BUSMGT711 Chap.7 Leadership Theories, Power and Influence
Leadership Theories, Power and Influence
Week 7 separates leading from managing: leadership is influence over a group's goals, while management relies on the authority of a formal rank. The chapter works through positional and personal power, the trait and behavioural traditions, and the contingency family, including Fiedler, cognitive resource theory, Hersey and Blanchard's situational model, leader-member exchange and path-goal theory.
It closes with transformational, transactional, charismatic, authentic and ethical leadership and trust. Leadership is a required segment of the final team presentation, so every idea is applied to a simulation team.
What this chapter covers
- 01
Leadership as influence versus management as formal authority
- 02
Reward, coercive and legitimate power compared with expert and referent power
- 03
Trait theory and why no universal set of leader traits was found
- 04
Task-centred and people-centred behaviour, and the Blake and Mouton grid
- 05
Fiedler, cognitive resource theory and situational favourableness
- 06
Hersey and Blanchard: matching Directing, Coaching, Supporting and Delegating to follower readiness
- 07
Transformational, transactional, authentic and trust-based leadership in hybrid teams
Worked example · free
Matching a leadership style to follower readiness
- +0.5Diagnose readiness: the members are competent but their commitment is wavering, the third development level in the model.
- +0.5Ground it in theory: Hersey and Blanchard link leader support and supervision to follower readiness, so needs fall as ability and willingness rise.
- +0.5Name the mismatch: detailed instruction is a Directing style, suited to enthusiastic beginners who lack skills, not to capable members.
- +0.5Recommend Supporting: share decisions and encourage the two disengaged members, keeping supervision light because their skills are already in place.
- +0.5Add an example: invite each member to present their own screen's recommendation before the rollover, which rebuilds commitment through ownership.
- +0.5Signal the next step: as commitment returns, the CEO can move towards Delegating and focus on overall strategy, as in the Microsoft illustration.
Key terms
- Leadership
- The ability to influence a group towards the achievement of its goals, whether or not the person holds formal rank.
- Legitimate power
- Influence that comes from a formally designated position, such as an appointed chief executive role.
- Referent power
- Personal influence based on being admired or identified with, so others follow willingly.
- Follower readiness
- The combination of ability and willingness that determines how much support and supervision a group needs in the situational model.
- Leader-member exchange
- A theory holding that leaders form higher-quality relationships with in-group followers, who then report better ratings, satisfaction and retention.
- Transformational leadership
- Leadership that builds acceptance of a group's purpose so followers look beyond their own interests for the good of the group.
Leadership Theories, Power and Influence FAQ
How does leadership differ from management?
Management relies on authority attached to a formal rank to obtain compliance. Leadership is influence that moves a group towards its goals and can come from anyone. A simulation CEO holds the managerial title by appointment, yet another member with expert or referent power may be the person the team actually follows. Strong answers show both and explain which mattered more.
Which leadership theory works best for the final team presentation?
No single theory is required. Choose the lens that explains what really happened in your team. Situational leadership fits teams whose needs changed over the quarter; Fiedler suits a fixed-style leader whose situation shifted away from the one that style fits; leader-member exchange explains in-groups and out-groups. Back the chosen theory with a specific decision and its effect on collaboration and direction.
Is trait theory still useful?
It is useful as a starting point but weak as a full explanation. The lecture notes that no universal traits predict leadership in every situation, and traits may predict who emerges as leader better than who leads effectively. Combine any trait, such as conscientiousness or emotional stability, with an observed behaviour or a situational factor to make the argument convincing.
Assessment move
Build a one-page leadership map with four columns: trait, behavioural, contingency and contemporary. Under each, write the core claim in a single sentence and one limitation, using your own words rather than slide phrases. Next, choose three real moments from your simulation team: a decision made under pressure, a disagreement, and a period when someone stepped back.
For each moment, write which power base was in play and which theory explains it best, then test a rival theory against the same moment and note why it fits less well. Practise drawing the situational leadership line from memory with readiness on the horizontal axis and the four styles in order, and say aloud what changes as you move right.
Because the individual Q&A asks you about segments presented by teammates, swap notes with whoever presents leadership and quiz each other with questions such as whether your CEO was transactional or transformational. Time each answer at about ninety seconds, keep a clear point, explanation, example and closing link, and finish by connecting leadership to trust and psychological safety from earlier weeks.
Before the presentation, check that every claim about your leader is supported by an observable action rather than an impression or a job title.
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