MODULE CODE: BUS020C430Y

MODULE TITLE: People and Organisations

Week 14 – Leadership
 MODULE CODE: BUS020C430Y
 MODULE TITLE: People and Organisations
 CORE TEXTBOOK: Buchanan, D. and Huczynski, A. (2007) Organizational
Behaviour, 6th edition. Essex: Pearson Education.
 MODULE TUTORS:
Name Email
Miral Metawie [email protected]
Diane Garside [email protected]
Joyce Jiang [email protected]
Learning outcomes
 Define leadership and contrast leadership and management.
 Discuss early approaches to leadership and assess their applicability to
today’s world.
 Examine different leadership styles.
 Identify the sources of a leader’s power and understand the role of
followers in creating and supporting leaders.
 Assess contingency theories of leadership by their level of support.
 Compare and contrast charismatic and transformational leadership.
 Address challenges to the effectiveness of leadership.
A Sister Act: success story for Claire’s
Stores Inc.
1. Unplanned CEO position in 2002
2. Business was $1.3 billion retailer
3. Maintained a shared vision
4. Avoided conflict
5. Delegated authority to managers
6. Business profit increase
7. First two years of their tenure, profits nearly doubled, to $143
million.
Setting the Stage: The Importance of Leadership
Setting the Stage: The Importance of Leadership

• Leaders can and do change society (e.g. Ghandi; Margaret

Thatcher; Nelson Mandela).
• Leadership theory is critical for our understanding of the role
individuals can play in shaping society and its organisations.
• One of the key defining elements of good leadership is taking
people through successful change (e.g. Nelson Mandela).
• From an organisational point of view: leadership has a power
to influence individuals’ behaviours.
Leadership

“Leadership is the process of influencing the activities of

an organised group in its efforts toward goal-setting and
goal achievement” (Huczynski and Buchanan, 2007: 695)
Quiz: Whose Words?
“You must be the change you wish to see
in the world”……
“Peace is much more precious than a
piece of land... let there be no more
wars”…..
“Darkness can not drive out darkness;
only light can do that. Hate cannot drive
out hate; only love can do that”….
“ Design is not just what it looks like and
feels like. Design is how it works”…..
 Leadership vs. management
What is the difference between a manager and a leader?
Managers Leadership
 Administers  Innovates
 Maintains  Develops
 Focuses on systems and structure  Focuses on people
 Relies on control  Inspires trust
 Keeps an eye on bottom line  Has an eye on the horizon
 Does things right  Does the right thing

Management provides order & consistency Leadership produces change &

movement
Two people who influenced millions by their leadership were:


Did they have a lot in

common???
Leadership approaches we will cover today

Qualities or Trait Approach

Functional Approach

Leadership as behavioural category

Styles of Leadership

Situational approach and contingency models

Transactional vs. Transformational Leadership

 Qualities or Trait Approach
 Assumes leaders are “born and not made”
 Leadership consists of inherited
characteristics/personality traits.
 Thus focus is on the person holding the
job and not the job itself.
 Physical and psychological
characteristics of an effective leader
include:

 Basic intelligence
 Clear and strong values
Great man theory: a historical perspective which argues that the fate of
societies, and organisations, is in the hands of powerful, idiosyncratic
(male) individuals. It focused on political figures. Great men are born
leaders and emerge to take power, regardless of social, organisational or
historical context.
 Prominent traits (Stogdill, 1948, 1974):

 Strong drive for responsibility

 Focus on completing tasks

 Self-confidence

 Ability to influence the behaviour of others

Qualities or Traits approach

 Limitations :

 Subjective judgement of who is good and successful, can lead

to unhelpful stereotyping and gender bias

 Lists of possible traits are very long and there is often no
agreement.
 The role of training and development have been undermined.

 Latest research shows that the successful leaders don’t

 Functional Approach
 Focuses on:
 Function and responsibilities of leadership.

 What the leader does and nature of the group.

 How the leader’s behaviour affects and is affected by the group of

followers.
 Thus, focus is on the content of leadership.

 Assumes leadership skills can be learnt.

 Attention given to leader’s training based on the functions
affected by their behaviour.
Action Centred leadership
 Focus on what leader’s actually do. Based on functional theory.
 Effectiveness of leader depends on meeting three areas of needs in
a group.
 Leadership as behavioural category
 Focus on kinds of behaviour of people in leadership positions
and the influence on group performance.
 Draws attention to range of possible managerial behaviour and
importance of leadership style.
 Two researches conducted in this category are:
 Ohio State Leadership Studies
 University of Michigan Institute for Social Research
Two researches conducted in this category are:
• Ohio State Leadership Studies
• University of Michigan Institute for Social Research

• Initiating structure
Ohio • Consideration

• Employee-oriented
Michigan • Production-oriented
Ohio state leadership theory predictions

Initiating structure
High Low

 High performance  Low performance

High  Few grievances  Few grievances

 Low turnover  Low turnover

Consideration  High performance  Low performance

Low  Many grievances  Many grievances

 High turnover  High turnover
 Styles of Leadership
 Leadership style is the way in which the functions of leadership
are carried out, the way in which the manager typically behaves
towards members of the group
 Broad classification of leadership style
 Authoritarian
 Democratic
 Laissez faire
Continuum of leadership behaviour
 Dissatisfaction with the ‘one best way’ approach.
 Context fitting by Tannenbaum and Schmidt.
 Proposed a continuum of possible leadership behaviour.
 Continuum presents the range of authority used by the manager and the
freedom available to non managers in arriving at decisions.
 Moving along the continuum the manager is characterised according to the
degree of control that is maintained.
 The four main styles are:
 Tells, Sells, Consults, Joins
 The Tannenbaum-Schmidt continuum of leadership behaviour

Subordinate centred leadership

Boss centred leadership

Use of authority by the manager

Area of freedom for subordinates

Manager Manager Manager Manager Manager permits

makes ‘sells’ presents defines limits subordinates to
decisions and decisions ideas and and asks group function within
announces it invites to make limits defined by
questions decision superior
Continuum of leadership behaviour
 The choice of style is based on:
 Manager
 Subordinates
 Situations
 Can you think of what are the various forces under each of
these?
Various forces are:
 Forces in situations:
 Forces in the manager:
 Type of Organization
 Value Systems
 Group effectiveness
 Confidence in subordinates
 Nature of problem
 Leadership inclinations
 Pressure of time
 Feelings of security in an
uncertain situation
Various forces are:
 Forces in subordinates
 Strength of need for independence
 Readiness to assume responsibility for decision making
 Degree of tolerance for ambiguity
 Interest in the problem and feelings as to its importance
 Understanding and identification with the organizational goals
 Necessary knowledge and experience to deal with the problem
 Extent of learning to expect to share in decision making
 References
 Huczynski, A. and Buchanan, D. (2007). Organizational Behaviour, 6th
edition. Essex: Pearson Education.
 Fineman, S., Sims, D. and Gabriel, Y. (2005). Organizing and
Organizations, 3rd edition. London: Sage Publications.
 Mullins, L. J. (2007). Management and Organisational Behaviour.
Harlow: Financial Times Prentice Hall.
Discussion and Questions
Next week
 Before coming to the seminar please read the article:

“Rethinking a Glass Ceiling in the Hospitality

Industry”. If you are not prepared you may be
asked to leave the seminar.
 We continue to explore different leadership approaches with a
focus on contingency approach and transactional and
transformational leadership.