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UNIVERSITY OF TECHNOLOGY, SYDNEYBusiness School of Management
21844 Managing Work and People
“Democratic/participative leadership style is always more effective than
autocratic/directive leadership style”Assignment 1: Individual Research Report
Word Count: 2203
Ida Sophie Demetriades Toftdahl 10983106
Spring 2011
Executive Summary
Leadership styles are contingent upon people and situations, and range on a broad spectrum
from people-oriented to task-oriented leadership style. To a backdrop of five overarching
leadership perspectives: competencies; behaviour; contingency; transformational; and
implicit, this paper examines participative/democratic (people-oriented) and
directive/autocratic (task-oriented) leadership styles. The paper outlines the most popular
and renowned leadership theories, and discusses situations suitable for different styles. It
examines contemporary examples from a small global Australian start up business that has
recently employed two new staff which introduced opportunities for testing leadership.
Contents
Executive Summary..........................................................................................0
Part I: Introduction................................................................................................2
Part II: Critical Literature Review........................................................................3
Contingencies in Leadership Styles..................................................................4
Models of Contingencies...................................................................................5
Four Combinations or Continuums of Leadership Style:..................................6
Leadership and Management: Transformational versus Transactional.............7
Part III: Practical Implications..............................................................................8
Conclusion..........................................................................................................10
Reference List.....................................................................................................11
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Part I: Introduction
Historically, great man theory argues that “the fate of societies and organisations is in the
hands of powerful, idiosyncratic, individuals” and leaders (Buchanan & Huczynski 2010,
p. 599). There are however divergence around what leadership is in academia and mass
media, and midst practitioners and members of the public. A continuously evolving
discipline, the concept of leadership has been referred to as an ability to influence, an
influencing process or “an influence relationship among leaders and followers who intend
real changes and outcomes that reflect their shared purposes” (Stogdill in Buchanan &
Huczynski 2010, p. 596; Daft & Lane 2005, p. 44; Robbins, Waters-Marsh & Millett
2004); The ongoing discrepancy relates to the effectiveness of leadership theory and
leadership styles. There seems to be agreement however that leadership aims at goal
achievement and involves human behaviour, direct action, organisations or individuals,
and relationships. According to Daft and Lane (2011), leadership is reciprocal and involves
a spectrum or circle of life. Included are two familiar terms in academia and business:
democratic and autocratic leadership. Democratic, or participative leadership style, is a
current popular trend which refers to a person who shares and delegates authority, relies on
and encourages subordinates’ participation and knowledge for completing tasks and
reaching goals, and therefore depend on “subordinate respect for influence” (Daft & Lane
2005, p. 44; Daft & Lane 2011; DuBrin 2010; Pride, Hughes & Kapoor 2009; Rounds &
Segner 2011). Autocratic, or directive, leadership style tends to centralise leader authority
and “derive power from position, control of rewards, and coercion” (Daft & Lane 2011, p.
45; Hamilton 2010; Lussier & Achua 2010). Although research suggests the former has
been known to increase positive employee feelings, a leadership continuum or mix of two
or several styles might be more appropriate, depending on circumstances such as skill level
or time pressure (Lewin 1939 in Robbins; Chemers 1997). Research also indicates that
people with “high authoritarianism and low need for independency prefer autocratic
leadership”, especially in critical situations where absolute power outweighs the expense,
or where people simply prefer to be directed (Chemers 1997; McShane, Travaglione &
Olekalns 2009; Quinn 2011; Robbins, Waters-Marsh & Millett 2004; Vroom & Yetton
1973). The critical literature review examines appropriate leadership styles within this
continuum.
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Part II: Critical Literature Review
Leadership Theories refer to different schools of thoughts and leadership types that have
been identified by academics and business leaders over time. In order to understand it’s
complexity, it is useful to examine a spectrum from broad trait theories which focus on
personal qualities and characteristics, and more specific behavioural theories which again
establish between people-oriented and task-oriented leadership (Chemers 1997; Chemers
& Ayman 1993; Robbins, Waters-Marsh & Millett 2004). Leadership can be organised into
five overarching perspectives including; “competency, behavioural, contingency,
transformational and implicit” (McShane 2009, p. 419). Focussing on contingencies, these
five perspectives are explained and referred to throughout the report in order to reflect
contemporary examples to a framework of leadership theory.
