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    1. 1. 8-1
    2. 2. 8-2 Chapter 8 Leading and TrustMcGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc. All rights reserved
    3. 3. 8-3 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 Influencingemployees is not the task of the manager aloneLeadership is one of the five management functions
    4. 4. 8-4 Leadership Theories LeadershipLeadership Behavioral Behavioral Contingency Contingency Trait Trait Leadership Leadership Leadership Leadership Theory Theory Theories Theories Theories Theories  Basic Leadership Styles  Contingency Leadership Theory  Two-Dimensional Leadership Styles  Leadership Continuum  Leadership Grid  Normative Leadership Theory  Transformational Leadership  Situational Leadership  Situational Supervision
    5. 5. 8-5 Leadership Trait TheoryAssumes that there are distinctive physicaland psychological characteristics accountingfor leadership effectivenessThe Ghiselli Study is the most widelypublicized trait theory study Identified six traits as being significant traits for effective leadership
    6. 6. 8-6 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. 7. 8-7 The Ghiselli Study: Leadership Traits (2 of 2)Decisiveness. Theability to sole problems and make decisions competentlySelf-assurance. Viewingoneself as capable of coping with problemsInitiative. Self-starting in getting the job done with a minimum of supervision from one’s boss
    8. 8. 8-8 Behavioral Leadership TheoriesAssume that there are Principal Theories distinctive styles that Basic Leadership Styles effective leaders use Two-Dimensional consistently, Leadership Styles or The Leadership GridThat good leadership is Transformational a rooted behavior Leadership
    9. 9. 8-9 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. 10. 8 - 10Two-Dimensional Leadership Styles Ohio State University Studies University of Michigan StudiesInitiating structure – the Job centered – same as extent to which the leader initiating structure takes charge as the  Concern for production employee performs the task Employee centered – sameConsideration – the extent as consideration to which the leader  Concern for people communicates to develop trust, friendship, support, and respect
    11. 11. 8 - 11 Two-Dimensional Leadership Models High High Consideration High Structure and and Consideration Low Structure High Consideration Ohio State 3 2 University 4 1 Low Consideration High Structure and and Low Structure Low Consideration Low Initiating StructureExhibit 8.1 Low High University of Michigan Job-Centered Employee-Centered
    12. 12. 8 - 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. 13. 8 - 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. 14. 8 - 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. 15. 8 - 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. 16. 8 - 16Charismatic TransactionalLeadership Leadership
    17. 17. 8 - 17Contingency Leadership TheoriesAssume that the Principal Theories appropriate leadership Contingency style varies from Leadership Theory situation to situation Leadership Continuum Normative Leadership Theory Situational Leadership
    18. 18. 8 - 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Ifthere is no match, Fiedler recommends change the situation, rather than leadership style
    19. 19. 8 - 19 Contingency Leadership Theory (2 of 2) Leadership Style Situational FavorablenessDetermined by completing The degree to which a the Least Preferred Coworker situation enables the leader (LPC) scales to exert influence over theDetermines if one’s followers leadership style is: Key variables  task oriented 1. Leader-member relations or 2. Task structure  relationship oriented 3. Position power
    20. 20. 8 - 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. 21. 8 - 21Continuum of Leadership Behavior Autocratic Style Participative Style Leader Leader Leader Leader Leader Leader Leader makes “sells” presents presents presents defines permits decision decision ideas and tentative problem, limits and subordi- and invites decision gets asks nates toannounces questions subject to suggestions group to function it change and makes make within decision decision limits defined by leader 1 2 3 4 5 6 7 Exhibit 8.4
    22. 22. 8 - 22 Normative Leadership TheoryModel developed by Leadership Styles Vroom and Yetton DecideEnables the user to Consult individually select one of five leadership styles Consult group appropriate for the Facilitate situation Delegate
    23. 23. 8 - 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. 24. 8 - 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. 25. 8 - 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. 26. 8 - 26 Situational Supervision (2 of 3) Supervisor-Employee Employee Capability Interactions AbilityDirective behavior  Do employees have the  The supervisor focuses on education, experience, skills, directing and controlling etc., to do the task without behavior to ensure the task direction from the supervisor? gets done MotivationSupportive behavior  Do the employees want to do  Thesupervisor focuses on the task? encouraging and motivating behavior
    27. 27. 8 - 27 Situational Supervision (3 of 3) Employee Capability Levels (C) Supervisory Styles (S) Low (C-1)  Autocratic (S-A)  Employees can’t do the task  High-directive / low-supportive without detailed directions behavior Moderate (C-2)  Consultative (S-C)  Employees have moderate ability  High-directive / high-supportive and are motivated behavior High (C-3)  Participative (S-P)  Employees are high in ability but  Low-directive / high-supportive may lack self-confidence or behavior motivation Outstanding (C-4)  Laissez-Faire (S-L)  Employees are very capable and  Low-directive / low-supportive highly motivated behavior
    28. 28. 8 - 28Situational Supervision Model Exhibit 8.6
    29. 29. 8 - 29 Substitutes for Leadership (1 of 2) I. Characteristics of II. Characteristics of Task SubordinatesAbility, knowledge, Clarity and routine experience, training Invariant methodologyNeed for independence Provision of own feedbackProfessional orientation concerning accomplishmentIndifference toward Intrinsic satisfaction organizational rewards
    30. 30. 8 - 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. 31. 8 - 31Diversity 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. 32. 8 - 32Diversity 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. 33. 8 - 33Diversity of Global Leadership (3 of 3)American-based theories may not be as effective in cultures based on different assumptions Autocraticleadership styles tend to be appropriate in high-context cultures  e.g., Arab, Far Eastern, and Latin countries Participativeleadership styles tend to be appropriate in low-context cultures  e.g., U.S., Norway, Finland, and Sweden
    34. 34. 8 - 34 TrustTrust– is the positive Levels of Trust expectation that another will not take advantage of you 1. Deterrence-based trustTrust is not simply 2. Knowledge-based trust givenTrust is earned 3. Identification-based trust
    35. 35. 8 - 35 Dimensions of Trust (1 of 4) ConsistencyCompetency Integrity Openness Loyalty Exhibit 8.8
    36. 36. 8 - 36 Dimensions of Trust (2 of 4) Tips to Develop Your Tips to Develop Your Integrity CompetenceTell the truth Be conscientiousKeep Know your strengths and your commitmentsBe fair limitations Don’t brag Admit your mistakes
    37. 37. 8 - 37 Dimensions of Trust (3 of 4) Tips to Develop Your Tips to Develop Your Loyalty Consistency Invest heavily in loyaltyKeep your commitments Maintain confidencesPractice what you preach Don’t gossip negatively aboutBe impartial individuals Be viewed as a collaborator, not a competitor
    38. 38. 8 - 38 Dimensions of Trust (4 of 4) Tips to Develop Your OpennessSelf-discloseAccept others’ self-disclosureAccept diversity and conflict
    39. 39. 8 - 39 The Johari Window Known to Self Unknown to SelfKnown to Others OPEN BLINDUnknown to Others HIDDEN UNKNOWN
    40. 40. 8 - 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