Third EditionThird Edition

Dr. Wasim Al-Habil.Dr. Wasim Al-Habil.

Chapter 9 . . . . . . . . . . . . . . . . . . . . . . Chapter 9 . . . . . . . . . . . . . . . . . . . . . . Strategic Management in the Public SectorStrategic Management in the Public Sector

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Chapter NineChapter Nine

LeadershipLeadership

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Key TopicsKey Topics

What is Leadership? What is Leadership? Leadership and ManagementLeadership and Management Trait Theories Trait Theories Transactional & Contingency Transactional & Contingency

&Transformational Leadership&Transformational Leadership Moral Leadership.Moral Leadership.

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Leadership is “The exercise of Leadership is “The exercise of

authority, whether formal or authority, whether formal or

informal, in directing and informal, in directing and

coordinating the work of coordinating the work of

othersothers”.”.

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What is leadership?What is leadership?

The best leaders are those who can The best leaders are those who can simultaneously exercise both kinds of simultaneously exercise both kinds of leadership: leadership:

1.1. the formal, based on the authority of the formal, based on the authority of rank or office, rank or office,

2.2. and the informal, based on the and the informal, based on the willingness of others to give services to willingness of others to give services to a person with special qualities of a person with special qualities of authority.authority.

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Leadership & ManagementLeadership & Management

There is a difference between leadership There is a difference between leadership and management.and management.

Management involves power (formal Management involves power (formal authority) bestowed on the occupation of a authority) bestowed on the occupation of a position by a higher organizational position by a higher organizational authority.authority.

Leadership, in contrast, cannot be bestowed Leadership, in contrast, cannot be bestowed by a higher authority – it must be earned.by a higher authority – it must be earned.

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What is charisma?What is charisma?

Charisma is leadership based on the Charisma is leadership based on the compelling personality of the leader rather compelling personality of the leader rather than upon formal position.than upon formal position.

The word “charisma” is derived from the Greek The word “charisma” is derived from the Greek

word for diving grace. word for diving grace.

The concept was first developed by Max Weber, The concept was first developed by Max Weber, who distinguished charismatic authority from who distinguished charismatic authority from both the traditional authority of a monarch and both the traditional authority of a monarch and the legal authority given to someone by law.the legal authority given to someone by law.

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Power and LeaderPower and Leader

There are five major bases of power that a leader might have:There are five major bases of power that a leader might have:

1.1. Expert power: Based on special knowledge or expertise.Expert power: Based on special knowledge or expertise.

2.2. Referent power: Based on the follower’s liking or admiring.Referent power: Based on the follower’s liking or admiring.

3.3. Reward power: Based on the leader’s ability to reward Reward power: Based on the leader’s ability to reward followers.followers.

4.4. Legitimate power: Based on the perception that the leader Legitimate power: Based on the perception that the leader has the legitimate right or authority to exercise influence over has the legitimate right or authority to exercise influence over others.others.

5.5. Coercive power: Based on the follower’s fear to be punished.Coercive power: Based on the follower’s fear to be punished.

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Functions of LeadersFunctions of Leaders

Chester Bernard in his 1938 Chester Bernard in his 1938 The Functions The Functions of the Executiveof the Executive, defined three essential , defined three essential functions of leaders or executives:functions of leaders or executives:

1.1. To provide a system of communication.To provide a system of communication.

2.2. To promote the securing of essential efforts.To promote the securing of essential efforts.

3.3. To formulate and define the purposes of To formulate and define the purposes of goals of an organization.goals of an organization.

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Trait TheoriesTrait Theories

Trait theory is an approach to leadership Trait theory is an approach to leadership that assumes leaders possess traits that that assumes leaders possess traits that make them fundamentally different from make them fundamentally different from followers.followers.

Advocates of trait theory believe that some Advocates of trait theory believe that some people have unique leadership people have unique leadership characteristics and qualities that enable characteristics and qualities that enable them to assume responsibilities not them to assume responsibilities not everyone can execute.everyone can execute.

Therefore they are “born” leaders.Therefore they are “born” leaders.

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Transactional ApproachesTransactional Approaches

Transactional approaches are any Transactional approaches are any means of analyzing leadership style means of analyzing leadership style that focuses on how leaders that focuses on how leaders interact, how they treat, those they interact, how they treat, those they seek to lead.seek to lead.

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Contingency ApproachesContingency Approaches

Contingency theory is an approach to Contingency theory is an approach to leadership asserting that leadership leadership asserting that leadership styles will vary in their effects in styles will vary in their effects in different situations.different situations.

The situation (not trait or styles The situation (not trait or styles themselves) determine whether a themselves) determine whether a leadership style or a particular leader leadership style or a particular leader will be effective.will be effective.

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Contingency ApproachesContingency Approaches

Contingency theory stresses:Contingency theory stresses:

1.1. The type, structure, and purpose of the The type, structure, and purpose of the organizationorganization

2.2. The external environment in which the The external environment in which the organization functionsorganization functions

3.3. The orientation, values, goals, and The orientation, values, goals, and expectations of the leader, his superiors, and expectations of the leader, his superiors, and subordinates.subordinates.

4.4. The expert or professional knowledge required The expert or professional knowledge required of the position.of the position.

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Transformational LeadershipTransformational Leadership

Transformational leadership strives Transformational leadership strives to change organizational culture to change organizational culture and directions. and directions.

It reflects the ability of a leader to It reflects the ability of a leader to develop a values-based vision for develop a values-based vision for the organization, to convert the the organization, to convert the vision into reality, and to maintain vision into reality, and to maintain it over time.it over time.

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MicromanagementMicromanagement