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Stockholm University, Department of Psychology
Leadership theories
 
Christian Guttmann, x98-cgu@nada.kth.se
Stockholm May 10th, 1999

Contents

1. Abstract

2. Introduction

2.1 Basic assumptions
2.2 Basic requirements to lead
3. Established leadership theories (1947-1999)
3.1 Trait Theories
3.2 Behaviour based theories
3.3 Situation based approaches
3.4 Contingency principles
3.5 Path - Goal leadership model
3.6 Vroom&Yetton model
3.7 Summary
4. New trends of leadership
4.1 Attribution leadership model
4.2 Charismatic leadership
4.3 Transformation- vs. Transaction leadership
4.3.1 Example for an executive profile of the 90th
4.3.2 Characterisation of successful leadership in the 21st century
4.4 VDL-Model
4.5 Fiedler's Theory about cognitive resources
4.6 Situational determinants
4.7 Summary
5. Special Case: International leader potential

6. Current discussed topics in leadership

6.1 Women as leader
6.2 Empowerment
6.3 Following through companion
6.4 Cultural priorities
6.5 Personal properties and their status in leadership
6.6 Incompetent leaders
7. Bibliographical reference

1. Abstract

    Since of the global market and commercial interests, the right leadership strategy is understood as being the significant key for successful and efficient business. This essay will give a fundamental overview and further interesting ideas about how an efficient leader should work. New trends are based on current issues from other areas of psychology, like attribution theories and social influence principles. Potential leaders for international business share certain properties and can be identified early. I focused specially on the turnover from established leadership theories to new trends in leadership theories and the current discussions. Attribution based leadership, charismatic leadership and transformation leadership are some of the new trends.

2. Introduction

    The following questions come up every time you here the word "efficient leadership".
What is the best leadership strategy?
What are the new trends coming up the next century?
Which current topics are discussed?
Through which method is it possible to predetermine potential international leaders?
Which theory offers which training?
    I try to give a good and round summary of established and new leadership theories. To answer the questions highly sufficient I used the book from Professor Abraham Tesser, Advanced Social Psychology, which gives a very good and advanced picture of social interactions. This book shows obvious parallels between social psychology and leadership theories. Leadership theories are extracted out of social psychology issues. For the most of the leadership psychology I used the book from Professor Ansfried Weinert, Organisationspsychology. The psychology processes of analysing efficient leaders are explained in these books.

2.1 Basic assumptions

    First of all I should mention that it is very difficult to find the right leadership technique. All established theories have a lack of explanation between cause and effect. But even though it turns out that to choose the best and favourable leadership style, it is necessary to contribute the following factors:
 
Variables 

Kind of work 
Level in the hierarchical organisation 
Climate at the workplace 
Size of the group 
Homogeneity of the group 
Subordinates values about work and life 
Influence to the superiors 
Reward and pay system 
Personality of the leader

  
 

  

Leadership Style 
Leadership Behaviour

Effect on the work group 

Performance 
Satisfaction 
Motivation 
Attitudes 
Stay away from work 
Discharge 
Responsibility 

 

 
 
    The variables interact with each other and thus it is not possible to separate one factor. In other words the right chosen style of efficient leadership does not depend on one of these factors, like personality of the leader or the kind of work.

2.2 Basic requirements to lead

Leader have the task to coordinate and to lead group activities. To do so the leader needs might, recodnizable by himself/herself and by every fellow worker. Might has typically 7 different sources - typology of might: 

1. Legitimacy might (Position in the hierarchy)
2. Might to give rewards or pay
3. Might based on pressure and force
4. Expert might
5. Reference- and charismatic might (Identification with the leader)
6. Power to convince
7. Control about information

3. Established leadership theories

    There are 6 established leadership theories, which come up almost chronological. Almost, because they interact with each other and sometimes newer theories are based on the chronological older ones. This chapter should give a short review about the beginning and the history of leadership psychology.

3.1 Trait theories

    are based on the assumption that an efficient leadership is only caused by the innate characteristics of a human.

