Fundamentals of Management

Sixth Edition

Robbins and DeCenzo

with contributions from Henry Moon

CHAPTER

Part IV: Leading

11
2008 Prentice Hall, Inc. All rights reserved.

Leadership and Trust

PowerPoint Presentation by Charlie Cook The University of West Alabama

LEARNING OUTCOMES After reading this chapter, you 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. 7. Describe the skills that visionary leaders exhibit.
2008 Prentice Hall, Inc. All rights reserved. 112

L E A R N I N G O U T C O M E S (contd) After reading this chapter, you will be able to:

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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EXHIBIT 111

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. 4860. 1991 by Academy of Management Executive. 2008 Prentice Hall, Inc. All rights reserved. 116

Behavioral Theories Of Leadership

Behavioral Theories of Leadership
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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Identifiable Leadership Behaviors

Autocratic Style of Leadership
Centralizes authority, dictates work methods, makes

unilateral decisions, and limits employee participation.

Democratic Style of Leadership

Involves employees in decision making, delegates

authority, encourages participation in deciding work methods and goals, and uses feedback.

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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Identifiable Leadership Behaviors (contd)

Laissez-Faire Style of Leadership
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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EXHIBIT 112

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. 2008 Prentice Hall, Inc. All rights reserved. 1110

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
The extent to which a leader has job relationships characterized by mutual trust, respect for employees ideas, and regard for their feelings

Consideration

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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 leader

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

Production oriented leader

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EXHIBIT 113

The Managerial Grid

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.

2008 Prentice Hall, Inc. All rights reserved.

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Contingency Theories Of Leadership

The Fiedler Contingency Leadership Model
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 (fixed) leadership style.

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EXHIBIT 114

The Findings of the Fiedler Model

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Contingency Theories(contd)
Path-Goal Theory (House)
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 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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EXHIBIT 115

Path-Goal Theory

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Contingency Leadership Models

Leader-Participation Model (Vroom, Yetton and Jago)
Provides 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 is a decision tree incorporating seven contingencies (whose relevance can be identified by making yes or no choices) and five alternative leader ship styles.

Assumes an adaptable leadership style.

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EXHIBIT 116

Contingency Variables in the Revised Leader-Participation Model

QR: Quality Requirement CR: LI: ST: CP: Commitment Requirement Leader Information Problem Structure Commitment Probability

GC: Goal Congruence

CO: Employee Conflict

SI: TC: Employee Information 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. 111 12. Reprinted by permission of Prentice Hall, Inc., Upper Saddle River, New Jersey. 2008 Prentice Hall, Inc. All rights reserved. 1120

Situational Leadership
Situational Leadership Theory (SLT)
Leaders should adjust their leadership styles

telling, 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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EXHIBIT 117

Hersey and Blanchards Situational Leadership Model

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. 2008 Prentice Hall, Inc. All rights reserved.

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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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EXHIBIT 118

Key Characteristics of Charismatic Leaders

1. Self-confidence

2. Vision
3. Ability to articulate the vision 4. Strong convictions about the vision 5. Behavior that is out of the ordinary 6. Appearance as a change agent 7. 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. 2008 Prentice Hall, Inc. All rights reserved. 1125

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
Is 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
Guide or motivate their followers toward established

goals by clarifying role and task requirements.

Transformational Leaders
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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EXHIBIT 119

Team Leader Roles

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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 affects

participative managements effectiveness

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

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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

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Substitutes for Leadership

Employee Characteristics
Experience Training Professional orientation Indifference toward

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

organizational regards

Job Characteristics
Unambiguous Routine Intrinsically satisfying

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EXHIBIT 1110

Five Dimensions of Trust

1. Integrity 2. Competence 3. Consistency 4. Loyalty 5. Openness

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. 2008 Prentice Hall, Inc. All rights reserved. 1134

Building Trust: The Essence of Leadership

Types of Trust

Deterrence-based Trust

Knowledgebased Trust

Identificationbased Trust

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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.

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