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12
Leadership
and Trust

Dr. Ong Lin Dar

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 Learning Outcomes
 Define leader and leadership.
 Compare and contrast early leadership
theories.
 Describe the four major contingency
leadership theories.
 Describe modern views of leadership and
the issues facing today’s leaders.
 Discuss trust as the essence of leadership.

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 Define leader and
leadership.

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 Leaders and Leadership
Leader:
someone who can influence others and who
has managerial authority.

Leadership is what leaders do—that is,

the process of leading a group and
influencing that group to achieve its goals.

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 Compare and
contrast early
leadership
theories.

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 Leadership Traits
• Focus on leader traits.
• Described leaders based on a set of traits or
characteristics.
 Eight Traits Associated with Leadership
Trait Description
Drive Leaders exhibit a high effort level. They have a relatively high desire for
achievement, they are ambitious, they have a lot of energy, they are tirelessly
persistent in their activities, and they show initiative.
Desire to lead Leaders have a strong desire to influence and lead others. They demonstrate
the willingness to take responsibility.
Honesty and Leaders build trusting relationships with followers by being truthful or
integrity nondeceitful and by showing high consistency between word and deed.
Self- Followers look to leaders for an absence of self-doubt. Leaders, therefore, need
confidence to show self-confidence in order to convince followers of the rightness of their
goals and decisions.
Intelligence Leaders need to be intelligent enough to gather, synthesize, and interpret large
amounts of information, and they need to be able to create visions, solve
problems, and make correct decisions.
Job-relevant Effective leaders have a high degree of knowledge about the company, industry,
knowledge and technical matters. In-depth knowledge allows leaders to make well-
informed decisions and to understand the implications of those decisions.
Extraversion Leaders are energetic, lively people. They are sociable, assertive, and rarely
silent or withdrawn.
Proneness to Guilt proneness is positively related to leadership effectiveness because it
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guilt produces a strong sense of responsibility for others.
 Leadership Behaviors
• Behavioral theories: leadership theories that identify
behaviors that differentiate effective leaders from
ineffective leaders.
• Focus on what leaders do.

• University of Iowa
• Ohio State
• University of Michigan
• Managerial Grid
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Managerial Grid

Most
effective
style
 Summary of Behavioral Theories
Study Behavioral Dimension Conclusion

University Democratic style: involving subordinates, delegating authority, Democratic style of leadership
of Iowa and encouraging participation was most effective, although later
studies showed mixed results.
Autocratic style: dictating work methods, centralizing decision
making, and limiting participation

Laissez-faire style: giving group freedom to make decisions and

complete work
Ohio State Consideration: being considerate of followers’ ideas and feelings High–high leader (high in
consideration and high in
Initiating structure: structuring work and work relationships to initiating structure) achieved high
meet job goals subordinate performance and
satisfaction, but not in all
situations.
University Employee oriented: emphasized interpersonal relationships and Employee-oriented leaders were
of taking care of employees’ needs associated with high group
Michigan productivity and higher job
Production oriented: emphasized technical or task aspects of job satisfaction.
Managerial Concern for people: measured leader’s concern for subordinates Leaders performed best with a 9,9
Grid on a scale of 1 to 9 (low to high) style (high concern for
production and high concern for
Concern for production: measured leader’s concern for getting people).
job done on a scale of 1 to 9 (low to high)
 Describe the four
major contingency
leadership
theories.

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 Situational Leadership
Theories
• Theories that attempt to determine appropriate
leadership styles for particular situations.

Which leadership styles might be suitable in different

situations, and what are those different situations?
 The Fiedler Model
• Fiedler contingency model: effective group performance
depends on the proper match between a leader’s style
and the degree to which the situation allows the leader to
control and influence.

• A leader’s style is task or relationship oriented.

• Task-oriented leaders have as their main concern ensuring that
subordinates complete tasks at peak performance.
• Relationship-oriented leader is more considerate, sensitive to
the feelings of subordinates and human-oriented. This leader will
develop a good and close relationship with subordinates as a
requirement for accomplishing the task.
 The Fiedler Model
• The favorability of the situation is determined by
three important factors:

1. Leader-member relations— Is relationship between you

and followers good or poor?
2. Task structure— Is the task structured (repetitive/routine)
or unstructured (not repetitive)?
3. Position power— Do you have position power (hiring,
firing, discipline, promotions, and salary increases)?

The leader should diagnose the situation and determine

whether leader-member relations, task structure, and position
power are favorable or unfavorable.
The Fiedler Model
Task

Relationship

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 The Fiedler Model
• Fiedler concluded that task-oriented leaders
were best for extreme situations: (Situations I, II,
and III were classified as highly favorable.
Situations VII and VIII were described as highly
unfavorable for the leader).

• Situations IV, V, and VI were moderately

favorable for the leader. These situations are
best handled by relationship-oriented leaders.

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 Hersey and Blanchard’s
Situational Leadership Style
• Situational leadership theory (SLT): a
leadership contingency theory that focuses on
followers’ readiness.
• Readiness: the extent to which people have the
ability and willingness to accomplish a specific
task.

