Docstoc

CHAPTER 11

Document Sample
CHAPTER 11 Powered By Docstoc
					Part IV Leading

CHAPTER 11 - LEADERSHIP AND TRUST

LEARNING OUTCOMES
After reading this chapter, students should be able to:
1. Define the term “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.
8. Explain the four specific roles of effective team leaders.
9. Identify the five dimensions of trust.

Opening Vignette
SUMMARY
Jack Hartnett, D.L. Rogers Corp., president, leads by combining ingredients from both the Stone Age and
the New Age. Hartnett prides himself on knowing everything about his employees--both at work and at
home. Is Hartnett's style intrusive? Yes! But neither he nor his employees consider it a problem. He
believes that the more he knows about his workers, the more he can help them stay focused at work and
happy at home.

But if you think he's "Mr. Nice Guy," think again. Hartnett instructs his employees to "do it the way we
tell you to do it." He's perfectly comfortable using the authority in his position to make rules and dish out
punishments. Break one of his rules twice and he'll fire you. The managers who work for Hartnett are
well compensated for meeting his demanding requirements.

Does Hartnett seem inconsistent? Maybe. He believes in openness, integrity, and honesty. But he expects
as much as he gives. He admits to purposely keeping everybody slightly off balance "so they'll work
harder." Hartnett's approach to leadership seems to be effective.

Teaching notes
1. When discussing this vignette, begin by creating a pr-con list on the board. What are the benefits of
   working for Hartnett? What are the drawbacks?
2. Now ask students if they would want to work for his companies, for such a manager and why?
 What are the tradeoffs students would have to make as employees?
 Do students think that a particular type of person would be happy and successful at D.L. Rogers?
   What type of person would not succeed?
 Is there anything unique about D.L. Rogers, Corp. that makes Harnett’s style work?

I. MANAGERS VERSUS LEADERS
   A. Introduction
       1. Managers are appointed.
           a) They have legitimate power that allows them to reward and punish.
           b) Their ability to influence is based on the formal authority inherent in their positions.
       2. Leaders may either be appointed or emerge from within a group.
           a) They can influence others to perform beyond the actions dictated by formal authority.
       3. We believe that all managers should ideally be leaders.
       4. However, not all leaders necessarily have capabilities in other managerial functions.



                                                     190
                                                                           Chapter 11 - Leadership and Trust

       5. Therefore, leaders in this chapter mean those who are able to influence others--and who
          possess managerial authority.
Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

II. TRAIT THEORIES OF LEADERSHIP
    A. Introduction
       1. The average person’s definition of leadership.
           a) Qualities such as intelligence, charisma, decisiveness, enthusiasm, strength, bravery,
               integrity, and self-confidence.
           b) These responses represent, in essence, trait theories of leadership.
       2. If the concept of traits were to prove valid, all leaders would have to possess specific
           characteristics.
       3. Research efforts at isolating these traits resulted in a number of dead ends.
       4. Attempts failed to identify a set of traits that would always differentiate leaders.
       5. However, attempts to identify traits consistently associated with leadership have been more
           successful.
           a) Six traits on which leaders are seen to differ from non-leaders include drive, the desire to
               lead, honesty and integrity, self-confidence, intelligence, and job-relevant knowledge.
           b) These traits are briefly described in Exhibit 11-1.
       6. Explanations based solely on traits ignore situational factors.
           a) Possessing the appropriate traits only makes it more likely that an individual will be an
               effective leader.
           b) He/she still has to take the right actions.
       7. A major movement away from trait theories began as early as the 1940s.

III. BEHAVIORAL THEORIES OF LEADERSHIP
     A. Introduction
      1. It was hoped that the behavioral theories would provide more definitive answers.
          a) If behavioral studies were correct, we could train people to be leaders.
      2. We shall briefly review three of the most popular studies:
          a) Kurt Lewin's studies at the University of Iowa.
          b) the Ohio State group.
          c) the University of Michigan studies.

      B. Are There Identifiable Leadership Behaviors?
        1. One of the first studies; Kurt Lewin and his associates at the University of Iowa.
            a) Three leadership behaviors, or styles: autocratic, democratic, and laissez-faire.
        2. An autocratic style tends to centralize authority, dictate work methods, etc.
        3. The democratic style tends to involve employees in decision making, delegates authority,
            encourages participation, and uses feedback to coach employees.
            a) Further classified: consultative and participative.
            b) A democratic-consultative leader seeks input but makes the final decision.
            c) A democratic-participative leader often allows employees to have a "say."

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

                                                   191
Part IV Leading

_____________________________________________________________________________________
_____________________________________________________________________________________
       4. The laissez-faire leader generally gives employees complete freedom.
       5. Which one of the three leadership styles was most effective?
          a) The laissez-faire style was ineffective on every performance criterion.
          b) Democratic leadership style could contribute to both quantity and high quality of work.
          c) Later studies of autocratic and democratic styles of leadership showed mixed results.
          d) Group members' satisfaction levels were generally higher under a democratic leader.
       6. Tannenbaum and Schmidt developed a continuum of leader behaviors
          a) See Exhibit 11-2.
       7. Tannenbaum and Schmidt proposed that managers look at forces within themselves, forces
          within the employees, and forces within the situation, when choosing their style.
       8. Managers should move toward more employee-centered styles in the long run.

