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Fundamentals of communication,

Modern theories of leadership in Private and Public Enterprises and Or

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Leadership has taken on special meanings in the modern world, characterised by private and public
enterprises and organizations operating internationally, possessing and controlling more financial assets
and wielding much more power and authority than political leaders, not of a single one, but of several
Nations on a global scale. This chapter will introduce the readers to some basic theories currently at
centre stage, or at least in the immediately visible periphery of research efforts, relating to leaders and
leadership focusing especially on modern enterprises and organizations. The differentiation between
leaders and managers is eloquently expressed by the now classic aphorism-maxim 'Management is doing
things right; leadership is doing the right things.' attributed by some to the Austrian management guru
Drucker (2003) and stated by Bennis and Nanus (1985).

One could argue that although it is difficult to see it as a phase-by-phase or, step-by-step evolutionary
process, yet it appears that the 'trait theories' of leadership were succeeded and to a large extent replaced
by the 'behavioural theories'. Furthermore, in this succession of theoretical schemes process, the so-called
'what-if ' or 'contingency theories' and the 'transformational leadership' theories emerged. This occurred
logically as researchers' continued to strive for fresh and useful explanations on the primordial question
'what is a leader and what does leadership mean and entail'. It is widely accepted both in academic
circles and among practitioners in business and organization management that elements of all of the
above four types of theories were present throughout the last century. This continues to be a reality in
the 21st century as well although the 'trait theories', despite some creative attempts of meta-analyses of
their basic premises, have slowly and progressively disappeared from the centre of the current dialogue.

One of the first 'departures' from the trait theory and the antithesis between the autocratic type of leader
who, to put it somewhat bluntly, 'run the show ignoring his subordinates' and the democratic leader who
took into consideration his people, was that of Tannenbaum and Schmidt (1958). In their theoretical
scheme, published in the Harvard Business Review as an article titled 'How to Choose a Leadership
Pattern' Tannenbaum and Schmidt proposed a continuum of leadership behaviour ranging from the
absolute manager decision-making type to the workers-participation type. Their continuum envisaged
7 different approaches ranging from one extreme where the manager-leader takes his decisions and
announces them to his people, through a gradation where the manager-leader trusts his subordinates
and permits them to function independently but remaining within certain limits already set.

The two elements of 'concern', i.e. the concern for production or fulfilment of the set goals of an enterprise
or organization and the concern for people who constitute the human resources as employees of the
enterprise or organization, were integrated in the 'managerial grid' (later renamed as the 'Leadership grid')
presented by Blake and Mouton (1964). The 'managerial-leadership grid' has been extensively used in a
multitude of private and public enterprises and organizations for training and personnel development
purposes. According to its creators the 'grid' takes into consideration a variety of entrepreneurialorganizational
activities relating to achieving and improving set quotas in production and human
relations concerns ranging from working conditions to salaries and promotions, for the employees who
will labour to achieve production quotas and goals.

Schematically the 'managerial-leadership grid' is represented by two intersecting axes where the vertical
axis represents the leader's concern for people and the horizontal axis the leader's concern for results.
Each of the two axes has a range of grades from 1 to 9, with the grade number 1 representing the leader's
minimum concern and the grade number 9 the leader's maximum concern. Blake and Mouton's model
makes provisions for scoring each leader with scores varying from 1 to 9 points in each one of the two
intersecting, i.e. vertical and horizontal axes. The authors have proposed five major leadership styles
depending on the grades received (ranging from a minimum of 1 to a maximum of 9) of each examined
leader scores. In the 'authority-compliance' style the leader's concern is with results and minimally with
people. In the 'country club management' style the leader is mostly concerned with his people and
minimally with results. In the 'impoverished management' style the leader has minimal concern for both
his people and the results. The 'middle of the road management' style represents the leader's moderate
concern for people and results and, finally, the 'team management' style represents the case where the
leader has high concern for both his people and the results of their efforts.

