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SCHOOL OF BUSINESS ADMINISTRATION

UNIVERSITY OF TECHNOLOGY, JAMAICA
ACADEMIC YEAR 2019/20 – Semester 2
MODULE: OB MAN2005
Lecturer: Prince Oswy Gayle
NB. (THIS HAND-OUT IS A STARTING POINT – YOU MUST READ YOUR TEXT)

Lecture Topic: Leadership in Organizations ~Lecture 10

On a scale of 1 – 10 (1 = poor; 10= excellent) how would you rank the following persons on their leadership
abilities?
1. President Obama………………………… 4. Steve Jobs...............................7. Warren Buffet .....................
2. President Bush ………………………. 5. Yourself ................................. 8. Senator Hilary Clinton
3. The Honourable Bruce Golding……………… 6. Donald Trump .......................
1.0 Introduction, Context and Leaders Effect on Behaviour
Leader Issues/Characteristics Effect on Behaviour
Dr. M  Does not know what is happening in the organization  Created an unethical environment;
 He is unethical some people say  The culture became negative;
 Expansion, expansion without the resource to sustain it  Productivity was high for some
 Everything will be ok  He motivates the proactive personality types
 Job satisfaction was mainly low
Miss A  Hates the male staff; always in argument with the male staff  People did not respect her; Employees zoned her out
 Leaves notes on your desk “work begins at 8:00a.m  At the retirement send-off party, one staff clapped
 Does not take staff suggestions so loudly that it disturbed the peace ; Productive
was moderate; Job satisfaction was moderate
 You were not allowed to use your creativity
Dr. A  She is brilliant; she has excellent linkages internally and externally  Productivity was generally moderate; Low Team
 She will find a way out of anything positively speaking; very morale in some quarters
proactive; gets the job done; action oriented  People simply played along with the leader
 Knows how to get things done; Challenges the staff  Was not respected by some; She challenged the
 Driven by Power – some say proactive personality types
 Will use your academic work without your permission –some say  Will get to know you if you are perceived as bright
 It will be her way most of the time –some say  Achievement oriented so much growth took place
 Very deceitful –some say  Does not show overt favoritism

Examples – Nationally – GDP; Stock Prices; Poverty Levels;

2.0 What is Leadership? –The………….. to …………….. people towards a common goal, vision, mission or set of goals.
These are the same goals we spoke about a few weeks ago.

Leadership is the act or process of creating an environment whereby one influences the minds,
hearts and behaviours of a group of people to achieve goals that transcend their normal
performance or at beast what they dreamt of, whether by force or inspiration (Oswy Gayle, 2013).

Nature of leadership - This influence arises inside and outside of the________structures of the organization.
The latter is sometimes even more important than the formal structures. The point is that very influential
people can get people moving towards a common goal and achieve results that they have never seen before.
Therefore, it is said that;
o Leadership is _____________, occurring among people.
o Leadership is a ___________ activity, distinct from administrative paper shuffling or problem-
solving activities
o Leadership is ____________ and involves the use of power

1.1 What is power? The capacity one has over another in terms of influencing behaviour which leads to
fulfilling a wish
What is the role of Power? Used as means to achieve a goal; for compliance; upward and lateral
influence
1.2 Types of Power – Formal Power ~ legitimate; coercive; reward & Personal Power~ expert power;
referent
1.3 Leadership is about coping with _________, promoting vision and creativity. In other words, Leaders
“take you to a new place.” Here we are talking about new products, services, employees,
innovation etc to the organization that have never seen before. This is both important on a
country level as well as from an organizational perspective.

1.4 Leadership Qualities – (SOUL) – Visionary; Passionate; Creative; Flexible; Inspiring; Innovative
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2.0 Management vs leadership - These are two terms that are often misunderstood.

2.1 WHAT IS MANAGEMENT? The process of tying the organisation together through the four functions of
planning, leading, organizing and controlling. It is about dealing with complexities; bringing about order
and consistency; Promoting stability and problem solving within existing organizational structures and
systems as well as dealing with the changing environment and globalization. In other words, managers
“take care of where you are or keep the system running.” What we are saying here is that
managers ensure or should ensure the sustainability of the company by consistently scanning
the environment and deal with its problems (change) in the context of the vision that was set.