3.2 Behaviour based theories

    are theories which focus the observable behaviour and style of leadership.
The most important works:
a) Ohio leadership studies
b) Michigan Leadership theory
c) Grid system
d) Four factor leadership model
    The first three works have relatively similar leadership dimensions (or leadership styles), named "concern for people" and "concern for production". The last model divides between four factors -
1. Support
2. Improve interaction facilitation for the subordinates to establish the support
3. Goal emphasis
4. Improve work facilitation to reach the goal
The Grid system is specially interesting for industrial applications, because it was the first model, which offers a training program to improve leadership skills.

3.3 Situation based theories

    In this theory Hersey&Blanchard make a difference, like above, between task-concerned-style and human-concerned-style. But additionally they use the maturity of the workers to divide between four steps. The steps have a spectrum from naiv-need leadership to skilled-need encouragement. Depending in which step the group is, you choose between 4 different leader styles to improve the group efficiency.

3.4 Contingency principles

    are dependent on 3 different situational variables.

    Fiedler differs between low LPC-leaders and high LPC-leaders. LPC(least preferred worker) is a value, which describes a leader with a task orientated behaviour if the value is high or a relation orientated behaviour if the value is low. He defines a situation with 3 dimensions:

1. Relationship between leader and subordinates
2. Structure of task
3. Position of leader
    With these dimensions he can classify the ideal situation. A low LPC-leader acts better if the situation is very good or very bad, whereby a high LPC-leader manages normal situation much better. The criteria's of the result were the efficiency of the group.

3.5 Path-Goal approach

    is based on motivation or instrumentality and expectations. This model is not completely validated, because it is relatively new. The style of the leadership is determined by two situational variables. 1. personal characteristics of the group members and 2. the degree of structure of the task. There are 4 suitable kinds of leadership for each combination of the situational variables:
a) leadership based on support
b) direct leadership
c) participation leadership
d) performance leadership
The criteria's of the result were the satisfaction of the group.

3.6 Vroom-Yetton-Modell

    The "Participation decision model" allows subordinates to participate in decisions. This model does only concentrate on decision making processes and cannot be used to find a global leadership style. The criteria's of the result were the time, to find a decision.

3.7 Summary

    The established theories so far, followed the same evolution than the general psychology theories. In the very naive beginning the psychologists tried to describe leadership phenomena by using disposition, that means to describe personality or attitudes. Later on situational factors were seen as very important component, too.

4. New Trends of leadership

    A lot of new leadership approaches were developed in the last years, which render a completely new thinking about the leadership.

4.1 Attribution model (AM) of leadership

    To understand Attribution leaderships models, it is necessary to understand the general attribution theory.
Leaders should distinct between three basic components:
* Person
* Kind of task
* Context
To build attribution a leader needs three information:
1. Distinct criteria (Is this behaviour only shown in this task?)
2. Consent criteria (Do other fellow workers react in the same way than he does?)
3. Consistence criteria (How often does the same colleague show the same behaviour?)
    The different combinations of these information gives the leader an impression or attribution about the reasons of behaviour.

    It is very important to know if a bad work performance is caused by the person itself (motivation or skills) or by the environment (workflow or structure). Attribution theories offer a better foundation to find the reasons of behaviour and to have a certain forecast about the behaviour of a colleague.
In the book from Tesser is a very good introduction about the logical background of attribution processes.

    The AM use the universal logical background which is represented in the Lewian equation

    The task of the leader is to find out, what the source of a bad (or good) work performance is. And he does this by attributing situation or disposition. The situation explains external reasons for a certain performance, for example work environment or

4.2 Charismatic leadership

    What is charisma? What is charismatic leadership? Which properties do charismatic leaders have?
Charisma could be understood as interpersonal attractiveness and admiration.
This topic was also discussed in our course. The question was: Which are the most powerful principles that motivate us to comply with another's request? That is exactly the main characteristic, what a high charismatic leader has. One principle was physical attractiveness, which means that good-looking people have an advantage in social interaction, research findings indicate that we may have sorely underestimated the size and reach of this advantage. In the discussion was forgotten, that physical attractiveness is only one part to influence people. Other very important principles are reciprocity, social validation, consistency, friendship/liking, scarcity and authority.
    Conger&Kanungo(1988) described charismatic leaders with the following properties: High self-consciousness, dominance, decisiveness, strong conviction of their own ideas and an intensive desire of getting might. Additionally more sufficient property description of charismatic leaders include also a vision, articulation of this vision, an extraordinary behaviour, the perception by the subordinates that the leader changes, sensibility towards current opportunities that the environment offers.