    C. What Was the Importance of the Ohio State Studies?
       1. The most comprehensive and replicated of the behavioral theories.
       2. These studies sought to identify independent dimensions of leader behavior.
       3. Beginning with over 1,000 dimensions, they eventually narrowed the list down to two
          categories: initiating structure and consideration.
          b) Initiating structure refers to the extent to which a leader is likely to define and structure
               his/her role and those of employees in the search for goal attainment.
          c) Consideration is defined as the extent to which a leader has job relationships
               characterized by mutual trust and respect for employees' ideas and feelings.
       4. Research found that a leader high in initiating structure and consideration achieved high
          employee performance and satisfaction more frequently than one who rated low.
       5. However, leader behavior characterized as high on initiating structure led to greater rates of
          grievances, absenteeism, and turnover etc., for workers performing routine tasks.
       6. Other studies found that high consideration was negatively related to performance ratings of
          the leader by his/her manager.

    D. What Were the Leadership Dimensions of the University of Michigan Studies?
        1. Two dimensions of leadership behavior, employee-oriented and production-oriented.
           a) Employee-oriented leaders emphasized interpersonal relations, took a personal interest in
              employees’ needs, and accepted individual differences among members.
           b) The production-oriented leaders emphasized the technical aspects of the job, focused on
              accomplishing group tasks, and regarded group members as a means to that end.
        2. The Michigan researchers strongly favored leaders who were employee-oriented.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

    E. What Is the Managerial Grid?
        1. A two-dimensional view of leadership style developed by Robert Blake and Jane Mouton.
           a) Based on the styles of "concern for people" and "concern for production."

                                                    192
                                                                             Chapter 11 - Leadership and Trust

              b) Essentially represent the Ohio State dimensions of consideration and initiating structure
                  and the Michigan dimensions of employee orientation and production orientation.
         2.   The grid depicted in Exhibit 11-3 has nine possible positions along each axis, creating eighty-
              one different positions into which a leader's style may fall.
         3.   The grid shows the dominating factors in a leader's thinking in regard to getting results.
              a) The five key positions are focused on the four comers of the grid and a middle-ground.
              b) See Exhibit 11-3.
         4.   Blake and Mouton concluded that managers perform best using a 9,9 style.
         5.   The grid offers only a framework for conceptualizing leadership style.

      F. What Did the Behavioral Theories Teach Us about Leadership?
         1. Behavioral researchers have had very little success in identifying consistent relationships
            between patterns of leadership behavior and successful performance.
         2. What was missing was consideration of the situational factors influence.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

IV.      CONTINGENCY THEORIES OF LEADERSHIP
      A. Introduction
         1. Predicting leadership success involved something more complex than isolating a few traits or
            preferable behaviors.
         2. It was one thing to say that leadership effectiveness depended on the situation and another to
            be able to isolate situational conditions.

      B. What Is the Fiedler Model?
         1. The first comprehensive contingency model for leadership.
         2. Effective group performance depends on the proper match between the leader's style of
            interaction and the degree to which the situation gives control and influence to the leader.
         3. Fiedler developed an instrument, the least-preferred co-worker (LPC) questionnaire, that
            measures the leader's behavioral orientation-either task-oriented or relationship-oriented.
            a) He isolated three situational criteria--leader-member relations, task structure, and position
                power--that can be manipulated to create the proper match with the behavioral orientation
                of the leader.
            b) This contingency leadership model is an outgrowth of trait theory.
            c) Fiedler, however, attempted to isolate situations, relating his personality measure to his
                situational classification, and then predicting leadership effectiveness.
         4. Fiedler believed that an individual's basic leadership style is a key factor.
            a) The LPC questionnaire contains sixteen contrasting adjectives, asks the respondent to
                think of all the co-workers he/she has ever had and rate that person on a scale of 1 to 8 for
                each set of contrasting adjectives.
         5. What you say about others tells more about you than it tells about the other person.
            a) If the least-preferred co-worker was described in positive terms (a high LPC score), then
                the respondent was primarily interested in good personal relations with co-workers.
            b) If the least-preferred co-worker is seen in relatively unfavorable terms the respondent is
                primarily interested in productivity and thus would be labeled task-oriented.
         6. Fiedler argued that leadership style is innate to a person--you can't change your style.
                                                     193
Part IV Leading

        7. It is necessary to match the leader with the situation based on three criteria.
           a) Leader-member relations--The degree of confidence, trust, and respect subordinates have
                in their leader.
           b) Task structure--The degree to which the job assignments of subordinates are structured or
                unstructured.
           c) Position power--The degree of influence a leader has over power variables such as hiring,
                firing, discipline, promotions, and salary increases.
        8. The next step is to evaluate the situation in terms of these three contingency variables.
           a) The better the leader-member relations, the more highly structured the job, and the
                stronger the position power, the more control or influence the leader has.
           b) Fiedler concluded that task oriented leaders perform best in situations that are very
                favorable or very unfavorable to them.
           c) A moderately favorable situation, however, is best handled through relationship-oriented
                leadership.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

A Management Classic
Fred Fiedler and the Fiedler Contingency Model of Leadership

The Fiedler contingency model of leadership proposes matching an individual's LPC score and an
assessment of the three contingency variables to achieve maximum leadership effectiveness. See Exhibit
11-4 for Fiedler’s conclusions. According to Fiedler, an individual's leadership style is fixed. Therefore,
there are only two ways to improve leader effectiveness: change the leader to fit the situation or change
the situation to fit the leader. As a whole, reviews of the major studies undertaken to test the overall
validity of the Fiedler model show there is considerable evidence to support it.

Teaching notes
1. Ask students to read ahead regarding Blanchard and Hersey’s Situational Leadership.
2. Lead a discussion comparing the two contingency approaches.
3. Now discuss the fundamental distinction, the ability or inability to change one’s style.
 What are the underlying assumptions of Fiedler and Blanchard and Hersey in this regard?
 Do they agree or disagree that one can adapt one’s style?
 Why?

