Chapter 11 Leader & Trust

Chapter 11
Leadership and Trust
Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright 2008 Pearson Education Canada
8-1
LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter
Managers Vs. Leaders

Contrast leaders and managers
Early Leadership Theories

Discuss what research has shown about leadership traits Contrast the findings of the four behavioural leadership theories Explain the dual nature of a leaders behaviour
8-2
LEARNING OUTLINE (contd)

Contingency Theories of Leadership

Explain how Fiedlers theory of leadership is a contingency model Contrast situational leadership theory and the leader participation model Discuss how path-goal theory explains leadership
8-3
LEARNING OUTLINE (contd)

Cutting-edge Approaches to Leadership

Differentiate between transactional and transformational leaders Describe charismatic-visionary leadership Discuss what team leadership involves
Current Leadership Issues

Describe the five sources of a leaders power Discuss the issues todays leaders face
8-4
Managers Versus Leaders

Not all leaders are managers, nor are all managers leaders.
Managers
Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish.
Leaders
Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons formal (position) authority alone.
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Copyright 2005 Prentice Hall, Inc. All rights reserved.
Managers Versus Leaders

Managers
Appointed and Have Formal Authority
Leaders
May Have Managerial Authority and Influence Others
Exhibit 8.1 Distinguishing Managership from Leadership
8-7
Early Leadership Theories

Trait Theories (1920s30s)
Research that focused on identifying personal characteristics that differentiated leaders from nonleaders was unsuccessful Later research on the leadership process identified seven traits associated with successful leadership:
Drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion
8-8
Exhibit 8.2 Seven Traits Associated with Leadership

Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Extraversion
Source: S.A. Kirkpatrick and E.A. Locke, Leadership: Do Traits Really Matter? Academy of Management Executive, May 1991, pp. 48-60; and T.A. Judge, J.E. Bono, R. Ilies, and M. Werner, Personality and Leadership: A Qualitative and Quantitative Review, Journal of Applied Psychology, August 2002, pp. 765780.
8-9
Behavioural Theories
University of Iowa Studies (Kurt Lewin)
Identified three leadership styles:
Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez-faire style: hands-off management
Research findings: mixed results

No specific style was consistently better for producing better performance Employees were more satisfied under a democratic leader than an autocratic leader
8-10
Behavioural Theories (contd)

Ohio State Studies
Identified two dimensions of leader behaviour
Initiating structure: the role of the leader in defining his or her role and the roles of group members Consideration: the leaders mutual trust and respect for group members ideas and feelings
Research findings: mixed results

High-high leaders generally, but not always, achieved high group task performance and satisfaction Evidence indicated that situational factors appeared to strongly influence leadership effectiveness
8-11

University of Michigan Studies
Identified two dimensions of leader behaviour
Employee oriented: emphasizing personal relationships Production oriented: emphasizing task accomplishment
Research findings:
Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction
8-12

Managerial Grid
Appraises leadership styles using two dimensions:
Concern for people Concern for production
8-13
Exhibit 8.4 The Managerial Grid

Source: Reprinted by permission of Harvard Business Review. An exhibit from Breakthrough in Organization Development by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November December 1964, p. 136. Copyright 1964 by the President and Fellows of Harvard College. All rights reserved.
8-14
Exhibit 8.3 Behavioural Theories of Leadership
8-15
Contingency Theories of Leadership

The Fiedler Model
Effective group performance depends upon the match between the leaders style of interacting with followers and the degree to which the situation allows the leader to control and influence Assumptions:
Different situations require different leadership styles Leaders do not readily change leadership styles
Matching the leader to the situation or changing the situation to make it favourable to the leader is required
8-16
Contingency Theories (contd)

The Fiedler Model (contd)
Least-preferred co-worker (LPC) questionnaire
Determines leadership style by measuring responses to 18 pairs of contrasting adjectives
High score: a relationship-oriented leadership style Low score: a task-oriented leadership style
Situational factors in matching leader to the situation:

Leader-member relations Task structure Position power
8-17
Exhibit 8.5 Findings of the Fiedler Model

Good Task Oriented
Poor Situation Favourableness:
Relationship Oriented Highly Favourable Moderate VI Poor High Weak Highly Unfavourable VII Poor Low Strong
Category Leader Member Relations Task Structure Position Power
I Good High Strong
II Good High Weak
III Good Low Strong
IV Good Low Weak
V Poor High Strong
VIII Poor Low Weak
8-18

Hersey and Blanchards Situational Leadership Theory (SLT)
Successful leadership is achieved by selecting a leadership style that matches the level of the followers readiness
Acceptance: do followers accept or reject a leader? Readiness: do followers have the ability and willingness to accomplish a specific task?
Leaders must give up control as followers become more competent

