1. PowerPoint Presentation by Charlie Cook The University of West Alabama Fundamentals of Management Sixth Edition Robbins and DeCenzo with contributions from Henry Moon C H A P T E R 11 Part IV: Leading © 2008 Prentice Hall, Inc. All rights reserved. Leadership and Trust

2. © 2008 Prentice Hall, Inc. All rights reserved.11–2 L E A R N I N G O U T C O M E S 1.Define leader and explain the difference between managers and leaders. 2.Summarize the conclusions of trait theories of leadership. 3.Describe the Fiedler contingency model. 4.Summarize the path-goal model of leadership. 5.Explain Situational Leadership ®. 6.Identify the qualities that characterize charismatic leaders. 7.Describe the skills that visionary leaders exhibit. After reading this chapter, you will be able to:

3. © 2008 Prentice Hall, Inc. All rights reserved.11–3 L E A R N I N G O U T C O M E S (cont’d) 8.Explain the four specific roles of effective team leaders. 9.Identify the five dimensions of trust. After reading this chapter, you will be able to:

4. © 2008 Prentice Hall, Inc. All rights reserved.11–4 Managers Versus Leaders “Not all leaders are managers, nor are all managers leaders.” ManagersManagers  Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. LeadersLeaders  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.

5. © 2008 Prentice Hall, Inc. All rights reserved.11–5 Trait Theories Of Leadership Trait Theories of LeadershipTrait Theories of Leadership  Theories that attempt to isolate characteristics that differentiate leaders from nonleaders  Attempts to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed.  Attempts to identify traits consistently associated with leadership have been more successful.

6. © 2008 Prentice Hall, Inc. All rights reserved.11–6 EXHIBIT 11–1Six Traits That Differentiate Leaders from Nonleaders Source: Reprinted from “Leadership: Do Traits Really Matter?” by S. A. Kirkpatrick and E. A. Locke by permission of Academy of Management Executive, May 1991, pp. 48–60. © 1991 by Academy of Management Executive. 1.Drive 2.Desire to lead 3.Honesty and integrity 4.Self-confidence 5.Intelligence 6.Job-relevant knowledge

7. © 2008 Prentice Hall, Inc. All rights reserved.11–7 Behavioral Theories Of Leadership Behavioral Theories of LeadershipBehavioral Theories of Leadership  Attempt to isolate behaviors that differentiate effective leaders from ineffective leaders.  Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders.

8. © 2008 Prentice Hall, Inc. All rights reserved.11–8 Identifiable Leadership Behaviors Autocratic Style of LeadershipAutocratic Style of Leadership  Centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. Democratic Style of LeadershipDemocratic Style of Leadership  Involves employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback.  A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision him or herself.  A democratic-participative leader often allows employees to have a say in what’s decided.

9. © 2008 Prentice Hall, Inc. All rights reserved.11–9 Identifiable Leadership Behaviors (cont’d) Laissez-Faire Style of LeadershipLaissez-Faire Style of Leadership  Gives employees complete freedom to make decisions and to decide on work methods Conclusions about Leadership StylesConclusions about Leadership Styles  The laissez-faire leadership style is ineffective.  Quantity of work is equal under authoritarian and democratic leadership styles.  Quality of work and satisfaction is higher under democratic leadership.

10. © 2008 Prentice Hall, Inc. All rights reserved.11–10 EXHIBIT 11–2Continuum of Leader Behavior Source: Adapted and reprinted by permission of the Harvard Business Review. An exhibit from “How to Choose a Leadership Pattern” by R. Tannenbaum and W. Schmidt, May–June 1973. Copyright © 1973 by the President and Fellows of Harvard College; all rights reserved.

11. © 2008 Prentice Hall, Inc. All rights reserved.11–11 The Ohio State Studies Studies that sought to identify independent dimensions of leader behaviorStudies that sought to identify independent dimensions of leader behavior  Initiating structure  The extent to which a leader defines and structures his or her role and the roles of employees to attain goals  Consideration  The extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas, and regard for their feelings

12. © 2008 Prentice Hall, Inc. All rights reserved.11–12 The University Of Michigan Studies Studies that sought to identify the behavioral characteristics of leaders related to performance effectivenessStudies that sought to identify the behavioral characteristics of leaders related to performance effectiveness  Employee oriented leader  Emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences.  Production oriented leader  Emphasizes technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals.