    C. How Does Path-Goal Theory Operate?
        1. One of the most respected approaches to leadership is path-goal theory.
        2. Developed by Robert House, a contingency model of leadership that extracts key elements
           from the Ohio State leadership research and the expectancy theory of motivation.
        3. The essence of the theory: the leader's job to assist followers in attaining their goals and to
           ensure that their goals are compatible with the overall objectives of the group or organization.
        4. A leader's behavior is acceptable to employees to the degree that they view it as an immediate
           source of satisfaction or as a means of future satisfaction.




                                                    194
                                                                        Chapter 11 - Leadership and Trust

      5. A leader's behavior is motivational to the degree that it:
         a) makes employee need-satisfaction contingent on effective performance.
         b) provides the coaching, guidance, rewards, etc., necessary for effective performance.
      6. House identified four leadership behaviors:
         a) The directive leader tells employees what is expected of them, schedules work, and gives
             specific guidance as to how to accomplish tasks. It parallels initiating structure.
         b) The supportive leader is friendly and shows concern for the needs of employees. It is
             essentially synonymous with the dimension of consideration.
         c) The participative leader consults with employees and uses their suggestions before
             making a decision.
         d) The achievement-oriented leader sets challenging goals and expects employees to
             perform at their highest level.
      7. In contrast to Fiedler, House assumes that leaders are flexible.
         a) Path-goal theory implies that the same leader can display any or all leadership styles.
      8. Exhibit 11-5, path-goal theory proposes two classes of contingency variables:
         a) Those in the environment that are outside the control of the employee.
             (1) Environmental factors determine leader behavior required as a complement .
         b) Those that are part of the personal characteristics of the employee.
             (1) Personal characteristics determine how the environment and leader behavior are
                 interpreted.
      9. Research to validate path-goal predictions is encouraging, although not all is found positive.
         a) The majority of the evidence supports the logic underlying the theory.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

   D. What Is the Leader-Participation Model?
      1. Back in 1973, Victor Vroom and Phillip Yetton developed a leader-participation model.
         a) It related leadership behavior and participation to decision making.
      2. 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.
         a) Vroom and Yetton's model was normative.
      3. The model was a decision tree incorporating seven contingencies and five alternative
         leadership styles.
         a) More recent work by Vroom and Arthur Jago revised that model.
      4. The new model retains the same alternatives but expands the contingency variables to twelve.
         a) See Exhibit 11-6.
      5. Research testing the original leader-participation model was very encouraging.
         a) But the model is far too complex for the typical manager to use regularly.
         b) The model has provided us with some solid, empirically supported insights into key
             contingency variables related to leadership effectiveness.
         c) The model confirms that leadership research should be directed at the situation rather
             than at the person.




                                                 195
Part IV Leading

     E. How Does Situational Leadership Operate?
         1. Paul Hersey and Kenneth Blanchard developed the leadership model.
            a) Called situational leadership theory (SLT), it shows how a leader should adjust leadership
                style to reflect what followers want.
         2. A contingency theory that focuses on the followers.
            a) Successful leadership is contingent on the follower's level of readiness.
         3. Why focus on the followers? And what do they mean by the term readiness?
            a) This emphasis reflects the reality that it is the followers who accept or reject the leader.
            b) Regardless of what the leader does, effectiveness depends on the actions of his or her
                followers.
         4. The term readiness refers to the extent which people have the ability and the willingness to
            accomplish a specific task.
         5. The leader-follower relationship as analogous to that between a parent and a child.
            a) Just as a parent needs to relinquish control as a child becomes more mature and
                responsible, so too, should leaders.
            b) Hersey and Blanchard identify four specific behaviors.
            c) See Exhibit 11-7.
         6. The most effective behavior depends on a follower's ability and motivations.
            a) If a follower is unable and unwilling, the leader needs to display high task orientation.
            b) At the other end of the readiness spectrum, if followers are able and willing, the leader
                doesn't need to do much.
         7. SLT has an intuitive appeal.
         8. Research efforts to test and support the theory have generally been disappointing.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

V.      EMERGING APPROACHES TO LEADERSHIP
     A. What Is Charismatic Leadership Theory?
        1. Charismatic leadership theory is an extension of attribution theory.
           a) It says that followers make attributions of heroic or extraordinary leadership abilities
               when they observe certain behaviors.
        2. Several authors have attempted to identify personal characteristics of the charismatic leader.
           a) Robert House has identified three: extremely high confidence, dominance, and strong
               convictions.
           b) Warren Bennis found that they had four common competencies: they had a compelling
               vision or sense of purpose; they could communicate that vision in clear terms that their
               followers could readily identify with; they demonstrated consistency and focus in the
               pursuit of their vision; and they knew their own strengths and capitalized on them.
           c) Jay Conger and Rabindra Kanungo at McGill University--charismatic leaders have an
               idealized goal that they want to achieve and a strong personal commitment to that goal,
               are perceived as unconventional, are assertive and self-confident, and are perceived as
               agents of radical change rather than as managers of the status quo.
           d) Exhibit 11-8 summarizes the key characteristics for charismatic leaders.




                                                    196
                                                                             Chapter 11 - Leadership and Trust

      3. There is an increasing body of research that shows impressive correlations between
         charismatic leadership and high performance and satisfaction among followers.
         a) Charismatic leadership may be most appropriate when the follower's task has an
             ideological component.
         b) Second, charismatic leaders may be ideal for pulling an organization through a crisis but
             become a liability to an organization once the crisis and the need for dramatic change
             subside.

