2. 8
Leading and Trust

3. The Effect of Leadership
Leadership – process of influencing employees to work toward the achievement of objectives
Leader’s style affects the leader’s behavior
Leadership and management are not the same
Influencing employees is not the task of the manager alone
Leadership is one of the five management functions

4. Leadership Theories Leadership Trait Theory Behavioral Leadership
Contingency
Leadership
Theories
Basic Leadership Styles
Two-Dimensional Leadership Styles
Leadership Grid
Transformational Leadership
Contingency Leadership Theory
Leadership Continuum
Normative Leadership Theory
Situational Leadership
Situational Supervision

5. 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 study
Identified six traits as being significant traits for effective leadership

6. 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

7. 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

8. Behavioral Leadership Theories
Assume that there are distinctive styles that effective leaders use consistently, or
That good leadership is a rooted behavior
Principal Theories
Basic Leadership Styles
Two-Dimensional Leadership Styles
The Leadership Grid
Transformational Leadership

9. Basic Leadership Styles
Autocratic
The leader makes the decisions and closely supervises employees
Democratic
The leader allows participation in decisions and does not closely supervise employees
Laissez-Faire
The leader takes a leave-the-employees-alone approach

10. Two-Dimensional Leadership Styles
Ohio State University Studies
Initiating 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 Studies
Job centered – same as initiating structure
Concern for production
Employee centered – same as consideration
Concern for people

11. Two-Dimensional Leadership Models
High Consideration
and
Low Structure
High Structure
Low Consideration
High
Ohio State University 3 2
Consideration 4 1
Low
Initiating Structure
Low
High
Exhibit 8.1
University of Michigan
Job-Centered
Employee-Centered 4

12. The Leadership Grid ® (1 of 2)
Blake and Mouton’s model identifying the ideal leadership style as having a high concern for both production and people
Based on two leadership dimensions:
Concern for production
Concern for people

13. The Leadership Grid ® (2 of 2)
High 9
(1,9) Country Club Manager
Team Manager (9,9)
Concern for People
(5,5) Organized-Person Manager 1
(1,1) Impoverished Manager
Sweatshop Manager (9,1)
Low 1 9
High
Concern for Production
Exhibit 8.2

14. Transformational Leadership (1 of 2)
Focus is on top-level managers, primarily chief executive officers of large organizations
Transformational leadership is about:
Change
Innovation
Entrepreneurship

15. 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

16. Charismatic Leadership Transactional Leadership

17. Contingency Leadership Theories
Assume that the appropriate leadership style varies from situation to situation
Principal Theories
Contingency Leadership Theory
Leadership Continuum
Normative Leadership Theory
Situational Leadership

18. Contingency Leadership Theory (1 of 2)
Developed by Fred Fiedler
Model 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

19. Contingency Leadership Theory (2 of 2)
Leadership Style
Determined by completing the Least Preferred Coworker (LPC) scales
Determines if one’s leadership style is:
task oriented or
relationship oriented
Situational Favorableness
The degree to which a situation enables the leader to exert influence over the followers
Key variables
1. Leader-member relations
2. Task structure
3. Position power

20. Leadership Continuum Model developed by Tannenbaum and Schmidt
Model identifies seven leadership styles based on one’s use of boss-centered versus employee-centered leadership
Key factors (variables) in selecting a style:
The Manager
The Subordinates
The Situation

21. Continuum of Leadership Behavior
Autocratic Style
Participative Style
Leader makes decision and announces it
Leader “sells” decision
Leader presents ideas and invites questions
Leader presents tentative decision subject to change
Leader presents problem, gets suggestions and makes decision
Leader defines limits and asks group to make decision
Leader permits subordi-nates to function within limits defined by leader 1 2 3 4 5 6 7
Exhibit 8.4

22. 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

23. 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

24. 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

25. Situational Supervision (1 of 3)
Adapted from the Situational Leadership model of Hersey and Blanchard
Involves:
Determining a preferred supervisory style
Defining the situation
Determining employee capability
The effective supervisor adapts his or her style to meet the capabilities of the individual or group

26. Situational Supervision (2 of 3)
Supervisor-Employee Interactions
Directive behavior
The supervisor focuses on directing and controlling behavior to ensure the task gets done
Supportive behavior
The supervisor focuses on encouraging and motivating behavior
Employee Capability
Ability
Do employees have the education, experience, skills, etc., to do the task without direction from the supervisor?
Motivation
Do the employees want to do the task?

27. 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 motivated
High (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 behavior
Participative (S-P)
Low-directive / high-supportive behavior
Laissez-Faire (S-L)
Low-directive / low-supportive behavior

28. Situational Supervision Model
Exhibit 8.6

29. Substitutes for Leadership (1 of 2)
I. Characteristics of Subordinates
Ability, knowledge, experience, training
Need for independence
Professional orientation
Indifference toward organizational rewards
II. Characteristics of Task
Clarity and routine
Invariant methodology
Provision of own feedback concerning accomplishment
Intrinsic satisfaction

30. Substitutes for Leadership (2 of 2)
III. Characteristics of the Organization
Formalization (explicit plan, goals, and areas of responsibility)
Inflexibility (rigid, unbending rules and procedures)
Highly specified and active advisory and staff functions
Closely knit, cohesive work groups
Organizational rewards not within the leader’s control
Spatial distance between superior and subordinate

31. Diversity of Global Leadership (1 of 3)
Most leadership theories were developed in the United States
Thus, they have an American bias
Key assumptions of American-based theories:
Employee responsibility, rather than employee rights
Self-gratification, rather than employee commitment to duty or altruistic motivation
Democratic values rather than autocratic values
Rationality, rather than spirituality, religion, or superstition

32. Diversity of Global Leadership (2 of 3)
In the 1970s, Japan’s productivity rate was increasing faster than that of the United States
Seven 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

33. Diversity of Global Leadership (3 of 3)
American-based theories may not be as effective in cultures based on different assumptions
Autocratic leadership styles tend to be appropriate in high-context cultures
e.g., Arab, Far Eastern, and Latin countries
Participative leadership styles tend to be appropriate in low-context cultures
e.g., U.S., Norway, Finland, and Sweden

34. Trust Levels of Trust 1. Deterrence-based 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

35. Dimensions of Trust (1 of 4)
Exhibit 8.8

36. 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 conscientious
Know your strengths and limitations
Don’t brag
Admit your mistakes

37. 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

38. Dimensions of Trust (4 of 4)
Tips to Develop Your Openness
Self-disclose
Accept others’ self-disclosure
Accept diversity and conflict

39. The Johari Window Unknown to Self Known to Self OPEN BLIND
Known to Others
HIDDEN
Unknown to Others
UNKNOWN

40. Risk and Destroying Trust
Developing trust through self-disclosure does include the risk of:
being hurt
disappointed
taken advantage of
The rewards of improved human relations and personal friendship are worth the risk