Hershey and Blanchard (1969) in their situational leadership theory have, in essence, reversed the focus
of attention of Blake and Mouton's 'managerial-leadership grid' giving prominent place to the situation
or context and suggesting that the successful leader possesses the skills, attributes and personality
traits to adapt to each different situation. This theory, as is the case with the previous one, contains two
dimensions, namely, task behaviours and relationship behaviours. Task behaviours relate to the amount
of direction for goal completion the leader provides to his people while relationship behaviours refer
to the support, encouragement and recognition that he provides to them. As the name of the theory
clearly connotes and denotes, situational leadership focuses on the situation and in essence, as stated
above, effective leaders are those that can adapt their personal-individual style to the varying demands
presented by various situations. The manager-leader's choice of style depends on three distinct factors,
namely, the personality and 'modus operandi' of the leader, the characteristics, personalities, motivation
and possession of skills and dexterities of the subordinates and the situation in which manager-leader
and followers are called to act.

In the above model of Hershey and Blanchard, the 'readiness' of the subordinates and the specific nature
of the 'situation' in which the manager-leader has to act projecting a 'style of behaviour', define a variety
of possible choices. Thus, when subordinates do not posses the skills demanded for the accomplishment
of a task or series of tasks and their readiness is low, 'structuring' and 'coaching' may be appropriate.
On the contrary, when the subordinates are in a state of elevated 'readiness' and, simultaneously, posses
the needed skills and dexterities for the accomplishment of the task or series of tasks, then the styles of
'encouragement' and 'delegation' may be more appropriate. Four distinct types of style were presented
by Hershey and Blanchard in their theory noting that the manager-leader can choose to 'dictate' or to
'coach', to 'support' or to 'delegate'.

Contingency and path-goal theories

A number of approaches to the leader-manager theory and research could be classified under the title of
'contingency' which means an attempt to pair or match leaders-managers to the situations in which they
are called to lead and manage. Essentially, the contingency type of theories are founded on the thesis that
leader-managers' effectiveness depends on how well they fit the context in which they must act. Among
the various 'contingency' theories the one developed and presented by Fiedler (1967) differs from most
others as it is one of the earliest presented and also the most cited 'contingency' theory. Fiedler and his
collaborators studied the styles exhibited by literally hundred of manager-leaders and the contexts, or
situations, in which they performed with some having been successful and some unsuccessful in enacting
their roles. A large number of his subjects came from military organizations and the careful scrutiny
of their behaviour permitted Fiedler and his group of researchers to lay down some useful and indeed
empirically assessed generalizations on styles and contexts.

It is imperative to correctly assess and understand the situation, the context, in which leader-managers
operate in order to effectively understand and measure the leader-managers' performance. For Fiedler, as
for other contingency theory proponents, the effective leadership style is contingent to the right setting
in which a leader-manager acts. Contingency theory takes into consideration both leader-manager
style and situation and, as Fiedler has said, style has two components strongly reminiscent of Blake
and Mouton's theory, namely 'relationship orientation' and 'task orientation'. Fiedler developed the now
well known questionnaire named LPC (Least Preferred Co-worker) consisting of 16 bipolar adjectives
graded from 1 to 8 (for example, Friendly 1,2,3,4,5,6,7,8 Unfriendly, Open 1,2,3,4,5,6,7,8 Closed etc.).
The LPC instrument aims to show the people that leader-managers' would have problem working with
or would be happy to work with.

Fiedler's contingency theory goes beyond the elements of 'relation orientation' and 'task orientation' and
proposes that each situation can be characterized by three specific elements, namely, 'leader-member
relations' which sometimes is labelled as 'group atmosphere', 'task structure' and 'position power'.

