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