13. © 2008 Prentice Hall, Inc. All rights reserved.11–13 EXHIBIT 11–3The Managerial Grid Source: Adapted and reprinted by permission of the Harvard Business Review. An exhibition from “Breakthrough in Organization Development” by R. R. Blake, J. A. Mouton, L. B. Barnes, and L. E. Greine, November–December 1964, p. 136. Copyright © 1964 by the President and Fellows of Harvard College; all rights reserved.

14. © 2008 Prentice Hall, Inc. All rights reserved.11–14 Contingency Theories Of Leadership The Fiedler Contingency Leadership ModelThe Fiedler Contingency Leadership Model  Effective group performance depends on the proper match between the leader’s style of interacting with employees and the degree to which the situation gives control and influence to the leader  Uses Least-preferred co-worker (LPC) questionnaire, to measure the leader’s task or relationship orientation.  Identified three situational criteria—leader member relations, task structure, and position power—that could be manipulated match an inflexible (fixed) leadership style.

15. © 2008 Prentice Hall, Inc. All rights reserved.11–15 EXHIBIT 11–4The Findings of the Fiedler Model

16. © 2008 Prentice Hall, Inc. All rights reserved.11–16 Contingency Theories…(cont’d) Path-Goal Theory (House)Path-Goal Theory (House)  It is a leader’s job to assist followers in attaining their goals and to provide the necessary direction and support  A leader’s motivational behavior:  Makes employee need satisfaction contingent on effective performance.  Provides the coaching, guidance, support, and rewards necessary for effective performance.  Assumes that the leader’s style is flexible and can be changed to adapt to the situation at hand.

17. © 2008 Prentice Hall, Inc. All rights reserved.11–17 Path-Goal Leadership Behaviors Directive leaderDirective 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 leaderSupportive leader  Is friendly and shows concern for the needs of employees. Participative leaderParticipative leader  Consults with employees and uses their suggestions before making a decision. Achievement-oriented leaderAchievement-oriented leader  Sets challenging goals and expects employees to perform at their highest levels.

18. © 2008 Prentice Hall, Inc. All rights reserved.11–18 EXHIBIT 11–5Path-Goal Theory

19. © 2008 Prentice Hall, Inc. All rights reserved.11–19 Contingency Leadership Models Leader-Participation Model (Vroom, Yetton and Jago)Leader-Participation Model (Vroom, Yetton and Jago)  Provides a sequential set of rules for determining the form and amount of participation a leader should exercise in decision making according to different types of situations.  The model is a decision tree incorporating seven contingencies (whose relevance can be identified by making yes or no choices) and five alternative leader ship styles.  Assumes an adaptable leadership style.

20. © 2008 Prentice Hall, Inc. All rights reserved.11–20 EXHIBIT 11–6Contingency Variables in the Revised Leader-Participation Model Source: V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Upper Saddle River, NJ: Prentice Hall, 1988), pp. 111–12. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. QR:Quality Requirement CR: Commitment Requirement LI: Leader Information ST: Problem Structure CP: Commitment Probability GC: Goal Congruence CO: Employee Conflict SI: Employee Information TC: Time Constraint GD: Geographical Dispersion MT: Motivation Time MD: Motivation Development

21. © 2008 Prentice Hall, Inc. All rights reserved.11–21 Situational Leadership ® Situational Leadership Theory (SLT)Situational Leadership Theory (SLT)  Leaders should adjust their leadership styles— telling, selling, participating, and delegating—in accordance with the readiness of their followers.  Acceptance: Leader effectiveness reflects the reality that it is the followers who accept or reject the leader.  Readiness: a follower’s ability and willingness to perform.  At higher levels of readiness, leaders respond by reducing control over and involvement with employees.

22. © 2008 Prentice Hall, Inc. All rights reserved.11–22 EXHIBIT 11–7Hersey and Blanchard’s Situational Leadership® Model 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.

23. © 2008 Prentice Hall, Inc. All rights reserved.11–23 Emerging Approaches To Leadership Charismatic Leadership TheoryCharismatic Leadership Theory  Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors.  People working for charismatic leaders are motivated to exert extra work effort and, because they like and respect their leaders, express greater satisfaction.  Charisma leadership appears to be most appropriate when the followers’ task has a ideological component or when the environment involves a high degree of stress and uncertainty.