   B. What is Visionary Leadership?
      1. Visionary leadership goes beyond charisma.
      2. Visionary leadership is the ability to create and articulate a realistic, credible, attractive vision
         of the future for an organization or organizational unit, that grows out of and improves upon
         the present.
      3. A vision differs from other forms of direction setting in several ways:
         a) "A vision has clear and compelling imagery that offers an innovative way to improve,
              which recognizes and draws on traditions, and connects to actions that people can take to
              realize change.”
         b) Vision taps people's emotions and energy.
      4. The key properties of a vision seem to be inspirational possibilities that are value centered,
         realizable, with superior imagery and articulation.
         a) Visions should be able to create possibilities that are inspirational, unique, and offer a
              new order that can produce organizational distinction.
         b) Desirable visions fit the times and circumstances and reflect the uniqueness of the
              organization.
         c) People in the organization must also believe that the vision is attainable.
      5. Examples of visions.
         a) Rupert Murdoch had a vision of the future of the communication industry by combining
              entertainment and media.
         b) Mary Kay Ash's vision of women as entrepreneurs selling products that improved their
              self image gave impetus to her cosmetics company.
         c) Michael Dell has created a vision of a business that allows Dell Computer to sell and
              deliver a finished PC directly to a customer in fewer than eight days.
      6. What skills do visionary leaders exhibit?
         a) The ability to explain the vision to others.
         b) The ability to express the vision not just verbally but through the leader's behavior.
         c) The third skill is being able to extend the vision to different leadership contexts.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________




                                                   197
Part IV Leading


      C. How Do Transactional Leaders Differ from Transformational Leaders?
         1. Most of the leadership theories presented in this chapter address the issue of transactional
            leaders.
            a) These leaders guide or motivate their followers in the direction of established goals by
                 clarifying role and task requirements.
         2. 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 his or
            her followers.
         3. These are not opposing approaches.
         4. Transformational leadership is built on transactional leadership.
            a) Transformational leadership produces higher levels of employee effort and performance.
            b) It is more than charisma.
            c) The transformational leader will attempt to instill in followers the ability to question not
                 only established views but eventually those established by the leader.
         5. The evidence supporting the superiority of transformational leadership over the transactional
            variety is overwhelmingly impressive.
         6. In summary, the overall evidence indicates that transformational leadership is more strongly
            correlated with lower turnover rates, higher productivity, and higher employee satisfaction.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

VI.      CONTEMPORARY LEADERSHIP ISSUES
      A. What Is Team Leadership?
         1. Leadership is increasingly taking place within a team context.
         2. As teams grow in popularity, the role of the leader in guiding team members takes on
            heightened importance.

Ethical Dilemma in Management
SUMMARY
Are there differences in leadership styles based on gender? The evidence indicates that the two sexes are
more alike than different in how they lead. Much of this similarity is based on the fact that leaders,
regardless of gender, perform similar activities in influencing others. The most common difference lies in
leadership styles. Women tend to use a more democratic style, influence others best through their
"charisma, expertise, contacts, and their interpersonal skills.” Men, on the other hand, tend to typically
use a task-centered leadership style, relying on positional power. But surprisingly, even this difference is
blurred. All things considered, when a woman leads in a traditionally male-dominated job she tends to
lead in a manner that is more task-centered.

Further compounding this issue are the changing roles of leaders in today's organizations. With an
increased emphasis on teams, employee involvement, and interpersonal skills, etc., leaders need to be
more sensitive to their followers' needs, be more open, and so on, many of these are behaviors that
women have typically grown up developing.




                                                    198
                                                                          Chapter 11 - Leadership and Trust

Questions
1. So what do you think? Is there a difference between the sexes in terms of leadership styles?
2. Do men or women make better leaders? Would you prefer to work for a man or a woman? Explain.

Teaching notes
1. Taking note of the author’s opening statements, monitor the discussion for the level of feelings
   generated. This discussion could easily become heated.
2. Consider using one or more team exercises in class to create a basis for the discussion.
3. Placing the students in teams, choosing women as leaders for some teams and men as leaders for
   other teams.
4. After the exercise, process their experience as teams and see what differences, if any that they
   experienced.
5. Ultimately be sure to discuss, what the point is. Does gender matter, if so why?

        3. Many leaders are not equipped to handle the change to teams.
        4. One prominent consultant estimates: 15 percent of managers are natural team leaders; another
            15 percent could never lead a team because it runs counter to their personality.
        5. The challenge for most managers is to learn how to become an effective team leader.
            a) Effective leaders have mastered the difficult balancing act of knowing when to leave their
                teams alone and when to intercede.
            b) New team leaders may try to retain too much control or they may abandon their teams.
        6. A study of 20 organizations that had reorganized themselves around teams found certain
            common responsibilities that all leaders had to assume.
            a) These included coaching, facilitating, handling disciplinary problems, reviewing
                team/individual performance, training, and communication.
        7. A more meaningful way to describe the team leader's job is to focus on two priorities:
            managing the team's external boundary and facilitating the team process.
            a) See Exhibit 11-9.
        8. First, team leaders are liaisons with external constituencies.
            a) The leader represents the team to other constituencies, secures needed resources, clarifies
                others' expectations of the team, gathers information from the outside, and shares this
                information with team members.
        9. Second, team leaders are troubleshooters.
            a) When the team has problems and asks for assistance, team leaders sit in on meetings and
                help try to resolve the problems.
            b) This rarely relates to technical or operation issues.
        10. Third, team leaders are conflict managers.
            a) When disagreements surface, they help process the conflict. What's the source of the
                conflict? Who is involved? What are the issues? What resolution options are available?
                What are the advantages and disadvantages of each?
        11. Finally, team leaders are coaches.
            a) They clarify expectations and roles, teach, offer support, cheerlead, etc.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________



