5. Key Concepts In Leadership

Question 1

What is the difference between management and leadership?

Answer 1

Management is the process of getting activities completed efficiently and effectively with and through people.

Leadership is the ability to get others to follow willingly

Question 2

What are the 5 groups of leadership theories?

Answer 2

1. Personality / Trait
2. Style
3. Contingency / Situational
4. Transactional / Transformational
5. Distributive

Question 3

What are the features of personality / trait theories?

Answer 3

Although management skills can be taught, leaders are born with innate personal traits or characteristics (e.g., good intelligence, initiative, motivation, and helicopter factor - the ability to rise above and see big picture).

The theory has largely been discredited. The list of traits proposed is vast, varied and contradictory. It is far-fetched, in that, just because a personal has some traits does not mean they will automatically become a leader.

Question 4

What are the features of style theories?

Answer 4

Concerned with the styles that a leader may use when interacting with individuals or groups they are leading. Styles vary between being:
- Wholly task-focused
- Wholly people-focused

Question 5

What is the Tannenbaum and Schmidt continuum of behaviours?

Answer 5

A continuum of leadership styles that range from power and authority available to a manager, and degree of consultation with employees. The continuum includes:
1. Autocracy - simple announcement of change
2. Tell and sell - the decision has been made and buy-in is sought
3. Ask and listen - employees are involved in evaluating options, though responsibility stays with manager
4. Democracy - the issue is entirely handed over to the staff

Question 6

What is the Ashridge Management College model?

Answer 6

Building upon Tannenbaum and Schmidt, they found four different management styles:
1. Tell - quick; effective in programmed routine work; no encouragement; one-way communication
2. Sell - make staff more committed; better idea of what to do; one-way communication; might not accept leader’s decision
3. Consult - involved employees; agreed consensus of opinion; contribute knowledge; takes longer; inexperienced; consultation can turn into a facade
4. Join - high motivation and commitment, undermines authority; long process; inexperienced

Question 7

What are Likert’s four management styles / systems?

Answer 7

System 1: exploitative authoritative. Leader has no confidence or trust in subordinates
System 2: benevolent authoritative. Superficial confidence or trust in subordinates (I.e., paternalistic)
System 3: consultative. Some confidence in subordinates, will listed to them but control decision-making
System 4: participative. Complete confidence in subordinates and are allowed to make decisions for themselves

Question 8

What are Lewin, Lippitt and White’s three styles of leadership?

Answer 8

1. Authoritarian: gives orders, oversees activities, high productivity but also hostility and discontent
2. Democratic: shows concern for team’s welfare, allows team members to make decisions
3. Laissez-faire: stand-offish, not involved, let the group run itself, least effective, need for directing and support

Question 9

What is McGregor’s theory of style leadership?

Answer 9

Leaders and managers select a style based on their perception of subordinates.

Theory X: managers assume their staff have an inherent dislike of work and need to be coerced, directed and threatened.
Theory Y: managers assume their staff see ‘ work as natural as play or rest’, naturally seeking out responsibility and personal achievement.

Question 10

Wha this the Blake Mouton managerial grid?

Answer 10

The manager’s choice of style is based on concern for the task (production) and concern for the individual (people) - scored from 1 to 9. The five points on the grid are (production, people):

(1,1) Impoverished: abdicates responsibility showing no concern for either. A demotivated manager doomed for failure
(9, 1) Task-oriented: sees people as a commodity to be directed and controlled. Subordinates may become apathetic or rebellious.
(5, 5) Middle-of-the-road: ‘give-and-take’ style that aims to balance P&P, and believes any improvements are unrealistic
(1, 9) Country club: encourages and supports staff, overlooks inadequacies (everyone assumed to be doing their best), can lead to inefficiencies and actual delivery of the task may be ignored
(9, 9) Team manager: aims to find the best solutions to meet both P&P. The skills is to manage conflicts that will inevitably emerge.

Question 11

What are the limitations of style theories?

Answer 11

1. Does not consider all variables that contribute to the practice of effective leadership
2. Manager personality may not be flexible to use styles effectively
3. Demands of the manager’s role may constrain the leader in the range of styles effectively
4. Consistency. If a manager changes too much, they may be perceived as fickle

Question 12

What are the features of contingency / situational theories?

Answer 12

There is no one right way to lead that will fit all situations. The leader’s success will depends on their ability to adapt their leadership style to a given situation.

Question 13

What is Adair’s Action-Centred Leadership theory?

Answer 13

Built on Blake Mouton, a leader’s style had to alter depending on the needs of the task, the group, and the individual.

Effective leadership is a process of identifying and acting on that priority, exercising a relevant cluster of roles to meet the various needs.

Question 14

What is Fiedler’s contingency model?

Answer 14

A leader could, at any one time, be people or task oriented but not both. The decision to be people or task oriented is based on:
- Leader / member relations
- Task structure
- Leader position power

A situation is favourable to the leader when:
1. The leader is liked and trusted by the group
2. Tasks of the group are clearly defined
3. Power of the leader to reward and punish is high

Fiedler proposed two leaderships styles depending on how favourable the situation is to the leader:
1. Psychologically distant: works when favourable or unfavourable; leader will remain reserved and prefer formality; formal communication; focused on the task
2. Psychologically close: supporting style; works best in moderately favourable situations; prefer less formality; open to informal communication; focused on people

Question 15

What is Hersey and Blanchard’s situational leadership model?

