Copyright ©2016 Pearson Education Limited.

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Chapter 12

Leadership and Trust

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Copyright ©2016 Pearson Education Limited.
 After studying this chapter
you should be able to:
1. Contrast leadership and management.
2. Summarize the conclusions of trait theories of leadership.
3. Identify the central tenets and main limitations of behavioral
theories.
4. Assess contingency theories of leadership by their level of
support.
5. Compare charismatic and transformational leadership.
6. Describe the roles of ethics and trust in authentic leadership.
7. Demonstrate the role mentoring plays in our understanding of
leadership.
8. Address challenges to the effectiveness of leadership.
9. Describe how organizations can find or create effective leaders.
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 What Is Leadership?
Leadership: The ability to influence a group
toward the achievement of a vision or a set of
goals
Formal or non-sanctioned
Not all leaders are managers
Not all managers are leaders
Successful organizations have strong leadership
and strong management
Leaders inspire and create vision
Managers create plans and oversee day-to-day
operations
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 Trait Theories

 Trait theories of leadership: focus on personal

qualities and characteristics
Big Five Personality Framework
 Extraversion has strongest relation to leadership
 Conscientiousness and Openness to Experience
also strongly related to leadership
 Agreeableness and Emotional Stability are not
correlated with leadership
 Emotional Intelligence is correlated with
leadership; however, this link is under-
investigated
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 Trait Theories

Two conclusions:
1. Traits can predict leadership
2. Traits do a better job predicting the
emergence of leaders and the appearance
of leadership than distinguishing
between effective and ineffective leaders

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 Behavioral Theories

 Behavioral theories of leadership: we

can determine leadership effectiveness by
leader behavior, and perhaps train people to
be leaders
 Behaviors can be taught – traits cannot
 Leaders are trained – not born

 Two key studies of leadership

 The Ohio State Studies
 The University of Michigan Studies
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 Ohio State Studies

Initiating Consideration
Structure

 Attempts to organize  Concern for followers’

work, work comfort, well-being,
relationships, and goals status, and satisfaction
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University of Michigan Studies

Production Employee
Oriented Oriented

 Emphasize the technical  Emphasize interpersonal

or task aspects of the relations and accept
job: people are means individual differences
to an end
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 Global Implications

GLOBE Leadership Project Results:

Brazil – Leaders are participative and humane
France – Leaders are bureaucratic, task
oriented, and autocratic
China - Initiating structure and consideration
important: status differences but participation
valued
 Charisma and transformational
leadership important in all
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 Contingency Theories

 Fiedler leadership model: Effective

group performance depends on the
proper match between the leader’s style
and the degree to which the situation
gives the leader control

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 Fiedler Leadership Model
 Least-Preferred Co-worker (LPC)
determines leadership style (fixed trait)
Relationship oriented
Task oriented
 Match leader’s style with degree of
situational control
Leader-member relations
Task structure
Position power
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Matching Leaders to Situations

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Other Contingency Theories

Situational leadership theory (SLT):

successful leadership depends on
selecting the right leadership style
contingent on the followers’ readiness to
accomplish a task
1. Unable and unwilling
2. Unable but willing
3. Able but unwilling
4. Able and willing
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Other Contingency Theories

Path-goal theory: it’s the leader’s job to

provide followers with information, support, or
other resources necessary to achieve goals
Directive leadership yields greater satisfaction
when tasks are ambiguous or stressful
Supportive leadership results in high
performance and satisfaction when tasks are
structured
Directive leadership is perceived as redundant by
employees with high ability or experience
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 Charismatic Leadership

 Charismatic leadership theory:

Attributions of heroic leadership abilities
when followers observe certain behaviors
 Vision and articulation
 Personal risk-taking
 Sensitivity toward followers
 Unconventional behaviors

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 Charismatic Leaders:
Born or Made?
Charisma is partially attributed to genetics
and partially to training and experience
Developing an aura of charisma:
 Be optimistic
 Be passionately enthusiastic
 Commute with body, not just words
 Draw others in – inspire others
 Tap into emotions – bring out the
potential in others
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How Charismatic Leaders
Influence Followers

Articulate an appealing vision

Communicate a new set of values
Model behaviors for those values
Express dramatic behavior