2.2 Not because a manager has legitimate responsibility, authority, power or a BBA degree from Utech
means he/she will be able to influence people towards a common goal, thus, achieving higher
productivity etc. Thus, organizations would do well with someone who possesses excellent leadership
and managerial skills.

2.3 Managerial Qualities – (MIND) – Rational; Problem solving; Analytical; Structured; Deliberate

3.0 Leadership Traits (Traits consider personal qualities and characteristics to differentiate leaders
 For example, President Barack Obama, Portia Simpson- Miller, Edwards Seaga; Bruce Golding; Neslon Mandela and
Margaret Thatcher all have certain key personal traits that we think of every time we hear of them in a leadership context.
3.1 Personal Characteristics of Leaders

1. Physical ~ energy; physical stamina 2. Personality ~ Self-confidence; trust worthiness; emotional intelligence
3. Social – sociability; interpersonal; cooperativeness; tact; diplomacy 4. Cognitive – technical and professional
competencies

4.0 Behavioural Theories

4.0 proposing that specific behaviors differentiate leaders from non-leaders (compared leadership behaviours)

4.1 Behavioural Approach – (Ohio Studies) 1940’s (1)

Initiating structures – task-orientated behaviour – (The extent to which a leader is likely to define and structure his or her
role and those of his/her subordinates for goal attainment. A leader who is high in initiating structure would spend a lot of
time directing work activities; giving instructions; spends time planning and emphasizing deadlines.

Consideration: people-oriented behavior (The extent to which a leader is likely to have job relationships that are
characterized by mutual trust, respect for employees and respect for feelings). A leader who is high in consideration;
– Is mindful of subordinates, help them with problems, is friendly, approachable
– Establishes mutual trust; Provides open communication; Develops teamwork and treat all employees equal

4.2 Behavioral Approaches (Michigan Studies) (2) – those relating to job effectiveness

 University of Michigan compared the behavior of effective and ineffective supervisors

 Employee-oriented or Employee-centered leaders – setting high performance goals and
supporting employees in the achievement of those goals
 Production oriented or Job-centered leaders – focus on accomplishing the task; efficiency
measures and keeping costs low.

5.0 The Leadership Grid/Managerial Grid (Blake and Mouton)

 Two-dimensional leadership style that measures the

leader’s concern for people and for production on a 9x9 grid outlining
81 different leadership styles
 Builds on the work of Ohio State and Michigan studies
 Shows dominating factors in a leader’s thinking in regard
to getting results. Managers perform better under 9,9 style,
that is high on concern for people as well as concern for production.

Types Team management (9,9) is often considered the most effective style for all managers;
organization members work together to accomplish task outcomes.
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Country-club management (1,9) occurs when primary emphasis is given to people rather than to work
outputs.
Authority-compliance management (9,1) occurs when efficiency in operations is the dominant
orientation.
Middle-of-the-road management (5,5) reflects a moderate concern for both people and production.
Impoverished management (1,1) means the absence of a management philosophy; managers exert little
effort toward interpersonal relationships or work accomplishment.
6.0 Contingency Approaches - All Consider the Situation

6.1 Fiedler’s Contingency Model – Leader’s style is fixed –

(Task oriented vs. Relationship oriented)

 Considers Situational Favorableness for Leader

 Leader-member relations – degree of trust , confidence and respect members have in their leader
 Task structure – degree to which the job is structured or unstructured
 Position power – degree to which a leader has power over power variables such as hiring, firing,
discipline, promotions and salary increases
 Key Assumption - Leader must fit situation;
 options to accomplish this: Select leader to fit situation – example trying to find a Commissioner
for the Jamaican Constabulary Force (JCF) and for the Jamaica Football Federation (JFF)
 Change situation to fit leader

6.3 Situational Leadership Model (Hersey and Blanchard’s) - A contingency theory that focuses on followers’ readiness;
the more “ready” the followers (the more willing and able) the less the need for leader support and supervision

o Low readiness - Telling style---a high concern for tasks and a low concern for people and relationships.
o Moderate readiness - Selling style---a high concern for both people and tasks
o High readiness - Participating style---a combination of high concern for people and relationships and low
concern for production tasks.
o Vey high readiness - Delegating style---a low concern for both relationships and tasks.
6.4 Path Goal Theory – Premise - [1] Leader must help followers attaining goals and reduce roadblocks
to success [2] Leaders must change behaviors to fit the situation (environmental contingencies &
subordinate contingencies)

