Chapter 7: Leading and Trust

CHAPTER 7LEADING & TRUST

Reported by: SANDRA P. CUNANAN

WHAT IS LEADERSHIP?Leadership - is the process of influencing employees to work toward the achievement of objectives.

Leadership can make a difference in performance, though it does not always do so.

WHAT IS LEADERSHIP?

The main reason for employee failure is poor leadership, and bad managers can push employees to sabotage.

Truly outstanding leaders tend to elicit commitment, self-sacrifice, and high performance from others.

LEADERSHIP & MANAGEMENT ARE NOT THE SAME.

Someone can be a manager without being a true leader.

There are good leaders who are not managers.

Anyone can be a leader within a group or department, and everyone in a team is expected to be a leader.

Thus, regardless of your position, you are expected to share leadership.

LEADERSHIP TRAIT THEORY

“Great Man Theory” - in 1900s, there was an assumption that leaders are born, not made.

LEADERSHIP TRAIT THEORY

Assume there are distinctive physical and psychological characteristics that account for effective leadership.

But after 70 years of research we still cannot identify a specific list of traits thatall successful leaders have in common.

LEADERSHIP TRAIT THEORYGhiselli Study – most publicized trait theory.Listed 6 Traits

SUPERVISORY ABILITYGetting the job done through others.

NEED FOR ACHIEVEMENTSeeking responsibility.

INTELLIGENCEGood judgment – reasoning – thinking.

DECISIVENESSSolving problems and making decisions.

SELF-ASSURANCE Seeing yourself as capable.

INITIATIVESelf-starter – no need for supervision.

BEHAVIORAL LEADERSHIP THEORIES

Assume that there are distinctive styles that effective leaders use consistently, that is, that good leadership is rooted in behavior.

BEHAVIORAL LEADERSHIP THEORIES

3 Basic Leadership Styles

1. Autocratic – the leader makes the decisions and

closely supervisesemployees.

BEHAVIORAL LEADERSHIP THEORIES

3 Basic Leadership Styles

2. Democratic – the leader allows participation in decisions

and does not closelysupervise employees.

BEHAVIORAL LEADERSHIP THEORIES

3 Basic Leadership Styles

3. Laissez-faire – the leader takes a leave-the-employee-

alone approach.

TWO-DIMENSIONAL LEADERSHIP STYLES

Initiating Structure/Job CenteredThe extent to which the leader takes

charge to plan, organize, direct, and control as the employee performs the task.

Consideration/Employee CenteredThe extent to which the

leader communicates to develop trust, friendship, support and respect.

TWO-DIMENSIONAL LEADERSHIP STYLES

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

The model is used to identify the ideal leadership style has high concern for both the job and the people.

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

5 MAJOR STYLES:

1. Impoverished Manager (1.1)

1.1 Low concern for both job & people.

1.2 Does minimum work to keep his/her job.

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

5 MAJOR STYLES:

2. Sweatshop Manager (9.1)2.1 High concern for job – low for people.

2.2 Uses power to coerce people & treats them like machines.

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

5 MAJOR STYLES:

3. Country Club Manager (1.9)3.1 High concern for people – low

for job.

3.2 It’s all about be friendly and having good relationships.

LEADERSHIP GRID

Blake & Moulton’s Model (1964-1991)

5 MAJOR STYLES:

4. Organized-Person Manager (5.5)4.1 Medium concern for both job and

people.4.2 Runs middle of the road to keep

both going well.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-1991)

5 MAJOR STYLES:

5. Team Manager (9.9)5.1 High concern for both people and job.5.2 Participation, commitment

and resolving conflict are tops.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-

1991)

What is the leadership style?

1. The group has a very high morale; the members enjoy their work. Productivity in the department is one of the lowest in the company.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-

1991)

What is the leadership style?

2. The group has adequate morale. Members have an average productivity level.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-

1991)

What is the leadership style?

