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                                  Chapter                   8


                                 Leading
                                   and
                                  Trust


McGraw-Hill/Irwin   © 2008 The McGraw-Hill Companies, Inc. All rights reserved
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
8-4




         Leadership Theories

 Leadership
Leadership             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
8-5




       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
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
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




  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
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
8 - 10




Two-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
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 Structure
Exhibit 8.1                               Low                                                High
              University of
               Michigan                   Job-Centered                          Employee-Centered
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
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
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
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
8 - 16




Charismatic   Transactional
Leadership     Leadership
8 - 17




Contingency 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
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
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
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
8 - 21




Continuum 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 to
announces              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
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
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
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
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
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
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
8 - 28




Situational Supervision Model




                           Exhibit 8.6
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
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
8 - 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
8 - 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
8 - 33




Diversity 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
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
8 - 35




 Dimensions of Trust (1 of 4)

             Consistency




Competency    Integrity    Openness




               Loyalty

                                      Exhibit 8.8
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
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
8 - 38




          Dimensions of Trust (4 of 4)
    Tips to Develop Your
           Openness
Self-disclose

Accept   others’ self-disclosure
Accept   diversity and conflict
8 - 39




                    The Johari Window


                      Known to Self   Unknown to Self




Known to Others            OPEN           BLIND




Unknown to Others         HIDDEN        UNKNOWN
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

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Chap008

  • 1. 8-1
  • 2. 8-2 Chapter 8 Leading and Trust McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc. All rights reserved
  • 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. 8-4 Leadership Theories Leadership Leadership 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. 8-5 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. 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. 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 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. 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. 8 - 10 Two-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. 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 Structure Exhibit 8.1 Low High University of Michigan Job-Centered Employee-Centered
  • 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. 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. 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. 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. 8 - 16 Charismatic Transactional Leadership Leadership
  • 17. 8 - 17 Contingency 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. 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. 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. 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. 8 - 21 Continuum 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 to announces 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. 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. 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. 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. 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. 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. 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. 8 - 28 Situational Supervision Model Exhibit 8.6
  • 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. 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. 8 - 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. 8 - 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. 8 - 33 Diversity 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. 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. 8 - 35 Dimensions of Trust (1 of 4) Consistency Competency Integrity Openness Loyalty Exhibit 8.8
  • 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. 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. 8 - 38 Dimensions of Trust (4 of 4) Tips to Develop Your Openness Self-disclose Accept others’ self-disclosure Accept diversity and conflict
  • 39. 8 - 39 The Johari Window Known to Self Unknown to Self Known to Others OPEN BLIND Unknown to Others HIDDEN UNKNOWN
  • 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

Editor's Notes

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