1. © 2005 Prentice-Hall 10-1 Leadership and Creating Trust Chapter 10 Essentials of Organizational Behavior, 8/e Stephen P. Robbins

2. © 2005 Prentice-Hall 10-2 1)Summarize the conclusions of trait theories 2)Identify the limitations of behavioral theories 3)Describe Fiedler’s contingency model 4)Summarize the path-goal theory 5)List the contingency variables in the leader-participation model After reading this chapter, you should be able to:

3. © 2005 Prentice-Hall 10-3 6)Differentiate transformational from transactional leadership 7)Describe the pros and cons of charismatic leadership 8)Explain the role of emotional intelligence in leadership effectiveness 9)Identify situations when leadership may not be relevant 10)Summarize how leaders can build trust After reading this chapter, you should be able to:

4. © 2005 Prentice-Hall 10-4 Leadership Ability to influence a group toward the achievement of goals

5. © 2005 Prentice-Hall 10-5 Trait Theories – 1990s ambition and energy desire to lead honesty and integrity self-confidence intelligence high self- monitoring job-relevant knowledge Seven traits seemed to differ leaders from non-leaders:

6. © 2005 Prentice-Hall 10-6 Researchers began organizing traits around the Big Five personality framework

7. © 2005 Prentice-Hall 10-7 Resulted in consistent and strong support for traits as predictors of leadership

8. © 2005 Prentice-Hall 10-8 Traits do a better job at predicting the emergence of leaders than in actually distinguishing between effective and ineffective leaders

9. © 2005 Prentice-Hall 10-9 Behavioral Theories Assumes people can be trained to lead Researched the behaviors of specific leaders Provides the basis of design for training programs

10. © 2005 Prentice-Hall 10-10 Ohio State Studies Developed two categories of leadership behavior –Initiating structure - attempts to organize work, work relationships, and goals –Consideration - concern for followers’ comfort, well-being, status, and satisfaction

11. © 2005 Prentice-Hall 10-11 University of Michigan Studies Employee-oriented - emphasize interpersonal relations Production-oriented - emphasize the technical or task aspects of the job

12. © 2005 Prentice-Hall 10-12

13. © 2005 Prentice-Hall 10-13 Limitations of Behavioral Theories Did not identify consistent relationships between leadership behavior and group performance Missing consideration of the situational factors that influence success and failure

14. © 2005 Prentice-Hall 10-14 Contingency Theories Fiedler Path-goal Leader-participation

15. © 2005 Prentice-Hall 10-15 Fiedler Leadership Model Effective group performance depends on the proper match between the leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader Least-preferred co-worker (LPC) questionnaire

16. © 2005 Prentice-Hall 10-16 Fiedler Contingency Dimensions Leader-member relations Task structure Position power

17. © 2005 Prentice-Hall 10-17 Fiedler Model

18. © 2005 Prentice-Hall 10-18 Leader-Member Exchange Theory Leaders do differentiate among followers Disparities are far from random Followers with in-group status have: –higher performance ratings –lower turnover intentions –greater satisfaction with their superiors –higher overall satisfaction than those in the out-group

19. © 2005 Prentice-Hall 10-19 Path-Goal Theory Leader’s job is to assist followers in attaining their goals and to provide the direction and support needed to ensure that their goals are compatible with the overall objectives of the organization Acceptable, Motivational

20. © 2005 Prentice-Hall 10-20 Path-Goal Theory Directive leader Supportive leader Participative leader Achievement-oriented leader

21. © 2005 Prentice-Hall 10-21 Path-Goal Theory

22. © 2005 Prentice-Hall 10-22 Leader-Participation Model Leader behavior must adjust to reflect the task structure Sequential set of rules that should be followed in determining the form and amount of participation in decision making

23. © 2005 Prentice-Hall 10-23 Transactional leaders - motivate their followers in the direction of established goals by clarifying role and task requirements Transformational leaders - inspire followers to transcend their own self- interests for the good of the organization

24. © 2005 Prentice-Hall 10-24 Charismatic Leadership Theory Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors

25. © 2005 Prentice-Hall 10-25 Charismatic Leaders Have vision Willing to take risks to achieve that vision Sensitive to both environmental constraints and follower needs Exhibit behaviors that are out of the ordinary

26. © 2005 Prentice-Hall 10-26 How Charismatic Leaders Influence Followers Articulates an appealing vision Communicates high performance expectations Conveys, through words and actions, a new set of values Makes self-sacrifices and engages in unconventional behavior to demonstrate convictions about the vision

27. © 2005 Prentice-Hall 10-27 Increasing body of research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers

28. © 2005 Prentice-Hall 10-28 Contemporary Issues Role of emotional intelligence in leadership effectiveness Ethical implications in leadership Need to modify leadership style to cultural differences

29. © 2005 Prentice-Hall 10-29 Emotional Intelligence (EI) Recent studies indicate that EI is the best predictor of who will emerge as a leader

30. © 2005 Prentice-Hall 10-30 What is Trust? A positive expectation that another will not--through words, actions, or decisions--act opportunistically Familiarity, Risk

31. © 2005 Prentice-Hall 10-31 Trust Dimensions CompetenceConsistency LoyaltyOpenness Integrity

32. © 2005 Prentice-Hall 10-32 Three Types of Trust Deterrence-based Knowledge-based Identification-based

33. © 2005 Prentice-Hall 10-33 How to Build Trust Practice openness Be fair Speak your feelings Tell the truth Show consistency Fulfill your promises Maintain confidences Demonstrate competence

34. © 2005 Prentice-Hall 10-34 1)Summarized the conclusions of trait theories 2)Identified the limitations of behavioral theories 3)Described Fiedler’s contingency model 4)Summarized the path-goal theory 5)Listed the contingency variables in the leader-participation model Summary

35. © 2005 Prentice-Hall 10-35 6)Differentiated transformational from transactional leadership 7)Described the pros and cons of charismatic leadership 8)Explained the role of emotional intelligence in leadership effectiveness 9)Identified situations when leadership may not be relevant 10)Summarized how leaders can build trust Summary