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Fundamentals of Management

Tenth Edition

Chapter 12
Leadership
and Trust

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Learning Objectives
12. 1 Define leader and leadership.
12. 2 Compare and contrast early leadership theories.
12. 3 Describe the four major contingency leadership
theories.
12. 4 Describe modern views of leadership and the issues
facing today’s leaders.
12. 5 Discuss trust as the essence of leadership.

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Learning Objectives 12.1
• Define leader and leadership.

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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.

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Learning Objectives 12.2
• Compare and contrast early leadership theories.

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Trait Theories of Leadership

Sergiu Ungureanu/Shutterstock

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What Traits Do Leaders Have?
Exhibit 12-1 Traits Associated with Leadership

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Behavioral Theories of Leadership

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University of Iowa and Ohio State
Studies
University of Iowa 4 Ohio State 5
Behavioral Dimension Behavioral Dimension

Democratic style: involving Consideration: being considerate of


subordinates, delegating authority, and followers’ ideas and feelings
encouraging participation
Initiating structure: structuring work
Autocratic style: dictating work and work relationships to meet job goals
methods, centralizing decision making,
and limiting participation CONCLUSION

Laissez-faire style: giving group High–high leader (high in consideration


freedom to make decisions and and high in initiating structure) achieved
complete work high subordinate performance and
satisfaction, but not in all situations
CONCLUSION
Democratic style of leadership was most
effective, although later studies showed
mixed results.

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University of Michigan Study and
Managerial Grid
University of Michigan 6 Managerial Grid 7
Behavioral Dimension Behavioral Dimension

Employee oriented: emphasized Concern for people: measured leader’s


interpersonal relationships and taking concern for subordinates on a scale of 1
care of employees’ needs to 9 (low to high)

Production oriented: emphasized Concern for production: measured


technical or task aspects of job leader’s concern for getting job done on a
scale 1 to 9 (low to high)
CONCLUSION
CONCLUSION
Employee-oriented leaders were
associated with high group productivity Leaders performed best with a 9,9 style
and higher job satisfaction. (high concern for production and high
concern for people).

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Situational Leadership
Which leadership styles might be suitable in different
situations, and what are those different situations?

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Learning Objectives 12.3
• Describe the four major contingency leadership theories.

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Least-Preferred Coworker
Questionnaire

David Woo/Dallas Morning News/Corbis


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Exhibit 12-2 The Fiedler Model

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Situational Leadership Theory (1 of 2)
• Why does a leadership theory focus on the followers?
• What does readiness mean?

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Situational Leadership Theory (2 of 2)

LEADER
FOLLOWERS
NOW—let’s put the two together!

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Leader-Participation Model (1 of 2)
1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make a good
decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower
commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers over
solution alternatives
8. Whether followers have the necessary information to make a
good decision
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Leader-Participation Model (2 of 2)
9. Time constraints on the leader that may limit follower
involvement
10. Whether costs to bring geographically dispersed members
together are justified
11. Importance to the leader of minimizing the time it takes to
make the decision
12. Importance of using participation as a tool for developing
follower decision skills
Source: Stephen P. Robbins and Timothy A. Judge, Organizational Behavior,
13th ed., ©2009, p. 400. Reprinted and electronically reproduced by permission
of Pearson Education, Inc., New York, NY.

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Path-Goal Theory
Four leadership behaviors:
1. Directive leader
2. Supportive leader
3. Participative leader
4. Achievement-oriented leader

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Exhibit 12-4 Path-Goal Model

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Learning Objectives 12.4
• Describe modern views of leadership and the issues facing
today’s leaders.

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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.

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Transactional vs. Transformational
Leaders
Transactional Leaders:
• lead primarily by using social exchanges (or transactions).
Transformational Leaders:
• stimulate and inspire (transform) followers to achieve
extraordinary outcomes.

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Charismatic vs. Visionary Leaders

Reed Saxon/AP Images


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Leaders and Teams
Exhibit 12-5 Team Leader Roles

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Contemporary Issues: Employee
Empowerment

Say What? Lead by NOT Leading

Managers are increasingly leading by not leading; that


is, by empowering their employees.

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Contemporary Issues: National
Culture (1 of 2)
Exhibit 12-6 Cross-Cultural Leadership
• Korean leaders are expected to be paternalistic 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.
• Effective leaders in Malaysia are expected to show compassion while
using more of an autocratic than a participative style.
• Effective German leaders are characterized by high performance
orientation, low compassion, low self-protection, low team orientation,
high autonomy, and high participation.
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Contemporary Issues: National
Culture (2 of 2)
Sources: Based on J.-H. Shin, R. L. Heath, and J. Lee, “A Contingency
Explanation of Public Relations Practitioner Leadership Styles: Situation and
Culture,” Journal of Public Relations Research (April 2011): 167–90; J. C.
Kennedy, “Leadership in Malaysia: Traditional Values, International Outlook,”
Academy of Management Executive, August 2002, 15–17; F. C. Brodbeck, M.
Frese, and M. Javidan, “Leadership Made in Germany: Low on Compassion,
High on Performance,” Academy of Management Executive, February 2002,
16–29; M. F. Peterson and J. G. Hunt, “International Perspectives on
International Leadership,” Leadership Quarterly, Fall 1997, 203–31; R. J. House
and R. N. Aditya, “The Social Scientific Study of Leadership: Quo Vadis?”
Journal of Management 23, no. 3 (1997): 463; and R. J. House, “Leadership in
the Twenty-First Century,” in A. Howard (ed.), The Changing Nature of Work
(San Francisco: Jossey-Bass, 1995), 442.

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Contemporary Issues: Emotional
Intelligence (EI)

Becoming a STAR ✯ leader

EI, more than any other single factor, is the best


predictor of who will emerge as a leader.

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Learning Objectives 12.5
• Discuss trust as the essence of leadership.

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The Importance of Trust
Building trust:
• Practice openness
• Be fair
• Speak your feelings
• Tell the truth
• Be consistent
• Fulfill your promises
• Maintain confidences
• Demonstrate confidence

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A Final Thought on Leadership
Leadership may not always be important!

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Copyright

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