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CHAPTER 11 - LEADERSHIP AND TRUST

中國經濟管理大學11年前 (2013-07-13)講座會議406

CHAPTER 11 - LEADERSHIP AND TRUST


  • 内容提要:中国经济管理大学|中国经济管理大学培训

    罗宾斯《管理学原理》

    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

    For many corporations finding an adequate supply of the next generation of leaders is one of the more difficulty activities.  Getting the right talent and molding those individuals into the type of leader that the organization needs is often at best, a major gamble.  Consider finding leadership for a company operating in China.   China is presenting a unique and troublesome situation for companies.1  Simply stated, there’s not enough talent in the system to fill leadership positions--the professional, technical and managerial jobs.  It’s estimated that more that 75,000 of these positions will exist in the next decade; and currently there are only about 5000 individuals who can do the jobs.  This shortfall is compounded by the language barriers that may exist between China and the western world, as well as the cultural aspects of life in China.
     But General Electric is somewhat undaunted by these challenges.  Rather than gamble on hit or miss possibilities, GE is going after talented people like Sophia Zhu.  Zhu graduated from the People’s University in Beijing, China with a degree in economics and international trade.  As an aspiring corporate mogul, she had many job offers.  She opted to accept the job offer from General Electric–which, interestingly, was not offering Sophia the highest salary.  What GE was offering however, was the opportunity for her to be trained in the GE way and widely open widely doors of her career growth into a leadership position.  Along the way, she has access to senior GE leaders including GE’s Chairman, Jeffrey Immelt.
     Upon her hiring, General Electric executives immediately got Zhu started in their leadership development program.  Assigned a mentor to help her learn the GE way, Zhu is serving in a number of 18-month assignments on a rotational basis that are designed to give her the requisite tools to succeed.  She began her GE career working in GE’s financial management program in Japan.  After completing her assignment in Japan, she was transferred to Waukesha, Wisconsin for additional training while working with the “global planning and analysis team.”  When she is done with her Wisconsin rotation, she will more than likely return to China to lead a specific department for GE.
     What’s interesting in this GE model is that they are not only growing leaders internally, they are creating a loyalty that is unsurpassed in China.  Because of the demand for Chinese Executives, turnover is high–about 14 percent per year.  Through its leadership development efforts, GE’s turnover in the country is less than half of the nation’s average.  GE executives believe it’s because of how they develop and nurture their talent and reward them well that gives them an advantage.  For Zhu, it’s also the fact that she will be leading a group of employees in about half the time that it takes for others to ascend to such a position. 

    Teaching notes
    1.    When discussing this vignette, begin by creating a pro-con list on the board.  What are some pros and cons of GE’s leadership development approach?  (Pros: efficiency, employee commitment, generalist perspective (functionally), global perspective. Cons: GE mindset throughout company (could stifle innovation); potential for less “functional turnover”, etc.)

    2.    Discuss whether or not the students agree with the GE outlook that leaders can be “grown.”

    I. MANAGERS VERSUS LEADERS (PPT 11-2)
    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.

    5. Leaders in this chapter mean those who are able to influence others—and who possess managerial authority.

    Teaching Notes  _______________________________________________________________________
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    II. TRAIT THEORIES OF LEADERSHIP (PPT 11-3)

    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.
    (See 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 or 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 (PPT 11-4)

    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. (PPT 11-5, 11-6)

    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 in deciding work methods, 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  _______________________________________________________________________
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    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. Suggested that managers should move toward more employee-centered styles in the long run.

    a) Such behaviors would increase employees’ motivation, decision quality, teamwork, morale, and development.

    C. Why Were the Ohio State Studies Important? (PPT 11-7)

    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.

    a) Initiating structure refers to the extent to which a leader is likely to define and structure
    his or her role and those of employees in the search for goal attainment.

    b) 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 on either consideration, initiating structure, or both.

    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 or her manager.

    D. What Were the Leadership Dimensions of the University of Michigan Studies? (PPT 11-8)

    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 their group’s tasks, and regarded group members as a means to that end.

    2. The Michigan researchers strongly favored leaders who were employee oriented.

    Teaching Notes  _______________________________________________________________________
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    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.”