For Fiedler, the first element, labelled 'group atmosphere', contains emotional-human relations
characteristics such as followers trust, respect, confidence and loyalty to the leader. It should be easily
understood that if the relations between leader-manager and his group are positive, the 'group atmosphere'
can be labelled as 'good', while when friction exists and the feelings are negative, the 'leader-members'
element is labelled as 'bad'. Fiedler's analytic scheme combines the variations of the above three elements
into a matrix of eight leadership situation types. The second element, 'task structure', refers to the degree
to which the requirements for fulfilling successfully a task are clear, well spelled-out and understood.
The third element, the 'position power' refers to the authority bestowed to the leader-manager by the
enterprise or the organization to hire and fire, to give pay-raises or elevate employees to higher positions,
in other words to posses the authority needed to reward or punish.

This theoretical scheme predicts that leader-managers who are 'task oriented' (low LPC scores) will
perform well in both very favourable and very unfavourable situations. The leader-managers who are
'relationship oriented' (high LPC score) will be more effective in moderately favourable situations.

As we have already seen earlier, Hershey and Blanchard's 'situational theory' suggested that in order to be
effective acting in a given situation, the leader-manager should understand the realities of the situation
and assess his followers' commitment and competency to fulfil the requirements of a task. Fiedler's
'contingency theory' briefly presented above focuses on the specifics of a situation and their match with
the correct leader-manager style.

Unlike both of these theoretical orientations, 'path-goal theory' which has been proposed by House
(1971) combines three elements, namely, leader-manager style, characteristics of subordinates and the
work setting constituting a heuristic phase of the expectancy theory of motivation. The expectancy theory
of motivation proposes that people act according to 'expectancy, instrumentality and valence'. In other
words, peoples' dexterities can lead to efforts which will materialize in specific results and this outcome
will be deemed worthwhile and end with a payoff.

House and other researchers have suggested that the leader-managers who operate following the premises
of 'path-goal theory' can adopt one of four specific behaviour styles and act in accordance with it. In the
'directive or instrumental style' of leadership the leader-manager sets and announces to subordinates
clearly the expected standards of performance and the appropriate rules and regulations to be followed.
In the 'supportive leadership style' the leader-manager shows care for his subordinates and their human
needs. In the 'participative leadership style' the leader-managers consult with their subordinates, listen to
their suggestions and integrate them in the final decisions taken. In the 'achievement oriented leadership
style' the leader-managers show high degrees of trust and confidence in their subordinates capabilities
and set high goals for group performance.

Transformational leadership – 'Charisma' revisited?'

As we have noted earlier, the focus from the 'Great Man' theories in politics and religion and the emphasis
on identifying and signifying the traits such leaders inherently possessed, shifted to the context of the
business world. Thus, the careful examination of the dynamic interplay between leaders and followers in
modern Small, Medium and Large Scale private and public enterprises and organizations and the better
utilization of their human resources shifted the focus of attention to processes such as revitalizing and,
even more effectively, transforming these enterprises and organizations. A landmark contribution in
this realm was a book authored by Burns (1978) which lead to the definition and differentiation of two
fundamental forms of leadership, namely, transactional leadership and transformational leadership. Prior
to Burns, the idea of a 'social exchange theory' was proposed by Homans (1950, 1974). According to
this theory, social interaction constitutes a form of exchange in which group members contribute to the
group at a cost to themselves and, in return, they receive benefits from the group at a cost to the group.

In the leadership theory proposed by Burns (1978) there is a continuum consisting of a 'leadership
act' where leader and follower initiate an exchange with each other which is short-termed and nonbinding,
in contrast to the 'transforming leadership' point where the interaction raises both leader
and follower to higher moral levels recognizing the follower as an important player. 'Transactional
leadership' presupposes an exchange process of mutual dependence founded in the authority structure
of an enterprise or organization; it can be stated in simple terms as the proposition 'if you do this, I will
give you that'. This type of leadership appeals to the follower's self interest and the leader's clarification
of work tasks and expectations, and corresponding rewards or punishments. In contrast to the above
type of leadership, 'transformational leadership' presupposes the leader's capability in creating vision
and arousing follower's values and their commitment to the goals of the enterprise or the organization.
Operating on a platform of trust, ensuring justice and raising the sense of loyalty, this type of leadership
can transform and greatly enhance the performance of an enterprise or organization providing it with
a much needed advantage in the struggle for survival and excellence in our highly competitive world.