                                                   199
Part IV Leading

    B. Does National Cultural Affect Leadership?
        1. National culture is an important situational factor determining which leadership style will be
           most effective.
           a) We propose that you consider it as another contingency variable.
        2. National culture affects leadership style by way of the follower.
        3. Leaders’ choice of styles is constrained by the cultural conditions that their followers have
           come to expect.
           a) Korean leaders are expected to be paternalistic toward employees.
           b) Arab leaders who show kindness or generosity without being asked to do so are seen by
               other Arabs as weak.
           c) Japanese leaders are expected to be humble and speak infrequently.
           d) Scandinavian and Dutch leaders who single out individuals with public praise are likely
               to embarrass those individuals rather than energize them.
        4. Most leadership theories were developed in the United States, using U.S. subjects.
           a) They emphasize follower responsibilities rather than rights; assume hedonism rather than
               commitment to duty or altruistic motivation; assume centrality of work and democratic
               value orientation; and stress rationality rather than spirituality, religion, or superstition.
        5. As a guide for adjusting your leadership style, you might consider the value dimensions of
           national culture presented in Chapter 2.
           a) Manipulative or autocratic style is compatible with high power distance.
           b) Power distance rankings should also be good indicators of employee willingness to
               accept participative leadership.
           c) Participation is likely to be most effective in such low power distance cultures.

    C. Is Leadership Always Important?
        1. Data from numerous studies demonstrate that, in many situations, any behaviors a leader
           exhibits are irrelevant.
        2. Certain individual, job, and organizational variables can act as "substitutes for leadership,"
           negating the influence of the leader.
        3. Characteristics of employees such as experience, training, "professional" orientation, or need
           for independence can neutralize the effect of leadership.
        4. Jobs that are inherently unambiguous and routine or that are intrinsically satisfying may place
           fewer demands on the leadership variable.
        5. Organizational characteristics as explicit formalized goals, rigid rules and procedures, or
           cohesive work groups can act in the place of formal leadership.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

VII. BUILDING TRUST: THE ESSENCE OF LEADERSHIP
    A. What is Trust?
       1. Trust is a positive expectation that another will not act opportunistically.
          a) The two most important elements of our definition is that it implies familiarity and risk.
       2. Trust is a history-dependent process based on relevant but limited samples of experience.
          a) It takes time to form, building incrementally and accumulating.
       3. Trust involves making oneself vulnerable.
          a) By its very nature, trust provides the opportunity for disappointment.
                                                    200
                                                                         Chapter 11 - Leadership and Trust

         b) But trust is not taking risk per se; rather it is a willingness to take risk.
      4. What are the key dimensions that underlie the concept of trust?
      5. Recent evidence has identified five: integrity, competence, consistency, loyalty, and
         openness.
         a) See Exhibit 11-10.
         b) Integrity refers to honesty, conscientiousness, and truthfulness.
            (1) This one seems to be most critical when someone assesses another's trustworthiness.
         c) Competence encompasses an individual's technical and interpersonal knowledge and
            skills.
         d) Consistency relates to an individual's reliability, predictability, and good judgment in
            handling situations.
         e) Loyalty is the willingness to protect and save face for another person.
         f) The final dimension of trust is openness.

   B. Why Is Trust One Foundation of Leadership
      1. Trust appears to be a primary attribute associated with leadership.
      2. Part of the leader's task has been working with people to find and solve problems, but
         whether leaders gain access to the knowledge and creative thinking they need to solve
         problems depends on how much people trust them.
      3. When followers trust a leader, they are willing to be vulnerable to the leader's actions.
      4. Honesty consistently ranks at the top of most people's list of characteristics they admire in
         their leaders.
      5. Now, more than ever, managerial and leadership effectiveness depends on the ability to gain
         the trust of followers.
      6. In times of change and instability, people turn to personal relationships for guidance; and the
         quality of these relationships are largely determined by level of trust.
      7. Moreover, contemporary management practices such as empowerment and the use of work
         teams require trust to be effective.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

   C. What Are the Three Types of Trust?
      1. Deterrence-based Trust.
         a) The most fragile relationships are contained in deterrence-based trust.
         b) Based on fear of reprisal if the trust is violated.
         c) It works only to the degree that punishment is possible, consequences are clear, and the
            punishment is actually imposed if the trust is violated.
         d) To be sustained, the potential loss of future interaction with the other party must
            outweigh the profit potential that comes from violating expectations.
         e) Most new relationships begin on a base of deterrence.
         f) In a new manager-employee relationship the bond that creates this trust lies in the
            authority held by the boss and the punishment he/she can impose.
      2. Knowledge-based Trust
         a) Most organizational relationships are rooted in knowledge-based trust.
         b) Trust is based on the behavioral predictability that comes from a history of interaction.


                                                 201
Part IV Leading

           c) Knowledge of the other party and predictability of his or her behavior replaces the
               contracts, penalties, and legal arrangements more typical of deterrence-based trust.
           d) This knowledge develops over time, largely as a function of experience.
           e) The more communication and regular interaction you have with someone else, the more
               this form of trust can be developed and depended upon.
           f) Interestingly, at the knowledge-based level, trust is not necessarily broken by inconsistent
               behavior.
               (1) If you can adequately explain or understand another's apparent violation, you can
                    accept it, forgive the person, and move on in the relationship.
           g) Most manager-employee relationships are knowledge-based.
        3. Identification-based Trust
           a) The highest level of trust is achieved when there is an emotional connection between the
               parties.
           b) It allows one party to act as an agent for the other and substitute for that person.
           c) This mutual understanding is developed to the point that each can effectively act for the
               other.
           d) Controls are minimal at this level.
           e) The best example of identification-based trust is a long-term, happily married couple.
           f) You see identification-based trust occasionally in organizations among people who have
               worked together for long periods of time and have a depth of experience that allows them
               to know each other inside and out.
           g) This is also the type of trust that managers ideally seek in teams.

