Chapter

1. Chapter 7 Leading and Trust

2. Leadership • Leadership – the process of influencing employees to work toward the achievement of objectives • Leadership and management are not the same • Influencing employees is not the task of the manager alone • Employees influence other employees

3. Leadership Theories Leadership Trait Theory Behavioral Leadership Theories Contingency Leadership Theories Contingency Leadership Theory Leadership Continuum Normative Leadership Theory Situational Leadership Situational Supervision Basic Leadership Styles Two-Dimensional Leadership Styles Leadership Grid Transformational Leadership

4. 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

5. 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

6. The Ghiselli Study: Leadership Traits(2 of 2) • Decisiveness. • The ability to sole problems and make decisions competently • Self-assurance. • Viewing oneself as capable of coping with problems • Initiative. • Self-starting in getting the job done with a minimum of supervision from one’s boss

7. Assume that there are distinctive styles that effective leaders use consistently, or That good leadership is a rooted behavior Principal Theories Basic Leadership Styles Two-Dimensional Leadership Styles The Leadership Grid Transformational Leadership Behavioral Leadership Theories

8. 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

9. Ohio State University Studies Initiating structure – the extent to which the leader takes charge as the employee performs the task Consideration – the extent to which the leader communicates to develop trust, friendship, support, and respect University of Michigan Studies Job centered – same as initiating structure Concern for production Employee centered – same as consideration Concern for people Two-Dimensional Leadership Styles

10. High Structure and High Consideration High Consideration and Low Structure High Structure and Low Consideration Low Consideration and Low Structure Two-Dimensional Leadership Models High 2 3 Ohio State University Consideration 4 1 Low Initiating Structure Low High University of Michigan Job-Centered Employee-Centered

11. The Leadership Grid • Based on two leadership dimensions: • Concern for production • Concern for people • The ideal leadership style has a high concern for both production and people

12. The Leadership Grid 9 High Team Manager (9,9) (1,9) Country Club Manager Concern for People (5,5) Organized-Person Manager (1,1) Impoverished Manager Sweatshop Manager (9,1) 1 High 9 Low 1 Concern for Production

13. 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

14. 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

15. Charismatic Leadership Transactional Leadership

16. Assume that the appropriate leadership style varies from situation to situation Principal Theories Contingency Leadership Theory Leadership Continuum Normative Leadership Theory Situational Leadership Contingency Leadership Theories

17. 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 • If there is no match, Fiedler recommends change the situation, rather than leadership style

18. Leadership Style Determined by completing the Least Preferred Coworker (LPC) scales Determines if one’s leadership style is: task oriented or relationship oriented Situational Favorableness The degree to which a situation enables the leader to exert influence over the followers Key variables 1. Leader-member relations 2. Task structure 3. Position power Contingency Leadership Theory(2 of 2)

19. 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

20. Continuum of Leadership Behavior Autocratic Style Participative Style Leader makes decision and announces it Leader “sells” decision Leader presents ideas and invites questions Leader presents tentative decision subject to change Leader presents problem, gets suggestions and makes decision Leader defines limits and asks group to make decision Leader permits subordi-nates to function within limits defined by leader 1 2 3 4 5 6 7

21. Model developed by Vroom and Yetton Enables the user to select one of five leadership styles appropriate for the situation Leadership Styles Decide Consult individually Consult group Facilitate Delegate Normative Leadership Theory

22. 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.

23. 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.

24. 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

25. Supervisor-Employee Interactions Directive behavior The supervisor focuses on directing and controlling behavior to ensure the task gets done Supportive behavior The supervisor focuses on encouraging and motivating behavior Employee Capability Ability Do employees have the education, experience, skills, etc., to do the task without direction from the supervisor? Motivation Do the employees want to do the task? Situational Supervision (2 of 3)

26. Employee Capability Levels (C) Low (C-1) Employees can’t do the task without detailed directions Moderate (C-2) Employees have moderate ability and are motivated High (C-3) Employees are high in ability but may lack self-confidence or motivation Outstanding (C-4) Employees are very capable and highly motivated Supervisory Styles (S) Autocratic (S-A) High-directive / low-supportive behavior Consultative (S-C) High-directive / high-supportive behavior Participative (S-P) Low-directive / high-supportive behavior Laissez-Faire (S-L) Low-directive / low-supportive behavior Situational Supervision (3 of 3)

27. I. Characteristics of Subordinates Ability, knowledge, experience, training Need for independence Professional orientation Indifference toward organizational rewards II. Characteristics of Task Clarity and routine Invariant methodology Provision of own feedback concerning accomplishment Intrinsic satisfaction Substitutes for Leadership (1 of 2)

28. 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

29. Diversity of Global Leadership (1 of 2) • 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

30. Diversity of Global Leadership (2 of 2) • American-based theories may not be as effective in cultures based on different assumptions • Autocratic leadership styles tend to be appropriate in high-context cultures • e.g., Arab, Far Eastern, and Latin countries • Participative leadership styles tend to be appropriate in low-context cultures • e.g., U.S., Norway, Finland, and Sweden

31. Trust – is the positive expectation that another will not take advantage of you Trust is not simply given Trust is earned Levels of Trust 1. Deterrence-based trust 2. Knowledge-based trust 3. Identification-based trust Trust

32. Dimensions of Trust (1 of 4)

33. Tips to Develop Your Integrity Tell the truth Keep your commitments Be fair Tips to Develop Your Competence Be conscientious Know your strengths and limitations Don’t brag Admit your mistakes Dimensions of Trust (2 of 4)

34. Tips to Develop Your Consistency Keep your commitments Practice what you preach Be impartial Tips to Develop Your Loyalty Invest heavily in loyalty Maintain confidences Don’t gossip negatively about individuals Be viewed as a collaborator, not a competitor Dimensions of Trust (3 of 4)

35. Tips to Develop Your Openness Self-disclose Accept others’ self-disclosure Accept diversity and conflict Dimensions of Trust (4 of 4)

36. The Johari Window Unknown to Self Known to Self OPEN BLIND Known to Others HIDDEN UNKNOWN Unknown to Others