Ch12-Leadership Trust

8/3/2019 Ch12-Leadership Trust

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PowerPoint Presentation by Charlie CookThe University of West Alabama

2007 Thomson/South-Western. All rights reserved.

Leadership:Leading in aDynamic

Environment

Chapter

12

Part 4 Leadership Challenges in the 21st Century


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2007 Thomson/South-Western. All rights reserved. 122

Managers versus leaders

Leadership perspectives

Team leadership

LEARNING OBJECTIVES

When you have finished studying this chapter, youshould be able to:


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Managers Versus Leaders

Not all leaders are managers, nor are allmanagers leaders.

Managers

Persons whose influence on others is limited to the

appointed managerial authority of their positions toreward and punish.

Leaders

Persons with managerial and personal power whocan influence others to perform actions beyond thosethat could be dictated by those persons formal

(position) authority alone.


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Leadership Significance

Leadership is: A social influence process.

A responsibilityand aprocess; its not a position, title,or privilege.

An observable, understandable, learnable set of skillsand practices available to everyone, anywhere in theorganization.

The indirect ability to influence people by inspiringthem to pursue goals for the benefit of theorganization.


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Leadership and Vision

Leadership involves:Creating a vision of the future.

Devising strategy for achieve that vision.

Communicating the vision so that everyoneunderstands and believes in it.


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Figure 12.1 Three Categories of Leader Approaches


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1. Leader-Centered Approaches

Leadership Traits and Skills Focus The assumption that some people are born with

certain physical characteristics, aspects ofpersonality, and aptitudes that make them successful

leaders.Physical characteristics: height and appearance

Personality: self-esteem, dominance and emotionalstability

Aptitudes: general intelligence, verbal fluency andcreativity


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Traits of Successful Leaders

Drive Achievement, sense of responsibility, ambition,

energy, tenacity and initiative.

Motivation

Especially power.

Honesty and integrity

Self confidence

Persuasive, diplomatic and socially skilled. Conceptual ability

Business knowledge


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Table 12.1 The 25 Most Influential Leaders of Our Times

1. Mary Kay Ash, founder of Mary Kay Cosmetics

2. Jeff Bezos, CEO of Amazon.com

3. John Bogle, founder of The Vanguard Group

4. Richard Branson, CEO of Virgin Group

5. Warren Buffett, CEO of Berkshire Hathaway

6. James Burke, former CEO of Johnson & Johnson

7. Michael Dell, CEO of Dell Computers

8. Peter Drucker, educator and author

9. Bill Gates, chair of Microsoft10.William George, former CEO of Medtronics

11.Louis Gerstner, former CEO of IBM

12.Alan Greenspan, chair, U.S. Federal Reserve

13.Andy Grove, former chair of Intel

14. Lee Iacocca, former CEO of Chrysler

15. Steven Jobs, CEO of Apple Computers

16. Herb Kelleher, CEO of Southwest Airlines

17. Peter Lynch, former manager of Fidelitys MagellanFund

18. Charles Schwab, founder of Charles Schwab Inc.

19. Frederick Smith, CEO of Federal Express

20. George Soros, founder and chair of Open SocietyInstitute

21. Ted Turner, founder of CNN

22. Sam Walton, founder of Wal-Mart

23. Jack Welch, former CEO of General Electric

24. Oprah Winfrey, chair of the Harpo group ofcompanies

25. Mohammed Yunus, founder of Grameen Bank.

To celebrate the 25th anniversary of the Nightly Business Report(NBR), Wharton and NBR workedto identify the 25 most influential business leaders of the past 25 years. Their goal was to find

business leaders who created new and profitable ideas; affected political, civic or social changethrough achievement in the business/economic world; created new business opportunities or morefully exploited existing ones; caused or influenced dramatic change in a company or industry; and/orinspired and transformed others.


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Leader-Centered Approaches (contd)

Leadership Behavior Focus Examines what effective leaders do rather than what

effective leaders are.

