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PSY 126 Week 7: Leading & Trust

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Leading & Trust
Matthew L. Eisenhard, Psy.D.
Week 7: Psychology for Business & Industry
Leadership
 LEADERSHIP
 The process of influencing employees to work
toward the achievement of objectives.
 Leadership ...
Leadership
• Strong leadership skills are needed in today’s
teamwork oriented business model.
▫ There are various differen...

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PSY 126 Week 7: Leading & Trust

  1. 1. Leading & Trust Matthew L. Eisenhard, Psy.D. Week 7: Psychology for Business & Industry
  2. 2. Leadership  LEADERSHIP  The process of influencing employees to work toward the achievement of objectives.  Leadership Quotes… ◦ 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.”
  3. 3. Leadership • 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. ▫ http://www.youtube.com/watch?v=FmpIMt95ndU
  4. 4. Leadership & Management • These two elements are often used synonymously… • They are related but different… • Management has five functions: ▫ PLANNING ▫ ORGANIZING ▫ STAFFING ▫ LEADING ▫ CONTROLLING • 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…..
  5. 5. Leadership Trait Theories • Assume there are distinctive physical and psychological characteristics that account for effective leadership. ▫ 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.
  6. 6. Leadership Trait Theories • Ghiselli Study – most publicized trait theory. ▫ Listed 6 Traits  SUPERVISORY ABILITY  Getting the job done through others.  NEED FOR ACHIEVEMENT  Seeking responsibility.  INTELLIGENCE  Good judgment – reasoning – thinking.  DECISIVENESS  Solving problems and making decisions.  SELF-ASSURANCE  Seeing yourself as capable.  INITIATIVE  Self-starter – no need for supervision.
  7. 7. Leadership Trait Theories • Current Studies ▫ Wall Street Journal/Gallup – Found 3 Traits.  INTEGRITY  INDUSTRIOUSNESS  GETTING ALONG WITH OTHERS Self-Assessment Exercise 7-1 Total Score for each column.  5 -25 Overall. ◦ 15-75 In general – higher scores mean better chances for success.
  8. 8. Behavioral Leadership Theories Assume that there are distinctive styles that effective leaders use consistently, that is, that good leadership is rooted in behavior. ◦ Two-Dimensional Leadership Styles ◦ The Leadership Grid ◦ Transformational, Charismatic, Transactional, and Servant Leadership and Stewardship
  9. 9. Two-Dimensional Leadership Styles  1945 – Ohio State University Study to determine effective leadership styles - their findings… Initiating Structure/Job-Centered  How much does the leader take charge? Consideration/Employee Centered  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
  10. 10. Leadership Grid  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.
  11. 11. Transformational, Charismatic, Transactional, & Servant Leadership & Stewardship TRANSFORMATIONAL ◦ About change, innovation, and entrepreneurship. ◦ Steve Jobs, Apple. CHARISMATIC ◦ Have extraordinary influence, gifted, heroic. ◦ Martin Luther King Jr., Mother Theresa. TRANSACTIONAL ◦ 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. ◦ Self-sacrificing.
  12. 12. 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
  13. 13. Contingency Leadership Theory  Fiedler (1951) – determines if style is task or relationship oriented & if it matches the leaders style.  If there is no match – then leader should change the situation rather than leadership style.  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.  Situational Favorableness  Leader-member relations – good or poor?  Better relations = more favorable situations.  Task Structure?  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.
  14. 14. Leadership Continuum  Tannenbaum & Schmidt – Identifies seven leadership styles based on the use of boss-centered versus employee-centered leadership.  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 leadership styles?
  15. 15. 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 models). 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.
  16. 16. Situational Leadership • Hersey and Blanchard • A model to select from 4 leadership styles that match the maturity level of the employee in any given situation. ▫ Refer back to Exhibit 7.1  Lower right quadrant (1) = Telling  Upper right quadrant (2) = Selling  Upper left quadrant (3) = Participating  Lower left quadrant (4) = Delegating
  17. 17. 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 that style. ▫ There is no “right” leadership style.  This will just help you understand the way you prefer to use.
  18. 18. https://www.youtube.com/watch?v=83yInyY1KLs
  19. 19. Situational Supervision No one leadership style is best. Supervisory/employee interactions 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. ◦ ABILITY  What level of education, experience, skills do they have? ◦ MOTIVATION  How much do they want to do the job – will they need support & encouragement - or will they do it on their own?
  20. 20. Levels of Employee Capability LOW (C-1) ◦ Need lots of direction and supervision – lack motivation. MODERATE (C-2) ◦ Need some supervision – may have high motivation but still need directions, support and encouragement. HIGH (C-S) ◦ High in ability – but lack confidence – needs lots of support and encouragement to get motivated. OUTSTANDING (C-4) ◦ Got all the knowledge and are highly motivated on their own.
  21. 21. The Supervisory Styles (Reviewed) AUTOCRATIC (S-A) ◦ Gives direct instructions, close supervision, and does not consult employee about decisions. CONSULTATIVE (S-C) ◦ give directions, but may include employee in decisions – boss still has final word. PARTICIPATIVE (S-P) ◦ Gives generalized directions but does not closely supervise – gives support and encouragement and allows input from employee – boss still has final say. LAISSEZ-FAIRE (S-L) ◦ Spends little or no time supervising or directing – here’s the job – do it.
  22. 22. 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 organization
  23. 23. 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 communication. ▫ The Virtual Team uses technology to communicate.
  24. 24. Differences in Styles Leadership styles are not a “one-size-fits-all,” situations also vary according to cultures. Korean leaders ◦ Expected to act as father figures to employees. Arab leaders ◦ Viewed as weak if they show kindness or generosity. Japanese leaders ◦ Expected to be humble and not speak much . Scandanavian & Dutch leaders ◦ Embarrass employees publicly rather than motivate with individual praise.
  25. 25. Trust • In business and life in general, trust is an absolute essential. ▫ It is the positive expectation that another will not take advantage of you • It should not be “given” but “earned.” • It takes time to develop true trust. • Self-assessment exercise 7.3.
  26. 26. Types or Levels of Trust • DETERRENCE-BASED ▫ Based on fear. ▫ It is the most fragile since one violation or inconsistency can destroy the relationship. • KNOWLEDGE-BASED ▫ 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 moving forward. ▫ Everyone makes mistakes and forgiveness is vital to good relationships. • IDENTIFICATION-BASED ▫ Emotional connections – friendships. ▫ The highest level of trust. ▫ Gender differences – men state their expectations – women trust others will anticipate them.
  27. 27. Developing Trust • Integrity • Competence • Consistency • Loyalty • Openness • Risk and Destroying Trust
  28. 28. Integrity • Tell The Truth ▫ The fine line between truth and lying is called tactfulness. • Keep Your Commitments ▫ Promises made are promises kept. • Be Fair ▫ Fairness establishes credibility. ▫ Integrity and fairness are core to good business and relationships.
  29. 29. Competence • 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.
  30. 30. Consistency • 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 not fly.
  31. 31. Loyalty Invest Heavily In Loyalty ◦ If you display loyalty it will usually be reciprocated – no one trusts someone who is only taking care of numero uno. Maintain Confidences ◦ Don’t repeat things told to you in confidence – no one trusts a back-stabber or someone who blabs everything they know. 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.
  32. 32. Openness • 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 on trust. • Risk Self-Disclosure ▫ Everyone is vulnerable in some way. ▫ But the rewards of letting yourself be known to others are worth the risk.
  33. 33. Repairing Trust 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.
  34. 34. Key Points • 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

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