3. The group is one of the top performers. Members have high morale.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-

1991)

What is the leadership style?

4. The group has one of the lowest levels of morale. It is one of the top performers.

LEADERSHIP GRIDBlake & Moulton’s Model (1964-

1991)

What is the leadership style?

5. The group is one of the lowest producers. It has a low level of morale.

TRANSFORMATIONAL LEADERSHIP It is about change, innovation, and

entrepreneurship.

They see themselves as change agents. Courageous individuals who take risks Believe in people and motivate them They are value-driven They are lifelong learners They have the ability to deal with complexity,

ambiguity, and uncertainty They are visionaries

Martin Luther, Steve Jobs

CHARISMATIC LEADERSHIP Inspire loyalty, enthusiasm, and high levels

of performance and extraordinary influence

TRANSACTIONAL LEADERSHIP Based on “quid pro quo” – you do something

for me, and I’ll do something for you. Good negotiators

CONTINGENCY LEADERSHIP THEORIES

Assume the appropriate style of leadership varies depending on the situation.

Attempt to create win-win situations by giving support and direction.

CONTINGENCY THEORY OF LEADER EFFECTIVENESS

Fred E. Fiedler (1951)

He believed that one’s leadership style is based is a reflection of one’s personality (trait-theory oriented) and is basically constant.

Leaders do not change style.

LEADERSHIP CONTINUUMRobert Tannenbaum and Warren Schmidth

stated that leadership behavior is on a continuum from boss-centered to employee-centered relationship.

It is a simple model of leadership theory which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager.

NORMATIVE LEADERSHIP THEORY

Victor Vroom & Philip Yetton (2000)

Decision tree method to choose from 5 leadership styles depending which is best for the situation (adapted from previous models).

NORMATIVE LEADERSHIP THEORY

Five Leadership Styles:1. Decide – Leader decides.2. Consult Individually – Leader talks to employees separately to get input – but still makes the decision.3. Consult Group – Talks to group of employees for input – but still makes the decision.4. Facilitate – Group meeting/employees share in decision.5. Delegate – Group makes the decision.

SITUATIONAL LEADERSHIP THEORY

A model to select from 4 leadership styles that match the maturity level of the employee in any given situation.

Lower right quadrant (1) = Telling Upper right quadrant (2) = SellingUpper left quadrant (3) = ParticipatingLower left quadrant (4) = Delegating

SITUATIONAL LEADERSHIP THEORY

A model to select from 4 leadership styles that match the maturity level of the employee in any given situation.

SITUATIONAL SUPERVISION Supervisors change their leadership styles

to meet the capability level of their followers.

Supervisory/employee interactions have two categories:1. Directive Behavior

Focus on getting the job done. 2. Supportive Behavior

Focus on encouraging and motivating employees.

SITUATIONAL SUPERVISIONThe situation is determined by the capability of the employee.

ABILITYWhat level of education, experience, skills do they have?

MOTIVATIONHow much do they want to do the job – will they need support & encouragement - or will they do it on their own?

LEVELS OF EMPLOYEE CAPABILITY

LOW (C-1)Need lots of direction and supervision – lack motivation.MODERATE (C-2)Need some supervision – may have high motivation but still need directions, support and encouragement.HIGH (C-S)High in ability – but lack confidence – needs lots of support and encouragement to get motivated.OUTSTANDING (C-4)Got all the knowledge and are highly motivated on their own.

SUBSTITUTE FOR LEADERSHIP

Leadership is a shared process in groups.

There is no substitute for leadership in that case.

But there are substitutes for managers.

SUBSTITUTE FOR LEADERSHIP

The following can provide direction and support:

1. Characteristics of subordinates(Ability, knowledge, experience, training,

need for independence, professional orientation; indifference toward organizational rewards.)