4.3 Transaction- vs. Transformation leadership

The difference between a transaction - leader and transformation - leader does also show the difference between all other leadership theories.
The transaction - leader motivates his subordinates to follow fixed, accepted and established goals. This characterisation fits almost always to the here discussed established theories. In contrast to a transformation - leader, who shows individual support and thoughtfulness as well as he stimulates intellect.

Sketch 4.3.1 Leadership in change of time
Characteristics of managers in these days Characteristics of leaders in the future
Administration Innovator
Copy Original
continue develop
Focus on system and structures Focus on people
build on control inspirit confidence
Short-term perspective Long-term perspective
ask how and why? ask what and why?
focus on financial balance look to the horizon
imitate start new things
accept the status quo challenge the status quo
the classic "good soldier" is an own personality
do things right do the right things
  practice Stewardship
BASS(1990) tried to define the differences between transaction - leaders and transformation - leaders.

Dimension of a transaction - leader

- Dependence of the reward : Promises rewards for a good performance; Acknowledgement of performance
- Management through exceptions (aktiv) : Observes and looks for abnormality and tries to correct it
- Management through exceptions (passiv) : Intervinates only if the standards are not reached
- Laissez-Faire : Denies responsibilities; Avoids decision making
Dimension of a transformation - leader
- Charisma: support with a vision an the feeling to be on a mission; gives pride, respect and conscioussness.
- Inspiration: Communcicates high expectations; focuse on efforts; Ablility to communicate his goals clearly
- Intellectual stimulation: Conveys intellectual, rational and careful problem solving.
- Individual support: Gives individual attention; Treats everybody as individual; Coach

4.3.1 Example for an executive profile of the 90th

Requirements - Social Competence
- Holistic association with others
- Extraversion
- Emotional Independence form others
- Listen, convince, enforce
- Inter cultural understanding
- To give purpose
Requirements - Knowledge
- Wealth of interests and knowledge
- Ability to adapt
- Systematic thinking and acting
- Plan, organise, control
- Language skills
Requirements - Motivation
- Energy
- Ambition to perform
- Strong self-consciousness
- Desire to ascent and to change (Might)
- Goal - orientated and persevering
- Ability to cope stress
- To sustain contradictions
It is easy to extract the two main skills of a leader in the 90th, first to think logical and second to be reasonable and continuos preparedness to learn.

4.3.2 Characterisation of successful leadership in the 21st century

    In the time of the industry society, the main task of leaders was to instruct the subordinates. New beginnings are based on re-engineering, the introduction of autonomous work groups and general team orientation. The creativity and the energy of the fellow workers should be used through the new outsets to reach efficient performance. This step also makes the company flexible and able to adapt quickly to new environment.
    This idea is not easy to convert, since it expects an entirely new division from the fellow worker. It needs a completely new leadership structure that offers a lot of support and consultation. Now the new tasks consists in clearing the goals descriptions, taking away dangerous sources, giving the direction and coaching, reducing frustrating barriers, motivating fellow workers, making them enthusiastic and reasoning the personal advantages.
    To clarify goals and the direction is even more important in the future, since tasks are getting more complex, ambiguous and are mutually dependent. In these times leaders often have a lack of the will to share might and control with the subordinates (empowerment).
    The companies are looking for a "Transformation leader", who has inspiration and charisma, optimism and enthusiasm. He must be able to convince the others that a change has more advantages against the catches.
    In view of the leadership of the 21st

Desirable characteristics of leaders in the 21st century can be summarised into five clusters:
 
