Slide 1 Part 4: Leading 1 Chapter 11 Leadership and Trust Slide 2 Management-leadership Dr. Mike Wu 20082 Outlines Managers vs. leaders. Trait theories of leadership. Behavior theories of leadership Contingency Theories of leadership Fiedler contingency model. path-goal model Situational Leadership. Emerging approaches to leadership Charismatic Leader Visionary leaders Trust Slide 3 Management-leadership Dr. Mike Wu 20083 Managers Versus Leaders vs. 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. Not all leaders are managers, nor are all managers leaders. Slide 4 Management-leadership Dr. Mike Wu 20084 10mins Slide 5 Management-leadership Dr. Mike Wu 20085 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. Slide 6 Management-leadership Dr. Mike Wu 20086 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 EXHIBIT 11.1 Slide 7 Management-leadership Dr. Mike Wu 20087 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. Slide 8 Management-leadership Dr. Mike Wu 20088 Leadership Behaviors or Styles Autocratic style of leadership A leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. Laissez-faire style of leadership A leader who gives employees complete freedom to make decisions and to decide on work methods Slide 9 Management-leadership Dr. Mike Wu 20089 Leadership Behaviors or Styles (contd) 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. Slide 10 Management-leadership Dr. Mike Wu 200810 Continuum of Leader Behavior EXHIBIT 11.2 Democratic Participative Slide 11 Management-leadership Dr. Mike Wu 200811 Slide 12 Management-leadership Dr. Mike Wu 200812 Leadership Behaviors or Styles (contd) 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. Slide 13 Management-leadership Dr. Mike Wu 200813 (Iowa) (Ohio) (Michigan) (Managerial Grid) Slide 14 Management-leadership Dr. Mike Wu 200814 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 Slide 15 Management-leadership Dr. Mike Wu 200815 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. Slide 16 Management-leadership Dr. Mike Wu 200816 The Managerial Grid A two-dimensional view of leadership style that is based on concern for people versus concern for production Slide 17 Management-leadership Dr. Mike Wu 200817 11-3 Slide 18 Management-leadership Dr. Mike Wu 200818 Contingency Theories Of Leadership Fiedler contingency leadership model Path-Goal Theory - Leader-participation model - Hersey-Blanchard Situational Leadership Slide 19 Management-leadership Dr. Mike Wu 200819 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 power( )that could be manipulated match an inflexible leadership style. Slide 20 Management-leadership Dr. Mike Wu 200820 The Findings of the Fiedler Model Slide 21 Management-leadership Dr. Mike Wu 200821 Slide 22 Management-leadership Dr. Mike Wu 200822 Path-Goal Theory - 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. Slide 23 Management-leadership Dr. Mike Wu 200823 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. Slide 24 Management-leadership Dr. Mike Wu 200824 Path-Goal Theory Slide 25 Management-leadership Dr. Mike Wu 200825 Slide 26 Management-leadership Dr. Mike Wu 200826 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. Slide 27 Management-leadership Dr. Mike Wu 200827 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 CO: Employee Conflict SI: Employee Information TC: Time Constraint GD: Geographical Dispersion MT: Motivation Time MD: Motivation- Development EXHIBIT 11.6 Slide 28 Management-leadership Dr. Mike Wu 200828 Situational Leadership Leaders should adjust their leadership stylestelling , selling , participating , and delegating in 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. Slide 29 Management-leadership Dr. Mike Wu 200829 Situational Leadership Slide 30 Management-leadership Dr. Mike Wu 200830 S2 s1 Slide 31 Management-leadership Dr. Mike Wu 200831 Slide 32 Management-leadership Dr. Mike Wu 200832 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. Slide 33 Management-leadership Dr. Mike Wu 200833 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. Slide 34 Management-leadership Dr. Mike Wu 200834 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 EXHIBIT 11.8 Slide 35 Management-leadership Dr. Mike Wu 200835 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 Slide 36 Management-leadership Dr. Mike Wu 200836 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 Slide 37 Management-leadership Dr. Mike Wu 200837 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. Slide 38 Management-leadership Dr. Mike Wu 200838 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 Slide 39 Management-leadership Dr. Mike Wu 200839 Team Leader Roles EXHIBIT 11.9 Slide 40 Management-leadership Dr. Mike Wu 200840 Substitutes for Leadership Employee characteristics Experience Training Professional orientation Indifference toward organizational regards Job characteristics Unambiguous Routine Intrinsically satisfying Organizational characteristics Explicit formalized goals Rigid rules and procedures Cohesive work groups Slide 41 Management-leadership Dr. Mike Wu 200841 Trustthe Essence of Leadership 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 Slide 42 Management-leadership Dr. Mike Wu 200842 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 Slide 43 Management-leadership Dr. Mike Wu 200843 Steps in Building Trust 1.Practice openness. 2.Be fair. 3.Speak your feelings. 4.Tell the truth. 5.Be consistent. 6.Fulfill your promises. 7.Maintain confidences. 8.Demonstrate confidence.