Defines a leaders effectiveness based on two

orientations:Task orientation

Setting performance goals, planning and scheduling work,coordinating activities, giving directions, setting standards,providing resources, and supervising performance.

Relations orientation

Behavior that shows empathy for concerns and feelings,supportive of needs, showing trust, and similar attributes.


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Leadership Behavior Conclusions

Effective leaders use a range of behaviors. Leadership behaviors can be learned.

Effective leaders have the ability to change and

adapt to organizational settings in which theymanage.

It is still not obvious which behaviors are most

effective because numerous other factors caninfluence performance and success.


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Leader-Centered Approaches (contd)

Leadership Power Focus Power:the ability to use human, informational, or

material resources to get something doneto getresults.

Authority:the officially (organizationally) sanctionedright to get something done.


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Types of Position Power

1. Legitimate powerStems from formal authority.

2. Coercive power

The power to discipline, punish and

withhold rewards.

3. Reward power

Control over tangible benefits.

4. Information powerControl over information.


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Types of Personal Power

5. Expert power The power influence another person because of

expert knowledge and competence.

6. Referent power

The ability to influence othersbased on personal liking,charisma and reputation.


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Power Orientation

Personalized Power Orientation Associated with a strong need for esteem and status;

power is often used impulsively.

Socialized Power Orientation

The use of power for the benefit of others to makesubordinates feel strong and responsible.


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2. Follower-Centered Approaches

Self-leadership (Followership) Focus A paradigm founded on creating an organization of

leaders who are ready to lead themselves.

Requires each employee to be accountable for his or

her own behavior. Employees feel valued by the company and are loyal.


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Figure 12.2 Essential Strategies for Self-Leadership


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Characteristics of Self-Leaders

The capacity to motivate themselves and stay focusedon tasks.

Integrity that demands both loyalty to the organizationand the willingness to act according to beliefs.

Understanding of the organization and their contributionsto it.

Willingness to take the initiative to deal with problems.

Versatility, skillfulness and flexibility to adapt to achanging environment.

Responsibility for their careers, actions anddevelopment.


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Leadership Substitutes

Variables such as individual, task, andorganizational characteristics that tend tooutweigh the leaders ability to affect

subordinate satisfaction and performance.

Also known as neutralizers: A condition that counteracts leader behavior and/or

prevents the leader from having an effect on afollower or a specific situation.


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Figure 12.3 Leadership Substitutes


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3. Interactive Approaches

Another method of examining leadershipeffectiveness is to look at how leaders interactwith their followers.

Interactive Approaches:

Situational leadership model

Empowerment

Transformational leadership


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Interactive Approaches (contd)

Situational Leadership Model Examines the interaction between leadership

behavior, the situation, and the followers readiness.

Leadership behavior: based on the concern for the

task and the concern for the employee. Tomaximize employee performance, leadershipbehavior must use a style appropriate toemployees development or readiness.

Readiness: the extent to which a subordinatepossesses the ability and willingness to complete aspecific task.


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Styles of Situational Leadership Behavior Telling style:the leader provides specific instructions

and closely supervises performance.

Selling style:the leader explains decisions and

provides opportunities for clarification.

Participating style:the leader shares ideas andmaintains two-way communication to encourage andsupport the skills subordinates have developed.

Delegating style:the leader provides subordinateswith few task or relations behaviors.


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Empowerment The interaction of the leader giving away or sharing

power with those who use it to become involved andcommitted to independent, high-quality performance.

Successful empowerment means that everyone hasbeen convinced that he or she makes a difference tothe success of the organization.


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Transformational Leadership Is a leaders ability to influence employees to achieve

more than was originally expected, or thoughtpossible.

Generates feelings of trust, admiration, loyalty andrespect from followers through:

Idealized influence

Inspirational motivation

Intellectual stimulation

Individualized considerations


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Table 12.2 Primary Dimensions of Transformational Leadership

Dimension

Individualized

consideration

Intellectual

stimulation

Inspirational

motivation

Idealizedinfluence

Leaders Specific Behavior

Acts as mentor; is attentive toachievement and growth needs.