SUBSTITUTE FOR LEADERSHIP

The following can provide direction and support:

2. Characteristics of task(Clarity and routine; invariant methodology;

provision of own feedback; concerning accomplishment; intrinsic satisfaction)

SUBSTITUTE FOR LEADERSHIP

The following can provide direction and support:

3. Characteristics of the OrganizationFormalization (explicit plans, goals, and areas

of responsibility); inflexibility (rigid unbending rules and procedures); highly specified and active advisory and staff functions; closely knit, cohesive work groups; organizational rewards not within the leader’s control; spatial distance between superior and subordinates.

DIVERSITY & GLOBAL LEADERSHIIP

We are growing more GLOBAL every day. Most leadership theories originate in U.S. Cultural beliefs and values may not be as

effective in other countries. Cultural sensitivity is vital to operations outside

one’s own country. E-organizations operate a little differently. Leaders focus on speed – flexibility – vision. More written and less face-to-face

communication. The Virtual Team uses technology to

communicate.

DIFFERENCES IN STYLES

Leadership styles are not a “one-size-fits-all,” situations also vary according to cultures. Korean leaders Expected to act as father figures to employees. Arab leaders Viewed as weak if they show kindness or generosity. Japanese leaders Expected to be humble and not speak much . Scandanavian & Dutch leaders Embarrass employees publicly rather than motivate with individual praise.

TRUST In business and life in

general, trust is an absolute essential.

It is the positive expectation that another will not take advantage of you

It should not be “given” but “earned.”

It takes time to develop true trust.

TYPES OR LEVELS OF TRUST

1. Deterrence Based

Based on fear.

It is the most fragile since one violation or inconsistency can destroy the relationship.

TYPES OR LEVELS OF TRUST2. Knowledge – Base

Most common in organizations. Knowledge lets us predict behavior. The better we know someone the more we

can predict their actions. It is not destroyed by a singular inconsistency

- it allows for forgiveness and moving forward.

Everyone makes mistakes and forgiveness is vital to good relationships.

TYPES OR LEVELS OF TRUST

3. Identification Based

Emotional connections – friendships.

The highest level of trust.Gender differences – men state their

expectations – women trust others will anticipate them.

DEVELOPING TRUST IntegrityCompetenceConsistencyLoyaltyOpennessRisk and Destroying

Trust

INTEGRITYTell The TruthThe fine line between truth and lying is called tactfulness.Keep Your CommitmentsPromises made are promises kept.Be FairFairness establishes credibility.Integrity and fairness are core to good business and relationships.

COMPETENCE

Be ConscientiousDo you trust someone who does shoddy

work?Know Your Strengths And Limitations

Don’t commit to doing something that you won’t be able to deliver.Admit Your Mistakes

If you are a “know it all” … people tend not to trust you…we don’t trust or even like people that have to be right all the time.

CONSISTENCYKeep Commitments

This is a repeat – because it is very important! Do what you say you will do.

Practice What You Preach

If you “talk the talk” … then you must “walk the walk.” The old saying “do as I say, not as I do” will not fly.

LOYALTYInvest Heavily

In LoyaltyIf you display loyalty it will usually be reciprocated – no one trusts someone who is only taking care of numero uno.

Maintain ConfidencesDon’t repeat things told to you in

confidence – no one trusts a back- stabber or someone who blabs everything they know.

LOYALTY

Don’t Gossip Negatively About People

If you talk about others in a negative way…people assume you will be doing

the same about them as soon as their backs are turned.

OPENNESS

The Johari Window

OPENNESS Based on self understanding we chose what is

appropriate to share with others.

Disclosure is a gradual and mutual process based on trust.

Risk Self-Disclosure

Everyone is vulnerable in some way.

But the rewards of letting yourself be known to others are worth the risk.

REPAIRING TRUST Trust is earned and builds over time. Easier to destroy than to build . Once trust is broken relationships may be mended

but they are never the same again. Admit mistakes and apologize. Women generally more willing to

apologize than men. We find it easier to apologize to strangers than loved ones. People get very emotional when they feel their trust has been betrayed – stay calm.

THANK YOU!