Leadership in Today's World



CHAPTER 2: LITERATURE REVIEW

Chapter Structure

This chapter reviews the existing literature in the topics related to this research project. The chapter discusses the theoretical framework for the study and explores the academic research in the field of family businesses. The first section covers the field of leadership. The theories of leadership more relevant to this research are discussed. This review is important, especially for the evaluation of the leadership styles of the participants in this study. The second section presents the main concepts associated with the discipline of management. At the end of this section, a model is suggested to show the relationship between management and leadership. Finally, the third section reviews the work of researchers and consultants in the area of family business. Most of the documents analyzed are from academic journal articles, but a few books, dissertations, and thesis are also considered. The topics reviewed in this chapter have been organized in a sequence that shows the relationship between the areas of leadership, management, and family business, with the flow of ideas moving from general theoretical concepts to specific applied research.

Leadership

Theories of leadership

Leadership is about setting a vision, guiding the followers, and influencing them to reach the vision and to achieve common goals (Ponder, 2005). However, there is little agreement on how leaders do it, or about what it takes to become a successful leader. In the next pages, we will review several theories of leadership that explore the issue.

Trait approach

The first authors in the field of leadership centered their attention in the personal qualities and characteristics that famous leaders may have in common. While this is a valid and appealing approach, efforts to test this theory have met many dead ends. Many authors have arrived to different list of traits. For example, in 1959 Mann included intelligence, masculinity, adjustment, dominance, and extroversion. Later on, in 1974 Stogdill came with a longer list that included achievement, persistence, insight, initiative, self-confidence, responsibility, tolerance, influence, and sociability (Northouse, 2004). More recently, Kirkpatrick and Locke (1991) identified six traits that differentiate leaders from non-leaders: drive (includes achievement, ambition, energy, tenacity, and initiative), the desire to lead, honesty/integrity, self-confidence, cognitive ability, and knowledge of the business. Although the traits approach offers only a partial explanation in the study of leadership, most authors agree that traits are important determinants of several characteristics and behaviors commonly associated with leadership (Kirkpatrick & Locke, 1991).

Skills approach

One question commonly asked is if leaders are born or made. Whereas the traits approach tends to favor the idea that leaders are born, the skills approach tends to favor the view that people can learn through career experiences and environmental influences. The skills approach believes that general and specific cognitive abilities, along with motivation and personality allow people to become leaders. With time, these abilities turn into the problem solving and social judgment skills that allow leaders to solve problems and achieve high performance (Mumford & Zaccaro, 2000). The process is described in Figure ...