Leadership Theories and Styles

Learning Outcomes

After reading this chapter you should be able to:

• Investigate the various leadership styles and identify how particular theories can offer an effective approach to suit the situation.
• Understand the appropriate leadership theories.
• Understand the circumstances that suggest particular leadership theories.

Leadership theories are developed to inform our understanding of leadership and to improve leadership skills and behaviors. These approaches can only represent suggestions and approximations to what really happens in leadership situations.However, the approximations provide insights into specific situations and help us to determine an appropriate leadership response. Also, investigating these theories can give a historical perspective about how approaches to leadership have developed.

Leadership theories help us to identify and categorize different leadership styles adopted by leaders in different situations. Leadership style is found to be reliant upon a number of issues:

• The personality of the leader.
• The maturity of followers.
• The current situation.
• The wider needs of the environment.

Effective leaders are able to adapt their style of leadership to suit the prevailing circumstances. Also, these theories are important for followers to recognize the approach taken by their leaders. The following sections provide some important current and historical leadership theories.

Leadership Theories

Leadership theory suggests that we can take a range of perspectives, or show different preferences for how we understand leadership. These are key to recognizing why academics and authors, for example, find it difficult to agree and explain what leadership is. Attending to each of these different perspectives means that the nature of leadership continues to be investigated and discussed.There is a range of theories that suggest different approaches or leadership styles.

1.1 ‘Great Person’ TheoryThis theory evolved from observations of great leaders from history, whether this be military, spiritual, intellectual or political. In some cases, this theory assumes that leaders are born, not made. However, there are implications that the ‘great people’ are great leaders as a result of learning from situations throughout their lives. In essence, this theory suggests that we can emulate and learn from the actions of great leaders.

1.2 Trait TheoriesTrait theories offer an extension to ‘great man theories’, suggesting that there is a set of traits or inner qualities that can define a leader. If we adopt these traits, then we too can be a successful leader. Some leaders will be born with effective traits, others can learn them through exposure or study. This type of theory is fundamental to many training courses that provide opportunities to investigate such traits.

1.3 Behavioral Theories Behavioral theories suggest that leadership is embedded in the actions of leaders. This develops the trait theories from some inherent qualities of leadership into considering what leaders do. Chapter 5 on Leadership Behaviors develops this concept further. These theories suggest that leaders can be made, i.e. leadership skills can be learnt and developed.Fundamentally, our behaviors are driven by our values and, in leadership terms, there are some perspectives on value categories that are represented by simplified theories. For example, where is the focus of decision making? If the leader makes the decisions, then this is an Authoritative or Autocratic leadership style. If the leader involves the project team in decisions, then the leader is adopting a Participative or Democratic leadership style. When a leader has minimal involvement and leaves decisions to the project team, this is a Laissez Faire leadership style.In some situations, a leader adopting what appears to be a Laissez Faire style can be providing a Supportive or Servant style that is proactively providing effective management of the environment. Here, the leader ensures that any negative external influences do not affect the project team and that the team can take full advantage of any positive external effects.

1.4 Contingency and Situational TheoriesThese theories suggest that the specific leadership style is determined by the external environment or specific situation. So, if we have a mature, expert project team, it is more appropriate to adopt a Laissez Faire leadership style, rather than an Authoritarian style. For more information, please see Section 3 about Situational Leadership in this chapter.

1.5 Transactional TheoriesTransactional theories are applicable to a managerial approach to leadership. They offer a simplistic style that is based upon ‘transactions’ or instructions between a manager and employee that can be linked to reward for successful completion of work, or, possibly, punishment for perceived failure.For example, McGregor (1960) proposed two fundamental approaches to managing people, which he labeled Theory X and Theory Y.

McGregor’s Theory X – Authoritarian Leadership Style: This leadership style assumes that the average person will do their best to avoid work and responsibility so, therefore, they must be directed and forced to work. Theory X assumes that the workforce is unambitious and requires occupational security. Using the Theory X leadership style, the project leader’s role would be to coerce and control the team members to achieve the project objectives.

McGregor’s Theory Y – Participative Leadership Style: The participative leadership style assumes that people enjoy work and will take responsibility by applying and directing themselves to further the aims of their company. These people do not need to be controlled, their performance is achieved through participation, collaboration and reward for their achievement. Using the Theory Y leadership style, the project leader’s role would be to help develop the team members’ potential to achieve the project objectives.McGregor’s contention was that Theory Y represented a more accurate profile of human nature in the workplace. He felt the limit was the leaders’ ingenuity in discovering how to realize the potential of their human resources. McGregor also observed the self-fulfilling prophecy, where managers who assume their people are lazy and uncooperative often ended up with just that; McGregor found the converse was also true. Managers’ assumptions about their people tend to condition the way they approach their own role and the reaction they receive.As a result of these observations McGregor suggested that the essential task of management is to create opportunities, release human potential, remove obstacles, encourage growth and provide guidance. He referred to this as management-by-objectives (MBO).This transactional style is useful in projects as it can be supported by contracts (at team, personal, employment and subcontractor levels) and, seemingly, enforced through reward or punishment. This requires accurate and appropriate evidence to be provided to prove successful achievement of objectives.

