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© 2008 The McGraw-Hill Companies, Inc. All rights reserved
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ChapterChapterChapterChapter
McGraw-Hill/Irwin
Leading Leading and and TrustTrust
88
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The Effect of LeadershipThe Effect of Leadership
Leadership – process of influencing employees to work toward the achievement of objectivesLeader’s style affects the leader’s behavior
Leadership and management are not the sameInfluencing employees is not the task of the
manager aloneLeadership is one of the five management
functions
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Leadership TheoriesLeadership Theories
LeadershipTrait
Theory
LeadershipTrait
Theory
BehavioralLeadership
Theories
BehavioralLeadership
Theories
ContingencyLeadership
Theories
ContingencyLeadership
Theories
Basic Leadership Styles
Two-Dimensional Leadership Styles
Leadership Grid
Transformational Leadership
Contingency Leadership Theory
Leadership Continuum
Normative Leadership Theory
Situational Leadership
Situational Supervision
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Leadership Trait TheoryLeadership 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 studyIdentified six traits as being significant traits for
effective leadership
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The Ghiselli Study: Leadership TraitsThe Ghiselli Study: Leadership Traits(1 of 2)(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
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The Ghiselli Study: Leadership TraitsThe Ghiselli Study: Leadership Traits(2 of 2)(2 of 2)
Decisiveness.The ability to sole problems and make decisions
competentlySelf-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
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Behavioral Leadership TheoriesBehavioral Leadership Theories
Assume that there are distinctive styles that effective leaders use consistently,
orThat good leadership is
a rooted behavior
Principal TheoriesBasic Leadership StylesTwo-Dimensional
Leadership StylesThe Leadership GridTransformational
Leadership
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Basic Leadership StylesBasic Leadership Styles
AutocraticThe leader makes the decisions and closely
supervises employeesDemocratic
The leader allows participation in decisions and does not closely supervise employees
Laissez-FaireThe leader takes a leave-the-employees-alone
approach
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Two-Dimensional Leadership StylesTwo-Dimensional Leadership Styles
Ohio State University StudiesInitiating 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 StudiesJob centered – same as
initiating structureConcern for production
Employee centered – same as considerationConcern for people
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High Considerationand
Low Structure
High Structureand
High Consideration
Low Considerationand
Low Structure
High Structureand
Low Consideration
Two-Dimensional Leadership ModelsTwo-Dimensional Leadership Models
Low
Low
High
High
Initiating Structure
Con
side
ratio
n
3 2
14
Job-Centered Employee-CenteredUniversity of
Michigan
Ohio State University
Exhibit 8.1
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The Leadership Grid ® The Leadership Grid ® (1 of 2)(1 of 2)
Blake and Mouton’s model identifying the ideal leadership style as having a high concern for both production and people
Based on two leadership dimensions:Concern for productionConcern for people
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The Leadership Grid ® The Leadership Grid ® (2 of 2)(2 of 2)
1
1
9
9Low High
High
Concern for Production
Con
cern
for P
eopl
e
(1,1) Impoverished Manager Sweatshop Manager (9,1)
(1,9) Country Club Manager Team Manager (9,9)
(5,5) Organized-Person Manager
Exhibit 8.2
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Transformational Leadership Transformational Leadership (1 of 2)(1 of 2)
Focus is on top-level managers, primarily chief executive officers of large organizations
Transformational leadership is about:ChangeInnovationEntrepreneurship
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Transformational Leadership Transformational Leadership (2 of 2)(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
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Charismatic Leadership
Transactional Leadership
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Contingency Leadership TheoriesContingency Leadership Theories
Assume that the appropriate leadership style varies from situation to situation
Principal TheoriesContingency
Leadership TheoryLeadership ContinuumNormative Leadership
TheorySituational Leadership
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Contingency Leadership TheoryContingency Leadership Theory(1 of 2)(1 of 2)
Developed by Fred FiedlerModel is used to determine:
if one’s leadership style is task or relationship oriented, and
if the situation matches the leader’s styleIf there is no match, Fiedler recommends
change the situation, rather than leadership style
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Contingency Leadership TheoryContingency Leadership Theory(2 of 2)(2 of 2)
Leadership StyleDetermined by completing
the Least Preferred Coworker (LPC) scales
Determines if one’s leadership style is:task oriented
orrelationship oriented
Situational FavorablenessThe degree to which a
situation enables the leader to exert influence over the followers
Key variables1. Leader-member relations2. Task structure3. Position power
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Leadership ContinuumLeadership 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 ManagerThe SubordinatesThe Situation
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Continuum of Leadership BehaviorContinuum of Leadership Behavior
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
Autocratic Style
Participative Style
1 2 3 4 5 6 7Exhibit 8.4
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Normative Leadership TheoryNormative Leadership Theory
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
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Situational LeadershipSituational Leadership(1 of 2)(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
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Situational LeadershipSituational Leadership(2 of 2)(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
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Situational SupervisionSituational Supervision (1 of 3) (1 of 3)
Adapted from the Situational Leadership model of Hersey and Blanchard
Involves:Determining a preferred supervisory styleDefining the situationDetermining employee capability
The effective supervisor adapts his or her style to meet the capabilities of the individual or group
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Situational Supervision Situational Supervision (2 of 3)(2 of 3)
Supervisor-Employee Interactions
Directive behaviorThe supervisor focuses on
directing and controlling behavior to ensure the task gets done
Supportive behaviorThe supervisor focuses on
encouraging and motivating behavior
Employee CapabilityAbility
Do employees have the education, experience, skills, etc., to do the task without direction from the supervisor?
