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Leading & Trust
Matthew L. Eisenhard, Psy.D.
Week 7: Psychology for Business & Industry
The process of influencing employees to work
toward the achievement of objectives.
◦ John F. Kennedy
“Leadership and learning are indispensible to each other.”
◦ Colin Powell
“Leadership is solving problems.”
◦ Dwight D. Eisenhower
“Leadership is the art of getting someone else to do something you want
done because he wants to do it.”
◦ Harry S. Truman
“Men make history , and not the other way around. In periods where there
is no leadership, society stands still. Progress occurs when courageous ,
skillful leaders seize the opportunity to change things for the better.”
◦ Peter Drucker
“Management is doing things right; leadership is doing the right things.”
• Strong leadership skills are needed in today’s
teamwork oriented business model.
▫ There are various different styles of leadership.
▫ Leadership can make a difference in performance
– for individuals and organizations.
Leadership & Management
• These two elements are often used synonymously…
• They are related but different…
• Management has five functions:
• Leadership is a function of management.
▫ You can be a good manager without being a good leader and vice versa.
▫ Good leadership is often a shared activity in an organization.
• What does it take to be a good leader & what is the best leadership style?
▫ No universal agreement.
▫ So let’s look at some of the theories…..
Leadership Trait Theories
• Assume there are distinctive physical and
psychological characteristics that account for
▫ Yes…personality traits do effect leadership style.
▫ But after 70 years of research
we still cannot identify a specific
list of traits that all successful
leaders have in common.
Leadership Trait Theories
• Ghiselli Study – most publicized trait theory.
▫ Listed 6 Traits
Getting the job done through others.
NEED FOR ACHIEVEMENT
Good judgment – reasoning –
Solving problems and making decisions.
Seeing yourself as capable.
Self-starter – no need for supervision.
Leadership Trait Theories
• Current Studies
▫ Wall Street Journal/Gallup – Found 3 Traits.
GETTING ALONG WITH OTHERS
Self-Assessment Exercise 7-1
Total Score for each column.
In general – higher scores mean better chances for
Behavioral Leadership Theories
Assume that there are distinctive styles
that effective leaders use consistently,
that is, that good leadership is rooted in
◦ Two-Dimensional Leadership Styles
◦ The Leadership Grid
◦ Transformational, Charismatic,
Transactional, and Servant Leadership and
Two-Dimensional Leadership Styles
1945 – Ohio State University Study to determine
effective leadership styles - their findings…
How much does the leader take charge?
How much does the leader interact with employees?
Combinations: (Exhibit 7.1)
1 = High Structure/Low Consideration
2 = High Structure/ High Consideration
3 = High Consideration/ Low Structure
4 = Low Consideration/ Low Structure
Blake & Moulton’s Model (1964-1991)
Ideal leadership style has high concern for both the
job and the people.
They Identify 5 Major Styles:
◦ IMPOVERISHED MANAGER (1.1)
Low concern for both job & people.
Does minimum work to keep his/her job.
◦ SWEATSHOP MANAGER (9.1)
High concern for job – low for people.
Uses power to coerce people & treats them like machines.
◦ COUNTRY CLUB MANAGER (1.9)
High concern for people – low for job.
It’s all about be friendly and having good relationships.
◦ ORGANIZED-PERSON MANAGER (5.5)
Medium concern for both job and people.
Runs middle of the road to keep both going well.
◦ TEAM MANAGER (9.9)
High concern for both people and job.
Participation, commitment and resolving conflict are tops.
Transformational, Charismatic, Transactional, &
Servant Leadership & Stewardship
◦ About change, innovation, and entrepreneurship.
◦ Steve Jobs, Apple.
◦ Have extraordinary influence, gifted, heroic.
◦ Martin Luther King Jr., Mother Theresa.
◦ Based on “quid pro quo” – you do something for me, and I’ll
do something for you.
◦ Good negotiators.
SERVANTS & STEWARDSHIP
◦ Primary motives are devotion to the best interests of the
organization as opposed to self-serving, opportunism.
Contingency Leadership Theories
• Assume the appropriate style of leadership
varies depending on the situation.
• Attempt to create win-win situations by giving
support and direction.
• Contingency Theories:
▫ Contingency Leadership Theory
▫ Leadership Continuum
▫ Normative Leadership Theory
▫ Situational Leadership
Contingency Leadership Theory
Fiedler (1951) – determines if style is task or relationship oriented & if it matches the
If there is no match – then leader should change the situation rather than
High LPC Leaders = more relationship-oriented.
Do well in moderately favorable circumstances.
Low LPC Leaders = more task-oriented.
Do well in highly favorable or highly unfavorable circumstances.
Leader-member relations – good or poor?
Better relations = more favorable situations.
More structure = more favorable situation.
Position Power – strong or weak?
More power = more favorable situation.
Determining Appropriate Leadership Style
Refer to Exhibit 7.3.
Uses three questions about situational favorableness.
Follows a Decision Tree for determining Appropriate Style.
Tannenbaum & Schmidt – Identifies seven leadership
styles based on the use of boss-centered versus
Before selecting one of the 7 leadership styles – three
factors need to be considered:
The Manager = Preferred Style based on experience and
confidence in employees/subordinates.
The Subordinates = Preferred Style for the leader –
generally the more willing able they are the more
freedom they should be given.
The Situation = What is the organizations structure, size,
goals, technology – and what are upper-level managers
Normative Leadership Theory
Vroom & Yetton (2000) – Decision tree method to
choose from 5 leadership styles depending which is
best for the situation (adapted from previous
Five Leadership Styles:
◦ Decide – Leader decides.