• R1: both unable and unwilling

• R2: unable but willing
• R3: able but unwilling
• R4: both able and willing
SLT
R1: both R2: unable R3: able R4: both
unable but willing but able and
and unwilling willing
unwilling
 SLT Leadership Styles
• Telling (high task–low relationship): The leader
defines roles and tells people what, how, when, and
where to do various tasks.
• Selling (high task–high relationship): The leader
provides both directive and supportive behavior.
• Participating (low task–high relationship): The
leader and followers share in decision-making; the
main role of the leader is facilitating and
communicating.
• Delegating (low task–low relationship): The
leader provides little direction or support.
 Path-Goal Model
• Path-goal theory: the leader’s job is to assist
followers in attaining their goals and to provide
direction or support needed to ensure that their
goals are compatible with the goals of the group
or organization.
 Path-Goal Theory
Four leadership behaviors:

1. A directive leader lets subordinates know what’s expected

of them, schedules work to be done, and gives specific
guidance on how to accomplish tasks.
2. A supportive leader shows concern for the needs of
followers and is friendly.
3. A participative leader consults with group members and
uses their suggestions before making a decision.
4. An achievement-oriented leader sets challenging goals
and expects followers to perform at their highest level.

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 Path-Goal Theory
Path-goal theory suggested that:
• Directive leadership worked best when tasks were
ambiguous, conflicts arose in groups, and workers had an
external locus of control.
• Supportive leadership worked best when tasks were
highly structured (routine).
• Participative leadership worked best when workers had
an internal locus of control and had the skill and experience
to provide meaningful ideas.
• Achievement-oriented leadership worked best when
employees have the skills and experience necessary to
attempt challenging goals and wanted to be challenged.
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 Describe modern
views of leadership
and the issues
facing today’s
leaders.

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 Leader-Member Exchange
(LMX) Theory
• Leader-member exchange theory (LMX): the
leadership theory that says leaders create in-
groups and out-groups and those in the in-group
will have higher performance ratings, less
turnover, and greater job satisfaction.

• Leaders also encourage LMX by rewarding

those employees with whom they want a closer
linkage and punishing those with whom they do
not.
 Transformational/
Transactional Leadership
• Transactional leaders: leaders who lead
primarily by using social exchanges (or
transactions).
• Transactional leaders guide or motivate followers to
work toward established goals by exchanging
rewards for their productivity.

• Transformational leaders: leaders who

stimulate and inspire (transform) followers to
achieve extraordinary outcomes.
 Charismatic-Visionary
Leadership
• Charismatic leader: an enthusiastic, self-
confident leader whose personality and actions
influence people to behave in certain ways.

• Visionary leadership: the ability to create and

articulate a realistic, credible, and attractive
vision of the future that improves upon the
present situation.
 Contemporary Issues:
Employee Empowerment

-- that is, by empowering their employees.

• If organizations want to successfully compete in

a dynamic global economy, employees have to
be able to make decisions and implement
changes quickly.

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 Leading Across Cultures
• Effective leaders do not use a single style. They
adjust their style to the situation.
• National culture is certainly an important
situational variable in determining which
leadership style will be most effective.
 Cross-Cultural Leadership
Examples
Korean leaders are expected to be paternalistic toward employees.
Arab leaders who show kindness or generosity without being asked to do so are seen by
other Arabs as weak.
Chinese leaders are expected to stay positive when facing attacks.
European leaders are expected to be more action oriented.
Japanese leaders are expected to be humble and speak frequently.
Latin American leaders should not feel rejected when others behave formally.
Scandinavian and Dutch leaders who single out individuals with public praise are likely to
embarrass, not energize, those individuals.
Effective leaders in Malaysia are expected to show compassion while using more of an
autocratic than a participative style.
Effective German leaders are characterized by high performance orientation, low
compassion, low self-protection, low team orientation, high autonomy, and high
participation.
Effective leaders in Sub-Saharan Africa build deep relationships and close teamwork.
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 Contemporary Issues:
Emotional Intelligence (EI)

• Recent studies indicate that EI-more than IQ,

expertise, or any other single factor-is the best
predictor of who among a group will become a
leader.
• The 5 components of emotional intelligence-self-
awareness, self-management, self-motivation,
empathy, and social skills-all contribute to
enabling an individual to become a leader.
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 Emotional Intelligence (EI)
• The more of these traits a person seems to have,
the higher he or she typically can rise as a leader.
• EI has been shown to be positively related to job
performance at all levels.
• When really top-performers, so called "star
performers" in organizations, are compared with
ordinary leaders, the difference between the two
categories seems to be almost entirely due to EI
factors.

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 Discuss trust as
the essence of
leadership.

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 Developing Trust
• Trust: the belief in the integrity, character, and
ability of a leader.
 A Final Thought
on Leadership
Leadership may not always be
important!

• Substitutes for leadership - characteristics of

the task, of subordinates, or of the organization
that replace the need for a leader.
• Example: For routine tasks with highly skilled
employees, employees don’t need supervisory
instruction.
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