CHAP 14 - Understanding Management and Leadership Concepts môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

CHAP 14
1. What is a manager?
A manager is an individual responsible for overseeing and coordinating the activities of a team,
department, or organization to achieve specific objectives. Managers play a crucial role in
ensuring that the goals of the organization are met efficiently and effectively. Crucial Roles of a Manager:
Planning: Setting objectives, developing strategies, and outlining tasks to achieve organizational goals.
Organizing: Structuring teams, delegating tasks, and allocating resources effectively.
Controlling: Monitoring progress, evaluating performance, and implementing corrective actions.
Staffing: Recruiting, training, and developing employees to ensure the team has the necessary skills.
2. What is a leader?
A leader is an individual who influences, motivates, and guides others towards achieving a
common goal. Leadership is about setting a vision, inspiring others to pursue it, and creating an
environment where team members can thrive and contribute to the organization’s success. While
the roles of managers and leaders can overlap, leadership often emphasizes vision, inspiration,
and influence rather than just the administrative and organizational tasks associated with management. Crucial Roles of a Leader:
Vision Setting: Articulating a clear vision and long-term goals for the team or organization.
Inspiring and Motivating: Encouraging and energizing team members to achieve their best.
Influencing: Building trust and credibility to persuade and guide others towards the vision.
Innovating: Promoting creativity and encouraging new ideas and approaches to drive progress.
3. Similarities and differences
Managers and leaders both guide and influence their teams towards achieving organizational
goals, make impactful decisions, ensure team success, and rely on effective communication
skills. However, they differ in focus, approach, role in change, and source of authority. Managers
concentrate on planning, organizing, controlling, and staffing processes and resources to achieve
specific results, adopting a transactional approach that emphasizes structure and efficiency, with
authority derived from their organizational position. Leaders, on the other hand, set a vision,
inspire, and motivate people towards broader goals, driving and championing change by
envisioning new possibilities and encouraging innovation. They adopt a transformational
approach, gaining authority through personal influence and the ability to inspire and motivate
others. Both roles are essential for organizational success, and individuals often need to embody
qualities of both managers and leaders to be truly effective.
4. What is leadership?
Leadership is the process of inspiring others to work hard to accomplish important tasks. In other
words, Leadership is the ability to influence, motivate, and enable others to contribute to the
effectiveness and success of the organizations or communities to which they belong. It involves
setting a vision, inspiring others, and guiding them towards achieving common goals. Effective
leadership combines a range of skills and attributes, including emotional intelligence,
communication, decision-making, and the ability to manage change.
Contemporary challenges: firstly, In today's fast-paced world, leaders are often required to
achieve results in increasingly shorter time frames. The rapid pace of technological change,
globalization, and competitive pressures mean that businesses must adapt quickly to stay
relevant. Secondly, Stakeholders, including investors, customers, and employees, expect
consistently high performance. This pressure can stem from market competition, customer
demands for quality, and the need to meet financial targets. Thirdly, Leaders today face problems
that are complex, ambiguous, and multidimensional, often with no clear solutions. These
problems can arise from technological advancements, global interconnectedness, regulatory
changes, and social issues. Finally, Leaders often have to achieve their goals with limited
resources, including time, money, talent, and materials. Resource constraints can hinder progress and innovation.
Ex: Satya Nadella's leadership at Microsoft is a prime example of effective modern leadership.
When he became CEO in 2014, he transformed the company's vision from a "devices and
services" model to a "cloud-first, mobile-first" approach. He fostered a culture of empathy,
inclusivity, and continuous learning, leading to significant innovation and collaboration. Under
his guidance, Microsoft embraced open-source technologies, formed strategic partnerships, and
made key acquisitions like LinkedIn and GitHub. These changes drove substantial growth in
revenue and market value, reestablishing Microsoft as a leader in the technology industry.
5. What is leadership power?
Power is the Ability to get someone else to do something you want done or make things happen
the way you want. Power should be used to influence and control others for the common good
rather seeking to exercise control for personal satisfaction. It is a fundamental concept in social
interactions and organizational dynamics, often determining the effectiveness of leadership and the capacity to achieve goals.
Leadership power refers to the capacity of a leader to influence the attitudes, behaviors, and
actions of followers. It can be broadly categorized into two types: position power and personal power.
