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Unit 1 of 4 · MBA Sem 4

Unit 1: Leadership fundamentals

Leadership and Team Dynamics notes · PTU syllabus (MBA 935-18)

3 min read6 topics10 exam questions
On this page
  1. Unit summary
  2. Meaning, skills and roles of a leader
  3. Analysis of leadership theory
  4. Personality traits and leadership
  5. Leadership attitudes and ethics
  6. Leadership behaviour and motivation
  7. Contingency leadership
  8. Key terms
  9. Quick revision
  10. Important questions

Unit summary

Leadership is the process of influencing people towards shared goals. This unit covers the meaning, skills and roles of a leader, an analysis of leadership theories, personality traits and leadership, leadership attitudes and ethics, leadership behaviour and motivation, and contingency leadership.

After this unit you can

  • Explain the meaning, skills and roles of a leader
  • Analyse trait, behavioural and contingency theories
  • Explain leadership attitudes, ethics, behaviour and motivation
  • Apply contingency leadership models

PTU syllabus topics

  • Meaning
  • skills and roles of a leader
  • analysis of leadership theory
  • personality traits and leadership
  • leadership attitudes and ethics
  • leadership behaviour and motivation
  • contingency leadership
ComparisonLeadership theories
Key idea
Example

Trait

Leaders have certain traits

Confidence, integrity

Behavioural

What leaders do

Task vs people orientation

Contingency

Best style depends on the situation

Fiedler, Hersey-Blanchard

Transformational

Inspire beyond self-interest

Vision, intellectual stimulation

1

Topic 1

Meaning, skills and roles of a leader

  • Leadership: the influencing process of leaders and followers to achieve organisational objectives through change (Lussier and Achua).
  • Leadership vs management: managers plan, organise and control for order and consistency; leaders set direction, align people and inspire change (Kotter).
ClassificationLeadership skills (Katz)
Skills

  • Technical

    Job-specific knowledge

  • Interpersonal (human)

    Working with and through people

  • Conceptual

    Seeing the organisation as a whole, thinking strategically

  • Decision-making

    Choosing well under uncertainty

  • Roles (Mintzberg): interpersonal (figurehead, leader, liaison), informational (monitor, disseminator, spokesperson), decisional (entrepreneur, disturbance handler, resource allocator, negotiator).
2

Topic 2

Analysis of leadership theory

ProcessEvolution of leadership theory
  1. 1Trait theories (1900s–1940s)

    Leaders are born with special traits

  2. 2Behavioural theories (1950s–60s)

    What leaders do — task and people behaviours

  3. 3Contingency theories (1960s–80s)

    Best style depends on the situation

  4. 4Integrative and new-genre theories

    Charismatic, transformational, servant, authentic, ethical leadership

3

Topic 3

Personality traits and leadership

  • Big Five and leadership: extraversion and conscientiousness relate most strongly to leader emergence and effectiveness; openness to transformational leadership.
  • Traits of effective leaders (Lussier): dominance, high energy, self-confidence, locus of control (internal), stability, integrity, intelligence, flexibility, sensitivity to others.
  • Leadership motive profile (McClelland): high need for power (socialised), moderate need for achievement, lower need for affiliation.
  • Emotional intelligence strongly predicts leadership effectiveness.
4

Topic 4

Leadership attitudes and ethics

  • Theory X and Theory Y (McGregor): leaders' assumptions about people shape their behaviour; Pygmalion effect — high expectations raise performance.
  • Self-concept: leaders with positive self-concepts build positive climates.
  • Ethics: honesty, fairness, respect, responsibility; Kohlberg's levels of moral development; ethical leaders model integrity, set standards and reward ethical behaviour.
5

Topic 5

Leadership behaviour and motivation

Leadership is the ability to influence a group towards achieving goals.

StyleFeature
AutocraticLeader decides alone
Democratic (participative)Group participates in decisions
Laissez-faireLeader gives freedom, little direction
BureaucraticFollows rules strictly
  • Trait theory: leaders have innate traits — intelligence, self-confidence, integrity, drive.
  • Behavioural theories: Ohio State studies (initiating structure and consideration), Michigan studies (employee-oriented vs production-oriented) and the Managerial Grid (Blake and Mouton: concern for people vs concern for production; 9,9 team management is ideal).

Transactional and transformational leadership

ComparisonTransactional vs transformational leadership
Transactional
Transformational

Basis

Exchange of rewards for performance

Inspiration and shared vision

Focus

Clarifying roles, contingent rewards, management by exception

Idealised influence, inspirational motivation, intellectual stimulation, individualised consideration

Change

Maintains status quo

Drives change and innovation

Example

Sales targets with bonuses

Leader transforming a failing company's culture

  • Contingency theories: Fiedler's LPC model, Hersey–Blanchard situational leadership, path–goal theory (House).
  • Leaders as motivators: apply content theories (Maslow, Herzberg, McClelland) and process theories (equity, expectancy, goal setting) — set clear goals, provide resources, reward performance fairly, recognise contributions.
6

Topic 6

Contingency leadership

ClassificationContingency models
Contingency leadership

  • Fiedler's model

    Leader style (LPC) matched to situational favourableness — leader–member relations, task structure, position power

  • Hersey–Blanchard situational leadership

    Telling, selling, participating, delegating by follower readiness

  • Path–goal theory (House)

    Directive, supportive, participative, achievement-oriented behaviour to clear the path to goals

  • Vroom–Yetton normative model

    Degree of participation in decisions by situation

  • Substitutes for leadership (Kerr and Jermier)

    Task, follower or organisational factors that replace leadership

Example

A new graduate trainee with low readiness needs a "telling" style; an experienced, committed team member can be given a "delegating" style.

Key terms

Leadership
Influencing people towards shared objectives
Conceptual skill
Ability to understand the organisation as a whole
Pygmalion effect
Expectations influencing performance
LPC
Fiedler's least preferred co-worker scale
Substitutes for leadership
Factors that reduce the need for a leader

Quick revision

  • Leadership vs management; Katz skills; Mintzberg roles.
  • Theory evolution: trait → behavioural → contingency → new genre.
  • Traits; Big Five; McClelland's leadership motive profile; EI.
  • Theory X and Y; Pygmalion effect; ethics.
  • Fiedler, Hersey–Blanchard, path–goal, Vroom–Yetton, substitutes.

Important exam questions

Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).

Short-answer questions

  1. Q1.Distinguish leadership and management.
  2. Q2.Name Katz's leadership skills.
  3. Q3.What is the leadership motive profile?
  4. Q4.What is the Pygmalion effect?
  5. Q5.State the situational variables in Fiedler's model.
  6. Q6.Name the four styles of Hersey–Blanchard's model.

Long-answer questions

  1. Q1.Explain the meaning, skills and roles of a leader.
  2. Q2.Critically analyse trait and behavioural theories of leadership.
  3. Q3.Discuss leadership attitudes, ethics and motivation.
  4. Q4.Explain contingency theories of leadership.

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