PART IV: Leading

Leadership and Trust Chapter 11

11

Copyright 2005 Prentice Hall, Inc. All rights reserved.

PowerPoint Presentation by Charlie Cook The University of West Alabama

Learning Outcomes
After reading this chapter, I will be able to:
1. Define leader and explain the difference between managers and leaders. 2. Summarize the conclusions of trait theories of leadership. 3. Describe the Fiedler contingency model. 4. Summarize the path goal model of leadership. 5. Explain situational leadership. 6. Identify the qualities that characterize charismatic leaders.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 112

Learning Outcomes
After reading this chapter, I will be able to:
7. Describe the skills that visionary leaders exhibit. 8. Explain the four specific roles of effective team leaders. 9. Identify the five dimensions of trust.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

113

Managers Versus Leaders

Not all leaders are managers, nor are all managers leaders. Managers
 Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish.

Leaders
 Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons formal (position) authority alone.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 114

Trait Theories Of Leadership

Trait theories of leadership
 Theories that attempt to isolate characteristics that differentiate leaders from nonleaders
 Attempts

to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. to identify traits consistently associated with leadership have been more successful.

 Attempts

Copyright 2005 Prentice Hall, Inc. All rights reserved.

115

Six Traits That Differentiate Leaders from Nonleaders

1. 2. 3. 4. 5. 6. Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge

Source: Reprinted from Leadership: Do Traits Really Matter? by S. A. Kirkpatrick and E. A. Locke by permission of Academy of Management Executive. May 1991, pp. 4860. 1991 by Academy of Management Executive.

Exhibit 11.1
116

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Behavioral Theories Of Leadership

Behavioral theories of leadership
 Theories that attempt to isolate behaviors that differentiate effective leaders from ineffective leaders  Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

117

Leadership Behaviors or Styles

Autocratic style of leadership
 A leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation.

Democratic style of leadership

 A leader who involves employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees.


A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision him or herself. A democratic-participative leader often allows employees to have a say in whats decided.
118

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Leadership Behaviors or Styles (contd)

Laissez-faire style of leadership
 A leader who gives employees complete freedom to make decisions and to decide on work methods

Conclusions about leadership styles

 The laissez-faire leadership style is ineffective.  Quantity of work is equal under authoritarian and democratic leadership styles  Quality of work and satisfaction is higher under democratic leadership.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

119

Continuum of Leader Behavior

Source: Adapted and reprinted by permission of the Harvard Business Review. An exhibit from How to Choose a Leadership Pattern by R. Tannenbaum and W. Schmidt, MayJune 1973. Copyright 1973 by the President and Fellows of Harvard College; all rights reserved.

Exhibit 11.2
1110

Copyright 2005 Prentice Hall, Inc. All rights reserved.

The Ohio State Studies

Studies that sought to identify independent dimensions of leader behavior
 Initiating structure
 The

extent to which a leader defines and structures his or her role and the roles of employees to attain goals extent to which a leader has job relationships characterized by mutual trust, respect for employees ideas, and regard for their feelings

 Consideration
 The

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1111

The University Of Michigan Studies

Studies that sought to identify the behavioral characteristics of leaders related to performance effectiveness
 Employee oriented
A

leader who emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences. leader who emphasizes technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals.
1112

 Production oriented
A

Copyright 2005 Prentice Hall, Inc. All rights reserved.

The Managerial Grid

A two-dimensional view of leadership style that is based on concern for people versus concern for production

Source: Adapted and reprinted by permission of the Harvard Business Review. An exhibition from Breakthrough in Organization Development by R. R. Blake, J. A. Mouton, L. B. Barnes, and L. E. Greine NovemberDecember 1964, p. 136. Copyright 1964 by the President and Fellows of Harvard College; all rights reserved.

Exhibit 11.3
1113

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Contingency Theories Of Leadership

Fiedler contingency leadership model
 The theory that effective group performance depends on the proper match between the leader s style of interacting with employees and the degree to which the situation gives control and influence to the leader
 Uses

Least-preferred co-worker (LPC) questionnaire, to measure the leaders task or relationship orientation. three situational criterialeader member relations, task structure, and position powerthat could be manipulated match an inflexible leadership style.

 Identified

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1114

The Findings of the Fiedler Model

Exhibit 11.4
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1115

Contingency Theories(contd)
Path-goal theory
 The theory that it is a leader s job to assist followers in attaining their goals and to provide the necessary direction and support  A leader s motivational behavior:
 Makes

employee need satisfaction contingent on effective performance.  Provides the coaching, guidance, support, and rewards that are necessary for effective performance.

 Assumes that the leader s style is flexible and can be changed to adapt to the situation at hand.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1116

Path-Goal Leadership Behaviors

Directive leader
 Lets employees know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks.

Supportive leader
 Is friendly and shows concern for the needs of employees.

Participative leader
 Consults with employees and uses their suggestions before making a decision.

Achievement-oriented leader
 Sets challenging goals and expects employees to perform at their highest levels.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1117

Path-Goal Theory

Exhibit 11.5
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1118

Other Contingency Leadership Models

Leader-participation model (Vroom, Yetton and Jago)
 Provided a sequential set of rules for determining the form and amount of participation a leader should exercise in decision making according to different types of situations.
 The

model was a decision tree incorporating seven contingencies (whose relevance could be identified by making yes or no choices) and five alternative leader ship styles.

 Assumed an adaptable leadership style.