Position power: Position power refers to the authority and influence a leader possesses due to
their formal role within an organization. It includes legitimate power, which comes from the
official authority of a position, and reward power, derived from the ability to distribute
incentives and benefits. Coercive power is based on the capacity to impose penalties or
sanctions, while informational power stems from controlling valuable information. Additionally,
connection power arises from an individual's network of relationships and alliances within the
organization, allowing them to leverage these connections to influence others and drive initiatives.
Ex: Jane, the CEO of a corporation, uses her legitimate power to implement a new strategy for
international expansion. Her authority as CEO allows her to set the strategic direction, backed by
the board of directors. To ensure success, she employs reward power by offering bonuses and
promotions to those who excel in executing the strategy and uses coercive power by imposing
penalties for failing to meet targets, ensuring everyone understands the importance of the new initiative.
Personal power: Personal power is derived from an individual's personal attributes, skills, and
relationships, rather than their formal position within an organization. It is closely related to the
leader's personal qualities and the influence they can exert through them. Personal power
encompasses several types, each rooted in distinct attributes and capabilities. Expert power
derives from possessing specialized knowledge or skills that others deem valuable, making
individuals influential due to their expertise. Referent power, on the other hand, hinges on
personal traits such as charisma, trustworthiness, and the respect one commands, inspiring
loyalty and motivation among followers.
Ex: Tom, a project manager known for his expertise in software development, exemplifies
personal power. His deep knowledge earns him respect (expert power), and his approachable
nature (referent power) motivates his team, making them feel valued. Additionally, Tom’s strong
industry connections (connection power) bring new opportunities and resources to his team,
enhancing their performance and project outcomes. 6. Visionary leadership
Vision is A future that one hopes to create or achieve in order to improve upon the present state
of affairs. Visionary leadership is A leader who brings to the situation a clear and compelling
sense of the future as well as an understanding of the actions needed to get there successfully.
Visionary leadership is a style of leadership where a leader articulates and inspires others with a
compelling vision of the future. This type of leader communicates a clear and ambitious picture
of where they want to take their organization or team, fostering enthusiasm and commitment
among followers. Visionary leaders are not only able to see the big picture but also to effectively
communicate it in a way that inspires others to work towards achieving that vision.
Ex: Steve Jobs, the co-founder of Apple Inc., exemplified visionary leadership throughout his
career. He was known for his ability to envision and articulate groundbreaking products that
transformed entire industries. Jobs famously introduced the concept of the iPod, envisioning a
device that could store thousands of songs in a pocket-sized format, revolutionizing the music
industry. His visionary leadership extended to the creation of the iPhone, which combined a
phone, an iPod, and an internet communicator into one device, setting a new standard for
smartphones worldwide. Jobs' compelling vision not only inspired Apple's employees but also
captured the imagination of consumers globally, propelling Apple to become one of the most
valuable companies in the world. His legacy as a visionary leader continues to influence
technology and innovation today.
7. Autocratic leadership
Autocratic leadership is a style of leadership where the leader makes decisions without much
input from others. In this type of leadership, the leader typically maintains full control over the
team or organization, giving directives and expecting compliance without much questioning or
participation from subordinates.
Ex: An example of autocratic leadership can be seen in military settings, where commanding
officers issue orders that must be followed without question or discussion. In such environments,
decisions are made swiftly and decisively to ensure operational efficiency and adherence to strict
protocols. Subordinates are expected to execute orders promptly, with little opportunity for input
or deviation from established procedures. This style of leadership is crucial in maintaining
discipline and achieving objectives swiftly, but it can also limit innovation and autonomy among
team members who may not have the opportunity to contribute their insights or ideas.
8. Human relation leadership
Human relations leadership style focuses on building strong relationships between leaders and
their team members. It emphasizes understanding the needs, motivations, and feelings of
individuals within the team to create a supportive and collaborative work environment. Leaders
using this style prioritize communication, empathy, and fostering a positive workplace culture
where employees feel valued and respected.
Ex: An example of human relations leadership style can be observed in a modern tech company
where the CEO actively engages with employees at all levels. The CEO encourages open
dialogue through regular town hall meetings and one-on-one discussions, where employees feel
comfortable sharing their ideas and concerns. They prioritize creating a positive work
environment by implementing initiatives like flexible work hours and team-building activities.
Feedback is actively sought and valued, with recognition given to individual and team achievements. 9. Laissez-faire style
Laissez-faire leadership, derived from the French term meaning "let do" or "leave it alone," is a
leadership style where the leader adopts a hands-off approach and provides minimal guidance to
their team. In this style, leaders delegate authority and decision-making power to their
subordinates, allowing them considerable autonomy in how they approach their work. The leader
typically provides resources, support, and occasional feedback but largely refrains from intervening unless necessary.
