Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Chapter Leadership and Trust Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Learning Outcomes Define leader and leadership Compare and contrast early leadership theories Describe the four (4) major contingency leadership theories Describe modern views of leadership and the issues facing today’s leaders Discuss trust as the essence of leadership Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

How to be effective leader ? Characteristic of leader Behaviors of leader Contingency theories Contemporary leader

Who Are Leaders, and What Is Leadership? Someone who can influence others and who has managerial authority Leadership The process of leading a group and influencing that group to achieve its goals Are all managers leaders? What is an effective leader? Our definition of a leader is someone who can influence others and who has managerial authority. Leadership is a process of leading a group and influencing that group to achieve its goals. It’s what leaders do. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

1. What Traits (elements) Do Leaders Have? Trait Theories of Leadership Theories that isolate (separate) characteristics (traits) that differentiate leaders from nonleaders The seven traits shown to be associated with effective leadership are described briefly in Exhibit 11-1 The search for traits or characteristics that differentiate leaders from nonleaders dominated early leadership research efforts. If the concept of traits were valid, all leaders would have to possess specific characteristics. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. However, later attempts to identify traits consistently associated with leadership (the process, not the person) were more successful. The seven traits shown to be associated with effective leadership are described briefly in Exhibit 11-1 Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Behaviors of Leaderships Behavioral Theories of Leadership Iowa university (Kurt Lewin) type of leadership Ohio State University-leadership behavior described by employees University of Michigan Studies-characteristics of leaders that were related to performance effectiveness

1. What Behaviors Do Leaders Exhibit? Behavioral Theories of Leadership Kurt Lewin (Iowa university) Theories that isolate behaviors that differentiate effective leaders from ineffective leaders Basis for selecting in leadership position Trained to be a leader A number of studies looked at behavioral styles. We’ll briefly review three of the most popular: Kurt Lewin’s studies at the University of Iowa, the Ohio State studies, and the University of Michigan studies. Then we’ll see how the concepts developed in those studies were used in a grid created for appraising leadership styles Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Leadership Behaviors Kurt Lewin (University of Iowa). This research explored three leadership behaviors or styles: autocratic, democratic, and laissez-faire. Autocratic Style A leader who centralizes authority, dictates (order with force) work methods, makes unilateral (one side) decisions, and limits employee participation Democratic Style A leader who involves employees in decision making, delegates authority, encourages participation in deciding work methods, and uses feedback to coach employees One of the first studies of leadership behavior was done by Kurt Lewin and his associates at the University of Iowa. Researchers explored three leadership behaviors or styles: autocratic, democratic, and laissez-faire. An autocratic style is that of a leader who typically tends to centralize authority, dictate work methods, make unilateral decisions, and limit employee participation. A leader with a democratic style tends to involve employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback as an opportunity to coach employees Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Leadership Behaviors (cont.) Laissez-Faire Style A leader who generally gives employees complete freedom to make decisions and to complete their work however they see fit The laissez-faire style generally gives his or her employees complete freedom to make decisions and to complete their work in whatever way they see fit. A laissez-faire leader might simply provide necessary materials and answer questions Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

2. What Did the Ohio State Studies Show? Identified two categories that accounted for most of the leadership behavior described by employees Initiating Structure The extent to which a leader defines and structures his or her role and the roles of employees to attain goals. Organize work, work relationship and goal. Expects workers to maintain performance and emphasizes meeting deadlines Consideration The extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas, and regard for their feelings Help employees with personal problem, friendly, approachable and treat all employees as equal. He concern for his followers comfort, well-being, status and satisfaction The most comprehensive and replicated of the behavioral theories resulted from research that began at Ohio State University in the late 1940s. T he researchers eventually narrowed the list down to two categories that accounted for most of the leadership behavior described by employees. They called these two dimensions initiating structure and consideration. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Tannenbaum and Schmidt developed a continuum of leader behaviors (see Exhibit 11-2). The continuum illustrates that a range of leadership behaviors, all the way from boss centered (autocratic) on the left side of the model to employee centered (laissez-faire) on the right side of the model, is possible. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