Eight key leadership competencies are defined as; personality, self-concept, drive,
integrity, leadership motivation, knowledge, cognitive and practical intelligence, and
emotional intelligence (McShane et al 2009). These “personal characteristics of superior
performance” are increasingly popular; however the perspective excludes complexities and
contingencies such as situations, skills set, and quality of relationships (p. 458). To
explain, it is common to speak of leadership behaviour as people-oriented or task-oriented.
A people-oriented style describes extensive two-way communication within a vertical
environment built on comfort, listening, support, favours, personal interests, and equality
(McShane et al 2011, p.460). Task-oriented leadership comprises assigning specific tasks,
clarifying duties and procedures, and enforcing rules and encouraging efficiency (McShane
et al 2011). Decreased people-oriented leadership may cause “absenteeism, grievances, and
turnover and job dissatisfaction” (McShane et al 2011, p.460). Decreased task-oriented
leadership may reduce job performance (ibid). Leaders have to change theirs and others’
behaviour depending on each individuals competencies and skill set, the situation and the
quality of relationships. Leadership styles can be viewed as a foundation and applied in a
mix or continuum depending on contingencies.
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Contingencies in Leadership Styles
Pioneering yet too narrow, Fiedler’s Contingency Model builds on relationships and
power, and suggests that effective leadership is situational depending on the leaders’
natural style (McShane et al 2011, p.467). Within this fixed model, either the leader or the
situation needs modification to reach effectiveness (Hurd, Barcelona & Meldrum 2008).
However, diversity in location, culture, race, gender and education makes it a conundrum
to understand what motivates individuals to change. High emotional intelligence,
flexibility and understanding are widely identified as requirements to exercise efficient
leadership (Dulewicz & Higgs 2005; McShane, Travaglione & Olekalns 2009; Pahl 2008;
Quinn 2011; Robbins, Waters-Marsh & Millett 2004). A leaders success depends on their
ability to drive emotions in the right direction by determining what motivates people (Pahl
2008). To clarify, five process theories of motivation assist us in predicting and influencing
behaviour; expectancy theory; equity theory, goal setting theory; satisfaction-performance
theory and reinforcement theory (Borkowski 2005). Vrooms expectancy theory suggest
that a person’s motivation in terms of performance depends on their desire for an outcome
(valance); its relation to other outcomes (instrumentality); and the relationship between
effort and performance (expectancy) (Pahl 2008). Grounded in expectancy theory, path-
goal leadership theory is a prevalent contingency theory of motivation (McShane et al
2009, p.461). A carrot rather than a stick method, this theory advocates servant leadership
which views powerful leadership as coaching, facilitating and supervising (Borkowski
2005; McShane, Travaglione & Olekalns 2009; Quinn 2011; Robbins, Waters-Marsh &
Millett 2004). In this situation, leaders will guide employees commissioning their own
motivation. Supervisors can employ equity theory and satisfaction-performance theory to
determine what makes people tick. These theories relate to social relationships and job
satisfaction, and state that motivation depends on a person’s evaluation of their outcomes
(results) and inputs (contribution) in comparison to others’ (Griffin & Moorhead 2010;
McShane, Travaglione & Olekalns 2009). To increase motivation, one must alter, distort,
move, compare, or change individual’s inputs and outcomes. Both in team and individual
mentoring, one can employ Latham and Locke’s goal setting theory which promotes
specific and challenging goals and support elements to obtain commitment (Locke 2000,
2009; Locke & Kirkpatrick 1991; Locke & Latham 1990). Organisations, teams and people
Student ID: 1098306 Report: Leadership Styles Page 4 of 13
alike, need rewards and motivation which is often individually centred. Although not
specifically a motivation theory, positive reinforcement theory conditions behaviour and
motivates employees (Lussier & Achua 2010). Thus, appropriate rewards cause efficiency
when employees are motivated to reach goals and desired rewards. The aforementioned
motivation theories are useful in describing the four leadership styles explained in the
following section: directive, supportive, participative, and achievement-oriented
(McShane, Travaglione & Olekalns 2009).