Ex: In a creative agency, the director practices laissez-faire leadership by giving teams of
designers and writers the freedom to manage client projects independently. The director sets
broad goals and provides resources but allows teams to innovate and execute their ideas with
minimal supervision. This approach encourages creativity and ownership among team members,
fostering a culture of self-management and innovation. 10. Democratic leadership
Democratic leadership is a style where leaders involve team members in the decision-making
process. Unlike autocratic leadership, where decisions are made solely by the leader, in a
democratic approach, the leader seeks input, ideas, and feedback from their team before making
decisions. This style values collaboration, participation, and consensus-building among team members.
Ex: a software development team where the manager gathers input from all team members
before deciding on project timelines and strategies. The manager facilitates regular meetings
where developers, testers, and designers openly discuss ideas, challenges, and potential solutions.
Each team member's expertise and perspective are valued, contributing to a collaborative decision-making process. 11. Hersey-blanchard
The Hersey-Blanchard Situational Leadership Model is a leadership theory developed by Paul
Hersey and Ken Blanchard. This model emphasizes that effective leaders should adjust their
leadership style based on the readiness or maturity level of their followers in relation to a specific task or goal.
The Hersey-Blanchard model identifies four primary leadership styles:
Delegating: The leader allows the followers to make decisions and complete the task
independently. This style is used when followers are both able and willing or confident to do the task.
Participating (Supporting): The leader shares decision-making with followers and supports their
decisions. This style is used when followers are able but unwilling or insecure to do the task.
Selling (Coaching): The leader explains decisions and provides opportunity for clarification. This
style is used when followers are unable but willing or confident to do the necessary task.
Telling (Directing): The leader provides specific instructions and closely supervises task
performance. This style is used when followers are unable and unwilling or insecure about performing the task.
Ex: Imagine a project manager overseeing a team of software developers working on a complex
new feature for a software application. The manager assesses the readiness of each team member
based on their competence and commitment:
Developer A: Has extensive experience with similar projects but feels uncertain about the new
technology being used. The manager adopts a "Selling (Coaching)" style, providing guidance,
explaining the new technology, and offering reassurance to build confidence.
Developer B: Is a junior developer with limited experience but is enthusiastic and eager to learn.
The manager uses a "Telling (Directing)" style, giving clear instructions, closely supervising the
work, and providing feedback to ensure tasks are completed correctly.
Developer C: Is a senior developer who is highly skilled and motivated. The manager employs a
"Delegating" style, giving autonomy to make decisions and complete tasks independently, while
being available for support if needed.
Developer D: Has the skills and experience but lacks motivation due to personal issues outside of
work. The manager opts for a "Participating (Supporting)" style, involving the developer in
decision-making processes, offering encouragement, and addressing any concerns to boost motivation.
By adapting their leadership style to match the readiness level of each developer, the project
manager enhances team performance, fosters development, and effectively manages the project
towards successful completion. 12.
House’s path-goal leadership theory
House's Path-Goal Theory of Leadership is a contingency theory that suggests effective
leadership is dependent on the match between the leader's style and the characteristics of the
followers and the work environment. Developed by Robert House in 1971, this theory posits that
leaders motivate their team by clarifying the path to goal achievement and providing the
necessary support. Key elements of House's Path-Goal Theory include:
Directive Leadership: Provides structure and guidance, clarifying expectations and goals.
Supportive Leadership: Shows concern for the well-being and needs of team members, fostering a supportive work environment.
Participative Leadership: Involves team members in decision-making processes and seeks their input.
Achievement-Oriented Leadership: Sets challenging goals and expects high performance from team members.
Contingency relationships in House’s path-goal leadership theory
Effective leaders adapt their style to fit the needs of their followers and the work environment. It
highlights four leader behaviors: directive (providing clear instructions), supportive (showing
concern for well-being), achievement-oriented (setting challenging goals), and participative
(involving team members in decision-making). The effectiveness of these behaviors depends on
follower contingencies, including ability, experience, and locus of control, as well as
environmental contingencies such as task structure, authority system, and work group dynamics.
By aligning their leadership style with these factors, leaders can enhance motivation, job
satisfaction, and overall effectiveness in achieving organizational goals.