3. How Did the University of Michigan Studies Differ? To locate the behavioral characteristics of leaders that were related to performance effectiveness Also developed two dimensions of leadership behavior Employee Oriented A leader who emphasizes the people aspects, interpersonal relations, need of employees and accepted individual differences Production Oriented A leader who emphasizes the technical or task aspects (accomplish group task ) Employee oriented leaders were associated with higher group productivity and high job satisfaction. Production-oriented leaders were associated with lower group productivity and lower workers satisfaction Leadership studies undertaken at the University of Michigan’s Survey Research Center, at about the same time as those being done at Ohio State, had similar research objectives: to locate the behavioral characteristics of leaders that were related to performance effectiveness. The Michigan group also came up with two dimensions of leadership behavior, which they labeled employee oriented and production oriented Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

What is the Managerial Grid? A two-dimensional grid for appraising leadership styles based on concern of people and concern of production Identified five styles for management impoverished management (1,1) task management (9,1) middle-of-the-road management (5,5) country club (1,9) team management (9,9) The managerial grid used the behavioral dimensions “concern for people” and “concern for production” and evaluated a leader’s use of these behaviors, ranking them on a scale from 1 (low) to 9 (high). Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Of these five styles, the researchers concluded that managers performed best when using a 9,9 style. Unfortunately, the grid offered no answers to the question of what made a manager an effective leader; it only provided a framework for conceptualizing leadership style. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

What is the Contingency Model? “ The corporate world is filled with stories of leaders who failed to achieve greatness because they failed to understand the context they are working” If this the context or situation, then this is the best leadership Four contingency theories: (1)Fiedler, (2)Hersey-Blandchard, (3)leader-participation and (4) path goal

1. What Was the First Contingency Model? Fiedler Contingency Model Leadership theory that proposes that effective group performance depends on the proper match between a leader’s style and the degree to which the situation allowed the leader to control and influence Least-Preferred Co-Worker (LPC) Questionnaire A questionnaire that measures whether a leader was task or relationship oriented The first comprehensive contingency model for leadership was developed by Fred Fiedler. The Fiedler contingency model proposed that effective group performance depended upon properly matching the leader’s style and the amount of control and influence in the situation. To measure a leader’s style, Fiedler developed the least-preferred co-worker (LPC) questionnaire Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Three Contingency Dimensions Leader-member relations the degree of confidence, trust, and respect employees had for their leader Task structure the degree to which job assignments were formalized and structured Position power the degree of influence a leader had over activities such as hiring, firing, discipline, promotions, and salary increases Fiedler’s research uncovered three contingency dimensions that defined the key situational factors in leader effectiveness Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Because Fiedler treated an individual’s leadership style as fixed, there were only two ways to improve leader effectiveness. First, you could bring in a new leader whose style better fit the situation. The second alternative was to change the situation to fit the leader. He conclude that task oriented leaders performed better in very situations and every unfavorable. Relationship-oriented leaders performed better in moderately favorable situations Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

2. How Do Followers’ Willingness and Ability Influence Leaders? Hersey-Blanchard theory Situational Leadership Theory (SLT) A leadership contingency theory that focuses on followers’ readiness Readiness The extent to which people have the ability and willingness to accomplish a specific task Use two leadership dimension : task and relationship behaviors with high and low then combining them into four specific leadership Paul Hersey and Ken Blanchard developed a leadership theory that has gained a strong following among management development specialists.16 This model, called situational leadership theory (SLT), is a contingency theory that focuses on followers’ readiness. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Four Situational Styles Four specific leadership style: Telling (high task–low relationship) The leader defines roles and tells people what, how, when, and where to do various tasks Selling (high task–high relationship) The leader provides both directive and supportive behavior SLT uses the same two leadership dimensions that Fiedler identified: task and relationship behaviors. However, Hersey and Blanchard go a step further by considering each as either high or low and then combining them into four specific leadership styles Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Four Styles (cont.) Participating (low task–high relationship) The leader and followers share in decision making; the main role of the leader is facilitating and communicating Delegating (low task–low relationship) The leader provides little direction or support SLT essentially views the leader-follower relationship as like that of a parent and a child. Just as a parent needs to relinquish control when a child .becomes more mature and responsible, so, too, should leaders Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

