Unit 1.9 - Leadership and Management Theories

Question 1

What are the three
leadership theories + their
branch theories?

Answer 1

1. Traits - people used to think leaders are born that way
2. Behaviors
   * Authoritarian - gives direction, manages tasks and employees; leads by example
   * Demographic - focuses on collaboration, group-problem solving
   * Laissez-faire - allows direct reports to make their own decisions

These two factors form a matrix called the Leadership Grid:
- Concern for production
- Concern for people

3. Situational/Contingency - The best leadership style depends on situational variables; 4 situational theories of leadership:

• Maturity - leaders should vary their approach based on the maturity of their team; the more mature a team is, the more empowering a leader should be
• Contingency - Fiedler’s Contingency Theory of Leadership leaders effectiveness is based on the situation; the most appropriate leadership style should be based on if the employee/manager relationship is good or poor, whether the task is structured or unstructured, and whether the power position of the leader is strong or weak
• when the variables create an extremely favorable situation (good relationships, structured tasks, strong power) or unfavorable situation, the best style is task-oriented (low LPC); when there are intermediate levels of favorability, focus should be interpersonal relationships (high LPC)

LPC = least-preferred coworker scale

*Path-goal - effective leaders must clarify the goal paths and increase goal-attractiveness for followers; 4 distinct styles - directive, supportive, achievement-oriented, and participative; the correct style depends on the characteristics of follower and the characteristics of environment; 3 follower characteristics are locus of control, authoritarianism, and personal abilities. Environmental factors include nature of the task, authority system within the organization, and the group norms and dynamics

• Decision making - normative decision making model; styles include autocratic, consultative, and group. Based on questions such as whether the decision produces a controversial solution, whether the followers will accept a decision they didn’t make

Question 2

What’s the difference between transformational and transactional leaders?

Answer 2

Transformative Leader:
* Works to build behaviors aligned with mission, objectives, and strategies
* Empowers employees
* Charismatic
* Encourages learning and development
* Acts as inspiration and mentor

Transactional Leader:
* Manages transactions between the org and its members
* Takes care of business
* Relies on contingent rewards (ex. pay increases, promotions)
* Applies positive consequences (or corrective action where necessary)
* Thrives on structured with work flows and defined objectives

Question 3

Recommend the most
appropriate leadership style for
any given organizational structure
as described by Tennenbaum &
Schmidt

Answer 3

There are 7 different leadership styles

Highly autocratic on one end; highly participative on the other

1. Leader makes a decision and announces it
2. Leader “sells” the decision
3. Leader presents ideas and invites questions
4. Leader presents a tentative subject to change
5. Leader presents a problem, gets suggestions, and makes decisions
6. Leader defines limits for the decision and asks group to make decision
7. Leader permits subordinates to make decision, joins group as equal member

Appropriate leadership style is determined by forces in the managers (ex. value system, if they value participation from subordinates), forces in the subordinates (ex. whether they have a high need for independence, the right experience, etc.), and forces in the situation (ex. org culture, group cohesiveness, the problem itself)

Question 4

What are the competencies associated with emotional intelligence?

Answer 4

It is the capacity to be aware of, control, and express one’s emotions, and to handle interpersonal relationships judiciously and empathetically.

Goleman developed a 4 square model*:

1. Self recognition
   - self-confidence, accurate self-assessment, being aware of emotions
2. Self regulation
   - trustworthiness, adaptability, achievement, self-control
3. Social recognition
   - empathy, organizational awareness, service orientation
4. Social regulation
   - influence, inspirational leadership, teamwork, building bonds

Question 5

What are the popular methods for increasing leadership effectiveness?

Answer 5

1. Leadership training
2. Managerial selection & placement
3. Organizational engineering - organizations should engineer the job to fit the manager
4. Rewarding leader behavior