    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 81 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 corners of the grid and a middle-ground area.  (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—it offers no answers to the question of what makes an effective leader.

    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 that influence success or failure.

    G.  Self Assessment Library 3.0 # 29 “What’s my Leadership Style?”

    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? (PPT 11-9)

    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. See Exhibit 11-4

    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 argued that leadership style is innate to a person—you can’t change your style.

     

     

     

    5. 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.

    6. 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.

    7. Problems exist with the Fiedler model.
    a) The LPC is not well understood and scores are not stable over time. 

    b) The contingency variables are complex and difficult for practitioners to assess. 

    Teaching Notes  _______________________________________________________________________
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    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 and measured through an employee’s evaluation of their least preferred coworker across 16 different adjectives/dimensions.  Fiedler’s premise is that what you say about others describes your leadership more than what you say about yourself.  High LPC scores indicate a relationship orientation, and low LPC scores indicate a task orientation.   Because one’s leadership style is fixed, 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? (PPT 11-10)

    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 is 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.

    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, support, and reward necessary for effective performance.

    6. House identified four leadership behaviors:  (PPT 11-11)

    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 levels.

    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, depending on the situation.

    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 (task structure, the formal authority system, and the work group).

    1) Environmental factors determine leader behavior required if employee outcomes are to be maximized.

    b) Those that are part of the personal characteristics of the employee (locus of control, experience, and perceived ability).

    1) Personal characteristics determine how the environment and leader behavior are interpreted.

    c) The theory proposes that leader behavior will be ineffective when it is redundant to sources of environmental structure or incongruent with subordinate characteristics.

    9. Research to validate path-goal predictions is encouraging, although not all support is positive.

    a) The majority of the evidence supports the logic underlying the theory.

    Teaching Notes  _______________________________________________________________________
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    D. What Is the Leader-Participation Model? (PPT 11-12)

    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—it provided a sequential set of rules to be followed in determining the form and amount of participation in decision making in different types of situations.

    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 five alternative leadership styles but expands the contingency variables to twelve.  (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.

    d) Vroom, Yetton, and Jago argue against the notion that leader behavior is inflexible. 

    E. How Does Situational Leadership Operate? (PPT 11-13)

    1. Paul Hersey and Kenneth Blanchard developed the leadership model.

    a) Called situational leadership (SL), it shows how a leader should adjust leadership style to reflect what followers need.

    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 that people have the ability and the willingness to accomplish a specific task.

    5. Hersey and Blanchard identify four specific behaviors.  (See Exhibit 11-7.)  (PPT 11-13)

    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—it acknowledges the importance of followers and builds on the idea that leaders can compensate for the lack of ability and motivation of their followers.

    8. Research efforts to test and support the theory have generally been mixed.

     

     

    Teaching Notes  _______________________________________________________________________
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    V. EMERGING APPROACHES TO LEADERSHIP

    A. What Is Charismatic Leadership Theory? (PPT 11-14)

    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; they are perceived as unconventional; they are assertive and self-confident; and they 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. (PPT 11-15)

    3. Charismatic leaders influence followers by a four-step process

    a) Stating an appealing vision
    b) Communicating high expectations and expressing confidence in followers
    c) Conveying a new set of values and role models behaviors
    d) Making  self-sacrifices and engaging in unconventional behavior

    4. Most experts believe individuals can be trained to exhibit charismatic behaviors.

    5. 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?  (PPT 11-16)

    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 communications 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? (PPT 11-17)

    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.

     

     


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    C. Are Entrepreneurs Visionary Leaders?

    1. Today’s successful entrepreneur must be like the leader of a jazz ensemble.
     
    a) Excels in improvisation, innovation, and creativity.

    b) Max DePree, former head of Herman Miller, Inc., a leading office furniture manufacturer known for its innovative leadership, said it best in his book Leadership Jazz, “We have much to learn from jazz band leaders, for jazz, like leadership, combines the unpredictability of the future with the gifts of individuals.”

