ‘go !’  Says ‘Let us go !’
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 1.3. Leadership Vs…
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 1.3. Leadership Vs…
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 1.3. Leadership Vs…
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 1.3. Leadership Vs…
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 Organizations need both strong leadership & strong

management for optimal effectiveness.

 Both terms, leadership & management,

 are used interchangeably in the workplace, but in theory they
are two different concepts.
 are closely related but distinguishable functions.
 One cannot be effective irrespective of the other.
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 1.3. Leadership Vs…
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 Note that
 For much of the 20th century, good management has often been enough
to keep organizations successful,
 but in the changing business environment of the 21st century,
organizations can no longer rely on traditional management practices
only to remain successful.
 Good leadership is a critical success factor for organizations to remain
successful.
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 1.3. Leadership Vs…
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 In the context of Ethiopia,

 the government considers that

 efficient, responsive, transparent & accountable public service is

central for sustainable growth & development of the nation.
 This is possible through transformational / effective leaders
 who are capable of leading the change to ensure poverty
reduction, sustainable development & good governance
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 1.4 Sources of (Leadership) Power
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1) Position Power
 Coercive power –ability to influence punishment
 Reward power- control over tangible benefits such as pay raise,
promotion, better work schedule, …
 Information power –having access to needed information before it
becomes general knowledge
2) Personal power
 Expert power –derived from special knowledge and/or skill
 Referent power –personal charisma, respect, trust, emotional
involvement, integrity and reputation

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 1.5. Framework for Understanding Leadership Effectiveness
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L= f (l, gm, s)
Where:
L=Leadership
l=leader
gm=group member
s=other situational variable
 The formula means that the leadership process is composed of a
function of several elements such as the leader, group members (or
followers), & other situational variables.
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 1.5. Framework for …
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Leader
characteristics
and traits
Leadership
Effectiveness
Internal and Leader
external behaviour
environmen and style
t
Group member
characteristics

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 1.6. Purpose of Leadership
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 Changing the status-quo is the purpose of leadership.

 leadership has visioning as its major purpose
 Visioning is the presentation of an alternative future to the

status-quo.
 A leader must establish purpose, the direction or the
strategy s/he stands for, the reason why others should
follow her/him
 Leaders motivate their followers by clear description of what can
be achieved.
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 1.7. The Roles of a Leader
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Leadership activities Associated roles

 Interpersonal roles - arising from formal authority & status o Figurehead

o Liaison
and supporting the information and decision activities. o Leader

o Monitor
 Information processing roles o Disseminator
o Spokesman
o Improver/changer
o Disturbance handler
 Decision roles: making significant decisions o Resource allocator
Negotiator
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 The Roles of a Leader …
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 On the other hand leaders have the following important roles in

an organization
Create an Inspiring Vision and Lead by Example
Empower, Inspire, and Energize People
Build and Lead a Team

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 1.8. Ethics in leadership
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 Ethics is the heart of leadership; indeed, ethics & leadership should go

hand in hand.
1. Inspiring Others to Be Ethical
2. Are Always on Stage
3. Communicating with Care
4. Admitting Mistakes
5. Inspiring Ethical Team Work
6. Running an Ethical Operation
7. Have Guiding Principles
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