Teaching Notes _______________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

SUMMARY
1. A leader is an individual who is able to influence others to perform beyond the actions dictated by
   formal authority. Managers have legitimate power that allows them to reward and punish and their
   ability to influence is founded upon formal authority.
2. Trait theories of leadership suggest six traits separate leaders from non-leaders. Yet possession of
   these traits is no guarantee of leadership because they ignore situational factors.
3. Fiedler's contingency model of leadership focuses on the belief that an individual's basic leadership
   style is a key factor in leadership success and the model identifies three situational variables: leader-
   member relations, task structure, and position power.
4. The path-goal model, on the other hand, proposes two classes of contingency variables--those in the
   environment and those that are part of the personal characteristics of the subordinate.
5. Situational leadership theory, developed by Hersey and Blanchard, proposes that there are four
   leadership styles--telling, selling, participating, and delegating. The best style depends on the
   followers' readiness--their willingness and ability to do the job.
6. Charismatic leaders are characterized by seven elements that are a combination of skills, traits, and
   abilities.
7. Visionary leaders are identifiable from the skills they possess; having the ability to explain the vision
   to others, having the ability to express the vision through one's behavior, and being able to extend the
   vision to different leadership contexts, gaining commitment and understanding.
8. To be effective in their jobs, team leaders need to be involved in four specific roles.


                                                    202
                                                                              Chapter 11 - Leadership and Trust

9. There are five dimensions of trust important to leadership: integrity, competence, consistency,
   loyalty, and openness.

REVIEW AND APPLICATION QUESTIONS
Reading for Comprehension
1. Discuss the strengths and weaknesses of the trait theory of leadership.
   Answer – The average person’s definition of leadership is essentially a trait approach. If the concept
   of traits were to prove valid, all leaders would have to possess specific characteristics. Research
   efforts at isolating these traits resulted in a number of dead ends. Attempts failed to identify a set of
   traits that would always differentiate leaders. Six traits on which leaders are seen to differ from non-
   leaders include drive, the desire to lead, honesty and integrity, self-confidence, intelligence, and job-
   relevant knowledge. These traits are briefly described in Exhibit 11-1.

    Explanations based solely on traits ignore situational factors. Possessing the appropriate traits only
    makes it more likely that an individual will be an effective leader. He/she still has to take the right
    actions.

2. What is the managerial grid? Contrast its approach to leadership with that of the Ohio State and
   Michigan groups.
   Answer – A two-dimensional view of leadership style developed by Robert Blake and Jane Mouton.
   Based on the styles of "concern for people" and "concern for production." Essentially represent the
   Ohio State dimensions of consideration and initiating structure and the Michigan dimensions of
   employee orientation and production orientation. The grid, depicted in Exhibit 11-3, has nine possible
   positions along each axis, creating eighty-one different positions into which a leader's style may fall.
   The grid shows the dominating factors in a leader's thinking in regard to getting results. The five key
   positions are focused on the four comers of the grid and a middle-ground. Blake and Mouton
   concluded that managers perform best using a 9,9 style. The grid offers only a framework for
   conceptualizing leadership style. There is no empirical evidence to support that this is a universal best
   style.

3. How is a least-preferred coworker determined? What is the importance of one's LPC for the Fiedler
   theory of leadership?
   Answer – The first comprehensive contingency model for leadership. Effective group performance
   depends on the proper match between the leader's style of interaction and the degree to which the
   situation gives control and influence to the leader. Fiedler developed an instrument, the least-
   preferred co-worker (LPC) questionnaire, that measures the leader's behavioral orientation-either
   task-oriented or relationship-oriented. He isolated three situational criteria--leader-member relations,
   task structure, and position power--that can be manipulated to create the proper match with the
   behavioral orientation of the leader. The LPC questionnaire contains sixteen contrasting adjectives,
   asks the respondent to think of all the co-workers he/she has ever had and rate that person on a scale
   of 1 to 8 for each set of contrasting adjectives. Fiedler’s premise was that what you say about others
   tells more about you than it tells about the person you're describing.

4. What are the contingencies in the path-goal theory of leadership?
   Answer – Developed by Robert House, a contingency model of leadership that extracts key elements
   from the Ohio State leadership research and the expectancy theory of motivation. The essence of the
   theory; the leader's job to assist followers in attaining their goals and to ensure that their goals are
   compatible with the overall objectives of the group or organization. A leader's behavior is
   motivational to the degree that it: 1) makes employee need-satisfaction contingent on effective
   performance and 2) provides the coaching, guidance, rewards, etc., necessary for effective
   performance.

                                                     203
Part IV Leading


    See Exhibit 11-5, path-goal theory proposes two classes of contingency variables: 1) Those in the
    environment that are outside the control of the employee--environmental factors determine leader
    behavior required as a complement. And, those that are part of the personal characteristics of the
    employee--personal characteristics determine how the environment and leader behavior are
    interpreted.