    2. One way that an entrepreneur draws out the best in other individuals even given the unpredictability of the situation is through the vision he or she creates for the organization.

    a) Often the driving force through the early stages of the entrepreneurial venture is the visionary leadership of the entrepreneur.

    b) The entrepreneur’s ability to articulate a coherent, inspiring, and attractive vision of the future is a key test of his or her leadership.

    c) Visionary companies outperformed the nonvisionary ones by six times on standard financial criteria, and their stocks outperformed the general market by 15 times.

    D. How Do Transactional Leaders Differ from Transformational Leaders? (PPT 11-18)

    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.

    a) Transformational leaders pay attention to the concerns and developmental needs of individual followers; they change followers’ awareness of issues by helping those followers to look at old problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra effort to achieve group goals.

    3. Transactional and transformational leadership 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  _______________________________________________________________________
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    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 team leader 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 “ability to be charmingly influential.” 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.

    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? What’s your opinion?  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 in becoming an effective team leader. (PPT 11-19)

    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.  (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, and whatever else is necessary to help team members improve their work performance.

    Teaching Notes  _______________________________________________________________________
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    B. Does National Culture Affect Leadership? (PPT 11-20)

    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 (Arab, Far Eastern, and Latin countries).

    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 (Norway, Finland, Denmark, and Sweden).

    C. How Does Emotional Intelligence Affect Leadership? (PPT 11-21)

    1. Recent studies indicating that EI—more than I.Q., expertise, or any other single factor—is the best predictor of who will emerge as a leader.

    a) I.Q. and technical skills are “threshold capabilities.”

    b) It’s the possession of the five components of emotional intelligence—self-awareness, self-management, self-motivation, empathy, and social skills—that allows an individual to become a star performer.

    2. Evidence indicates that the higher the rank of a person considered to be a star performer, the more that EI capabilities surface as the reason for his or her effectiveness.

    a) When star performers were compared with average ones in senior management positions, nearly 90 percent of the difference in their effectiveness was attributable to EI factors rather than basic intelligence.

    b) Example, the maturing of Rudolph Giuliani’s leadership effectiveness.

    c) EI appears to be especially relevant in jobs that demand a high degree of social interaction. 

    d) EI should probably be added to the list of traits associated with leadership.

    D. Is Leadership Always Important?

    1. The belief that a particular leadership style will always be effective regardless of the situation may not be true.

    2. Data from numerous studies demonstrate that, in many situations, any behaviors a leader exhibits are irrelevant.

    3. Certain individual, job, and organizational variables can act as substitutes for leadership, or neutralize the leader’s ability to influence his or her followers.

    4. Characteristics of employees such as experience, training, professional orientation, or indifference toward organizational regards can neutralize the effect of leadership.

    5. Jobs that are inherently unambiguous and routine or that are intrinsically satisfying may place fewer demands on the leadership variable.

    6. Organizational characteristics such as explicit formalized goals, rigid rules and procedures, and cohesive work groups can substitute for leadership.

    Teaching Notes  _______________________________________________________________________
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    VII. BUILDING TRUST: THE ESSENCE OF LEADERSHIP

    A. What is Trust?

    1. Trust is a positive expectation that another will not act opportunistically.

    a) Most important, trust 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.  (See Developing Your Trust-Building Skill.)

    3. Trust involves making oneself vulnerable.

    a) By its very nature, trust provides the opportunity to be disappointed or to be taken advantage of.

    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.  (See Exhibit 11-10.)
    a) Integrity refers to honesty, conscientiousness, and truthfulness.

    (1) This one seems to be most critical when someone assesses another’s trustworthiness.

    b) Competence encompasses an individual’s technical and interpersonal knowledge and skills.

    c) Consistency relates to an individual’s reliability, predictability, and good judgment in handling situations.

    d) Loyalty is the willingness to protect and save face for another person.

    e) The final dimension of trust is openness—can you rely on the person to give you the full truth?
    Developing Your Trust-Building Skill

    About the Skill
    Given the importance trust plays in the leadership equation, today’s leaders should actively seek to build trust with their followers.  Here are some suggestions for achieving that goal.