Ex: In a marketing agency, manager Sarah applies House's Path-Goal Theory by adapting her
leadership style to her team's needs. For junior marketers, she uses a directive style, giving clear
instructions. For senior marketers, she adopts an achievement-oriented style, setting challenging
goals. In collaborative projects, she uses a participative style, involving the team in decision-
making. She also maintains a supportive approach, regularly checking in and offering help. By
aligning her leadership style with her team's abilities and the work environment, Sarah enhances
motivation, job satisfaction, and productivity. 13. V-room jago
The Vroom-Jago Leader-Participation Theory is a contingency model of leadership that focuses
on how leaders can involve their team members in decision-making. Developed by Victor
Vroom and Arthur Jago, this theory provides a framework for leaders to determine the
appropriate level of participation by their team members based on specific situational factors.
The goal is to enhance decision quality and acceptance while considering the time constraints
and the importance of the decision. Decision-Making choices:
Autocratic (A1): The leader makes the decision alone using available information.
Autocratic (A2): The leader collects information from team members but makes the decision alone.
Consultative (C1): The leader shares the problem with individual team members to gather
suggestions but makes the final decision alone.
Consultative (C2): The leader shares the problem with the team as a group to gather suggestions
but makes the final decision alone.
Group-Based (G2): The leader shares the problem with the team, and the group makes the decision collectively.
Leadership implications of Vroom-Jago leader-participation model
Who has the relevant information and expertise, whether acceptance and commitment are critical
for successful implementation, and the level of time pressure. If the leader possesses the
necessary information and expertise, and there is high time pressure, the model suggests making
an authority decision to ensure efficiency. When team members have the expertise and their
commitment is vital, especially with low time pressure, group decisions are preferred to enhance
buy-in and the quality of the decision. Consultative decisions are recommended in intermediate
scenarios where the leader seeks input from team members but retains final decision-making
authority. This model guides leaders to adapt their approach to fit situational needs, optimizing
decision quality, acceptance, and timeliness.
According to Vroom-Jago leader-participation theory, a leader should use authority-
oriented decision methods when
The leader has greater expertise to solve a problem: According to Vroom-Jago theory, leaders
should use authority-oriented methods when they possess specialized knowledge or expertise
that is crucial for making an effective decision. In such cases, relying on the leader's expertise
can lead to quicker and more accurate decisions.
The leader is confident and capable of acting alone: This point suggests that when a leader is
confident in their abilities and believes they can make a decision independently without
compromising its quality or acceptance, an authority-oriented approach may be appropriate. This
confidence ensures that the decision-making process remains efficient and effective.
Others are likely to accept and implement the decision: One of the key considerations in
decision-making according to Vroom-Jago theory is the likelihood of acceptance and
implementation by those affected. If others are expected to support the decision made by the
leader due to trust in their expertise or the urgency of the situation, an authority-oriented method
can facilitate quick alignment and action.
Little or no time is available for discussion: When time is a critical factor and there isn't
sufficient opportunity for extensive discussion or deliberation, an authority-oriented decision
method allows the leader to make a timely decision based on available information and expertise,
ensuring that organizational goals are met efficiently.
The leader lacks sufficient information to solve a problem by himself/herself: When a problem
requires insights or data that the leader does not possess alone, involving others in the decision-
making process can bring diverse perspectives and additional information to arrive at a more informed decision.
The problem is unclear and help is needed to clarify the situation: In situations where the
problem is complex or ambiguous, collaborative decision-making can help clarify the issues at
hand and ensure that the decision is well-informed and addresses all relevant aspects of the problem.
Acceptance of the decision and commitment by others is necessary for implementation: When it
is crucial for the decision to be accepted and effectively implemented by others, involving them
in the decision-making process increases their commitment and ownership of the decision,
thereby enhancing its implementation success.
Adequate time is available for true participation: When there is sufficient time for discussion,
deliberation, and gathering input from relevant stakeholders, participative decision-making
allows for thorough consideration of various perspectives and fosters consensus-building, which
can lead to more effective decisions.
Ex: the Vroom-Jago decision-making model helps leaders determine how much they should
involve their team in decision-making. For instance, if a CEO faces a critical technical issue
requiring urgent resolution, and she possesses deep expertise in the matter, she might opt for an
authority-oriented approach (A1). This means Sarah makes the decision independently to swiftly
address the problem and keep the project on track. This model ensures decisions align with both
the urgency of the situation and the leader's knowledge, facilitating effective implementation and
achieving organizational goals efficiently.