Part 4: Leading

Chapter 11

Leadership
and Trust

PowerPoint Presentation by Charlie Cook

Copyright 2004 Prentice Hall, Inc.
All rights reserved.
 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.

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 L E A R N I N G O U T C O M E S (contd)
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.

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 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.
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 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.
Attempts to identify traits consistently associated with
leadership have been more successful.

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 Six Traits That Differentiate Leaders from
Nonleaders

1. Drive
2. Desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. 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, EXHIBIT 11.1
pp.4860. 1991 by Academy of Management Executive.
Copyright 2004 Prentice Hall, Inc. All rights reserved. 116
 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.

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 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.

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 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.

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 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, May-June 1973. Copyright 1973 by the EXHIBIT 11.2
President and Fellows and Harvard College; all rights reserved.
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 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
Consideration
The extent to which a leader has job relationships
characterized by mutual trust, respect for employees
ideas, and regard for their feelings

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 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.
Production oriented
A 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.
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 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. Greiner November-
December 1964, p.136. Copyright 1964 by
the President and Fellows of Harvard College; EXHIBIT 11.3
all rights reserved.
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 Contingency Theories Of Leadership
Fiedler contingency leadership model
The theory that effective group performance depends
on the proper match between the leaders 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.
Identified three situational criterialeader member
relations, task structure, and position powerthat
could be manipulated match an inflexible leadership
style.

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 The Findings of the Fiedler Model

EXHIBIT 11.4
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 Path-Goal Theory
Path-goal theory
The theory that it is a leaders job to assist followers
in attaining their goals and to provide the necessary
direction and support
A leaders 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 leaders style is flexible and can be
changed to adapt to the situation at hand.

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 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.

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 Path-Goal Theory

EXHIBIT 11.5
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 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.

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 Contingency Variables in the Revised Leader-
Participation Model
QR: Quality Requirement CO: Employee Conflict
CR: Commitment SI: Employee Information
Requirement TC: Time Constraint
LI: Leader Information GD: Geographical
ST: Problem Structure Dispersion
CP: Commitment MT: Motivation Time
Probability MD: Motivation-
GC: Goal Congruence Development

EXHIBIT 11.6
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 Situational Leadership
Situational leadership theory (SLT)
Leaders should adjust their leadership stylestelling,
selling, participating, and delegatingin accordance
with the readiness of their followers.
Acceptance: Leader effectiveness reflects the reality
that it is the followers who accept or reject the leader.
Readiness: a followers ability and willingness to
perform.
At higher levels of readiness, leaders respond by
reducing control over and involvement with employees.

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 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 2004 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.

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 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.
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 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, EXHIBIT 11.8
in J. A Conger and R. N. Kanungo, Charismatic Leadership (San Francisco; Jossey-bass, 1988), p.91.
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 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

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 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
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 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.

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 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 teams external boundary
Facilitating the team process

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 Team Leader Roles

EXHIBIT 11.9
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 Substitutes for Leadership
Employee Organizational
characteristics characteristics
Experience Explicit formalized goals
Training Rigid rules and
Professional orientation procedures
Indifference toward Cohesive work groups
organizational regards
Job
characteristics
Unambiguous
Routine
Intrinsically satisfying

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 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, EXHIBIT 11.10
A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates.
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 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

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