Leadership and Trust: (The LEADING Function of Management)

12 Chapter
Leadership
and Trust
( The LEADING function of Management )
12-1
Lahore School of Aviation UOL
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.
12-2
12.1
Define leader and
leadership.
12-3
Leaders and Leadership
Leader:
Someone who can influence others and who has
managerial authority.
Leadership:
The process of leading a group and influencing
that group to achieve its goals.
12-4
12.2 Compare and
contrast early
leadership
theories.
12-5
Trait Theories of Leadership
12-6
What Traits Do Leaders Have?
12-7
Behavioral Theories of Leadership
12-8
University of Iowa & Ohio State Studies
12-9
Michigan University Study & Managerial Grid
12-10
Situational Leadership
Which leadership styles might be suitable in

different situations, and what are those
different situations?
12-11
12.3 Describe the major
contingency
leadership
theories.
12-12
Situational Leadership Theory
The Situational Leadership Theory (SLT) is a

contingency theory that focuses on followers’
readiness.
Readiness, as defined by Hersey and
Blanchard, refers to the extent to which
people have the ability and willingness to
accomplish a specific task.
12-13
Leader-Participation Model
In 1973, Victor Vroom and Phillip Yetton developed

a leader-participation model that related
leadership behavior and participation to decision
making.
Recognizing that task structures have varying

demands for routine and nonroutine activities,
these researchers argued that leader behavior must
adjust to reflect the task structure.
12-14
Path-Goal Theory
Robert House identified 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.
12-15
12.4 Describe modern
views of leadership
and the issues
facing today’s
leaders.
12-16
Leader-Member Exchange Theory
A 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.
12-17
Transactional vs. Transformational
Leaders
Transactional Leaders: Transformational

Leaders who lead Leaders
primarily by using social leaders who stimulate
exchanges (or and inspire (transform)
transactions). followers to achieve
extraordinary outcomes.
12-18
Charismatic vs. Visionary Leaders
12-19
Charismatic vs. Visionary Leaders
Charismatic Leader is an enthusiastic, self-confident leader whose
personality and actions influence people to behave in certain ways.
The most comprehensive analysis of charismatic leaders identified
the following five personal characteristics they share:
•They have a vision;
•The have the ability to articulate that vision
•They are willing to take risks to achieve that vision;
•They are sensitive to environmental constraints & follower needs
•They demonstrate behaviors that are out of the ordinary.
Visionary Leadership is the ability to create and articulate a

realistic, credible, and attractive vision of the future that improves
upon the present situation. This vision effectively “jump-starts” the
future by calling forth the skills, talents, and resources to make it
happen.
12-20
Leaders and Teams
12-21
Contemporary Issues: Employee
Empowerment
Managers are increasingly leading by not

leading; that is, by empowering their
employees.
12-22
Contemporary Issues: National
Culture
Cross-Cultural Leadership
• Korean leaders are expected to be authoritarian toward
employees.
• Arab leaders who show kindness or generosity without being
asked to do so are seen by other Arabs as weak.
• Japanese leaders are expected to be humble and speak
frequently.
• Scandinavian and Dutch leaders who single out individuals with
public praise are likely to embarrass, not energize, those
individuals.
12-23
Contemporary Issues: Emotional
Intelligence (EI)
EI, more than any other single factor, is the

best predictor of who will emerge as a leader.
12-24
12.5
Discuss trust as
the essence of
leadership.
12-25
The Importance of 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.
12-26
12-27

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12 Chapter

Which leadership styles might be suitable in

The Situational Leadership Theory (SLT) is a

In 1973, Victor Vroom and Phillip Yetton developed

Recognizing that task structures have varying

1. A directive leader lets subordinates know what’s

A leadership theory that says leaders create

Transactional Leaders: Transformational

Visionary Leadership is the ability to create and articulate a

Managers are increasingly leading by not

EI, more than any other single factor, is the

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