Leadership

Page of Contents

Introduction 1

Outline of theories 1-4

Interview Analysis 4-7

Conclusion 7

Appendices 8-15

References 16

Introduction

Leadership is a term that has multiple meanings amongst several different perspectives, but what is implicit in defining leadership is that it is a perpetual concern for anyone who needs to motivate, guide, and inspire. It can be described as:

".. a process whereby an individual influences a group of individuals to meet a common goal." (Northouse, 2004).

Often, leadership is considered as the single most important factor in determining organizational success due to the importance of guiding followers towards a common objective within an institutional context. Despite the development of several theories and models, and the use of their respective measurement instruments to measure leadership behaviour, the acceptance of one single theory that totally underpins the implementation and performance of effective leadership has not emerged. It is therefore my task to consider two leadership theories and individually evaluate the extent to which they constitute contributing factors to effective leadership within an organizational environment. In order to do so I have selected theories within two different eras of leadership studies, and furthermore have conducted an informal interview with an employee at the RBS Group whom I consider to have a role of leadership.

Outline of theories

During the 1960's and 1970's leadership theories were developed under the 'contingency' perspective which consider how situational factors alter the effectiveness of particular leader behaviours and styles of leadership. Within this era the most recognized theory is "Fiedler's contingency theory". This theory contrasts situational influence and leader traits and effectiveness through a scale known as the Least Preferred Co-Worker Scale (See Appendix). The outcomes of the LPC scale determine whether a leader is;

(a) Task Motivated- those who score low on the LPC scale are primarily concerned with achieving the task at hand; or

(b) Relationship Motivated- those obtaining a high score on the LPC scale are principally moved towards establishing close interpersonal relations.

Once the LPC score has been determined, it is necessary to weigh out the factors that cause situational influence, and therefore the extent to which the leader has control over the situation. There are 3 key situational variables:

(1) Leader-Member relations

(2) Position Power

(3) Task Structure

The possible combinations between Leader LPC score and situational

variables yield eight levels of favourability, known as octants. The predicted effectiveness of a leader in a given situation is determined by analyzing the situational factors and the LPC result and placing them on Fiedler's contingency model:

Fiedler's theory suggests that those individuals who are task motivated, with

a low LPC score, will be effective in situations where everything is running smoothly, or everything is out of control (octants 1-3 & 8 respectively). Whereas those who are relationship oriented will be effective where there is some level of certainty but they aren't in full control (octants 4 - 7). The model above demonstrates how it is necessary to 'fit' a leader to a given situation so that they are not working in the 'wrong' situation and therefore leading ineffectively.

After the development of contingency theory, the 1980's and 1990's gave rise to the development of transformational leadership. Theories within this era are concerned with processes that change and transform individuals. This reciprocal process between leaders and followers is determined by the leader's ability to arouse emotional intelligence and stimulate the higher order needs of their followers. It is through this ability that leaders acquire trust, admiration, loyalty and respect from their followers, therefore motivating them to accomplish more than what is expected;

"Leaders and followers raise one another to higher levels of morality and motivation. "

(Burns, 1978)

With reference to Maslow's hierarchy of needs (see appendix; Figure 1.1), transformational leaders activate the higher order needs like self-esteem and self-actualisation and therefore lift followers above their "everyday selves".

Bass's theory of transformational leadership develops from the prior works of Burns (1978) and House (1976), and analyses effective leadership in terms of the effect of a leader on his/her followers. This transformation is determined by the leader's ability to perform 3 particular tasks:

1) Increase follower awareness regarding the importance of task outcomes.

2) Induce followers to transcend their own self-interest for the sake of the organization, and;

3) Stimulate the higher-order needs of the group.

The essence of transformational leadership is empowering followers, and

developing them to reach their full potential. Bass defined 4 key transformational behaviours contributing towards this development, they are known as the 4 I's:

I. Idealized Influence

II. Inspirational Motivation

III. Intellectual Stimulation

IV. Individualized