Topic 5: Chapter 9
Mr. N. Patoko
Leading
Learning outcomes
• Define the term ‘leadership’
• Differentiate between leadership and management
• Describe the components of leadership
• Discuss the major leadership theories
• Identify contemporary leadership issues
• Explain why managers should understand what
motivates their employees’ behaviour
• Differentiate between groups and teams in
organisations
• Describe a simple communication model.
Chapter outline
• Introduction
• The nature of leadership
• Leadership theories
• Motivation
• Groups and teams in organisations
• Communication
• Summary
The nature of leadership
• Leadership is the most researched and most
controversial topic in management.
• Contemporary definition of leadership -
‘Process of influencing employees to work
willingly towards the achievement of
organisational objectives’.
• Managers take the lead to bridge the gap
between formulating plans and reaching goals.
The nature of leadership
(continued)
• Leadership and management
– Leadership is not the same as management
– Management is broader in scope comprising the
four management functions of which leading is
only one
– Not all managers are good leaders
– Not all leaders are good managers.
The nature of leadership
(continued)
• The integration of leadership and
management
Components of the leading
function
• Authority – denotes the right of a leader to give
commands and demand actions from subordinates
• Power – manager’s ability to influence his or her
employees’ behaviour
• Responsibility – obligation to achieve organisational
goals by performing required activities
• Delegation – process of assigning responsibility and
authority for achieving organisational goals
• Accountability – evaluation of how well individuals meet
their responsibilities
Components of the leading
function
Authority
• Without authority, managers are unable to manage,
initiate or sustain the management process
• Authority revolves around obtaining the right to demand
action from employees and the right to take action
• Final authority rests with the owners or shareholders of
the organisation
• Authority is transferred down from owners or
stakeholders
Components of the leading
function (continued)
Power
• Two types of power:
- Position power
- Personal power.
• Power continuum:
- Coercive power
- Reward power
- Legitimate power
- Referent power
- Expert power.
Components of the leading
function (continued)
• Equilibrium between the power of
management and employees
Leadership theories
• Three main theories:
Trait theory Behavioural theory Contingency theory
Involves the Looks at how Attempts to
identification and successful leaders determine the best
analysis of the traits behave differently leadership style for a
of strong leaders compared to given situation
unsuccessful leaders
Leadership theories
(continued)
• Task oriented vs relationship oriented by Fiedler
• Path-goal model by Robert house- leaders
responsibility to give direction, whether
supportive, participative or achievement related
behavior
• Situational leadership – Maturity and willingness
to achieve things will change leadership style
• use telling, selling, participating, delegating
Leadership theories
(continued)
• Contemporary approaches to leadership
– Trust is a vital component of effective leadership
– Five dimensions of trust:
- Integrity
- Competence
- Consistency
- Loyalty
- Openness.
Leadership theories
(continued)
• Types of leadership
– Charismatic leadership
– Visionary leadership
– Transactional and transformational leadership.
• Emerging approaches to leadership
– Strategic leadership
– Cross-cultural leadership
– Ethical leadership
– Servant leadership.
Motivation
• Motivation is an inner desire to satisfy
an unsatisfied need
• It is essential that managers understand what
motivates the behaviour of their employees
• By understanding what motivates them,
a manager can influence employee work performance
• Performance is determined by employee ability,
motivation and resources
Groups and teams in
organisations
• A group comprises two or more individuals who
regularly interact with one another and work for a
common purpose
• Informal groups
- Interest groups
- Friendship groups
• Formal groups
- Command groups
- Task groups
Groups and teams in
organisations (continued)
• The characteristics of groups
– Every group is different in terms of structure and
characteristics
– Dependent on the following:
- Group size
- Group composition
- Group norms
- Group cohesiveness
- Status in groups
- Formal leadership.
Groups and teams in
organisations (continued)
• Teams
– Work group – a unit of two or more people who interact
primarily to share information and make decisions that will
help each group member perform within their own area of
responsibility.
– Work team – comprises a small number of employees with
complementary competencies who work together on a
project, are committed to a common purpose, and are
accountable for performing tasks that contribute to
achieving the organisation’s goals
Groups and teams in
organisations (continued)
• Teams
– Different types of teams can be identified:
- Problem-solving teams
- Self-managed work teams
- Cross-functional teams.
̶ Important that organisation’s performance and reward
systems encourage team effort
Communication
• Effective leadership depends on constant
communication between leaders and their
employees
Summary
• Managers need to also be good leaders
• Use authority and power to influence employees to achieve
organisational goals
• Categories of leadership models and contemporary issues in
leadership
• Managers need to understand what motivates their
employees
• Responsibility of managing work groups and work teams
• Communication is crucial.