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Chapter 11

Leadership and Trust

Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

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LEARNING OUTLINE
Follow this Learning Outline as you read and study this chapter

• Managers Vs. Leaders
– Contrast leaders and managers

• Early Leadership Theories
– Discuss what research has shown about leadership traits – Contrast the findings of the four behavioural leadership theories – Explain the dual nature of a leader’s behaviour
Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

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LEARNING OUTLINE (cont’d)
Follow this Learning Outline as you read and study this chapter

• Contingency Theories of Leadership
– Explain how Fiedler’s theory of leadership is a contingency model – Contrast situational leadership theory and the leader participation model – Discuss how path-goal theory explains leadership

Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

8-3

LEARNING OUTLINE (cont’d)
Follow this Learning Outline as you read and study this chapter

• Cutting-edge Approaches to Leadership
– Differentiate between transactional and transformational leaders – Describe charismatic-visionary leadership – Discuss what team leadership involves

• Current Leadership Issues
– Describe the five sources of a leader’s power – Discuss the issues today’s leaders face
Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton, Fundamentals of Management, Fifth Canadian Edition Copyright © 2008 Pearson Education Canada

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Inc.Managers Versus Leaders “Not all leaders are managers. 11–5 Copyright © 2005 Prentice Hall. All rights reserved. • 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. .” • Managers – Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. nor are all managers leaders.

Managers Versus Leaders Managers Appointed and Have Formal Authority Leaders May Have Managerial Authority and Influence Others .

Fundamentals of Management.Exhibit 8. Mary Coulter. Stephen P.1 Distinguishing Managership from Leadership Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-7 . and Nancy Langton. Robbins.

and Nancy Langton. the desire to lead. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-8 . Stephen P. job-relevant knowledge. and extraversion Chapter 8. honesty and integrity. Fundamentals of Management. Robbins. intelligence. self-confidence.Early Leadership Theories • Trait Theories (1920s–30s) – Research that focused on identifying personal characteristics that differentiated leaders from nonleaders was unsuccessful – Later research on the leadership process identified seven traits associated with successful leadership: • Drive. Mary Coulter.

A. Mary Coulter. J. Chapter 8.A. Robbins. and T.A. Fundamentals of Management.2 Seven Traits Associated with Leadership • • • • • • • Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Extraversion Source: S. pp. Werner. Kirkpatrick and E. May 1991. Judge. 48-60. pp.Exhibit 8. Locke. Stephen P. August 2002. and M.” Journal of Applied Psychology. “Personality and Leadership: A Qualitative and Quantitative Review. Bono. 765780. Ilies. “Leadership: Do Traits Really Matter?” Academy of Management Executive. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-9 . and Nancy Langton.E. R.

Robbins. low participation • Democratic style: involvement.Behavioural Theories • University of Iowa Studies (Kurt Lewin) – Identified three leadership styles: • Autocratic style: centralized authority. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-10 . and Nancy Langton. Stephen P. high participation. Mary Coulter. feedback • Laissez-faire style: hands-off management – Research findings: mixed results • No specific style was consistently better for producing better performance • Employees were more satisfied under a democratic leader than an autocratic leader Chapter 8. Fundamentals of Management.

and Nancy Langton.Behavioural Theories (cont’d) • Ohio State Studies – Identified two dimensions of leader behaviour • Initiating structure: the role of the leader in defining his or her role and the roles of group members • Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings – Research findings: mixed results • High-high leaders generally. but not always. Robbins. Mary Coulter. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-11 . achieved high group task performance and satisfaction • Evidence indicated that situational factors appeared to strongly influence leadership effectiveness Chapter 8. Fundamentals of Management. Stephen P.

Stephen P.Behavioural Theories (cont’d) • University of Michigan Studies – Identified two dimensions of leader behaviour • Employee oriented: emphasizing personal relationships • Production oriented: emphasizing task accomplishment – Research findings: • Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction Chapter 8. Mary Coulter. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-12 . Robbins. and Nancy Langton. Fundamentals of Management.

Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . Stephen P. Robbins. and Nancy Langton. Mary Coulter.Behavioural Theories (cont’d) • Managerial Grid Appraises leadership styles using two dimensions: • Concern for people • Concern for production 8-13 Chapter 8. Fundamentals of Management.