8-19

Hersey and Blanchards Situational Leadership Theory (SLT) (contd)
Creates four specific leadership styles incorporating Fiedlers two leadership dimensions:
Telling: high tasklow relationship leadership Selling: high taskhigh relationship leadership Participating: low taskhigh relationship leadership Delegating: low tasklow relationship leadership
8-20

Hersey and Blanchards Situational Leadership Theory (SLT) (contd)
Identifies four stages of follower readiness:
R1: followers are unable and unwilling R2: followers are unable but willing R3: followers are able but unwilling R4: followers are able and willing
8-21
Exhibit 8.6 Hersey and Blanchards Situational Leadership Model

High relationship and low task High High task and high relationship STYLE OF LEADER
S3 S4
S2 S1
High R4 Able and willing R3
Moderate R2 Unable and willing
Low R1 Unable and unwilling
Able and unwilling
Low Task Behaviour Low relationship and low task
High Follower Readiness

Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.
High task and low relationship
8-22

Leader Participation Model (Vroom and Yetton)
Leader behaviour must be adjusted to reflect the task structure Suggests appropriate participation level in decision making
8-23

Leader Participation Model Contingencies:
Decision significance Importance of commitment Leader expertise Likelihood of commitment Group support Group expertise Team competence
8-24
Exhibit 8.7 Path-Goal Theory

Environmental Contingency Factors Task Structure Formal Authority System Work Group Leader Behaviour Outcomes
Directive Supportive Participative Achievement Oriented

Subordinate Contingency Factors Locus of Control Experience Perceived Ability
Performance Satisfaction
8-25

Path-Goal Model
Leaders job is to assist his or her followers in achieving organizational goals Leaders style depends on the situation:
Directive Supportive Participative Achievement-oriented
8-26
Path-Goal Leadership Behaviors

Directive leader
Lets employees know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks.
Supportive leader
Is friendly and shows concern for the needs of employees.
Participative leader
Consults with employees and uses their suggestions before making a decision.
Achievement-oriented leader
Sets challenging goals and expects employees to perform at their highest levels. 1127
Contemporary Approaches to Leadership

Transactional Leadership
Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational Leadership
Leaders who inspire followers to go beyond their own self-interests for the good of the organization Leaders who have a profound and extraordinary effect on their followers
8-28
Contemporary Approaches to Leadership (contd)

Charismatic Leadership
An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways Characteristics of charismatic leaders:
Have a vision Are able to articulate the vision Are willing to take risks to achieve the vision Are sensitive to the environment and to follower needs Exhibit behaviours that are out of the ordinary
8-29
Charismatic Leadership
Self-confidence Vision Ability to articulate a vision Strong convictions Extraordinary behaviour Appearance as change agent
Environmental sensitivity
FOM 11.30

Charismatic Leadership (contd)
Effects of Charismatic Leadership
Increased motivation, greater satisfaction More profitable companies Charismatic leadership may have a downside:
After recent ethics scandals, some agreement that CEOs with less vision, and more ethical and corporate responsibility, might be more desirable
8-31

Visionary Leadership
A leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation Visionary leaders have the ability to:
Explain the vision to others Express the vision not just verbally but through behaviour Extend or apply the vision to different leadership contexts
8-32
Express the Vision Extend the Vision
Explain the Vision
FOM 11.33
A vision should create enthusiasm, bringing energy and commitment to the organization.
The key properties of a vision are inspirational possibilities that are value centered, realizable, and have superior imagery and
articulation.
1134
Exhibit 8.8 Specific Team Leadership Roles

Coach Liaison with External Constituencies
Conflict Manager
Team Leader Roles
Troubleshooter
8-35
The Challenge of Team Leadership

Becoming an effective team leader requires:
Learning to share information. Developing the ability to trust others. Learning to give up authority. Knowing when to leave their teams alone and when to intercede.
New roles that team leaders take on

Managing the teams external boundary Facilitating the team process
1136
Current Leadership Issues

Managing Power
Legitimate power
The power a leader has as a result of his or her position
Expert power
The influence a leader can exert as a result of his or her expertise, skills, or knowledge
Coercive power
The power a leader has to punish or control
Referent power
The power of a leader that arises because of a persons desirable resources or admired personal traits
8-37
Reward power
The power to give positive benefits or rewards
Other Leadership Variables

National culture
Leadership styles reflect the cultural conditions that followers have come to expect.
Leadership theories developed in the United States have an American bias.
Power distance
Varies among cultures and affect participative managements effectiveness
High power distance = autocratic leadership style Low power distance = participative leadership style 1138
Other Leadership Variables (contd)

Emotional Intelligence (EI)
Considered to be the trait difference that makes an individual into a star performer Is an essential element of effective leadership
Components of EI
Self-awareness Self-management Self-motivation Empathy Social skills
1139
Substitutes for Leadership

Employee characteristics
Experience Training Professional orientation Indifference toward organizational regards
Organizational characteristics
Explicit formalized goals Rigid rules and procedures Cohesive work groups
Job characteristics
Unambiguous Routine Intrinsically satisfying
1140
Trust as the Foundation of Leadership

