Leadership Grid

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.



comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center