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 Charisma and
Situational Dependency
Charisma is strongly correlated to high
performance and satisfaction
Best used when
Environment is uncertain or stressful
Ideology is involved
Most closely associated with upper-level
executives
People are most receptive to charisma
when there is a crisis
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 The Potential Dark Side
of Charismatic Leadership
Some leaders:
Use organizational resources for
personal benefit
Remake companies in their own image
Allow self-interest and personal goals
to override organization’s goals

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Transformational Leadership

Transactional leaders:
Motivate their followers in the direction
of established goals by clarifying role
and task requirements

Transformational leaders:
Inspire followers to transcend their own
self-interests for the good of the
organization
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Full Range of Leadership Model

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 Evaluation Of
Transformational Leadership
 Transformational leadership:
Is effectively used in various job levels and
disparate occupations
Tends to be more effective in smaller companies
Works better when the leader directly interacts
with followers
Can be learned
Transformational leaders:
Are creative and inspire creativity
Create a “can-do” spirit
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 Global Implications

The GLOBE study found that many

elements of transformational
leadership are universal
Vision is important in any culture, but
how it is formed and communicated may
need to vary by culture

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 Transformational vs.
Transactional Leadership

Transformational leadership is more

strongly correlated with:
 Lower turnover
 Higher productivity
 Lower employee stress and burnout
 Higher employee satisfaction

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 Authentic Leadership:
Ethics and Trust
 Authentic leaders know who they
are, what they believe in and value, and
act on those values and beliefs openly
and candidly
 Create trust
 Encourage open communication
 People have faith in them

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 Ethics and Leadership
 Ethics and leadership intersect at many
junctures
 Executives set the moral tone for an organization
so they must set and adhere to high ethical
values
 Leadership is not value free, and the means by
which a leader achieves their goal must be
framed by ethics
 Socialized charismatic leadership:
leadership that conveys other-centered values by
leaders who model ethical conduct
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 Servant Leadership

 Servant Leaders: Go beyond their own self-interest

and focus on opportunities to help followers grow and
develop
 Emphasize persuasion
 Effects of servant leadership:
 Higher levels of commitment to the supervisor, self-
efficacy, and perceptions of justice
 Increased team potency and higher group performance
 Higher levels of creative performance
 Servant leadership may be more effective in certain
cultures
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 Trust

Taking Risks Information

Sharing

Trust

Effective Enhanced
Groups Productivity

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Leadership For The Future

Mentor: a senior employee who

sponsors and supports a less-experienced
employee, a protégé
 Mentoring programs benefit both mentors
and protégés
 But, informal mentoring is more effective
than formal mentoring
Benefits of mentoring are primarily
psychological
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 Challenges to the
Leadership Construct
 Attribution Theory of Leadership
 Performance outcomes are attributed to
leaders’ actions
 Appearance has more to do with leadership
than outcomes
 Substitutes and Neutralizers
 Organizational variables can neutralize the
leader’s influence or act as substitutes for
leadership
 Leader becomes irrelevant
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 Substitutes for and
Neutralizers of Leadership

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 Finding and Creating
Effective Leaders
 Selecting Leaders
 Review knowledge, skills, and abilities
needed
 Use personality tests
 Consider situation-specific experience

 Training Leaders
 Maximize leadership-training budget

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 Implications for Managers
 For maximum leadership effectiveness, ensure that your
preferences on the initiating structure and consideration
dimensions are a match for your work dynamics and
culture.
 Hire candidates who exhibit transformational leadership
qualities and who have demonstrated success in working
through others to meet a long-term vision.
 For management role, hire candidates whom you believe
are ethical and trustworthy; and train managers in your
organization’s ethical standards.
 Seek to develop trusting relationships with followers.
 Consider investing in leadership training. 12-34
 Keep in Mind…

Leaders can influence a group

toward the achievement of goals
The best leaders are ethical and
authentic in addition to being
charismatic

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 Summary
1. Contrasted leadership and management.
2. Summarized the conclusions of trait theories of leadership.
3. Identified the central tenets and main limitations of behavioral
theories.
4. Assessed contingency theories of leadership by their level of
support.
5. Compared charismatic leadership and transformational
leadership.
6. Described the roles of ethics and trust in authentic leadership.
7. Demonstrated the role mentoring plays in our understanding of
leadership.
8. Addressed challenges to the effectiveness of leadership.
9. Described how organizations can find or create effective leaders.

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