◦ Consult Individually – Leader talks to employees separately
to get input – but still makes the decision.
◦ Consult Group – Talks to group of employees for input –
but still makes the decision.
◦ Facilitate – Group meeting/employees share in decision.
◦ Delegate – Group makes the decision.
• Hersey and Blanchard
• A model to select from 4
leadership styles that
match the maturity level of
the employee in any given
▫ Refer back to Exhibit 7.1
Lower right quadrant (1) =
Upper right quadrant (2) =
Upper left quadrant (3) =
Lower left quadrant (4) =
Your Preferred Leadership Style
• Self-assessment exercise 7.2.
▫ The more evenly distributed the numbers are –
the more flexible your style.
A 1 or 0 in a column indicates a reluctance to use
▫ There is no “right” leadership
This will just help you understand
the way you prefer to use.
No one leadership style is best.
have two categories:
◦ DIRECTIVE BEHAVIOR
Focus on getting the job done.
◦ SUPPORTIVE BEHAVIOR
Focus on encouraging and motivating employees.
The situation is determined by the capability of the employee.
What level of education, experience, skills do they have?
How much do they want to do the job – will they need
support & encouragement - or will they do it on their
Levels of Employee Capability
◦ Need lots of direction and supervision – lack
◦ Need some supervision – may have high motivation
but still need directions, support and encouragement.
◦ High in ability – but lack confidence – needs lots of
support and encouragement to get motivated.
◦ Got all the knowledge and are highly motivated on
The Supervisory Styles (Reviewed)
◦ Gives direct instructions, close supervision, and does
not consult employee about decisions.
◦ give directions, but may include employee in decisions
– boss still has final word.
◦ Gives generalized directions but does not closely
supervise – gives support and encouragement and
allows input from employee – boss still has final say.
◦ Spends little or no time supervising or directing –
here’s the job – do it.
Substitutes for Leadership
• Leadership is a shared process in groups.
▫ There is no substitute for leadership in that case.
▫ But there are substitutes for managers.
• The following can provide direction and support:
▫ Characteristics of subordinates
▫ Characteristics of task
▫ Characteristics of the
Diversity & Global Leadership
• We are growing more GLOBAL every day.
• Most leadership theories originate in U.S.
▫ Our cultural beliefs and values may not be as
effective in other countries.
• Cultural sensitivity is vital to operations
outside one’s own country.
• E-organizations operate a little differently.
▫ Leaders focus on speed – flexibility – vision.
▫ More written and less face-to-face
▫ The Virtual Team uses technology to
Differences in Styles
Leadership styles are not a “one-size-fits-all,” situations
also vary according to cultures.
◦ Expected to act as father figures to employees.
◦ Viewed as weak if they show kindness or generosity.
◦ Expected to be humble and not speak much .
Scandanavian & Dutch leaders
◦ Embarrass employees publicly rather than motivate
with individual praise.
• In business and life in
general, trust is an
▫ It is the positive
another will not take
advantage of you
• It should not be “given”
• It takes time to develop
Types or Levels of Trust
▫ Based on fear.
▫ It is the most fragile since one violation or inconsistency can destroy the
▫ Most common in organizations.
▫ Knowledge lets us predict behavior.
▫ The better we know someone the more we can predict their actions.
▫ It is not destroyed by a singular inconsistency - it allows for forgiveness and
▫ Everyone makes mistakes and forgiveness is vital to good relationships.
▫ Emotional connections – friendships.
▫ The highest level of trust.
▫ Gender differences – men state their expectations – women trust others will
• Tell The Truth
▫ The fine line
between truth and
lying is called
• Keep Your Commitments
▫ Promises made are promises kept.
• Be Fair
▫ Fairness establishes credibility.
▫ Integrity and fairness are core to good business and
• Be Conscientious
▫ Do you trust someone who
does shoddy work?
• Know Your Strengths And Limitations
▫ Don’t commit to doing something that you won’t
be able to deliver.
• Admit Your Mistakes
▫ If you are a “know it all” … people tend not to trust
you…we don’t trust or even like people that have
to be right all the time.
• Keep Commitments
▫ This is a repeat – because it
is very important! Do what
you say you will do.
• Practice What You Preach
▫ If you “talk the talk” … then you must “walk the
walk.” The old saying “do as I say, not as I do” will
◦ If you display loyalty it will usually be reciprocated –
no one trusts someone who is only taking care of
◦ Don’t repeat things told to you in confidence – no one
trusts a back-stabber or someone who blabs everything
Don’t Gossip Negatively About People
◦ If you talk about others in a negative way…people
assume you will be doing the same about them as soon
as their backs are turned.
• The Johari Window
▫ Refer to Exhibit 7.8.
▫ Based on self understanding we chose what is
appropriate to share with others.
▫ Disclosure is a gradual and mutual process based
• Risk Self-Disclosure
▫ Everyone is vulnerable in some way.
▫ But the rewards of letting yourself be known to
others are worth the risk.
Trust is earned and builds over time.
Easier to destroy than to build .
Once trust is broken relationships may be mended
but they are never the same again.
Admit mistakes and apologize.
Women generally more willing to
apologize than men.
We find it easier to apologize to
strangers than loved ones.
People get very emotional when
they feel their trust has been
betrayed – stay calm.
• Explaining Leadership and it’s effects
• Leadership Trait theory
• Behavioral Leadership Theories
• Contingency Leadership Theories
• Situational Supervisory Styles
• Three Substitutes for Leadership
• Diversity and Global Leadership
• Five dimensions of Trust