MotivationDo the employees want to do
the task?
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Situational Supervision Situational Supervision (3 of 3)(3 of 3)
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 motivatedHigh (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
behaviorParticipative (S-P)
Low-directive / high-supportive behavior
Laissez-Faire (S-L) Low-directive / low-supportive
behavior
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Situational Supervision ModelSituational Supervision Model
Exhibit 8.6
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Substitutes for Leadership Substitutes for Leadership (1 of 2)(1 of 2)
I. Characteristics of Subordinates
Ability, knowledge, experience, training
Need for independenceProfessional orientationIndifference toward
organizational rewards
II. Characteristics of Task
Clarity and routineInvariant methodologyProvision of own feedback
concerning accomplishmentIntrinsic satisfaction
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Substitutes for Leadership Substitutes for Leadership (2 of 2)(2 of 2)
III. Characteristics of the OrganizationFormalization (explicit plan, goals, and areas of
responsibility)Inflexibility (rigid, unbending rules and procedures)Highly specified and active advisory and staff functionsClosely knit, cohesive work groupsOrganizational rewards not within the leader’s controlSpatial distance between superior and subordinate
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Diversity of Global Leadership Diversity of Global Leadership (1 of 3)(1 of 3)
Most leadership theories were developed in the United StatesThus, they have an American bias
Key assumptions of American-based theories:Employee responsibility, rather than employee rightsSelf-gratification, rather than employee commitment to duty
or altruistic motivationDemocratic values rather than autocratic valuesRationality, rather than spirituality, religion, or superstition
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Diversity of Global Leadership Diversity of Global Leadership (2 of 3)(2 of 3)
In the 1970s, Japan’s productivity rate was increasing faster than that of the United StatesSeven major differences between the two countries were
identified. The Japanese:have a longer length of employmentuse more collective decision makinguse more collective responsibilityevaluate and promote employees more slowlyuse more implicit mechanisms of controlhave more unspecialized career pathshave a more holistic concern for employees
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Diversity of Global Leadership Diversity of Global Leadership (3 of 3)(3 of 3)
American-based theories may not be as effective in cultures based on different assumptionsAutocratic leadership styles tend to be
appropriate in high-context culturese.g., Arab, Far Eastern, and Latin countries
Participative leadership styles tend to be appropriate in low-context culturese.g., U.S., Norway, Finland, and Sweden
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TrustTrust
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
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Dimensions of Trust Dimensions of Trust (1 of 4)(1 of 4)
CompetencyCompetency
Loyalty
OpennessOpenness
ConsistencyConsistency
IntegrityIntegrity
Exhibit 8.8
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Dimensions of Trust Dimensions of Trust (2 of 4)(2 of 4)
Tips to Develop Your Integrity
Tell the truth
Keep your commitments
Be fair
Tips to Develop Your Competence
Be conscientiousKnow your strengths and
limitations
Don’t brag
Admit your mistakes
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Dimensions of Trust Dimensions of Trust (3 of 4)(3 of 4)
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
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Dimensions of Trust Dimensions of Trust (4 of 4)(4 of 4)
Tips to Develop Your Openness
Self-disclose
Accept others’ self-disclosure
Accept diversity and conflict
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The Johari WindowThe Johari Window
Known to Others
HIDDEN UNKNOWN
OPEN BLIND
Unknown to Others
Known to Self Unknown to Self
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Risk and Destroying TrustRisk and Destroying Trust
Developing trust through self-disclosure does include the risk of: being hurtdisappointedtaken advantage of
The rewards of improved human relations and personal friendship are worth the risk
Recommended