Summary
Theories of Leadership & Management
Session 1: Mechanisms of Leadership
1.1 Social Learning Theory
1.2 Social Identity Theory
1.3 Reciporicty Principle
1.4 Leader Member Exchange
1.5 Self-Efficacy
1.6 Psychological Safety
1.7 Articles
Session 2: Individual Motivation
2.1 Work Motivation
2.2 Goal Setting Theory
2.3 Self-Determination Theory
2.4 Proactive Motivation Theory
2.5 Self-Regulation & Procrastination
2.6 Articles
Session 3: Human Capital Management
3.1 Human Capital & Resource-Based View
3.2 Strategic Human Capital Resources
3.3 Line of Sight
3.4 Employee Governance Approaches
3.5 Articles
Session 4: Team Management
4.1 Why work in teams?
4.2 Tuckman’s Stages of Group Development
4.3 Social Loafing & Social Facilitation
4.4 Status
4.5 Shared Goals
4.6 Diversity
4.7 Group Decision Making
4.8 Articles
Session 5: Culture and Values
5.1 Organisational Culture
5.2 Culture Strength
5.3 Value Congruence
5.4 Articles
Session 6: Application and integration
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
Session 1: Mechanisms of Leadership
People are the most important asset organisations have for achieving their business success.
In this course you will learn what drives individual performance, as well as how, when, and
why people succeed or fail together in groups and organisations. The perspectives and
building blocks of organisational success are shown in the figure below.
2
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
Leader-focused research often directly links leader behaviour to organisational outcomes
(often related to follower performance), implicitly assuming a relationship of some sort
between leaders’ and followers’ behavior. However, such an approach often fails to answer
how, and why certain behaviours work (Lee & Wei, 2008).
So, the mechanism between leader and follower has been unclear: “What’s in the black box?
Which mechanism explains certain outcomes?”. The goal of this lecture is to explore some
common theoretical mechanisms that have been identified in leadership research.
The relationship between the two variables (input is the independent variable; output is the
dependent variable) can be moderated. Moderation occurs when the relationship between
two variables depends on a third variable. The effect of this third variable is an interaction
that affects the strength of the relation between the dependent and independent variable.
For example, when social identity salience is more salient, the relationship between leaders’
prototypicality and followers’ endorsement is stronger. Mediation is a third variable which
can be used to explain the relationship between the independent and dependent variable.
For example, there is a direct relationship between leaders’ ethicality and followers’
ethicality. An explanation is that this is mediated by social learning: followers are more likely
to imitate their leaders when their leader shows prosocial behaviour.
3
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
1.1 Social Learning Theory
Social Learning Theory (Bandura)
Observational learning means that we learn new information and behaviour by observing
and imitating another peoples’ behaviour. There are a few necessary conditions:
Attention: we need to be able to notice the behaviour of our role model.
Retention: we need to be able to remember the behaviour of our role model.
Reproduction: we need to be able to have the ability to perform the behaviour.
Movation (reinforcement): the will to perform the behaviour – the rewards and
punishments that follows are considered by the observer.
There are two types of observational learning:
Inhibition (the brake): response that you would normally react, but you hold that
response because you know it would lead to a consequential.
Disinhibition (the gas): response that you would normally withhold, but you observe
somebody else engaging that behaviour and that goes well for them.
Ethical Leadership (Brown et al., 2005)
Ethical leadership is defined as the demonstration of normatively appropriate conduct
through personal actions and interpersonal relationships, and the promotion of such
conduct to followers through two-way communication, reinforcement, and decision making.
The theory can best be understood within a social learning framework. Followers are more
likely to imitate their leaders to behave in an ethical matter when their leader shows
prosocial behaviour. Ethical leadership should influence employees’ ethical conduct via
modelling (social learning) because ethical leaders are legitimate role models.
4
Theories of Leadership & Management
Session 1: Mechanisms of Leadership
1.1 Social Learning Theory
1.2 Social Identity Theory
1.3 Reciporicty Principle
1.4 Leader Member Exchange
1.5 Self-Efficacy
1.6 Psychological Safety
1.7 Articles
Session 2: Individual Motivation
2.1 Work Motivation
2.2 Goal Setting Theory
2.3 Self-Determination Theory
2.4 Proactive Motivation Theory
2.5 Self-Regulation & Procrastination
2.6 Articles
Session 3: Human Capital Management
3.1 Human Capital & Resource-Based View
3.2 Strategic Human Capital Resources
3.3 Line of Sight
3.4 Employee Governance Approaches
3.5 Articles
Session 4: Team Management
4.1 Why work in teams?
4.2 Tuckman’s Stages of Group Development
4.3 Social Loafing & Social Facilitation
4.4 Status
4.5 Shared Goals
4.6 Diversity
4.7 Group Decision Making
4.8 Articles
Session 5: Culture and Values
5.1 Organisational Culture
5.2 Culture Strength
5.3 Value Congruence
5.4 Articles
Session 6: Application and integration
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
Session 1: Mechanisms of Leadership
People are the most important asset organisations have for achieving their business success.
In this course you will learn what drives individual performance, as well as how, when, and
why people succeed or fail together in groups and organisations. The perspectives and
building blocks of organisational success are shown in the figure below.
2
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
Leader-focused research often directly links leader behaviour to organisational outcomes
(often related to follower performance), implicitly assuming a relationship of some sort
between leaders’ and followers’ behavior. However, such an approach often fails to answer
how, and why certain behaviours work (Lee & Wei, 2008).
So, the mechanism between leader and follower has been unclear: “What’s in the black box?
Which mechanism explains certain outcomes?”. The goal of this lecture is to explore some
common theoretical mechanisms that have been identified in leadership research.
The relationship between the two variables (input is the independent variable; output is the
dependent variable) can be moderated. Moderation occurs when the relationship between
two variables depends on a third variable. The effect of this third variable is an interaction
that affects the strength of the relation between the dependent and independent variable.
For example, when social identity salience is more salient, the relationship between leaders’
prototypicality and followers’ endorsement is stronger. Mediation is a third variable which
can be used to explain the relationship between the independent and dependent variable.
For example, there is a direct relationship between leaders’ ethicality and followers’
ethicality. An explanation is that this is mediated by social learning: followers are more likely
to imitate their leaders when their leader shows prosocial behaviour.
3
, Theories of Leadership & Management 2020-2021
MSc. Business Administration
1.1 Social Learning Theory
Social Learning Theory (Bandura)
Observational learning means that we learn new information and behaviour by observing
and imitating another peoples’ behaviour. There are a few necessary conditions:
Attention: we need to be able to notice the behaviour of our role model.
Retention: we need to be able to remember the behaviour of our role model.
Reproduction: we need to be able to have the ability to perform the behaviour.
Movation (reinforcement): the will to perform the behaviour – the rewards and
punishments that follows are considered by the observer.
There are two types of observational learning:
Inhibition (the brake): response that you would normally react, but you hold that
response because you know it would lead to a consequential.
Disinhibition (the gas): response that you would normally withhold, but you observe
somebody else engaging that behaviour and that goes well for them.
Ethical Leadership (Brown et al., 2005)
Ethical leadership is defined as the demonstration of normatively appropriate conduct
through personal actions and interpersonal relationships, and the promotion of such
conduct to followers through two-way communication, reinforcement, and decision making.
The theory can best be understood within a social learning framework. Followers are more
likely to imitate their leaders to behave in an ethical matter when their leader shows
prosocial behaviour. Ethical leadership should influence employees’ ethical conduct via
modelling (social learning) because ethical leaders are legitimate role models.
4
