Leading and trust

Chapter 3Chapter 3

The Effect of Leadership

Leadership – process of influencing employees to work toward the achievement of objectivesLeader’s style affects the leader’s behavior

Leadership and management are not the sameInfluencing employees is not the task of the manager

alone

Leadership is one of the five management functions

Leadership Theories

LeadershipTrait

Theory

LeadershipTrait

Theory

BehavioralLeadership

Theories

BehavioralLeadership

Theories

ContingencyLeadership

Theories

ContingencyLeadership

Theories

Basic Leadership Styles

Two-Dimensional Leadership Styles

Leadership Grid

Transformational Leadership

Contingency Leadership Theory

Leadership Continuum

Normative Leadership Theory

Situational Leadership

Situational Supervision

Leadership Trait Theory

Assumes that there are distinctive physical and psychological characteristics accounting for leadership effectiveness

The Ghiselli Study is the most widely publicized trait theory studyIdentified six traits as being significant traits for

effective leadership

The Ghiselli Study: Leadership Traits(1 of 2)

Supervisory ability.Getting the job done through others

Need for occupational achievement.Seeking responsibility

Intelligence.The ability to use good judgment, reasoning, and

thinking capacity

The Ghiselli Study: Leadership Traits(2 of 2)

Decisiveness.The ability to sole problems and make decisions

competently

Self-assurance.Viewing oneself as capable of coping with

problems

Initiative.Self-starting in getting the job done with a

minimum of supervision from one’s boss

Behavioral Leadership Theories

Assume that there are distinctive styles that effective leaders use consistently,

orThat good leadership

is a rooted behavior

Principal TheoriesBasic Leadership

StylesTwo-Dimensional

Leadership StylesThe Leadership GridTransformational

Leadership

Basic Leadership Styles

AutocraticThe leader makes the decisions and closely

supervises employees

DemocraticThe leader allows participation in decisions and

does not closely supervise employees

Laissez-FaireThe leader takes a leave-the-employees-alone

approach

Two-Dimensional Leadership Styles

Ohio State University StudiesInitiating structure – the

extent to which the leader takes charge as the employee performs the task

Consideration – the extent to which the leader communicates to develop trust, friendship, support, and respect

University of Michigan StudiesJob centered – same as

initiating structureConcern for production

Employee centered – same as considerationConcern for people

High Considerationand

Low Structure

High Structureand

High Consideration

Low Considerationand

Low Structure

High Structureand

Low Consideration

Two-Dimensional Leadership Models

Low

Low

High

High

Initiating Structure

Con

side

ratio

n

3 2

14

Job-Centered Employee-CenteredUniversity of

Michigan

Ohio State University

Exhibit 8.1

Transformational Leadership (1 of 2)

Focus is on top-level managers, primarily chief executive officers of large organizations

Transformational leadership is about:ChangeInnovationEntrepreneurship

Transformational Leadership (2 of 2)

Transformational leaders perform, or take the organization through, three acts, on an ongoing basis:

Act 1. Recognizing the need for revitalization

Act 2. Creating a new vision

Act 3. Institutionalizing change

Charismatic Leadership

Transactional Leadership

Contingency Leadership Theories

Assume that the appropriate leadership style varies from situation to situation

Principal TheoriesContingency

Leadership TheoryLeadership ContinuumNormative Leadership

TheorySituational Leadership

Contingency Leadership Theory(1 of 2)

Developed by Fred FiedlerModel is used to determine:

if one’s leadership style is task or relationship oriented, and

if the situation matches the leader’s style

If there is no match, Fiedler recommends change the situation, rather than leadership style

Contingency Leadership Theory(2 of 2)

Leadership StyleDetermined by completing

the Least Preferred Coworker (LPC) scales

Determines if one’s leadership style is: task oriented

or relationship oriented

Situational FavorablenessThe degree to which a

situation enables the leader to exert influence over the followers

Key variables1. Leader-member relations2. Task structure3. Position power

Normative Leadership Theory

Model developed by Vroom and Yetton

Enables the user to select one of five leadership styles appropriate for the situation

Leadership Styles

Decide

Consult individually

Consult group

Facilitate

Delegate

Situational Leadership(1 of 2)

Emphasis is on followers and their level of maturity

Leader must properly judge or intuitively know followers’ maturity level and then use a leadership style that fits the level

Readiness – the followers’ skills and willingness to do a job

Situational Leadership(2 of 2)