5. What similarities, if any, can you find among Fiedler's model, path-goal theory, and Hershey and
   Blanchard's situational leadership?
   Answer – The Fiedler Model was the first comprehensive contingency model for leadership.
   Effective group performance depends on the proper match between the leader's style of interaction
   and the degree to which the situation gives control and influence to the leader. He isolated three
   situational criteria--leader-member relations, task structure, and position power--that can be
   manipulated to create the proper match with the behavioral orientation of the leader. This contingency
   leadership model is an outgrowth of trait theory. Fiedler believed that an individual's basic leadership
   style is a key factor. Fiedler argued that leadership style is innate to a person--you can't change your
   style. It is necessary to match the leader with the situation based on three criteria.
    Leader-member relations--The degree of confidence, trust, and respect subordinates have in their
       leader.
    Task structure--The degree to which the job assignments of subordinates are structured or
       unstructured.
    Position power--The degree of influence a leader has over power variables such as hiring, firing,
       discipline, promotions, and salary increases.

    Path-goal theory is one of the most respected approaches to leadership. Developed by Robert House,
    a contingency model of leadership that extracts key elements from the Ohio State leadership research
    and the expectancy theory of motivation. The essence of the theory; the leader's job to assist followers
    in attaining their goals and to ensure that their goals are compatible with the overall objectives of the
    group or organization. A leader's behavior is acceptable to employees to the degree that they view it
    as an immediate source of satisfaction or as a means of future satisfaction. House identified four
    leadership behaviors.
     The directive leader tells employees what is expected of them, schedules work, and gives specific
         guidance as to how to accomplish tasks. It parallels initiating structure.
     The supportive leader is friendly and shows concern for the needs of employees. It is is
         essentially synonymous with the dimension of consideration.
     The participative leader consults with employees and uses their suggestions before making a
         decision.
     The achievement-oriented leader sets challenging goals and expects employees to perform at their
         highest level.
    In contrast to Fiedler, House assumes that leaders are flexible. Path-goal theory implies that the same
    leader can display any or all leadership styles. Research to validate path-goal predictions is
    encouraging, although not all is found positive. The majority of the evidence supports the logic
    underlying the theory.

    Situational Leadership was developed by Paul Hersey and Kenneth Blanchard, it shows how a leader
    should adjust leadership style to reflect what followers want. A contingency theory that focuses on
    the followers. Successful leadership is contingent on the follower's level of readiness. This emphasis
    reflects the reality that it is the followers who accept or reject the leader. The most effective behavior
    depends on a follower's ability and motivations. If a follower is unable and unwilling, the leader
    needs to display high task orientation. At the other end of the readiness spectrum, if followers are able


                                                     204
                                                                             Chapter 11 - Leadership and Trust

    and willing, the leader doesn't need to do much. SLT has an intuitive appeal. Research efforts to test
    and support the theory have generally been disappointing.

6. How might leadership in Japan contrast with leadership in the U.S. or Canada?
   Answer – National culture is an important situational factor determining which leadership style will
   be most effective. National culture affects leadership style by way of the follower. Leaders’ choice of
   styles is constrained by the cultural conditions that their followers have come to expect. Japanese
   leaders are expected to be humble and speak infrequently. They would offer group rewards, not offer
   individual recognition, and use a more participative style. American and Canadian leaders would give
   more direction, recognize individual achievement, and lay more responsibility on the individual
   worker.



Linking Concepts to Practice
1. "All managers should be leaders, but not all leaders should be managers." Do you agree or disagree
   with that statement? Support your position.
   Answer – The ability to influence others outside of one’s own authority and to perform beyond
   expectations are essential to high performing organizations and are characteristic of leaders, not
   managers. Hence, if a manager can do this, so much the better. However, leadership is a skill or
   ability set and having that set does not mean the individual has the other necessary characteristics to
   manage.

2. Do you think trust evolves out of an individual's personal characteristics or out of specific situations?
   Explain.
   Answer – Both, trust is in a person given certain circumstances. Some individual’s are always trusted
   regardless of circumstances, others can be trusted to respond in predictable ways in different
   circumstances.

3. "Charismatic leadership is always appropriate in organizations." Do you agree or disagree? Support
   your position.
   Answer – Charismatic leadership theory is an extension of attribution theory. It says that followers
   make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors.
   There is an increasing body of research that shows impressive correlations between charismatic
   leadership and high performance and satisfaction among followers. Charismatic leadership may be
   most appropriate when the follower's task has an ideological component. Second, charismatic leaders
   may be ideal for pulling an organization through a crisis but become a liability to an organization
   once the crisis and the need for dramatic change subside.

4. Contrast the three types of trust. Relate them to your experience in personal relationships.
   Answer – The most fragile relationships are contained in deterrence-based trust, based on fear of
   reprisal if the trust is violated. Most organizational relationships are rooted in knowledge-based trust.
   Trust is based on the behavioral predictability that comes from a history of interaction. Most
   manager-employee relationships are knowledge-based. Identification-based trust is the highest level
   of trust is achieved when there is an emotional connection between the parties. It allows one party to
   act as an agent for the other and substitute for that person. Controls are minimal at this level.

    Students’ application of this to personal experience will vary. Generally their deterrence-based and
    knowledge-based trust examples will relate to classes or work. Identification-based trust will relate to
    relationships—interpersonal, team, etc.


                                                    205
Part IV Leading

5. When might leaders be irrelevant?
   Answer – Data from numerous studies demonstrate that, in many situations, any behaviors a leader
   exhibits are irrelevant. Certain individual, job, and organizational variables can act as "substitutes for
   leadership," negating the influence of the leader. Characteristics of employees such as experience,
   training, "professional" orientation, or need for independence can neutralize the effect of leadership.
   Jobs that are inherently unambiguous and routine or that are intrinsically satisfying may place fewer
   demands on the leadership variable. Organizational characteristics as explicit formalized goals, rigid
   rules and procedures, or cohesive work groups can act in the place of formal leadership.

