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Leadership and Creating Trust

Leadership and Creating Trust. Essentials of Organizational Behavior, 8/e Stephen P. Robbins. Chapter 10. After reading this chapter, you should be able to:. Summarize the conclusions of trait theories Identify the limitations of behavioral theories Describe Fiedler’s contingency model

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Leadership and Creating Trust

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  1. Leadership andCreating Trust Essentials of Organizational Behavior, 8/e Stephen P. Robbins Chapter 10 © 2005 Prentice-Hall

  2. After reading this chapter, you should be able to: • Summarize the conclusions of trait theories • Identify the limitations of behavioral theories • Describe Fiedler’s contingency model • Summarize the path-goal theory • List the contingency variables in the leader-participation model © 2005 Prentice-Hall

  3. After reading this chapter, you should be able to: • Differentiate transformational from transactional leadership • Describe the pros and cons of charismatic leadership • Explain the role of emotional intelligence in leadership effectiveness • Identify situations when leadership may not be relevant • Summarize how leaders can build trust © 2005 Prentice-Hall

  4. Leadership • Ability to influence a group toward the achievement of goals © 2005 Prentice-Hall

  5. ambition and energy desire to lead honesty and integrity self-confidence intelligence high self-monitoring job-relevant knowledge Trait Theories – 1990s Seven traits seemed to differ leaders from non-leaders: © 2005 Prentice-Hall

  6. Researchers began organizing traits around the Big Five personality framework © 2005 Prentice-Hall

  7. Resulted in consistent and strong support for traits as predictors of leadership © 2005 Prentice-Hall

  8. Traits do a better job at predicting the emergence of leaders than in actually distinguishing between effective and ineffective leaders © 2005 Prentice-Hall

  9. Behavioral Theories Assumes people can be trained to lead Researched the behaviors of specific leaders Provides the basis of design for training programs © 2005 Prentice-Hall

  10. Ohio State Studies Developed two categories of leadership behavior Initiating structure - attempts to organize work, work relationships, and goals Consideration - concern for followers’ comfort, well-being, status, and satisfaction © 2005 Prentice-Hall

  11. University of Michigan Studies Employee-oriented - emphasize interpersonal relations Production-oriented - emphasize the technical or task aspects of the job © 2005 Prentice-Hall

  12. © 2005 Prentice-Hall

  13. Limitations of Behavioral Theories • Did not identify consistent relationships between leadership behavior and group performance • Missing consideration of the situational factors that influence success and failure © 2005 Prentice-Hall

  14. Contingency Theories • Fiedler • Path-goal • Leader-participation © 2005 Prentice-Hall

  15. Fiedler Leadership Model • Effective group performance depends on the proper match between the leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader • Least-preferred co-worker (LPC) questionnaire © 2005 Prentice-Hall

  16. Fiedler Contingency Dimensions • Leader-member relations • Task structure • Position power © 2005 Prentice-Hall

  17. Fiedler Model © 2005 Prentice-Hall

  18. Leader-Member Exchange Theory • Leaders do differentiate among followers • Disparities are far from random • Followers with in-group status have: • higher performance ratings • lower turnover intentions • greater satisfaction with their superiors • higher overall satisfaction than those in the out-group © 2005 Prentice-Hall

  19. Path-Goal Theory • Leader’s job is to assist followers in attaining their goals and to provide the direction and support needed to ensure that their goals are compatible with the overall objectives of the organization • Acceptable, Motivational © 2005 Prentice-Hall

  20. Path-Goal Theory • Directiveleader • Supportive leader • Participative leader • Achievement-oriented leader © 2005 Prentice-Hall

  21. Path-Goal Theory © 2005 Prentice-Hall

  22. Leader-Participation Model • Leader behavior must adjust to reflect the task structure • Sequential set of rules that should be followed in determining the form and amount of participation in decision making © 2005 Prentice-Hall

  23. 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 © 2005 Prentice-Hall

  24. Charismatic Leadership Theory • Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors © 2005 Prentice-Hall

  25. Charismatic Leaders • Have vision • Willing to take risks to achieve that vision • Sensitive to both environmental constraints and follower needs • Exhibit behaviors that are out of the ordinary © 2005 Prentice-Hall

  26. How Charismatic Leaders Influence Followers • Articulates an appealing vision • Communicates high performance expectations • Conveys, through words and actions, a new set of values • Makes self-sacrifices and engages in unconventional behavior to demonstrate convictions about the vision © 2005 Prentice-Hall

  27. Increasing body of research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers © 2005 Prentice-Hall

  28. Contemporary Issues • Role of emotional intelligence in leadership effectiveness • Ethical implications in leadership • Need to modify leadership style to cultural differences © 2005 Prentice-Hall

  29. Emotional Intelligence (EI) • Recent studies indicate that EI is the best predictorof who will emerge as a leader © 2005 Prentice-Hall

  30. What is Trust? • A positive expectation that another will not--through words, actions, or decisions--act opportunistically • Familiarity, Risk © 2005 Prentice-Hall

  31. Trust Dimensions Integrity Competence Consistency Loyalty Openness © 2005 Prentice-Hall

  32. Three Types of Trust • Deterrence-based • Knowledge-based • Identification-based © 2005 Prentice-Hall

  33. How to Build Trust • Practice openness • Be fair • Speak your feelings • Tell the truth • Show consistency • Fulfill your promises • Maintain confidences • Demonstrate competence © 2005 Prentice-Hall

  34. Summary • Summarized the conclusions of trait theories • Identified the limitations of behavioral theories • Described Fiedler’s contingency model • Summarized the path-goal theory • Listed the contingency variables in the leader-participation model © 2005 Prentice-Hall

  35. Summary • Differentiated transformational from transactional leadership • Described the pros and cons of charismatic leadership • Explained the role of emotional intelligence in leadership effectiveness • Identified situations when leadership may not be relevant • Summarized how leaders can build trust © 2005 Prentice-Hall

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