Models of Contingencies
Leadership is sometimes limited or unnecessary. Leadership substitute theory for example
identifies contingencies where leaders could be substituted with co-workers, or a leader
may not be necessary if the employee displays self-leadership, self-direction and self-
motivation (McShane, Travaglione & Olekalns 2009). Where leadership is needed
however, the four leadership styles may apply. They are described in the table below
following four useful combinations or continuums.
# Style Description
1 Directive/
Autocratic
Directive/autocratic leadership is task-oriented and includes setting
performance goals and reviews, facilitation, discipline and rewards.
2 Supportive Supportive leadership is people-oriented and describes a friendly
and approachable leader who creates a pleasant work environment
based on mutual respect, no hierarchy, and employee satisfaction.
3 Participative/
Democratic
Participative leadership involves employees in decision making and
encourages employee suggestions and involvement.
4 Achievement-
oriented
Achievement-oriented leadership involves employee performance
reviews, including goals, efficiency, improvement, responsibility
and accomplishment. In this model, the relationship between style
and effectiveness, relates to employee characteristics and the
employees work environment.
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Four Combinations or Continuums of Leadership Style:
Different combinations of leadership styles are appropriate depending on factors such as
skill and experience, locus of control, task structure and team dynamics explained below
(McShane, Travaglione & Olekalns 2009).
1. Leadership Style depends on skill and experience:
Moving from directive towards supportive is appropriate when employees are
inexperienced and unskilled.
2. Leadership Style depends on locus of control:
A combination of participative and achievement-oriented is contingent upon
employee preferences between internal and external control and discipline.
3. Leadership Style depends on task structure:
A mix of directive, supportive and participative is appropriate when the situation
depends on task difficulty, frequency, and routine.
4. Leadership depends on team dynamics:
It is appropriate to vary from supportive to directive depending on team cohesion;
low cohesion requires a more directive style.
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Directive Supportive
Participative Achivement-oriented
Directive
SupportiveParticipative
Supportive Directive
Leadership and Management: Transformational versus Transactional
As we can see from the previous models, leadership styles depend on certain
contingencies. Additionally, leadership can be examined from a transformational or
transactional perspective. Leadership styles that appeal to employee’s values and aspiration
are transformational, whilst transactional leadership describe managerial leaders who find
ways to achieve organisational objectives more efficiently by for example linking
performance and resource management with rewards (McShane 2009). It has been
suggested that behavioural and contingency theories better describes management rather
than leadership (Alvesson & Sveningsson 2003; Gold, Thorpe & Mumford 2010a, 2010b;
McShane, Travaglione & Olekalns 2009). This is because it focuses on behaviour that
improves employee performance and well-being rather than on behaviours that moves the
organisation and work unit to a new direction. Importantly, organisations require leaders
who do both, however workload often prevent leaders from distancing themselves from
management (McShane 2009, p.469). Differentiation between the two is necessary to avoid
organisational stagnation. To clarify and divide, management can be defined as coping
with complexity and leadership defined as coping with change (Kotter in Robbins, Waters-
Marsh & Millett 2004). However, fifty years of research has found that people interpret
messages differently due to prior experiences and events (Dervin 1992; Macnamara 2005).
Thus, one style or theory cannot be entirely all-embracing. Similarly, people have
leadership prototypes. What works with some people and in some situations may not as
easily be applied or even be suitable in another. Experience depends on a person’s actions,
behaviour, thoughts, decisions, skills, knowledge, identity, environment, beliefs and values
(Dervin, Foreman-Wernet & Lauterbach 2003). The latter two in particular stands out in a
globalised world with increasing awareness of and sensitivity to, different beliefs and
values across cultures. Values are hard to change because they are long-lasting beliefs built
on moral and ethics about what is important in a variety of situations. Values and beliefs
thus play an important role in influencing individual behaviour.