    Steps in Practicing the Skill
    1) Practice openness.
    2) Be fair.
    Speak your feelings.
    Tell the truth.
    Be consistent.
    Fulfill your promises.
    Maintain confidences.
    Demonstrate confidence.

    The Situation
    You are a new manager.  Your predecessor, who was very popular and who is still with your firm, concealed from your team how far behind they are on their goals this quarter.  As a result, your team members are looking forward to a promised day off that they are not entitled to and will not be getting.
    It’s your job to tell them the bad news.  How will you do it?

    Practicing the Skill
    Brainstorm with students as a class on how to give the bad news.

    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.

    After the “fish bowl,” ask students how they felt, if there is some way they would improve the process.

    Have the student(s) with ideas for improving the process come up front and demonstrate.

    Teaching tips
    While this exercise is mostly about individuals’ feelings and whether or not they trust someone depending on how bad news is delivered, instructors can steer students to the steps of trust building above.  Students can consider which steps were exhibited by the manager, and how the steps that were not included could be integrated into the news delivery. 

    B. Why Is Trust Critical to Leadership?

    1. Trust appears to be a primary attribute associated with leadership.

    2. Part of the leader’s task has been, and continues to be, 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 is largely determined by level of trust.

    Teaching Notes  _______________________________________________________________________
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    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 or 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.

    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 that builds confidence of trustworthiness and predictability.

    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.

    2) However, the same inconsistency at the deterrence level is likely to irrevocably break the trust.

    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  _______________________________________________________________________
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    Review, Comprehension, Application
    Chapter 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:  coaches, liaisons with external constituents, conflict managers, and troubleshooters.

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

    Companion Website
    We invite you to visit the Robbins/DeCenzo Companion Website at www.prenhall.com/robbins for the chapter quiz and student PowerPoints.

     Diversity Perspectives: Communication and Interpersonal Skills, by Carol Harvey and June Allard
    1.  What factors could have affected the perception(s )that the people in each of the five assignments had of Chantel?  Could that perception have been different if Chantel had been Chinese?
         The perception of Chantel by the workers at each site could have depended in part on factors such as their attitudes and prejudices about women in general, about women as managers, about African-American (or Chinese) women as well as their reaction to the leadership approach that Chantel took with them.
         Perceptions of a woman as a manager may differ from one assignment to another depending on the masculine-feminine (dominant values) orientation of that group and the amount of previous experience with women managers. At some sites the management is American and they may have perceived her more as Americans would rather than as locals would.  At other sites, the management came from the local culture and therefore would have reflected local cultural values.
         Perceptions of, and prejudices about, women in general and about African-American (and Chinese) women would likely differ at each assignment.  For example, a Chinese woman may well be perceived differently in Malaysia than would an African-American woman. 
         At the American manufacturing division, the ethnic make-up of the union group could affect its perceptions.  If the union division were located in Chinatown the perception of a Chinese manager might be different than if it were in an Hispanic or in an African-American enclave.
         How well Chantel’s leadership style fit with local expectations and cultural values at each site would affect perceptions of her.  Possible effectiveness of leadership styles for each location is discussed in question 2.

    2.  For each of Chantel’s five assignments describe a leadership approach (e.g., participative, autocratic, laissez-faire) that she could have used effectively.  Explain why you think this leadership style might be better than others in the situation.  (Note.  National culture is an important consideration in leadership style. You may find the following web site helpful in understanding perceptions of work in the assignments.)
                    http://cyborlink.com/besite/hofstede.htm

    AMERICA

    Ratings on Hofstede Cultural Dimensions
    Power Distance   40         - moderate
    Individualism-Collectivism  91 - high
    Masculinity 62 - moderate to high
    Uncertainty Avoidance            46 - moderate


    Even within the U.S., there are differences among various types of workers and work situations.

    American Manufacturing Division.  Students might suggest that Chantel could use a participative approach on the grounds that unions tend to have a more collectivistic (less individualistic) orientation and an avoidance of uncertainty orientation.