I. Requirements to the administration

    Decisiveness
    Planing
    Organising
    Controlling
    Delegate
II. Requirements to the interpersonal/social competence
    Communication skills
    Ability to compete
    Corporation/Team capability
    Able to negotiate/sensibility/listen
    Social objectivity
    To give purpose
    Inter cultural understanding
III. Requirements to the cognitive competence
    Ability to learn (out of mistakes)
    Creativity
    Wealth of knowledge and interests
    Systematic thinking and acting
    Language skills
IV. Requirements to the motivational competence
    Need to develop oneself
    Initiate
    Energy
    Ambition to perform
    Motivation to perform/Desire to change
    Carefulness/Work standard
    Goal orientation/Drive
V. Requirements to the stability/coping competence
    To sustain contradiction
    Tolerance about Suspense/Uncertainty
    Ability to adapt
    Everlasting
    Emotional independence
    Strong self-conscience
    Leaders in these days have to give up their strength that helps them to manage the past requirements. Real leaders of the 21st built visions, show the sense and meaning to the others, who have to live and work in this visions.

4.4 VDL-Model

This model from GRAEN says that the relationship between the leader and every single fellow work should be absuluteley individual. That means there should be a 1:1 relationship - a vertical dyade.
That's why this approach is also called leadership model of vertical dyade connections (VDL).

4.5 Fiedler's theory about cognitive resources

All theories so far always explain some sort of characteristic or philosophy that a leader should have. But in assessment-center-methods the selection processes focus more on intelligence, competence and experience. Cognitive resources are important here, like intellectual skills, technical competence, knowledge and experience. The theory is about under which circumstances do intelligence, technical competence and task-relevant skills lead to a efficiency.
The model shows that effective planning and developping good strategies increase the group performance. The aim of this model is (1) to explain the prozess, how a leader gains good performance and (2) to correct dereliction from the contingency model.

4.6 Situational determinants

 

4.7 Summary

 

5. Special Case: International leader potential

    The rising market of global business makes it necessary to identify potential leaders. The international word for these people is "expatriates". A significant role plays the development of international valid criteria and premises. Or in other words, a measurement, which identifies likely leaders in an inter cultural environment. The following list of factors explain success or abortion of an "expatriate":
- Sense for unknown/spirit of adventure (open to new cultures and experiences; opportune)
- Brave / Self-consciousness (own opinions; belief in himself)
- Action orientated (push success and results; take the initiative)
- Analytic flexibility (to take apart complexity; want to know how something works)
- Special skill in association with people (make people following someone; creation of a team)
- Bright respect (against other; positive influence to others)
- Knowledge of his/her own business (strong expert knowledge; knows how things fits together)
- Shows enthusiasm (shows commitment; willing to sacrifice)
- Wealth of ideas (originally ideas; flexibility)
- Learning from mistakes (constructive dealing with mistakes; take responsibility)
- Open to learn (from others) (react to feedback; ask others; thinking about what the others do different)
    We know by far too less about how these factors influence a successful foreign dispatch. But we can certainly say that a successful leadership at home has rarely something to do with international encouragement. Finally we have to ask ourselves, what do someone individually need to be personally successful in new situations? The Japanese former chief of McKinsey answered as follows: " We don't need economic students with best academic results, but instead globetrotters with different experience, who get to know a lot of cultures, who handle conflicts with unfamiliarity, who are folksy and sociable and emotional intelligent as well as willing to tackle something on their own".

6. Current discussed topics in leadership

6.1 Woman as leader

6.2 Empowerment

6.3 Following through companion

6.4 Cultural priorities

6.5 Personal properties and their status in leadership

6.6 Incompetent leader

7. Bibliographical reference

[1] Abraham Tesser, Advanced Social Psychology, United States of America : McGraw-Hill, 1995 
 
[2] Ansfried Weinert, Organisationspsychologie, Weinheim : Psychologie Verlags Union, 1998 
 
[3] Bourne,Lyle E., & Ekstrand, Bruce R. Einführung in die Psychologie. Eschborn bei Frankfurt am Main :  

Klotz, 1992 
 

[4] Hillig, Axel Schüler Duden, Die Psychologie. Mannheim; Leipzig; Wien; Zürich : Dudenverlag, 1996
 
Spezialfall Auslandsentsendung S.338
Persönlichkeit und Führung S.85
Führung und Führungsstil S.373
Entgleiste Führung S.337
Anforderungen an Führungskräfte in den 90-er Jahren S.273