6.5 Leading change –

6.5.1 Charismatic and visionary leader
6.5.2 Transactional vs transformational leaders

6.6 Leadership in Turbulent Times - Servant leaders; Level 5 leaders; interactive leaders; E-
leaders; moral leaders

7.0 Inspirational Approaches to Leadership

- I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a
dream. It is a dream deeply rooted in the American dream.
I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these
truths to be self-evident: that all men are created equal."
I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave
owners will be able to sit down together at the table of brotherhood.
1. How do you think the people hearing this part of the speech by Dr. Martin Luther King would behave?

2. What leadership style would enable this dream to materialize?

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8.0 Inspirational Approaches to Leadership - Charismatic Leaders - both born and made
Characteristics Leading Change
1. Have a vision - - The ability to inspire
2. take high personal risks to achieve the vision - Motivate people to do more than they would
normally do
3. Are sensitive to follower needs - Tend to be less predictable than transactional
leaders
4. Exhibit behaviors that are out of the ordinary - Create an atmosphere of change
- May be obsessed by visionary ideas
9.0 Level 5 Leaders – Beyond Charismatic Leaders
 Possess a fifth dimension—a blend of personal humility and professional will—in addition to the four basic
leadership qualities of individual capability, team skills, managerial competence, and the ability to stimulate
others to high performance. The 5ht dimension being the ability to channel their ego needs away from
themselves and into the goal of building a great company.
10.0 Transactional and Transformational Leadership
Transactional Leaders - Leaders who guide or motivate their followers in the direction of established goals
by clarifying role and task requirements.
Contingent Reward (4): Contracts exchange of rewards for effort, promises rewards for good performance,
recognizes accomplishments.
Management by Exception (active)(5): Watches and searches for deviations from rules and standards,
takes corrective action.
Management by Exception (passive) (6): Intervenes only if standards are not met.
Laissez-Faire (7): Abdicates responsibilities, avoids making decisions.

Transactional Leaders - Leading Change

 Clarify the role and task requirements of subordinates ;Initiate structure; Provide appropriate rewards
 Display consideration for subordinates; Meet the social needs of subordinates

Impact on OB variables
 Lead using extrinsic motivation to achieve growth in company - Productivity
 Bijon Khorowshahi – CEO of Fuji Fire and Marine Insurance – Changed reporting lines so more
managers talked directly to him
 Assessing talent - he drilled about 40 senior manager on the details of their job description
Transformational Leaders – These leaders are closely linked to the strategic Leadership as they provide the
four ―I’s‖ (individualized consideration, inspirational motivation, idealized influence, and intellectual stimulation.
There is greater reciprocity in terms of both leader and follower raise each others’ levels of motivation toward
goal achievement.

Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.
Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes
in simple ways.
Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.
Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises.
Transformational Leaders - Leading Change
 Similar to charismatic leaders ; have good moral reasoning; Distinguished by their special ability to
bring about innovation and change by Recognizing followers’ needs and concerns; Helping them look
at old problems in new ways and encouraging them to question the status quo

 Transactional and Transformational Leaders complement each other but are still slightly different
 Transformational Leaders – motivate more, use intrinsic motivation; greater personal commitment;
task meaningfulness and satisfaction; increased individual and group performance

11.0 Authentic Leaders and Ethical Behavior

 Authentic Leaders know who they are, what they believe in and value, and act on those values openly and
candidly. Followers see them as ethical. Ethical leaders use ethical means to get followers to achieve their
goals, and the goals themselves are ethical. Actions: Work to positively change the attitudes and
behaviors of employees; Engage in socially constructive behaviors; Do not abuse power or use
improper means to attain goals.

12. Conclusion – in whatever organization one looks, a leader is very important as this person can make or break
the organization in terms of achieving the mission, goals and plans of the company. As such, organizations
must understand the nature of leadership, what impedes success, the situational variables in the organization
and the followers’ needs and response to leadership. All in all, leadership is about taking the organization to a
new place. By extension, for leaders to be effective, their employees must trust the vision to some extent that
they have set and move towards the direction of success.