Leadership and Trust Chapter 11

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1 Copyright 2005 Prentice Hall, Inc. All rights reserved. PowerPoint Presentation by Charlie Cook The University of West Alabama PART IV: Leading Leadership and Trust Chapter 11 11

2 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. 11 2

3 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. 11 3

4 Chapter Opening The selection process for the replacement of Jack Welch, CEO of General Electric, took 6 years, 5 months, and 2 days. That process was lengthy, beginning in 1994 when Jack Welch was approaching his 59th birthday. The goal of the process was to groom someone to step into Welch s shoes with out impacting GE s earnings and growth of at least 10 percent per year. Copyright 2005 Prentice Hall, Inc. All rights reserved. 11 4

5 Welch and the Board each made lists of possible candidates assessed them according to the individuals talents and the gaps that they had. Welch was a firm believer talent could be grown and nurtured in an environment where people were given opportunities to excel. Over the next few years, the potential replacements were given coaching and were evaluated on how well they developed themselves, reached their goals, and demonstrated leadership. Each individual also had interactions with Board members aimed at getting the informal feel of working with each individual. Each December, the Chief of HR, and Jack Welch both provide their personal assessment of each candidate. Copyright 2005 Prentice Hall, Inc. All rights reserved. 11 5

6 Three individuals were chosen as finalists and given their own major divisions to head at GE. On Sept. 9, 2001, it was announced that Jeff Immelt had won the GE CEO Sweepstakes. September 11th happened, and Immelt was faced with the loss of two employees, $600 million in insurance losses, an anthrax attack at GE s NBC studios, and an aircraft engine operations slowdown. But Immelt was successful, demonstrating that all of his training had paid off. Interestingly, the other two finalists were soon offered CEO positions in other companies McNerney of the 3M Company and Nardelli of Home Depot. Copyright 2005 Prentice Hall, Inc. All rights reserved. 11 6

7 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. 11 7

8 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. Copyright 2005 Prentice Hall, Inc. All rights reserved. 11 8

9 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, pp by Academy of Management Executive. Exhibit 11.1 Copyright 2005 Prentice Hall, Inc. All rights reserved. 11 9

10 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

11 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 what s decided. Copyright 2005 Prentice Hall, Inc. All rights reserved

12 Leadership Behaviors or Styles (cont d) 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

13 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 Copyright 1973 by the President and Fellows of Harvard College; all rights reserved. Exhibit 11.2 Copyright 2005 Prentice Hall, Inc. All rights reserved

14 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 Copyright 2005 Prentice Hall, Inc. All rights reserved

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

16 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 November December 1964, p Exhibit 11.3 Copyright 1964 by the President and Fellows of Harvard College; all rights reserved. Copyright 2005 Prentice Hall, Inc. All rights reserved

17 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 leader s task or relationship orientation. Identified three situational criteria leader member relations, task structure, and position power that could be manipulated match an inflexible leadership style. Copyright 2005 Prentice Hall, Inc. All rights reserved

18 The Findings of the Fiedler Model Exhibit 11.4 Copyright 2005 Prentice Hall, Inc. All rights reserved

19 Contingency Theories (cont d) 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

20 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

21 Path-Goal Theory Exhibit 11.5 Copyright 2005 Prentice Hall, Inc. All rights reserved

22 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

23 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 Source: V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Upper Saddle River, NJ: Prentice Hall, 1988), pp Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. Exhibit 11.6 Copyright 2005 Prentice Hall, Inc. All rights reserved

24 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: Leader effectiveness reflects the reality that it is the followers who accept or reject the leader. Readiness: a follower s 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

25 Hersey and Blanchard s 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

26 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

27 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

28 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 Copyright 2005 Prentice Hall, Inc. All rights reserved

29 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

30 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 leader s 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

31 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

32 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

33 Team Leader Roles Exhibit 11.9 Copyright 2005 Prentice Hall, Inc. All rights reserved

34 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

35 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

36 Other Leadership Variables (cont d) 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

37 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 Copyright 2005 Prentice Hall, Inc. All rights reserved

38 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 Copyright 2005 Prentice Hall, Inc. All rights reserved

39 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

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