ACCA BT Syllabus D. Leadership And Management - Approaches to Leadership - Notes ^{4 / 5}

The action centred approach (Adair)

• Adair suggests that any leader has to strive to achieve three major goals while at the same time maintaining a position as an effective leader.

• Adair’s action – centred leadership model looks at leadership in relation to the needs of the task, individual and group.

The contingency approach - (Fiedler)

Contingency theory sees effective leadership as being dependent on a number of variable or contingent factors. 

There is no one right way to lead that will fit all situations; Rather, it is necessary to lead in a manner that is appropriate to a particular situation.

Fiedler studied the relationship between style of leadership and effectiveness of the work group.

Two styles of leader were identified.

• Psychologically distant managers (PDMs).

  • Maintain distance from their subordinates by formalising roles and relationships within the team.

  • Are withdrawn and reserved in their interpersonal relationships.

  • Prefer formal communication and consultation methods rather than seek informal opinion.

  • Judge subordinates on the basis of performance and are primarily task orientated.

  • Fiedler found that leaders of the most effective work groups actually tend to be PDMs.

• Psychologically close managers (PCMs)

  1. Do not seek to formalise roles and relationships.

  2. Prefer informal contacts to regular formal staff meetings.

  3. They are more concerned to maintain good human relationships at work to ensure that tasks are carried out efficiently.

  4. Fiedler concluded that a structured (or psychologically distant) style works best when the situation is either very favourable or very unfavourable to the leader.

  5. On the other hand, a supportive (or psychologically close) style works best when the situation is moderately favourable to the leader.

  6. He further suggested that group performance would be contingent upon the appropriate matching of leadership styles and the degree of favourableness of the group situation for the leader

Transformational leadership (Bennis)

Some of the values used to distinguish between managers and leaders have also been identified as:

• Transactional leaders – see the relationship with their followers in terms of a trade: they give followers the rewards they want in exchange for service, loyalty and compliance. (doing things right)

• Transformational leaders – see their role as inspiring and motivating others to work at levels beyond more compliance. 

  Only transformational leadership is said to be able to change team/organisational cultures and create a new direction. (doing the right thing)