CASE STUDYFor an example of Theory X and Theory Y in action, consider company X, which practices Theory X, where everyone clocks in at 8 and clocks out at 5 precisely; the cards are always checked for late-comers. Whereas in company Y, which practices Theory Y, the staff also work 8–5 but no one clocks in or out and if someone is late there is an understanding that they will make it up another day.Now consider what is likely to happen if both companies are awarded a rush project that must be completed as soon as possible. In company X the staff will continue to clock-in at 8 and leave at 5 precisely; they are time focused not task focused. However, in company Y, the staff will start earlier and work later to finish the work on time; the team is project work focused. There is an understanding that they will either be paid overtime or a bonus, or they can take time off as required.

1.6 Transformational Leadership TheoriesThese theories place emphasis on developing relationships through effective communication, motivation and influence. Transformational leaders are non-inspirational, sometimes relying on charismatic presence, though an effective style can evolve through practicing positive behaviors (see Chapter 5 on Leadership Behaviors). This is usually the most appropriate leadership style to adopt for most situations.Transformational leaders are able to balance the needs of the task whilst attending to team issues and developing people, all at the same time. We will look in more detail at this leadership style in the next section.

2. Action Centered LeadershipJohn Adair developed a leadership model that focuses on leadership action. The model suggests that the leader should focus on three responsibilities: Task, Team and Individual, acting according to the demands of each (see Figure 6.1). Some people acknowledge that Adair, who developed leadership training for Sandhurst Military Academy, was the first to suggest that leadership can be an acquired skill that can be learnt and developed.

Figure 6.1: Action Centered Leadership – shows the intersecting circles of the task’s needs, the team’s needs and the individual’s needsIt is important to note that the leader must attend to all three of the task, team and individual responsibilities but can focus on each one at different times in order to deal with specific needs.Achievement of the Task: Most frequently, the purpose of a group/team is to complete some work, so the leader needs to maintain focus on achievement of objectives. The leadership responsibilities are:

• To ensure the aims and vision of the group, its purpose and direction are identified and agreed.
• To facilitate acquisition of resources needed by the group to achieve the task.
• To ensure the group’s plan identifies appropriate strategies and tactics with clearly defined deliverables, measures of success, budgets, deadlines and timescales.
• To ensure that accountabilities, objectives and measures are established and agreed for all group members and that work is delegated.
• To ensure that quality standards, effective reporting, monitoring and control structures for the task are established.

Maintenance of the Group: A leader must ensure that the group’s collective needs are identified and group cohesion is maintained. Leadership responsibilities for maintaining the group are:

• Facilitate or assist the formation and maintenance of a team or group charter that establishes shared values, ethics and standards of performance and behavior.
• Encourage the team to focus on its objectives and uphold the principles of the team charter to motivate the group towards a collective sense of purpose.
• Enable, facilitate and ensure that there is effective communication within the team and with appropriate external agencies.
• Anticipate conflicts and disagreements in the group and assist the group to work through them in a supportive manner, identifying and capturing lessons from the experience.
• Help to identify and review the group roles, composition and suggest modifications to team structure that would help to better balance the group.
• Assist team development, training, morale, team spirit and cooperation.
• Help to develop the collective maturity and capability of the group so that it can work with increased freedom and authority for action.
• Provide supportive feedback to the group about progress and team issues and seek similar comment and feedback from the group.

Support for the Individual: Each member of the group or team will have their own personal needs, and the leader will need to support individuals to maintain their personal effectiveness and contribution to team success. To support individuals, the leader must address the following responsibilities:

• Understand each team member’s personality, skills, strengths, needs, personal goals and fears.
• Support each individual to achieve their personal plans, deal with their problems and challenges and respond appropriately to their successes and failures.
• Help to align personal objectives and accountabilities with the group needs, building on the capabilities and strengths of each team member.
• Provide appropriate recognition and praise to individuals, acknowledging their effort and good work. Where appropriate, reward with extra responsibility, advancement, status, freedom and authority.
• Assist personal development and training.

Adair’s view of leadership also implies that motivation is not solely generated internally within an individual. External factors, including an effective leadership style, can spark motivation in others.