Transformational leadership shows the significance of human relations qualities in the crucial role of
the leader-follower transactional relationship and the bond emerging between them as a result of trust
and elevated dedication to goal achievement for private and public enterprises and organizations. These
human relations characteristics, as Bass (1985), Bass and Avolio (1994), Kreitner and Kinicki (1995),
have noted, bring forth the idea that the transformational leadership theories, denoting inspirational
leadership, are very closely related to the concept of 'charisma' and the 'charismatic leader'. Indeed leaders
can inspire followers and gain their full respect and dedication to goal fulfilment for the private and
public enterprises and organizations they manage when the followers perceive them as possessing that
special characteristic known throughout the ages as 'charisma'.

Judge and Piccolo, (2004, p. 755) have noted that: 'in the past 20 years, a substantial body of research
has accumulated on transformational – transactional leadership theory.' Looking at the spreading of the
theory as well as at the research activity, in comparison to other leadership approaches, it seems as if this
theory has replaced earlier leadership approaches such as the described trait, behavioural or situational
approaches. Bass, (1985) has formulated one of the most prominent concepts within the transformational
approach. In his more recently published work, Bass goes on to see transformational leadership as moving
followers beyond their self-interests, as well as, elevating the followers' concerns for achievement and
the well-being of others or the organization. According to Judge and Piccolo (2004):

'The four dimensions of transformational leadership are charisma or idealized influence, inspirational
motivation, intellectual stimulation, and individualized consideration. Charisma, or idealized influence,
is the degree to which the leader behaves in admirable ways that cause followers to identify with the
leader. Charismatic leaders display conviction, take stands, and appeal to followers on an emotional
level. Inspirational motivation is the degree to which the leader articulates a vision that is appealing and
inspiring to followers. Leaders with inspirational motivation challenge followers with high standards,
communicate optimism about future goal attainment, and provide meaning for the task at hand.

Intellectual stimulation is the degree to which the leader challenges assumptions, takes risks, and solicits
followers' ideas. Leaders with this trait stimulate and encourage creativity in their followers. Individualized
consideration is the degree to which the leader attends to each follower's needs, acts as a mentor or coach
to the follower, and listens to the follower's concerns and needs.' (p. 755).

Bass and Avolio (1994) have suggested, in their introduction to the book they have edited, that
transformational leadership is seen when leaders:

'stimulate interest among colleagues and followers to view their work from new perspectives; generate
awareness of the mission or vision of the team and organization; develop colleagues and followers to
higher levels of ability and potential, and motivate colleagues and followers to look beyond their own
interest toward those that will benefit the group.' (p. 2)

The two authors went on to point out that:

'Transformational leaders motivate others to do more than they originally intended and often even
more than they thought possible. They set more challenging expectations and typically achieve higher
performances. Transformational leadership is an expansion of transactional leadership. Transactional
leadership emphasizes the transaction or exchange that takes place among leaders, colleagues and
followers. This exchange is based on the leader discussing with others what is required and specifying
the conditions and rewards these others will receive if they fulfil these requirements.' (p. 3)

From antiquity to present times, charismatic leaders have managed to capture not only the imagination but
the hearts and loyalty of their followers in the battlefields or in the modern production floors and executive
management suites. Viewing it from this perspective it would appear that transformational leaders and
transformational leadership do relate positively with charismatic leaders and charismatic leadership.

Closing this chapter I believe that it is both necessary and useful to mention that in the last two decades
both academic research and popularized literature have witnessed the presentation and elaboration of
the theory of 'Emotional Intelligence'. Daniel Goleman (1995, 2002) with his books popularized the
E.I. Theory which, in very broad terms, refers to the ability to understand and manage both your own
emotions, and those of the people around you. He has suggested that there are four elements involved
in the process and encapsulating E.I., namely, self awareness (self confidence), self management (self
control), social awareness (empathy) and social skills (influence).

