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

© 2005 Prentice-Hall )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:

© 2005 Prentice-Hall )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:

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

© 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:

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

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

© 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

© 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

© 2005 Prentice-Hall 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

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

© 2005 Prentice-Hall 10-12

© 2005 Prentice-Hall 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

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

© 2005 Prentice-Hall 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

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

© 2005 Prentice-Hall Fiedler Model

© 2005 Prentice-Hall 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

© 2005 Prentice-Hall 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

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

© 2005 Prentice-Hall Path-Goal Theory

© 2005 Prentice-Hall 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

© 2005 Prentice-Hall 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

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

© 2005 Prentice-Hall 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

© 2005 Prentice-Hall 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

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

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

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

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

© 2005 Prentice-Hall Trust Dimensions CompetenceConsistency LoyaltyOpenness Integrity

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

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

© 2005 Prentice-Hall )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

© 2005 Prentice-Hall )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