    American Think Tank Division.  Chantel might not choose to use an autocratic approach with this group as highly educated professionals are reputed to be self directive and to be more egalitarian (low power distance) among themselves.  Some scientists are used to working in small teams, but many are highly individualistic and students may use
    these arguments for predicting a highly participative or laissez-faire leadership approach as Chantel’s choice for this group.

    MALAYSIA

    Ratings on Hofstede Cultural Dimensions:                        Compared to the U.S., Malaysia is:
    Power Distance                        104      - very high      extremely high
    Individualism-collectivism   26     - very low       very much lower
    Masculinity 50      - medium       similar
    Uncertainty avoidance          36      - low       similar
     

    Examination of Hofstede’s dimensions suggests that given the great difference between Malaysia and her own U.S. culture in terms of Power Distance and Individualism,

    Chantel might select a somewhat autocratic leadership style on the grounds that participative leadership could be ineffective with such very low individualism.
    It should be remembered however, that the management in Malaysia is primarily American for which autocratic leadership is likely not appropriate.   Her choice of
    leadership style therefore, could depend upon whether she was dealing with American managers or with Malaysian workers.

     

     

    DENMARK

    Ratings on Hofstede Cultural Dimensions:                        Compared to the U.S., Denmark is:   
    Power Distance 18    -very low lower                
    Individualism-collectivism 74    - high                     lower
    Masculinity                                16    -very low much lower
    Uncertainty Avoidance             23    -very low much lower


    Using the Hofstede dimensions on Danish work culture,  the lower orientations of Denmark on Power Distance, Individualism, Masculinity and Uncertainty Avoidance, could have led Chantel to expect Danish workers to be more informal, more team/group oriented, more “feminine” and more tolerant of uncertainty than her own countrymen.

    In view of this, her choice of leadership could well have been participative.  The low power distance and masculinity score of the Danes would argue against autocratic leadership and for a laissez-faire or participative approach.  These choices would be strengthened in recognition that both managers and workers are Danish.

    GREECE

    Ratings on Hofstede Cultural Dimensions:                            Compared to the U.S, Greece is:
    Power Distance                       60     - moderate         somewhat higher
    Individualism-collectivism      35     - low          very much lower
    Masculinity                               57  - moderate         similar
    Uncertainty avoidance            112   - extremely high           very much higher

    The differences in power distance, individualism, and uncertainty avoidance between the U.S. culture and the culture of Greece, could lead Chantel to decide upon a more autocratic leadership approach to better fit the Greek culture and expectations.
    ____

    Astute students will suggest that before leaving for each site, Chantel should ask returning managers what they found at that site and what leadership approach they used and how successful it was.

    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 this 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 or 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 is 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.

    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. (2) 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 Hersey 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 is 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 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 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 the Pacific Rim contrast with leadership in the United States 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. Pacific Rim 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 this 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 individuals 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 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.

    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.

     

     

     

     

     