Goleman (1998) relating E.I. Theory to leadership has argued that emotional intelligence is a prerequisite
for successful leadership. Furthermore, in their book 'Primal Leadership', Daniel Goleman, Richard
Boyatzis, and Annie McKee, (2002) wrote that:

'Great Leaders move us. They ignite our passion and inspire the best in us. When we try to explain why
they are so effective, we speak of strategy, vision, or powerful ideas. But the reality is much more primal:
Great leadership works through the emotions. No matter what the leaders set out to do – whether it's
creating strategy, or mobilizing teams to action – their success depends on how they do it. Even if they
get everything else just right, if leaders fail in this primal task of driving emotions in the right direction,
nothing they do will work as well as it could or should.' (p. 3)

It should be emphasized that Goleman, Boyatzis and McKee are quite clear in their thesis when they note:
'the emotional task of the leader is primal, – that is first- in two senses: it is both the original and the
most important act of leadership.' (p. 5). In other words the three authors maintain that the primal job of
leadership is to create resonance, a reservoir of positive feelings, through either resonant leadership styles
(emphasizing visionary, coaching, affiliative, and democratic tendencies) or dissonant styles (focused
on pacesetting and commanding) and the ability to know when each is most productively applicable.

George (2000, pp. 1039–1046) has suggested how emotional intelligence contributes to effective leadership
by focusing on five essential elements of leader effectiveness, namely, development of collective goals
and objectives, instilling in others an appreciation of the importance of work activities, generating and
maintaining enthusiasm, confidence, optimism, cooperation, and trust, encouraging flexibility in decision
making and change and, finally, establishing and maintaining a meaningful identity for an organization.

Closing it should be noted that a growing emphasis on the importance of emotional intelligence (Goleman,
Boyatzis, & McKee, 2002) and leading with heart (Kouzes & Posner, 2002) when added to the imperative
of involving employees in the conditions of their work, appear to be crystallizing in the transformational
leadership profile. Indeed, Kouzes & Posner (2004) raised a significant issue on the relationship between
leaders and followers, managers and employees, organizations and workers when they noted that:

'Most of today's workers seriously question whether organizations are going to be loyal to their employees.
They hear all this talk about how the organization wants loyal customers and committed employees,
yet they don't experience life on the job as a reciprocal relationship…A certain distrust and weariness
has crept into the workplace and yet we know that trust is the foundation of any good relationship –
and fundamental to getting extraordinary things done…After people have been torn apart by mergers,
acquisitions, restructurings and the attendant layoffs, when everyone assumes things won't last forever –
how do leaders create commitment? How can leaders deliver on the promise of offering exciting and
meaningful work and treating even the most temporary of workers with dignity and respect?…In the
last half decade a countervailing force has arisen to combat what seemed to be an ever-expanding sense
of cynicism…Whether you call it spirituality, religion, faith, or soul, there is clearly a trend toward a
greater openness to the spiritual side within the walls of business.' (p. xxii)


  1. Communication is a universal phenomenon: system of 4 components
  2. Human Communication: scheme of human communication, defining
  3. Body Language: darwins contribution, intrigue of body language
  4. Mass Media & social media: stone inscription, printing process
  5. The Role of attitudes in human communication: defining attitudes
  6. The birth of a speciality: roots in antiquity, historic glimpse
  7. Publics, Public Opinion and its moulders: historical evolution, term
  8. Rhetoric, Persuasion and Propaganda: rome, love, definitions, variety
  9. Corporate Communication & Responsibility: corporate communication
  10. Press releases, special events and sponsorships: PR specialist
  11. Leaders and Leadership: pantheon of leaders, persons, injustice
  12. Leadership, Power, Authority & Charisma: events, political, financial
  13. Leadership research at the Universities of Iowa, Ohio & Michigan:
  14. Modern theories of leadership in Private and Public Enterprises and Or
  15. Instead of an epilogue: Women leaders remain under a ‘glass ceiling:
  16. References: Bibliography
  17. The Author: Dr Georgios P. Piperopoulos, sociology, psychology