3. Situational Leadership This set of leadership styles suggests that different styles are better in different situations, and that effective leaders must be flexible enough to adapt their style depending upon the working maturity of their followers. An effective situational leader is one who can quickly change leadership styles as the situation changes.Blanchard and Hershey (1969) characterized the situational leadership style in terms of the amount of direction and support that the leader provides to their followers. The styles follow a natural progression through the development of the follower as four behavior types, as shown in Figure 6.2.

Figure 6.2: Situational Leadership – the route from Directing to Delegating Directing or ‘Telling’ Leadership style is appropriate for followers who lack competence but are enthusiastic and committed to the work. They need direction and supervision to get them started. Coaching or ‘Selling’ Leadership style is for followers who have some competence but lack commitment to the task. These followers need direction and supervision because they are relatively inexperienced. They also need support and praise to build their self-esteem, and involvement in decision making to build their commitment. Supporting Leadership style is for followers who have competence but lack confidence or motivation. These followers do not need much direction because of their developed skills but leader support is necessary to bolster their confidence and motivation. Delegating Leadership style is for followers who have both competence and commitment. These followers have the ability and drive to work on a project by themselves with little supervision or support from the leader. The four situational leadership styles suggest that leaders should put greater or less focus on the task in question and/or the relationship between the leader and the follower, depending on the development level of the follower (see Table 6.1). Table 6.1: Situational Leadership Styles – focus and action

3.1 Situational Leadership/Development MatchingConsider the situation where a new person joins your project and you are asked to help the person during the first few days. If you were to provide instructions and ‘leave them to it’, expecting the work to be completed without further direction, you would be applying a delegating style.

Would this be appropriate in these circumstances? The new team member will likely feel helpless and demotivated and it is unlikely that the work will be done properly. Generally, a new person on the team needs direction and support – a directing style.

Example: Consider this example on a sailing yacht. The navigator reports to the skipper that the latest weather forecast has issued a gale warning. As skipper how do you respond?

Skipper to crew:

Directing: ‘I want you to put one reef in the main and change the headsail to the storm jib.

’Coaching: ‘The navigator says we are in for a bit of a blow, I think you should put one reef in the main and set the storm jib.

’Supporting: ‘The navigator says we are in for a bit of a blow. How can I help?

’Delegating: ‘A gale is forecast.

’Another example of mismatched styles is when you are handing over work to an experienced colleague. If you leave detailed instructions with a list of all the tasks needed to be completed, you have adopted the directing leadership style. The work will likely be done, but how will your colleague feel about how you have dealt with them? Perhaps the colleague needs a supportive style if some of the work is unfamiliar, or a delegating style.

Adopting the appropriate style to suit the follower’s development level and experience can get work done properly, build solid relationships and provide effective development opportunities.

4. AuthorityA similar model to Situational Leadership is suggested by Tannenbaum and Schmidt (1973). This model also has a strong dependency on the development of the follower and the component styles are also similar. The model is influenced by the relative authority exercised by the team or retained by the leader. As the leader’s authority is passed to the project team, the style of leadership changes (see Figure 6.3).

Figure 6.3: Residence of Authority in the Leader – Team relationship. Tannenbaum and Schmidt, 1973

There is close correlation of the styles with the Situational Leadership model and allocation of authority can be compared with the result of the transition between directive and supportive styles.

5. Emotional Intelligence (EI) Leadership Styles

Based upon his work on Emotional Intelligence (EI) (see Chapter 9 on Emotional Intelligence), Daniel Goleman describes six leadership styles that have some overlapping concepts with the Situational Leadership model. We will identify where the overlaps can be considered. Goleman further developed his six leadership styles after their initial publication (Goleman, 1998). The original names are provided in parentheses for reference.

• Visionary (or Authoritative).
• Commanding (or Coercive).

Goleman asserts that, ‘Leaders who have mastered four or more styles — especially the Authoritative, Democratic, Affiliative and Coaching styles — have the best climate and business performance’. This means that leaders do not need to be conversant with all of the EI leadership styles and that there are some positive styles that effective leaders are advised to develop (see Table 6.2). However, the more positive styles in their repertoire, the more likely it is they will have a better working environment and business results.

Table 6.2: Emotional Intelligence Leadership Styles – adapted from Goleman et al. (2002), Primal Leadership

5.1 Visionary Style

This leadership style generally improves every aspect of organizational climate and works well in almost any project situation. A visionary project leader has vibrant enthusiasm, clear vision and motivates people, clearly identifying how their work fits into the larger vision of the project. The project team understands what it does and why it matters, improving commitment to project goals and strategies. Standards for success are clear and the project team has freedom to innovate with flexibility in accomplishing its tasks.