Greiner. Fundamentals of Management. Jane S. Mary Coulter. All rights reserved. Blake. and Nancy Langton. p. Chapter 8.Exhibit 8. Mouton. An exhibit from “Breakthrough in Organization Development” by Robert R. Stephen P. Copyright © 1964 by the President and Fellows of Harvard College. Louis B. Barnes. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-14 . November– December 1964.4 The Managerial Grid Source: Reprinted by permission of Harvard Business Review. 136. Robbins. and Larry E.

Mary Coulter. Stephen P. and Nancy Langton. Fundamentals of Management.Exhibit 8. Robbins.3 Behavioural Theories of Leadership Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-15 .

Contingency Theories of Leadership • The Fiedler Model – Effective group performance depends upon the match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence – Assumptions: • Different situations require different leadership styles • Leaders do not readily change leadership styles – Matching the leader to the situation or changing the situation to make it favourable to the leader is required Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-16 . Fundamentals of Management. Stephen P. and Nancy Langton. Robbins. Mary Coulter.

Mary Coulter. Robbins. Fundamentals of Management.Contingency Theories… (cont’d) • The Fiedler Model (cont’d) – Least-preferred co-worker (LPC) questionnaire • Determines leadership style by measuring responses to 18 pairs of contrasting adjectives – High score: a relationship-oriented leadership style – Low score: a task-oriented leadership style – Situational factors in matching leader to the situation: • Leader-member relations • Task structure • Position power Chapter 8. Stephen P. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-17 . and Nancy Langton.

and Nancy Langton.Exhibit 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-18 .5 Findings of the Fiedler Model Good Task Oriented Poor Situation Favourableness: Relationship Oriented Highly Favourable Moderate VI Poor High Weak Highly Unfavourable VII Poor Low Strong Category Leader – Member Relations Task Structure Position Power I Good High Strong II Good High Weak III Good Low Strong IV Good Low Weak V Poor High Strong VIII Poor Low Weak Chapter 8. Mary Coulter. Stephen P. Fundamentals of Management. Robbins.

Robbins. Stephen P. Mary Coulter.Contingency Theories… (cont’d) • Hersey and Blanchard’s Situational Leadership Theory (SLT) – Successful leadership is achieved by selecting a leadership style that matches the level of the followers’ readiness • Acceptance: do followers accept or reject a leader? • Readiness: do followers have the ability and willingness to accomplish a specific task? – Leaders must give up control as followers become more competent Chapter 8. Fundamentals of Management. and Nancy Langton. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-19 .

Stephen P. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . Fundamentals of Management. and Nancy Langton. Mary Coulter.Contingency Theories… (cont’d) • Hersey and Blanchard’s Situational Leadership Theory (SLT) (cont’d) Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions: • • • • Telling: high task–low relationship leadership Selling: high task–high relationship leadership Participating: low task–high relationship leadership Delegating: low task–low relationship leadership 8-20 Chapter 8. Robbins.

Contingency Theories… (cont’d) • Hersey and Blanchard’s Situational Leadership Theory (SLT) (cont’d) – Identifies four stages of follower readiness: • • • • R1: followers are unable and unwilling R2: followers are unable but willing R3: followers are able but unwilling R4: followers are able and willing Chapter 8. Mary Coulter. and Nancy Langton. Robbins. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-21 . Fundamentals of Management. Stephen P.

All rights reserved. Escondido. Fundamentals of Management.Exhibit 8. Mary Coulter.6 Hersey and Blanchard’s Situational Leadership Model High relationship and low task High High task and high relationship STYLE OF LEADER S3 S4 S2 S1 High R4 Able and willing R3 Moderate R2 Unable and willing Low R1 Unable and unwilling Able and unwilling Low Task Behaviour Low relationship and low task High Follower Readiness Source: Reprinted with permission from the Center for Leadership Studies. California. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-22 . Robbins. Stephen P. Situational Leadership® is a registered trademark of the Center for Leadership Studies. High task and low relationship Chapter 8. and Nancy Langton.

Contingency Theories… (cont’d) • Leader Participation Model (Vroom and Yetton) – Leader behaviour must be adjusted to reflect the task structure – Suggests appropriate participation level in decision making Chapter 8. Fundamentals of Management. Robbins. Mary Coulter. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-23 . Stephen P. and Nancy Langton.