3. How Participative Should a Leader Be? Leader-Participation Model A leadership contingency theory that’s based on a sequential set of rules for determining how much participation a leader uses in decision making according to different types of situations Back in 1973, Victor Vroom and Phillip Yetton developed a leader-participation model that related leadership behavior and participation to decision making. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Vroom and Yetton’s model was normative. That is, it provided a sequential set of rules to be followed in determining the form and amount of participation in decision making in different types of situations. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

4. How Do Leaders Help Followers? Path-Goal Theory A leadership theory that says the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the organization’s or group’s goals Identified four leadership behaviors Directive leader, Supportive leader, Participate leader, achievement oriented leader Currently, one of the most respected approaches to understanding leadership is path-goal theory, which states that the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the goals of the group or organization. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Developed by Robert House, path-goal theory takes key elements from the expectancy theory of motivation (see Chapter 10). Employee’s performance and satisfaction to be positive influence when the leader chooses a leadership style that compensates for shortcoming in either the employee or the work setting Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

1. What Do Contemporary Views of Leadership Tell Us? Transformational-transactional leadership Charismatic-visionary leadership Team leadership Still discussing on describing to be an effective leader- leaders who inspire and support followers Transactional Leaders Leaders who lead primarily by using social exchanges (or transactions), guiding and motivating employees to work towards goal by exchanging rewards for their productivity Transformational Leaders Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes Many early leadership theories viewed leaders as transactional leaders; that is, leaders who lead primarily by using social exchanges (or transactions). Transactional leaders guide or motivate followers to work toward established goals by exchanging rewards for their productivity. But there’s another type of leader—a transformational leader—who stimulates and inspires (transforms) followers to achieve extraordinary outcomes Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

2. How Do Charismatic and Visionary Leaders Differ? Charismatic Leaders Enthusiastic, self-confident leaders whose personalities and actions influence people to behave in certain ways Visionary Leadership The ability to create and articulate a realistic, credible, and attractive vision of the future that improves on the present situation Although the term vision is often linked with charismatic leadership, visionary leadership is different since it’s the ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation. This vision, if properly selected and implemented, is so energizing that it “in effect jump-starts the future by calling forth the skills, talents, and resources to make it happen. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. A meaningful way to describe the team leader’s job is to focus on two priorities: (1) managing the team’s external boundary and (2) facilitating the team process. These priorities entail four specific leadership roles as shown in Exhibit 11-7 A meaningful way to describe the team leader’s job is to focus on two priorities: (1) managing the team’s external boundary and (2) facilitating the team process Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Why Do Leaders Need to Empower Employees? Empowerment The act of increasing the decision-making discretion ( freedom to do) of workers Those at the lower levels of the organization often have the knowledge to make quick decisions As we’ve described in different places throughout the text, managers are increasingly leading by not leading; that is, by empowering their employees. Empowerment involves increasing the decision-making discretion of workers Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall. Most leadership theories were developed in US, they have an American bias. Difference country and culture have their own perception of leadership. Because most leadership theories were developed in the United States, they have an American bias. They emphasize follower responsibilities rather than rights; assume self-gratification rather than commitment to duty or altruistic motivation; assume centrality of work and democratic value orientation; and stress rationality rather than spirituality, religion, or superstition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.

Trust is the Essence of Leadership Trust, or lack of trust, is an increasingly important issue in today’s organizations. In today’s uncertain environment, leaders need to build, or even rebuild, trust and credibility. Credibility The degree to which followers perceive someone as honest, competent, and able to inspire Trust The belief in the integrity, character, and ability of a leader Trust, or lack of trust, is an increasingly important issue in today’s organizations. In today’s uncertain environment, leaders need to build, or even rebuild, trust and credibility. Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall.