Leadership and Creating Trust

1. Leadership andCreating Trust June 9, 2014 Robbins, chapter 10

2. Announcements • Discuss leadership/Begin conflict • Tonight • Marcus • Paul • Ulana • Shannon • Tuesday • Paul • Marcus MQM 421/Summer 2006

3. Leadership Ability to influence a group toward the achievement of goals MQM 421/Summer 2006

4. Ambition and energy Desire to lead Honesty and integrity Self-confidence Intelligence High self-monitoring Job-relevant knowledge Trait Theories – 1990s MQM 421/Summer 2006

5. Trait Theories – 1990s • Researchers began organizing traits around the Big Five personality framework • Resulted in consistent and strong support for traits as predictors of leadership • Traits do a better job at predicting the emergence of leaders than in actually distinguishing between effective and ineffective leaders MQM 421/Summer 2006

6. Behavioral Theories • Assumes people can be trained to lead • Researched the behaviors of specific leaders • Provides the basis of design for training programs MQM 421/Summer 2006

7. Ohio State Studies Developed two categories of leadership behavior • Initiating structure - attempts to organize work, work relationships, and goals • Consideration - concern for followers’ comfort, well-being, status, and satisfaction MQM 421/Summer 2006

8. University of Michigan Studies Employee-oriented - emphasize interpersonal relations Production-oriented - emphasize the technical or task aspects of the job MQM 421/Summer 2006

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10. Limitations of Behavioral Theories • Did not identify consistent relationships between leadership behavior and group performance • Missing consideration of the situational factors that influence success and failure MQM 421/Summer 2006

11. Contingency Theories • Fiedler • Path-goal • Leader-participation MQM 421/Summer 2006

12. Fiedler Leadership Model • Effective group performance depends on the proper match between the leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader • Least-preferred co-worker (LPC) questionnaire MQM 421/Summer 2006

13. Fiedler Contingency Dimensions • Leader-member relations • Task structure • Position power MQM 421/Summer 2006

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15. Leader-Member Exchange Theory • Leaders do differentiate among followers • Disparities are far from random • Followers with in-group status have: • higher performance ratings • lower turnover intentions • greater satisfaction with their superiors • higher overall satisfaction than those in the out-group MQM 421/Summer 2006

16. Path-Goal Theory • Leader’s job is to assist followers in attaining their goals and to provide the direction and support needed to ensure that their goals are compatible with the overall objectives of the organization • Acceptable, Motivational MQM 421/Summer 2006

17. Path-Goal Theory • Directive leader • Supportive leader • Participative leader • Achievement-oriented leader MQM 421/Summer 2006

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19. Leader-Participation Model • Leader behavior must adjust to reflect the task structure • Sequential set of rules that should be followed in determining the form and amount of participation in decision making MQM 421/Summer 2006

20. Transactional and Transformational Transactional leaders - motivate their followers in the direction of established goals by clarifying role and task requirements Transformational leaders - inspire followers to transcend their own self-interests for the good of the organization MQM 421/Summer 2006

21. Charismatic Leadership Theory • Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors MQM 421/Summer 2006

22. Charismatic Leaders • Have vision • Willing to take risks to achieve that vision • Sensitive to both environmental constraints and follower needs • Exhibit behaviors that are out of the ordinary MQM 421/Summer 2006

23. How Charismatic Leaders Influence Followers • Articulates an appealing vision • Communicates high performance expectations • Conveys, through words and actions, a new set of values • Makes self-sacrifices and engages in unconventional behavior to demonstrate convictions about the vision MQM 421/Summer 2006

24. Charismatic Leadership • Increasing body of research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers MQM 421/Summer 2006

25. Contemporary Issues • Role of emotional intelligence in leadership effectiveness • Ethical implications in leadership • Need to modify leadership style to cultural differences MQM 421/Summer 2006

26. Emotional Intelligence (EI) Recent studies indicate that EI is the best predictor of who will emerge as a leader MQM 421/Summer 2006

27. Leadership: An Individual Perspective • Leadership is not tied to organizational position • Position helps, but is not always sufficient • Effective leadership is a function of power • Power is the capacity to influence others to do things that they might not do otherwise. MQM 421/Summer 2006

28. Power “It is powerlessness, rather than true leadership, that often creates ineffective, desultory management and petty, dictatorial, rules-minded managerial styles” Rosabeth Kanter MQM 421/Summer 2006

29. Power “[We must] admit that the skills of getting things done are as important as the skills of figuring out what to do. . .” Jeffrey Pfeffer “. . . one of the major problems facing organizations today is not that too many people exercise too much power, but rather the opposite” Jeffrey Pfeffer MQM 421/Summer 2006

30. Power “Individual success in organizations is quite frequently a matter of working with and through other people, and organizational success if often a function of how successfully individuals can coordinate their activities” Jeffrey Pfeffer “[Interdependence is] turning individual contributor jobs and management jobs into leadership jobs--jobs in which there is a sizable built-in gap between the power one needs to get the job done well and the power that automatically comes with the job” John Kotter MQM 421/Summer 2006

31. Power “. . . virtually all of us work in positions in which, in order to accomplish our job and objectives, we need the cooperation of others who do not fall within our direct chain of command. We depend, in other words, on people outside our purview of authority, whom we could not command, reward, or punish even if we wanted to” Jeffrey Pfeffer MQM 421/Summer 2006

32. Power “Knowledge without power is of remarkably little use. And power without the skill to employ it effectively is likely to be wasted” Jeffrey Pfeffer MQM 421/Summer 2006

33. Power “Getting things done requires power. . . this is why power and influence are not the organization’s last dirty secret, but the secret of success for both individuals and their organizations. Innovation and change in almost any arena requires the skill to develop power, and the willingness to employ it to get things accomplished” Jeffrey Pfeffer MQM 421/Summer 2006

34. Leadership Characteristics: The Centrality of Trust • Leadership is a relationship • Trust is the single most important factor in determining the strength and nature of relationships • Trust is power MQM 421/Summer 2006

35. What is Trust? A positive expectation that another will not – through words, actions, or decisions – act opportunistically MQM 421/Summer 2006

36. Elements of Trust • Integrity • Honesty and truthfulness • Keeping commitments and promises • Consistency • Reliability, predictability, and good judgment • Consistency between behavior and expressed values • Loyalty • Willingness to protect and save face for others • Openness • Willingness to share ideas and information • Competence • Technical and industry • Interpersonal and critical thinking • Forward thinking (vision) MQM 421/Summer 2006

37. Contemporary Perspectives: Leadership Characteristics • Importance of Trust • Organizational changes have eliminated my of the traditional control mechanisms that were used to monitor employees • Trust becomes more important and a form of social control MQM 421/Summer 2006

38. Importance of Trust Organizational and interpersonal trust become increasingly important in a time of change and instability When rules, policies, cultural norms, and traditional practices are in flux, people turn to personal relationships for guidance MQM 421/Summer 2006

39. Basic Principles of Trust • Mistrust drives out trust • Trust begets trust • exhibiting trust in others tends to encourage reciprocity • effective leaders increase trust in small increments and allow others to respond in kind • Growth often masks mistrust • Decline or downsizing tests the highest levels of trust • Trust increases cohesion • Mistrusting groups self-destruct • Mistrust generally reduces productivity MQM 421/Summer 2006

40. What Successful Managers Can Do: Eight Suggestions • Practice openness. Openness leads to confidence and trust • Be fair. Before making decisions or taking actions, consider how others will perceive them in terms of objectivity and fairness • Speak your feelings. Conveying only hard facts is cold and distant. If you share your feelings, others will see you as real and human • Tell the truth. Integrity is critical to trust; you must be perceived as someone who tells the truth MQM 421/Summer 2006

41. What Successful Managers Can Do: Eight Suggestions • Show consistency. People want predictability. Mistrust comes from not knowing what to expect • Fulfill your promises. Trust requires that people believe that you are dependable • Maintain confidences. You trust people who are discreet and upon whom you can rely • Demonstrate competence. Develop the admiration and respect of others by demonstrating technical and professional ability MQM 421/Summer 2006