5.2 Coaching Style

The coaching style is a powerful tool that generally has a positive impact on climate in the project. The focus is on development and this style improves commitment with motivated followers who want to improve performance. The leader provides supportive feedback. Therefore, coaching generally improves results, the project team feels cared about and free to experiment. Unfortunately, this style appears to be used the least often, since leaders say they don’t have the time to help people grow. When implemented badly, the coaching style has the appearance of micro-management.

5.3 Affiliative StyleThe affiliative leader tries to create harmony and build strong emotional bonds, by creating a sense of belonging and building relationships, which all have a positive effect on trust and loyalty. This style works well in general, and is particularly good when trying to build team harmony, increase morale, improve communication or repair broken trust. The focus is on emotions and feelings which are shared openly and the leader provides positive feedback that is motivating. The affiliative style is not appropriate when people need clear direction to navigate through complex challenges. Alternating the visionary style with the approach of the affiliative leader produces a potent combination.

5.4 Democratic StyleThe democratic leader spends time getting buy-in, building trust, respect and commitment. People have a say in decisions that affect their goals and how they do their work which keeps morale high. Such consultation has drawbacks due to the time it takes to be effective and this can adversely affect the project climate. This style works best when the leader is uncertain about direction and needs to seek the views of the project team, or for generating fresh ideas for executing the vision. In times of crisis, consensus may not be effective.

5.5 Commanding StyleThis leadership style is least effective in most situations, and has a negative impact on the project climate. Decision making is autocratic, which kills ideas from the team; their sense of initiative and ownership disappears. There is a feeling of intimidation, little accountability for project performance and the team stops bringing bad news, or any news at all, in fear of getting blamed for it. The commanding style should be used with extreme caution, possibly during a crisis or genuine emergency; the long-term impact is ruinous to the project team.

5.6 Pacesetting StyleThe pacesetting leader sets high expectations and is obsessive about doing things faster and better, and expects the same of everyone else. Poor performers get replaced and morale drops as people feel overwhelmed by the continued demands for excellence. The project team often does not feel that the leader trusts team members to work in their own way, so flexibility evaporates and work becomes task focused. Although guidelines may be clear to the leader, they are not clearly articulated so that the project team understands them. This approach only works well to achieve a specific short-term goal when the team is highly skilled and self-motivated.

6. Linking Leadership Styles to Projects

Figure 6.4 represents a comparison of agreement and certainty in undertakings such as projects, plotting different leadership styles. For a specific task we can consider it to be in a range from being very certain to very uncertain. Stakeholders associated with that task can be in agreement or far from agreement. We can then map appropriate leadership styles that depend upon how our task or project fits within these ranges.

Figure 6.4: Reflecting Complexity in Approaches to Leadership

Certain and Agreed: Here our project is similar to a ‘painting by numbers’ style where we are all in agreement and clear how to proceed. We can apply straightforward project management techniques to organize and plan. Decisions are simple and will not be contentious, so a directive leadership style would be suitable. Alternatively, this type of project might be suitable for developing or practicing a new leadership style.

Certain and Not Agreed: When we are working with a project that has clear goals and methods but there is disagreement amongst the stakeholders, a more flexible leadership style is appropriate. Here, depending upon the maturity of the project team, the Situational Leadership model can be applied. Alternatively, any of the positive EI leadership approaches can be appropriate. If agreement cannot be achieved, the EI commanding style might be needed for a short time to move the project forward.

Not Certain and Agreed: In this type of project, stakeholders have agreement about goals and methods but there is a high potential for risk occurrence. The uncertain nature of the project might require a change in leadership approaches to fit the situation. When there is the right expertise available to address any uncertainty, leadership should respond to that expertise with a commanding or visionary style. If there is no expertise available, then a democratic style is likely to be effective.

Partially Certain and Partially Agreed: This condition fits in the center of the figure and suggests there is some agreement amongst stakeholders, but there is also some disagreement. Some of the project task is clear and unambiguous and some of the task presents uncertainty. Many projects exist in this area and the project manager can draw upon most of the leadership styles to suit the situation. Possibly the most effective style overall would be the visionary style, introducing the democratic leadership style to address the uncertainties in the project and one of the directive styles for the more certain aspects.

Not Certain and Not Agreed: This is a difficult combination to provide effective leadership. It represents a kind of ‘lost in the fog’ project where there may be difficulties with stakeholders as well as having an unclear task. Accomplished leaders might need to move amongst all the positive EI leadership styles depending upon their own vision, available expertise and the influence of stakeholders. Selection of the right leadership style will come with some experience and development of various approaches, particularly when combining different leadership styles. The practitioner is recommended to start simply, in a comfortable environment, and develop each style step by step. Teaming with a mentor or coach can provide considerable support when trying to negotiate a new leadership style.