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Implicit leadership theory explains how leadership effectiveness is often viewed based on
preconceived beliefs about leadership features and behaviours (leadership prototypes)
(McShane, Travaglione & Olekalns 2009, p. 473). Thus, leaders influence on
organisational success is often inflated (p. 473). Most employees look for confirming
evidence of differentiating leadership because the belief makes them feel better. Explaining
organisational failure or success on a leader’s ability is a micro-economic belief that says
people generate life events rather than “uncontrollable natural forces” (p. 474). To meet
follower expectations, leaders must act in accordance with prototypes in order to bring
about organisational change, and to succeed. What sets a true leader apart may therefore be
their ability to separate themselves from the burden of leadership and accredit
organisational success to its stakeholders, meaning to employ the right leadership style at
the right time.
Part III: Practical Implications
In light of concepts described in the literature review, the following implications are
analysed in terms of the challenges facing the organisation in this case study. DIA is a four
year old global recruitment consultancy with four staff located around the world. They
have recently employed new and young staff to connect with and reflect external
stakeholders. The leadership styles chosen to meet each challenge are numbered and
sectioned into paragraphs outlining theoretical and practical examples. In particular, the
organisation faced challenges of knowledge transfer between established experienced staff
and new young staff, who worked in different locations and countries.
1. Directive Leadership with new and inexperienced staff:
DIA has recently employed two young and inexperienced staff, one of which came from a
military background. Experienced staff needed to transfer knowledge efficiently, teach
organisational practices and systems, and keep a dynamic growth. Directive leadership was
employed in terms of setting SMART goals (Specific, Measurable, Attainable, Relevant,
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Timely) and strict deadlines. Goal setting theory, including coaching, facilitating and
supervising, inspired specific and challenging goals that created a vision, drive and
commitment. The organisation provided directed guidance and resources to ensure new
staff had everything they needed to complete tasks. Tasks were listed in goal sheets and 90
day plans. The plans included daily, monthly, quarterly and yearly goals. This enabled staff
to see how their work related to the organisations mission and understand the value of their
work. We are here moving from directive towards supportive leadership.
2. Supportive Leadership Style
In the new DIA team, a supportive leader was important. All staff were well educated,
confident and capable. A friendly and pleasant work environment resulted in mutual
respect and increased team cohesion. This meant staff enjoyed their work which also
increased productivity.
3. Participative Leadership to empower staff and promote a comfortable environment
Participative leadership was employed particularly at team meetings where staffs were
welcome to suggest and present creative ideas that were often used. In conjunction with
goal setting theory, team members were able to set their own success goals, timelines and
rewards. This resulted in greater team cohesion and motivation. Together and in ‘one on
one meetings’ with their supervisor, team members provided each other with positive
reinforcement working towards more desirable rewards employing regular feedback.
Achievement-oriented leadership and equity theory describes how the team decided upon
different bonuses for different people dependant on their performance review with their
manager, their personal wants and needs, and the individual in comparison to others. A
combination of participative and achievement-oriented leadership increased efficiency,
improved individual and team responsibility and accomplishment.
As we can see, a mix of directive, supportive and participative is appropriate depending on
the situation. Routine tasks needed supportive leadership, monitoring and sufficient
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resources. Participative leadership was needed depending on the frequency of tasks.
Members contributed in an open environment and set their own rewards, and servant
leadership was more efficient. Difficult tasks needed directive leadership which gave team
members a sense of value and regularity.
Conclusion
To answer the opening statement, it is incorrect to say that “democratic/participative
leadership style is always more effective than autocratic/directive leadership style” because
it is depends upon the situation, the people involved, and the tasks at hand. The case study
example outlined how participative, supportive and directive leadership was employed in
different situations and with different people to increase efficiency. Although it was time
consuming and challenging to train new staff and provide supervisory meetings, the team
benefited from a mix of leadership styles and team awareness of the leadership styles
employed in which situation. It is useful to employ management tools to ensure efficiency
including; daily contact, weekly meetings with agenda and goal sheets, quarterly
performance reviews and 90 day plans, yearly business plans and clear task and job
descriptions. In our knowledge worker age, it is also important that all individuals and
organisations are aware of the tools at hand, the leadership styles employed and individual
and organisational goals, to achieve organisational team cohesion.
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