24. © 2008 Prentice Hall, Inc. All rights reserved.11–24 Charismatic Leadership A charismatic leader influences followers by:A charismatic leader influences followers by:  Stating a vision that provides a sense of community by linking the present with a better future.  Communicating high expectations and expressing confidence that followers can attain them.  Conveying, through words and actions, a new set of values, and by his or her behavior setting an example for followers to imitate.  Making self-sacrifices and engaging in unconventional behavior to demonstrate courage and convictions about the vision.

25. © 2008 Prentice Hall, Inc. All rights reserved.11–25 EXHIBIT 11–8Key Characteristics of Charismatic Leaders Source: Based on J. A. Conger and R. N. Kanungo, “Behavioral Dimensions of Charismatic Leadership,” in J. A. Conger and R. N. Kanungo, Charismatic Leadership (San Francisco: Jossey-Bass, 1988), p. 91. 1.Self-confidence 2.Vision 3.Ability to articulate the vision 4.Strong convictions about the vision 5.Behavior that is out of the ordinary 6.Appearance as a change agent 7.Environmental sensitivity

26. © 2008 Prentice Hall, Inc. All rights reserved.11–26 Visionary Leadership “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. Visionary LeadershipVisionary Leadership  Is the ability to create and articulate a realistic, credible, attractive vision of the future that grows out of and improves upon the present

27. © 2008 Prentice Hall, Inc. All rights reserved.11–27 Skills of Visionary Leaders The ability to explain the vision to others.The ability to explain the vision to others.  Make the vision clear in terms of required actions and aims through clear oral and written communication. The ability to express the vision not just verbally but through the leader’s behavior.The ability to express the vision not just verbally but through the leader’s behavior.  Behaving in ways that continually convey and reinforce the vision. The ability to extend the vision to different leadership contexts.The ability to extend the vision to different leadership contexts.  Sequencing activities so the vision can be applied in a variety of situations.

28. © 2008 Prentice Hall, Inc. All rights reserved.11–28 Transactional Leaders versus Transformational Leaders Transactional LeadersTransactional Leaders  Guide or motivate their followers toward established goals by clarifying role and task requirements. Transformational LeadersTransformational Leaders  Inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound and extraordinary effect on followers.

29. © 2008 Prentice Hall, Inc. All rights reserved.11–29 The Challenge of Team Leadership Becoming an effective team leader requires: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:New roles that team leaders take on:  Managing the team’s external boundary.  Facilitating the team process.

30. © 2008 Prentice Hall, Inc. All rights reserved.11–30 EXHIBIT 11–9Team Leader Roles

31. © 2008 Prentice Hall, Inc. All rights reserved.11–31 Other Leadership Variables National CultureNational 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 affects participative management’s effectiveness  High power distance = autocratic leadership style  Low power distance = participative leadership style

32. © 2008 Prentice Hall, Inc. All rights reserved.11–32 Other Leadership Variables (cont’d) Emotional Intelligence (EI)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 EIComponents of EI  Self-awareness  Self-management  Self-motivation  Empathy  Social skills

33. © 2008 Prentice Hall, Inc. All rights reserved.11–33 Substitutes for Leadership Employee CharacteristicsEmployee Characteristics  Experience  Training  Professional orientation  Indifference toward organizational regards Job CharacteristicsJob Characteristics  Unambiguous  Routine  Intrinsically satisfying Organizational characteristicsOrganizational characteristics  Explicit formalized goals  Rigid rules and procedures  Cohesive work groups

34. © 2008 Prentice Hall, Inc. All rights reserved.11–34 EXHIBIT 11–10Five Dimensions of Trust Source: Adapted and reproduced with permission of publisher from J. K. Butler Jr. and R. S. Cantrell, “A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates.” 1.Integrity 2.Competence 3.Consistency 4.Loyalty 5.Openness

35. © 2008 Prentice Hall, Inc. All rights reserved.11–35 Building Trust: The Essence of Leadership Deterrence-based Trust Identification- based Trust Types of Trust Knowledge- based Trust

36. © 2008 Prentice Hall, Inc. All rights reserved.11–36 Steps in Building Trust 1.Practice openness. 2.Be fair. 3.Speak your feelings. 4.Tell the truth. 5.Be consistent. 6.Fulfill your promises. 7.Maintain confidences. 8.Demonstrate confidence.