Promotes innovation and creativity;

reframes problems.

Provides meaning and challengethrough prosocial, collective action.

Shares risks; is considerate ofothers over own needs; is ethicaland moral.

Followers Behavior

Is motivated; feels valued.

Is encouraged to be novel

and try new approaches.

Is motivated by team spirit;enthusiastic; optimistic.

Shows admiration; respect;trust.


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Current Perspectives on Leadership

Emotional Intelligence (EI) The capacity to effectively manage ourselves and our

relationships.

Components of EI:

Personal competence: the ability to understandyour own feelings, emotions, and their impact andto understand your strengths and weaknesses(based on the concept of self-awareness).

Social competence: the ability to understand whatothers are feeling (the concept of socialawareness) and having the skills to work effectivelywith others (based on social skill).


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Table 12.3 The Emotional Intelligence Competency Framework

Social Competence

Social awarenessEmpathy and insight

Political awareness

Service orientation

Social skill

Developing othersVisionary leadership

Influence

Communication

Change catalyst

Conflict managementBuilding bonds

Teamwork and collaboration

Synergy in teamwork

Sources: D. Goleman, R. Boyatzis, and A. McKee, Primal Leadership: Realizing the Power of Emotional Intelligence(Boston: Harvard

Business School Press, 2003); D. Goleman Leadership That Gets Results, Harvard Business Review(March/April 2000): 7890.

Personal Competence

Self-managementSelf-control

Trustworthiness

ConscientiousnessAdaptability

Achievement orientationInitiative

Self-awareness

Emotional self-awareness

Accurate self-assessment

Self-confidence


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Current Perspectives on Leadership (contd)

Gender and Leadership Female leaders are more empathic, persuasive,

better listeners and more willing to consider others

points of view.

Male leaders show higher levels of resilience andthoroughness than women leaders.

Both men and women executives believe that womenhave to be exceptional to succeed in business.

Women leaders feel they must struggle harder thanmen to succeed.

Women are more likely to use behaviors that areassociated with transformational leadership.


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Current Perspectives on Leadership (contd)

Leaders of the future will: Be challenged to manage relationships with a

diversity of partners, stakeholders, and otherbusinesses in the larger context of differing cultures.

Need to align their leadership vision, core values, andeveryday actions to produce desired results in allaspects of their lives.

Promote leadership development and encourage

workers to assume leadership roles. Be innovative and creative, a continuous learner,

have values (especially integrity), and in charge oftheir own careers.


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The Challenge of Team Leadership

Becoming an effective team leader requires: Learning to share information.

Developing the ability to trust others.

Learning to give up authority.

Knowing when to leave their teams alone andwhen to intercede.

New roles that team leaders take on or tofocus on:

Managing the teams external boundary

Facilitating the team process


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Team Leader Roles

Exhibit 11.9


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Five Dimensions of Trust

A positive expectation that another will not act

opportunistically Integrity Honesty, conscientiousness and truthfulness

Competence

Technical and interpersonal knowledge and skills Consistency Reliability, predictability, and good judgment

Loyalty Willingness to protect and save face for a person

Openness Willingness to share ideas and information freely

Exhibit 11.10Source:Adapted and reproduced with permission of publisher from J. K. Butler Jr. and R. S. Cantrell,A Behavioral Decision Theory Approach to Modeling Dyadic Trust in Superiors and Subordinates.


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Types Of Trust

Deterrence-based trust Trust based on fear of reprisal/punishment if the trust is

violated

Eg. New manager-employee relationship

Knowledge-based trust

Trust based on the behavioral predictability that comes from ahistory of interaction

Rely on information

Eg. Manager-employee relationship

Identification-based trust

Trust based on an emotionalconnection between the parties

Eg. Happy marriage


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Thank You

Ch12-Leadership Trust

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