Stephen P. and Nancy Langton. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada .Contingency Theories… (cont’d) • Leader Participation Model Contingencies: – – – – – – – Decision significance Importance of commitment Leader expertise Likelihood of commitment Group support Group expertise Team competence 8-24 Chapter 8. Fundamentals of Management. Robbins. Mary Coulter.

and Nancy Langton. Mary Coulter.Exhibit 8.7 Path-Goal Theory Environmental Contingency Factors • Task Structure • Formal Authority System • Work Group Leader Behaviour Outcomes • Directive • Supportive • Participative • Achievement Oriented Subordinate Contingency Factors • Locus of Control • Experience • Perceived Ability Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada • Performance • Satisfaction 8-25 . Stephen P. Robbins. Fundamentals of Management.

and Nancy Langton. Fundamentals of Management. Stephen P. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . Robbins.Contingency Theories… (cont’d) • Path-Goal Model – Leader’s job is to assist his or her followers in achieving organizational goals – Leader’s style depends on the situation: • • • • Directive Supportive Participative Achievement-oriented 8-26 Chapter 8. Mary Coulter.

• Participative leader – Consults with employees and uses their suggestions before making a decision. Inc. All rights reserved.Path-Goal Leadership Behaviors • Directive leader – Lets employees know what is expected of them. . 11–27 Copyright © 2005 Prentice Hall. • Achievement-oriented leader – Sets challenging goals and expects employees to perform at their highest levels. schedules work to be done. • Supportive leader – Is friendly and shows concern for the needs of employees. and gives specific guidance as to how to accomplish tasks.

Mary Coulter.Contemporary Approaches to Leadership • Transactional Leadership – Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements • Transformational Leadership – Leaders who inspire followers to go beyond their own self-interests for the good of the organization – Leaders who have a profound and extraordinary effect on their followers Chapter 8. and Nancy Langton. Stephen P. Robbins. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-28 . Fundamentals of Management.

Robbins.Contemporary Approaches to Leadership (cont’d) • Charismatic Leadership – An enthusiastic. and Nancy Langton. Fundamentals of Management. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . Mary Coulter. Stephen P. self-confident leader whose personality and actions influence people to behave in certain ways – Characteristics of charismatic leaders: • • • • • Have a vision Are able to articulate the vision Are willing to take risks to achieve the vision Are sensitive to the environment and to follower needs Exhibit behaviours that are out of the ordinary 8-29 Chapter 8.

30 .Charismatic Leadership • Self-confidence • Vision • Ability to articulate a vision • Strong convictions • Extraordinary behaviour • Appearance as change agent • Environmental sensitivity FOM 11.

Contemporary Approaches to Leadership (cont’d) • Charismatic Leadership (cont’d) – Effects of Charismatic Leadership • Increased motivation. Mary Coulter. Fundamentals of Management. some agreement that CEOs with less vision. and more ethical and corporate responsibility. Stephen P. Robbins. greater satisfaction • More profitable companies • Charismatic leadership may have a downside: – After recent ethics scandals. and Nancy Langton. might be more desirable 8-31 Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada .

credible. Stephen P. and attractive vision of the future that improves upon the present situation – Visionary leaders have the ability to: • Explain the vision to others • Express the vision not just verbally but through behaviour • Extend or apply the vision to different leadership contexts Chapter 8. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-32 . Mary Coulter. and Nancy Langton.Contemporary Approaches to Leadership (cont’d) • Visionary Leadership – A leader who creates and articulates a realistic. Robbins. Fundamentals of Management.

Visionary Leadership Express the Vision Extend the Vision Explain the Vision FOM 11.33 .

” The key properties of a vision are inspirational possibilities that are value centered. All rights reserved.Visionary Leadership “A vision should create enthusiasm. 11–34 Copyright © 2005 Prentice Hall. and have superior imagery and articulation. . bringing energy and commitment to the organization. realizable. Inc.

and Nancy Langton.8 Specific Team Leadership Roles Coach Liaison with External Constituencies Conflict Manager Team Leader Roles Troubleshooter Chapter 8. Robbins. Stephen P. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-35 . Mary Coulter. Fundamentals of Management.Exhibit 8.

The Challenge of Team Leadership • Becoming an effective team leader requires: – – – – Learning to share information. 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 11–36 Copyright © 2005 Prentice Hall. All rights reserved. . Developing the ability to trust others. Inc. Learning to give up authority.

Current Leadership Issues • Managing Power – Legitimate power • The power a leader has as a result of his or her position – Expert power • The influence a leader can exert as a result of his or her expertise. Stephen P. Mary Coulter. Fundamentals of Management. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . or knowledge – Coercive power • The power a leader has to punish or control – Referent power • The power of a leader that arises because of a person’s desirable resources or admired personal traits 8-37 – Reward power • The power to give positive benefits or rewards Chapter 8. skills. and Nancy Langton. Robbins.

