Leadership:Understanding its Global Impact

Chapter 5:Theories of leadership

Learning objectives

• Explain the development of leadership theory

• Identify and explain the significant theories and models of leadership

• Understand how leadership theory assists leaders to explain their relationships with their followers

• Develop and critique your own personal theory of leadership

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Chapter contents

• Introduction• Spotlight: Heather Ridout, Ai Group• The development of leadership theory• Leader in action: Ian Darling• Specific leadership theories and

models• Summary• Case study: Kevin Rudd

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Spotlight: Heather Ridout

Heather was named in the AFR BOSS Magazine twenty ‘true leaders’ in 2008, not just because of her leadership of the Ai Group but because of the perception that she embodies two of the qualities seen as critical for leaders in the current global environment—namely, ethics and integrity.

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• Theories and models– a ‘theory’ is a structure designed to

explain a set of observations; explain why things happen.

– a ‘model’ can be interpreted to mean a representation designed to show the main workings of a concept; attempt to be predictive.

Introduction

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Four distinct approaches to explain leadership theory:1. Trait approach

– Kirkpatrick & Locke 1991 traits list

2. Behavioural approach– task-centred behaviour– people-centred behaviour– Leadership Grid– Likert’s systems model

The development of leadership theory

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3. Situational/contingency approach– situational factors – least preferred co-worker model

(Fiedler’s contingency theory)– the path–goal theory– situational leadership theory– leader substitutes theory– normative decision-making model– cognitive resource theory

The development of leadership theory

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4. Integrative approach– charismatic leadership (see chapter 6)– transformational leadership (see chapter 6– servant leadership and similar theories– shared leadership and distributive

leadership– adaptive leadership (see chapter 11)– global leadership– worldly leadership

The development of leadership theory

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• Embodies the contemporary theories of leadership and in particular the ‘worldly’ theory

• His leadership style, vision and values demonstrate that leaders of large organisations can not only attend to profit maximisation and shareholders return but can wear many hats, paying attention to higher order societal priorities or issues that relate to the common good

Leader in action: Ian Darling

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• Blake & Mouton 1964

• Two fundamental concerns (people and results) manifest seven distinct styles of relating

• By studying each style … leaders can examine how behaviours help or hurt bottom line results

• Most effective style for most situations = team management style (9,9)

The Leadership Grid

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• Likert 1967

• Same basic factors of concern for production and people

• Devised a four-level model of leader effectiveness

• Three classes of variables:– Causal variables

– Intervening variables

– End-result variables

Likert’s systems model

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Likert’s systems of leadership

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Leadership variable System 1

Autocratic

System 2

Benevolent

System 3

Participative

System 4

Democratic

Confidence and trust in work team members

Shows no confidence and no trust in team

members

Demonstrates confidence and trust

but as master to servant

Demonstrates confidence and trust; still keeps control of

decisions

Demonstrates confidence and trust in

all actions towards team members

Work team members feeling of freedom

Team members do not feel at all free to

discuss things about the job with manager

Team members not comfortable about discussing things about the job with

manager

Team members feel free to discuss things

about the job with manager

Team members feel free to discuss job/job

problems with manager

Leader seeking involvement with team

members

Does not seek ideas and opinions of team

members in solving job problems

Sometimes gets job problem-solving ideas from team members

Solicits and uses ideas from team members to

help solve job problems

Team members are consulted for ideas and

opinions and on how problems are best

solved

• Fiedler 1967• Situational theory• Least-preferred co-worker (LPC) scale• Situational favourability:

– Leader-member relations– Task structure– Position power

• Task-centred and people-centred styles may be successful if applied in the correct situation

Least preferred co-worker model(Fiedler’s contingency model)

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The least preferred co-worker model

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• House & Mitchell 1974

• Attempts to identify how and why different types of rewards and different leadership styles affect:– motivation– performance and satisfaction

• Suggests leaders may utilise various styles in different situations (4 styles)

• Style preference is dependent on: team-member characteristics & environmental forces

The path-goal model

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Path-goal model

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• Hersey & Blanchard 1969‘Life Cycle’ theory – maturity

• Hersey’s Situational Leadership model 1980

• Blanchard 1990’s Situational Leadership 11 (SL11)

• Leaders need to assess the ‘readiness’ of the team members and vary their leadership style in various phases

Situational leadership theory

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Situational leadership theory

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• Kerr & Jermier 1978

• Situational variables prevent leaders from influencing team-member attitudes & behaviour

• substitutes and neutralisers

Leader substitutes theory

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• Victor Vroom & Philip Yetton 1973

• Decision model

• Five leadership styles

• Attempts to bridge the gap between theory and practice

Normative decision-making model

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• Fiedler 1986 and Fiedler & Garcia 1987

• Relates group performance to the intelligence and experience of the leader

• Theory makes five predictions

Cognitive resources theory

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• Robert K Greenleaf 1970

• Leaders are not in their positions to be served, but to serve their followers

• Impact of who we are being

• Identified 10 critical characteristics of the servant leader

Servant leadership & similar

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• If power is shared it is increased

• Leader’s role is to distribute leadership

• Create a culture of accountability

• Five requirements for the shared leadership model to work

Shared leadership & distributive leadership

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• Emerged in the early 1990s

• Advent of international org’s

• How leadership occurred across other cultures and in multinational organisations

• Contested term

Global leadership

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• Global explorer modelBlack, Morrison & Gregersen 1999

• Global literacies modelRosen, Digh, Singer &Philips 2000

• Pyramid modelBird &Osland 2004; Osland 2008

• Global executive leadership inventoryKets de Vries, Vrignaud, and Florent-Treacy 2004

Global leadership models

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• Gosling & Mintzberg 2003

• Shift from a global to a worldly mindset

• Local consequences are a key indicator of performance

• Three key elements

Worldly leadership

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• Leaders need to have the ability to diagnose the situation … and to appreciate the impact of the variables at play

• Relationships with the people you lead are significant in all situations

• Being able to change style depends on:– Intensity of existing style

– Strength of value system

– Pressure situations

– Time

Summary

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• Having read in the case study the application of each leadership theory to Mr Rudd, apply each theory to yourself. Which of the theories, if any, seem to apply to your leadership? How can this (or other theories) assist you in developing your leadership capacity?

• What factors might lead to the conclusion that leadership theory often looks very different from leadership in practice?

• Given what you have read and know about the leadership style of Mr Rudd, make your own assessment of his effectiveness as a leader. What can you learn from his leadership strengths and weaknesses?

Case study: Kevin Rudd

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