Answer 15

Focus on the readiness of the team members to perform, their task ability and willingness to complete the task successfully.

1. High readiness: Teams are willing and able. They do not need directive or support leadership, but rather a ‘joins’ or ‘delegating’ style
2. High-moderate readiness: teams are able but not willing. They are competent but require supporting behaviour - a ‘consults’ or ‘participating’ style
3. Low-moderate readiness: teams are willing but lack ability. They require directive and supportive - a ‘selling’ style
4. Low-readiness: teams lack ability and willingness, and require a more directive behaviour - a ‘telling’ style

Hersey and Blanchard also emphasise the relationship between three factors:
1. Task behaviour
2. Relationship behaviour
3. Task and relevant maturity

Maturity is the desire for achievement, willingness and ability to accept responsibility, education and experience for the task.

Question 16

What are the features of transactional and transformational theories?

Answer 16

Transactional leaders see the relationship with their followers in terms of a trade (I.e., rewards in exchange for service, loyalty and compliance.) Transactional focuses on systems and generally seek improvement rather than change.

Transformational leaders see their role as inspiring and motivating others to work at levels beyond compliance.

Question 17

What is Mullins’ (2002) theory?

Answer 17

Rapid change endemic in the business world mandates a new approach to management in order to achieve transformation within the organisation as a response.

Question 18

What are the five key skills that Byrd requires transformational leadership to be effective?

Answer 18

1. Anticipatory: the foresight to be proactive in a changing environment
2. Visioning: persuading staff members for a need to change
3. Value-congruence: reconciling the organisation’s needs to those of the staff
4. Empowerment: delegating and sharing power
5. Self-understanding: own needs as well as staff

Question 19

What is distributive leadership?

Answer 19

A form of leadership which spreads the role of leading the team among a number of members - power no longer solely residing with the appointed leader.

The creation of distributive leadership approach can be encouraged by the presence of three elements:
1. All team members understand the team’s main objectives (shared purpose)
2. The degree of social support that members can provide each other
3. Level of involvement in deciding how the team meets its objectives (voice)

Question 20

What are the issues facing organisational leaders during times of change?

Answer 20

1. Redundancies
2. Redesigning work environments
3. Upskilling workers
4. Changing the culture
5. Hire new staff

Question 21

How does change impact a transformational leadership approach? What will a transformation leader need to do?

Answer 21

1. Create a vision: needed to get people to willingly support a change
2. Lead by example
3. Champion the change: promote the need for change
4. Facilitate the change: ensuring workers and stakeholders are involved and that they have access to necessary training / knowledge

Question 22

What is Lewin’s three-stage model?

Answer 22

1. Unfreeze: breaking up current state of affairs and preparing organisational change
2. Change: new working methods, systems, and cultures must be implemented
3. Freeze: the new state is embedded and becomes habitual (the new norm)

Question 23

What are Clark and Pratt’s four leadership styles dependent on the business’s stage in its life-cycle?

Answer 23

1. Champion: have the energy to push to business forward whilst starting out
2. Tank commander: build a supportive workforce as the business grows that is capable of exploiting future growth opportunities
3. Housekeeper: shift towards matters of organisational control since it is harder to grow the mature business
4. Lemon-squeezer: in maturity or in decline, requires strong leaderships to squeeze the most out of the situation and take a focus towards innovation and cost-cutting

Question 24

What are the issues when leading virtual teams?

Answer 24

1. Loss of control over employee actions during the working day
2. Lose track of progress
3. Loss of daily contact and impact on the wellbeing of workers (stress or isolation)

Question 25

What are the practical considerations of leading virtual teams?

Answer 25

1. Technology: ensure team is provided with necessary technologies to be able to communicate and submit deliverables
2. Workload: help virtual members manage workloads via work tracking software and individualised work plans
3. Supervision: find the appropriate balance and avoid micro-managing
4. Communication: facilitate opportunities to create team cohesion
5. Recruitment: consider not only technical skills but also ability to work anonymously

Question 26

What are Goleman (2000) six styles of leadership?

Answer 26

An effective leader is capable of embracing the style most relevant to any given situation.

1. Visionary: leader is a good communicator and forward-thinking. Suitable in times of change
2. Coaching: effective at developing individuals and improve future performance. Suitable when employees want to develop their career
3. Affiliative: effective at creating bonds. Appropriate in situations where work morale needs improving
4. Democratic: builds consensus and encourage worker participation. Suitable for when new ideas are required
5. Pacesetting: leader requires workers to be self-driven. Appropriate in situations where motivation is required
6. Commanding: leader adopt military style where compliance is required. Suitable for times of crisis.

Question 27

What is ethics and why does it matter in leadership?

Answer 27

Ethics is concerned with right and wrong and how conduct should be judged.

Leaders have a particular responsibility to ensure that their behaviour and decision-making reflects high standards of ethics.

It is a key responsibility of leaders to serve as a role model of high ethical standards and set the tone from the top.

Question 28

What is CSR and why does it matter?

Answer 28

CSR centres on the approach taken by organisations to provide benefit to society in general rather than specific stakeholders.

Establishment of CSR programmes requires ethical leadership at the top of organisations to ensure they are taken seriously.

Question 29

What are the five fundamental ethical principles which are relevant for leaders in organisations (CIMA, 2015)?

Answer 29

1. Integrity
2. Objectivity
3. Professional competence and due care
4. Confidentiality
5. Professional behaviour