MANAGEMENT WORKSHOP
TEAM SKILL-BUILDING EXERCISE: The Pre-Post Leadership Assessment
Objective: To compare characteristics intuitively related to leadership with leadership characteristics
found in leadership theory.
Time: Part I takes approximately ten minutes. Part II takes about twenty-five minutes.
Instructions:
Complete Part I before reading Chapter 11.
1. Identify three people you consider to be outstanding leaders.
     List why you feel he or she is a good leader.
     Compare your lists of the three individuals.
     Which traits, if any, are common to all three?
Complete Part II after the lecture on the material.
2. Have students call out what they identified.
3. Record the traits on the chalkboard.
4. When all students have shared their lists, lead a discussion of the following.
     What characteristics consistently appeared on students' lists?
     Were these characteristics more trait-oriented or behavior-oriented?
     Under what situations were these characteristics useful?
     What, if anything, does this exercise suggest about leadership attributes?

DEVELOPING YOUR TRUST BUILDING SKILL:
Summary
Here are some suggestions for building trust with employees.

Steps in Practicing the Skill
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.

Practicing the Skill
1. Brainstorm with students as a class on how to give the bad news.
2. Once a strategy is developed, ask for volunteers to come forward and “fish bowl” it. Role play the
   manager and an employee in front of the class.
3. After the “fish bowl” ask students how they felt, if there is some way they would improve the
   process.
4. Have the student(s) with ideas for improving the process come up front and demonstrate.


                                                     206
                                                                               Chapter 11 - Leadership and Trust


Teaching tips
1. Exercise is self explanatory.

A CASE APPLICATION: Developing Your Diagnostic and Analytical Skills
Hiroski-Okuda at Toyota
Hiroski Okuda is a leader who isn't afraid to speak his mind or impose radical change in an organization.,
He is the Chairman of the Board at Toyota. Okuda served at Toyota's president-the first-non-family
member in over 30 years to head the company. Okuda justifies his outspoken and aggressive style as
necessary to change the company that he believes has become lethargic and overly bureaucratic. Okuda
moved ahead at Toyota by taking jobs that other employees didn't want. On one project Okuda noted,
"Everyone wanted to give up. But I restarted the project and led it to success." It was his drive and ability
to overcome obstacles that were central to his rise in the company's hierarchy.

When Okuda ascended to the presidency of Toyota in early 1995, the company was losing market share.
Okuda attributed this problem top several factors. Toyota had been losing touch with customers in Japan.
Competitors had also done a much better job at identifying the boom in recreational vehicles-especially
the sports utility market. Toyota's burdensome bureaucracy also bothered Okuda. In his first 18 months on
the job, Okuda implemented some drastic changes. He replaced nearly one-third of Toyota's highest
ranking executives. He revamped Toyota's long-standing promotion system adding performance as a
factor. Some outstanding performers were also moved up several levels in management at one time-
something unheard of in the past in the company.

Okuda also worked with vehicle designers to increase the speed at which they get a vehicle from concept
to market. Finally, he is using the visibility of his job to address a larger societal issue facing all Japanese
businesses.

Unfortunately, some of Okuda's actions may have backfired. Speculation that he "overstepped" his
boundary at times lead to his removal as President in June 1999. However, his strategic leadership, and
the good he's done for the company didn't go unnoticed-it help him ascend to the Chairman's job.

Questions:
1. How would you describe Hiroski Okuda's leadership style? Cite specifics where appropriate.
   Answer – Transformational. Note his career path, taking jobs no one else wanted, getting people to
   believe, initiating massive changes—cutting the bureaucracy, promoting high performers, etc.

2. When a company is in a crisis, do you believe that a radical change in leadership is required to turn
   the company around? Support your position.
   Answer – Students’ may argue either side. Central is the circumstances for the crisis. If externally
   caused, existing management may be able to address it. If long term in nature, based on internal
   problems, then a radical change will be necessary.

3. Would you describe Okuda's leadership style to be a) charismatic, b) visionary, and c) culturally
   consistent with the practices in Japan? Explain.
   Answer – There is insufficient information to answer a). Students’ will have to speculate. He was
   clearly visionary in that he had a clear vision, articulated, and implemented it. Students’ might argue
   this isn’t true because he didn’t get everyone to “sign on” i.e. the Toyota family. His behavior is
   obviously contradictory to Japanese expectations.




                                                      207
Part IV Leading

DEVELOPING YOUR INVESTIGATIVE SKILLS: Using the Internet
Visit www.prenhall.com/robbins for updated Internet Exercises.

ENHANCING YOUR WRITING SKILLS: Communicating Effectively
(For ideas regarding the use of these exercises in your course, please refer to the Teaching Tips in the
Preface of this Manual.)
1. Think about a person in your life (a parent, a supervisor, a teacher, etc.,) who has influenced you to
    the extent that you enthusiastically gave 110 percent. Describe the characteristics of this individual.
    Pick one of the contemporary leadership theories in this chapter and relate your list to the model,
    explaining how your "leader" demonstrated the attributes of your selected theory.
2. Develop a 2-3 page discussion in responding to the following questions. What kind of activities could
    a full-time college student pursue that might lead to the perception that he or she is a charismatic
    leader? In pursuing those activities, what might the student do to enhance this perception of being
    charismatic?
3. Visit the Southwest Airlines website [http://www.southwest.com]. Surf through the various web
    pages of the airlines. Using two of the skills of a visionary leader, locate examples of how Herb
    Kelleher's has demonstrated these attributes. Specifically, show 1) how Kelleher's vision is explained
    in ways that are clear in terms of what's expected from Southwest employees; and 2) how Kelleher's
    behavior reinforces to organizational members the importance of his vision.




                                                   208

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:2/19/2013
language:English
pages:19