Willing to be vulnerable Ability to gain knowledge and creative thinking In times of change and instability, people turn to personal relationships
FOM 11.41
Developing Trust
Credibility (of a Leader) The assessment, by a leaders followers, of the leaders honesty, competence, and ability to inspire Trust The belief of followers and others in the integrity, character, and ability of a leader
Dimensions of trust: integrity, competence, consistency, loyalty, and openness
Trust is related to increases in job performance, organizational citizenship behaviours, job satisfaction, and organization commitment
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Trust: The Essence of Leadership

Integrity = Honesty and truthfulness Competence = Technical and interpersonal knowledge and skills Consistency = Reliability, predictability, and good judgment Loyalty = Willingness to protect and save face for a person Openness = Willingness to share ideas and information freely
FOM 11.43
Types Of Trust
Deterrence-based trust
Trust based on fear of reprisal if the trust is violated
Knowledge-based trust
Trust based on the behavioral predictability that comes from a history of interaction
Identification-based trust
Trust based on an emotional connection between the parties
1144
Tips for Managers: Suggestions for Building Trust

Practise openness Be fair Speak your feelings Tell the truth Show consistency Fulfill your promises Maintain confidences Demonstrate competence
8-45
Providing Moral Leadership

Addresses both the moral content of a leaders goals and the means used to achieve those goals Ethical leadership is more than being ethical
Includes reinforcing ethics through organizational mechanisms
8-46
Providing Online Leadership

Challenges of Online Leadership
Communication
Choosing the right words, structure, tone, and style for digital communications
Performance management
Defining, facilitating, and encouraging performance
Trust
Creating a culture where trust is expected, encouraged, and required
8-47
Understanding Gender Differences and Leadership

Research Findings
Males and females use different styles:
Women tend to adopt a more democratic or participative style unless in a male-dominated job Women tend to use transformational leadership Men tend to use transactional leadership
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Exhibit 8.9 Where Female Managers Do Better: A Scorecard

None of the five studies set out to find gender differences. They stumbled on them while compiling and analyzing performance evaluations. Skill (Each check mark denotes which group scored higher on the respective studies) Motivating Others Fostering Communication Producing High-Quality Work Strategic Planning Listening to Others Analyzing Issues
* In one study, womens and mens scores in these categories were statistically even. Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, Personnel Decisions International Inc., Advanced Teamware Inc.
Source: R. Sharpe, As Leaders, Women Rule, BusinessWeek, November 20. 2000, p. 75.
MEN
WOMEN
* * *
8-49

Chapter 11 Leader &amp; Trust

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Chapter 11

Leadership and Trust

Managers Vs. Leaders

Early Leadership Theories

LEARNING OUTLINE (contd)

Contingency Theories of Leadership

LEARNING OUTLINE (contd)

Cutting-edge Approaches to Leadership

Current Leadership Issues

Managers Versus Leaders

Managers Versus Leaders

Exhibit 8.1 Distinguishing Managership from Leadership

Early Leadership Theories

Exhibit 8.2 Seven Traits Associated with Leadership

Research findings: mixed results

Behavioural Theories (contd)

Research findings: mixed results

Behavioural Theories (contd)

Behavioural Theories (contd)

Exhibit 8.4 The Managerial Grid

Exhibit 8.3 Behavioural Theories of Leadership

Contingency Theories of Leadership

Contingency Theories (contd)

Situational factors in matching leader to the situation:

Exhibit 8.5 Findings of the Fiedler Model

Poor Situation Favourableness:

Category Leader Member Relations Task Structure Position Power

I Good High Strong

II Good High Weak

III Good Low Strong

IV Good Low Weak

V Poor High Strong

VIII Poor Low Weak

Contingency Theories (contd)

Leaders must give up control as followers become more competent

Contingency Theories (contd)

Contingency Theories (contd)

Exhibit 8.6 Hersey and Blanchards Situational Leadership Model

High R4 Able and willing R3

Moderate R2 Unable and willing

Low R1 Unable and unwilling

Able and unwilling

Low Task Behaviour Low relationship and low task

High Follower Readiness

High task and low relationship

Contingency Theories (contd)

Contingency Theories (contd)

Exhibit 8.7 Path-Goal Theory

Directive Supportive Participative Achievement Oriented

Contingency Theories (contd)

Path-Goal Leadership Behaviors

Contemporary Approaches to Leadership

Contemporary Approaches to Leadership (contd)

Contemporary Approaches to Leadership (contd)

Contemporary Approaches to Leadership (contd)

Explain the Vision

Exhibit 8.8 Specific Team Leadership Roles

Team Leader Roles

The Challenge of Team Leadership

New roles that team leaders take on

Current Leadership Issues

Other Leadership Variables

Other Leadership Variables (contd)

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Chapter 11 Leader & Trust

Chapter 11 Leader & Trust