Copyright 2005 Prentice Hall, Inc. All rights reserved. 1119

Contingency Variables in the Revised Leader-Participation Model

QR: Quality Requirement CR: Commitment Requirement LI: Leader Information ST: Problem Structure CP: Commitment Probability GC: Goal Congruence
Source: V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Upper Saddle River, NJ: Prentice Hall, 1988), pp. 11112. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey.

CO: Employee Conflict SI: Employee Information TC: Time Constraint GD: Geographical Dispersion MT: Motivation Time MD: MotivationDevelopment
Exhibit 11.6
1120

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Situational Leadership
Situational leadership theory (SLT)
 Leaders should adjust their leadership styles telling, selling, participating, and delegating in accordance with the readiness of their followers.
 Acceptance:  Readiness:

Leader effectiveness reflects the reality that it is the followers who accept or reject the leader. a followers ability and willingness to perform.

 At

higher levels of readiness, leaders respond by reducing control over and involvement with employees.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1121

Hersey and Blanchards Situational Leadership Model

Exhibit 11.7
Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership is a registered trademark of the Center for Leadership Studies, Escondido, California. All rights reserved.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1122

Emerging Approaches To Leadership

Charismatic leadership theory
 Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors
 People

working for charismatic leaders are motivated to exert extra work effort and, because they like and respect their leaders, express greater satisfaction.

 Charisma leadership appears to be most appropriate when the followers task has a ideological component or when the environment involves a high degree of stress and uncertainty.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1123

Charismatic Leadership
A charismatic leader influences followers by:
 Stating a vision that provides a sense of community by linking the present with a better future.  Communicating high expectations and expressing confidence that followers can attain them.  Conveying, through words and actions, a new set of values, and by his or her behavior setting an example for followers to imitate.  Making self-sacrifices and engaging in unconventional behavior to demonstrate courage and convictions about the vision.
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1124

Key Characteristics of Charismatic Leaders

Self-confidence Vision Ability to articulate the vision Strong convictions Behavior that is out of the ordinary Appearance Environmental sensitivity
Source: Based on J. A. Conger and R. N. Kanungo, Behavioral Dimensions of Charismatic Leadership, in J. A. Conger and R. N. Kanungo, Charismatic Leadership (San Francisco: Jossey-Bass, 1988), p. 91.

Exhibit 11.8
1125

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Visionary Leadership
A vision should create enthusiasm, bringing energy and commitment to the organization.
 The key properties of a vision are inspirational possibilities that are value centered, realizable, and have superior imagery and articulation.

Visionary leadership
 The ability to create and articulate a realistic, credible, attractive vision of the future that grows out of and improves upon the present

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1126

Skills of Visionary Leaders

The ability to explain the vision to others.
 Make the vision clear in terms of required actions and aims through clear oral and written communication.

The ability to express the vision not just verbally but through the leaders behavior.
 Behaving in ways that continually convey and reinforce the vision.

The ability to extend the vision to different leadership contexts.

 Sequencing activities so the vision can be applied in a variety of situations
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1127

Transactional Leaders versus Transformational Leaders

Transactional leaders
 Leaders who guide or motivate their followers toward established goals by clarifying role and task requirements.

Transformational leaders
 Leaders who inspire followers to transcend their own self-interests for the good of the organization and are capable of having a profound and extraordinary effect on followers.

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1128

The Challenge of Team Leadership

Becoming an effective team leader requires:
 Learning to share information.  Developing the ability to trust others.  Learning to give up authority.  Knowing when to leave their teams alone and when to intercede.

New roles that team leaders take on

 Managing the team s external boundary  Facilitating the team process

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1129

Team Leader Roles

Exhibit 11.9
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1130

Other Leadership Variables

National culture
 Leadership styles reflect the cultural conditions that followers have come to expect.
 Leadership

theories developed in the United States have an American bias.

 Power distance varies among cultures and affect participative management s effectiveness
 High

power distance = autocratic leadership style  Low power distance = participative leadership style

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1131

Other Leadership Variables

National culture
 Leadership styles reflect the cultural conditions that followers have come to expect.
 Leadership

theories developed in the United States have an American bias.

Power distance
 Varies among cultures and affect participative management s effectiveness
 High

power distance = autocratic leadership style  Low power distance = participative leadership style

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1132

Other Leadership Variables (contd)

Emotional Intelligence (EI)
 Considered to be the trait difference that makes an individual into a star performer  Is an essential element of effective leadership

Components of EI
 Self-awareness  Self-management  Self-motivation  Empathy  Social skills
Copyright 2005 Prentice Hall, Inc. All rights reserved. 1133

Substitutes for Leadership

Employee characteristics
    Experience Training Professional orientation Indifference toward organizational regards

Organizational characteristics
 Explicit formalized goals  Rigid rules and procedures  Cohesive work groups

Job characteristics
 Unambiguous  Routine  Intrinsically satisfying

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1134

Five Dimensions of Trust

Integrity
 Honesty and truthfulness

Competence
 Technical and interpersonal knowledge and skills

Consistency
 Reliability, predictability, and good judgment

Loyalty
 Willingness to protect and save face for a person

Openness
 Willingness to share ideas and information freely
Source: Adapted and reproduced with permission of publisher from J. K. Butler Jr. and R. S. Cantrell, A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates.

Exhibit 11.10
1135

Copyright 2005 Prentice Hall, Inc. All rights reserved.

Types Of Trust
Deterrence-based trust
 Trust based on fear of reprisal if the trust is violated

Knowledge-based trust
 Trust based on the behavioral predictability that comes from a history of interaction

Identification-based trust
 Trust based on an emotional connection between the parties

Copyright 2005 Prentice Hall, Inc. All rights reserved.

1136