Inc. All rights reserved. • Power distance – Varies among cultures and affect participative management’s effectiveness • High power distance = autocratic leadership style • Low power distance = participative leadership style 11–38 Copyright © 2005 Prentice Hall. . • Leadership theories developed in the United States have an American bias.Other Leadership Variables • National culture – Leadership styles reflect the cultural conditions that followers have come to expect.

All rights reserved. .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 11–39 Copyright © 2005 Prentice Hall. Inc.

Inc. All rights reserved. .Substitutes for Leadership • Employee characteristics – – – – Experience Training Professional orientation Indifference toward organizational regards • Organizational characteristics – Explicit formalized goals – Rigid rules and procedures – Cohesive work groups • Job characteristics – Unambiguous – Routine – Intrinsically satisfying 11–40 Copyright © 2005 Prentice Hall.

people turn to personal relationships FOM 11.Trust as the Foundation of Leadership • Willing to be vulnerable • Ability to gain knowledge and creative thinking • In times of change and instability.41 .

competence. consistency. by a leader’s followers. loyalty. and organization commitment Chapter 8.Developing Trust • Credibility (of a Leader) – The assessment. competence. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-42 . Robbins. Fundamentals of Management. and ability of a leader • Dimensions of trust: integrity. and Nancy Langton. job satisfaction. organizational citizenship behaviours. Stephen P. character. of the leader’s honesty. and openness – Trust is related to increases in job performance. Mary Coulter. and ability to inspire • Trust – The belief of followers and others in the integrity.

predictability.43 .Trust: The Essence of Leadership • Integrity = Honesty and truthfulness • Competence = Technical and interpersonal knowledge and skills • Consistency = Reliability. and good judgment • Loyalty = Willingness to protect and save face for a person • Openness = Willingness to share ideas and information freely FOM 11.

Inc. All rights reserved. .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 11–44 Copyright © 2005 Prentice Hall.

Fifth Canadian Edition Copyright © 2008 Pearson Education Canada . Stephen P. and Nancy Langton. Fundamentals of Management. Robbins. Mary Coulter.Tips for Managers: Suggestions for Building Trust • • • • • • • • Practise openness Be fair Speak your feelings Tell the truth Show consistency Fulfill your promises Maintain confidences Demonstrate competence 8-45 Chapter 8.

Providing Moral Leadership • Addresses both the moral content of a leader’s goals and the means used to achieve those goals • Ethical leadership is more than being ethical – Includes reinforcing ethics through organizational mechanisms Chapter 8. Stephen P. and Nancy Langton. Fundamentals of Management. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-46 . Robbins. Mary Coulter.

and style for digital communications – Performance management • Defining. tone. and encouraging performance – Trust • Creating a culture where trust is expected. encouraged. and Nancy Langton. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-47 . Fundamentals of Management. Mary Coulter. facilitating. and required Chapter 8. Robbins.Providing Online Leadership • Challenges of Online Leadership – Communication • Choosing the right words. structure. Stephen P.

Mary Coulter. Fundamentals of Management.Understanding Gender Differences and Leadership • Research Findings – Males and females use different styles: • Women tend to adopt a more democratic or participative style unless in a male-dominated job • Women tend to use transformational leadership • Men tend to use transactional leadership Chapter 8. Stephen P. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada 8-48 . Robbins. and Nancy Langton.

and Nancy Langton. Chapter 8. Women Rule.Exhibit 8. Fundamentals of Management.9 Where Female Managers Do Better: A Scorecard None of the five studies set out to find gender differences. Personnel Decisions International Inc. p.. Pfaff. November 20. Mary Coulter. 2000. Source: R. Robbins. women’s and men’s scores in these categories were statistically even. Stephen P. Data: Hagberg Consulting Group. “As Leaders. They stumbled on them while compiling and analyzing performance evaluations. Sharpe. Fifth Canadian Edition Copyright © 2008 Pearson Education Canada MEN WOMEN * * * 8-49 .” BusinessWeek. Lawrence A. Skill (Each check mark denotes which group scored higher on the respective studies) Motivating Others Fostering Communication Producing High-Quality Work Strategic Planning Listening to Others Analyzing Issues * In one study. 75. Advanced Teamware Inc. Management Research Group.