Leadership Grid

AAA

DEFINITION of 'Leadership Grid'

A model of behavioral leadership developed in the 1950s by Robert Blake and Jane Mouton. Previously known as the Managerial Grid, it is based on two behavioral dimensions - concern for production, plotted on the X-axis on a scale from one to nine points; and concern for people, plotted on a similar scale along the Y-axis.


The model identified five leadership styles by their relative positions on the grid:


Impoverished (concern for production = 1, concern for people = 1)
Produce or Perish (9,1)
Middle of the Road (5,5)
Country Club (1, 9)
Team (9, 9)




INVESTOPEDIA EXPLAINS 'Leadership Grid'

The Leadership Grid demonstrates that placing undue emphasis on one area, while overlooking the other, stifles productivity. The model proposes that the team leadership style, which displays a high degree of concern for both production and people, may boost employee productivity.

RELATED TERMS
  1. Interpersonal Skills

    The skills used by a person to properly interact with others. ...
  2. Labor Productivity

    A measurement of economic growth of a country. Labor productivity ...
  3. One-Third Rule

    A rule of thumb that estimates the change in labor productivity ...
  4. Productivity And Costs

    An economic data set that measures future inflationary trends ...
  5. Unit Cost

    The cost incurred by a company to produce, store and sell one ...
  6. Productivity

    An economic measure of output per unit of input. Inputs include ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Investing Basics

    If Kennedy, Eisenhower, Alexander the Great Et Al Were Leaders in Finance

    Would Eisenhower, Roosevelt and Kissinger have made good corporate executives? What about Alexander the Great?
  2. Mutual Funds & ETFs

    Will A New Fund Manager Cost You?

    Learn how a change in leadership could mean more taxes for you.
  3. Professionals

    Management Strategies From A Top CEO

    Find out what this winning manager did to grow one of the biggest companies in the world.
  4. Investing

    3 Secrets Of Successful Companies

    Make smart investments by spotting up-and-coming success stories early.
  5. Professionals

    Why Is Wall Street Dominated By Men?

    Find out why women in the financial industry are still lagging behind their male counterparts when it comes to pay.
  6. Stock Analysis

    How American Express Counts on Your Profligacy

    Consumers like novelty, reliability, variety, and other subjective qualities. But what really keeps them coming back to American Express is convenience.
  7. Stock Analysis

    How CVS Grew Into a Drugstore Giant

    Want proof that brick-and-mortar businesses aren't dead? Just look at this company.
  8. Investing

    Corporate Governance

    Corporate governance refers to the formally established guidelines that determine how a company is run. The company’s board of directors approves and periodically reviews the guidelines, which ...
  9. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  10. Investing Basics

    Using Appreciative Inquiry To Solve Management Problems

    In its purest form, appreciative inquiry is a powerful tool for shifting the focus of an organization to something much greater than its bottom line - although the eventual outcome will often ...

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center