Hersey and Blanchard developed four leadership styles: Telling. The leader defines the roles needed to do the job and

tells followers what, where, how, and when to do the tasks Selling. The leader provides followers with supportive

instructions, but is also supportive Participating. The leader and followers share in decisions

about how best to complete a high-quality job Delegating. The leader provides little specific, close direction

or personal support to followers

Situational Supervision (1 of 3)

Adapted from the Situational Leadership model of Hersey and Blanchard

Involves:Determining a preferred supervisory styleDefining the situationDetermining employee capability

The effective supervisor adapts his or her style to meet the capabilities of the individual or group

Situational Supervision (2 of 3)

Supervisor-Employee Interactions

Directive behaviorThe supervisor focuses on

directing and controlling behavior to ensure the task gets done

Supportive behaviorThe supervisor focuses on

encouraging and motivating behavior

Employee CapabilityAbility

Do employees have the education, experience, skills, etc., to do the task without direction from the supervisor?

MotivationDo the employees want to do

the task?

Situational Supervision (3 of 3)

Employee Capability Levels (C)Low (C-1)

Employees can’t do the task without detailed directions

Moderate (C-2) Employees have moderate ability

and are motivatedHigh (C-3)

Employees are high in ability but may lack self-confidence or motivation

Outstanding (C-4) Employees are very capable and

highly motivated

Supervisory Styles (S)Autocratic (S-A)

High-directive / low-supportive behavior

Consultative (S-C) High-directive / high-supportive

behaviorParticipative (S-P)

Low-directive / high-supportive behavior

Laissez-Faire (S-L) Low-directive / low-supportive

behavior

Substitutes for Leadership (1 of 2)

I. Characteristics of Subordinates

Ability, knowledge, experience, training

Need for independenceProfessional orientationIndifference toward

organizational rewards

II. Characteristics of Task

Clarity and routineInvariant methodologyProvision of own feedback

concerning accomplishmentIntrinsic satisfaction

Substitutes for Leadership (2 of 2)

III. Characteristics of the OrganizationFormalization (explicit plan, goals, and areas of

responsibility)Inflexibility (rigid, unbending rules and procedures)Highly specified and active advisory and staff functionsClosely knit, cohesive work groupsOrganizational rewards not within the leader’s controlSpatial distance between superior and subordinate

Diversity of Global Leadership (1 of 3)

Most leadership theories were developed in the United StatesThus, they have an American bias

Key assumptions of American-based theories:Employee responsibility, rather than employee rightsSelf-gratification, rather than employee commitment to duty or

altruistic motivationDemocratic values rather than autocratic valuesRationality, rather than spirituality, religion, or superstition

Diversity of Global Leadership (2 of 3)

In the 1970s, Japan’s productivity rate was increasing faster than that of the United StatesSeven major differences between the two countries were

identified. The Japanese: have a longer length of employment use more collective decision making use more collective responsibility evaluate and promote employees more slowly use more implicit mechanisms of control have more unspecialized career paths have a more holistic concern for employees

Diversity of Global Leadership (3 of 3)

American-based theories may not be as effective in cultures based on different assumptionsAutocratic leadership styles tend to be

appropriate in high-context culturese.g., Arab, Far Eastern, and Latin countries

Participative leadership styles tend to be appropriate in low-context culturese.g., U.S., Norway, Finland, and Sweden

Trust

Trust – is the positive expectation that another will not take advantage of you

Trust is not simply

given

Trust is earned

Levels of Trust

1. Deterrence-based trust

2. Knowledge-based trust

3. Identification-based trust

Dimensions of Trust (1 of 4)

CompetencyCompetency

Loyalty

OpennessOpenness

ConsistencyConsistency

IntegrityIntegrity

Exhibit 8.8

Dimensions of Trust (2 of 4)

Tips to Develop Your Integrity

Tell the truth

Keep your commitments

Be fair

Tips to Develop Your Competence

Be conscientiousKnow your strengths and

limitations

Don’t brag

Admit your mistakes

Dimensions of Trust (3 of 4)

Tips to Develop Your Consistency

Keep your commitments

Practice what you preach

Be impartial

Tips to Develop Your Loyalty

Invest heavily in loyalty

Maintain confidences

Don’t gossip negatively

about individuals

Be viewed as a collaborator,

not a competitor

Dimensions of Trust (4 of 4)

Tips to Develop Your Openness

Self-disclose

Accept others’ self-

disclosure

Accept diversity and

conflict

Risk and Destroying Trust

Developing trust through self-disclosure does include the risk of: being hurtdisappointedtaken advantage of

The rewards of improved human relations and personal friendship are worth the risk