    Integrative Chapter Skills
    Motivational Gurus
    Purpose: The purpose of this case is to introduce the students to different styles in how individuals motivate their employees.
    Have the students read the excerpts below and divide them into groups to address the group task, indicated below the two excerpts, below. 
    BOOK EXCERPT
    Jack and the People Factory
    In his own words, Welch tells how to jolt a business to life.
    FORTUNE                          
    Monday, September 17, 2001
    In over two decades as CEO, Welch boosted GE's market cap by nearly half a trillion dollars. Clearer proof of a CEO's shrewdness and business wisdom would be hard to find. Yet reconstructing his career for the book, says Welch, brought a revelation: "I was surprised by how many of the insights I got to in my career were there at the beginning. I just wish I'd moved faster. It took me 20 years to do what clearly could have been done in ten."
    I had been working at GE for a year as an engineer making $10,500 when my boss handed me a $1,000 raise. I was okay with it--until I found out later that day that I'd gotten exactly what all four of us sharing an office received. I thought I deserved more than what my boss called the "standard" increase. I talked to him, but the discussion went nowhere. So I quit. Shortly after a young executive based in Connecticut invited Carolyn and me to dinner at a restaurant in Pittsfield. Over dinner, for four straight hours, he was hell-bent on keeping me at GE. He promised to get me a bigger raise and, more important, vowed to keep the company bureaucracy out of my way. By adding $2,000 to the $1,000 raise and promising an increase in responsibility and cover from the bureaucracy the young executive showed me he really cared. Ever since that time, differentiation has been a basic part of how I manage. But differentiation is all about being extreme, rewarding the best and weeding out the ineffective.  Rigorous differentiation delivers real stars—and stars build great businesses.
    Obviously, I wasn’t a natural fit for the corporation.  I had little respect or tolerance for protocol. 
    Facing reality and performing became the mantra of GE under Welch.  He gradually rebuilt the company into what he calls a “people factory” that generated success by richly rewarding talented mangers and relentless culling inferior ones.  Welch explains how differentiating between good and bad performers, the lesson he learned as a young plastics engineer, remains central to his vision as the engineer of a global corporate giant.
    In a company with more than 300,000 employees and 4,000 senior managers, we need more than just touchy-feely good intentions.  There has to be a structure and logic so that every employee knows the rules of the game. Rigor is what brings our people system to life. Every year we’d ask each of GE’s businesses to rank all its top executives.  We forced the leaders of the businesses to identify the people in their organizations whom they considered in the top 20%, the middle 70%, and finally the bottom 10%.  If there were 20 people on the management staff, we wanted to know the four in the top 20% and the two in the bottom 10%--by name, position, and compensation.  The underperformers generally had to go.
    ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬-------------------------------------------------------------------------------------------------------
    Adapted from Jack: Straight From the Gut, by Jack Welch with John A. Byrne, with permission of Warner Books.  Copyright © 2001 by John F. Welch Jr.  All rights reserved.
    Source: http://www.fortune.com/index.jhtml?channel=print_article.jhtml&doc_id=204011JOJOE TORRE
    A Manager for All Seasons
    Joe Torre gets the most out of his workers, makes his boss happy, and delivers wins. He may be the model for today's corporate managers. And he's not afraid to cry.
    By Jerry Useem
    Joe Torre began the 2001 baseball season the same way he finished the 2000 baseball season: with tears in his eyes. Last year they spilled forth in the dugout after the Yankees clinched their third straight World Series victory. This year they arrived while Torre was catching the ceremonial opening pitch from Mel Stottlemyre, the Yankee pitching coach who survived a bout with cancer last year. "I was getting more and more choked up, and my eyes were getting wet from tears," Torre said from behind his Yankee Stadium desk shortly after his team had pounded out a 7-3 Opening Day victory over the Kansas City Royals. "I didn't want to screw up and not catch the ball."
    Sentiment may sometimes get the better of him, but has Joe Torre screwed up anything since becoming manager of the New York Yankees in 1996? Consider: For five seasons he has taken a collection of rookies and retreads, recovering drug addicts and born-again Christians, Cuban defectors and defective throwers, and created a workplace that, were it not for its particular job requirements, would surely qualify for Fortune's list of the 100 best places to work. He has managed up as well as down, taming a notorious boss while buffering his players from the worst of the New York media maelstrom. In the process, he has returned one of the world's most storied brands to its former dynastic glory, winning four World Series in five years: the Torre Restoration, you might call it.
    No, this isn't Jack Welch in pinstripes. Let's be clear: Joe Torre knows no more about running a Fortune 500 company than Shakespeare or Elizabeth I or Jesus or any of the other figures who have lately been transfigured into management savants. Understanding ERA does not make one a master of EVA. But chances are Joe Torre knows something about managing people that you don't. "I try to understand what motivates other people," He is an exemplar of what has become known in management circles as “emotional intelligence”—squishily defined as the ability to peer inside another person and see what moves and motivates him.  “This guy is a textbook case of an emotionally intelligent leader,” says psychologist and Emotional Intelligence author Daniel Goleman, who has, in fact, used Torre as a textbook case. He sets a few basic rules (don’t be late, no excessive facial hair, no loud music in the clubhouse), but that’s it for across-the-board edicts. His principal management tool is not the big team meeting—he has little use for generic motivational talks—but regular one-on-one encounters with his players, which he uses to both, monitor and regulate their psyches.  Many of these are low-key confidence boosters. "We're loyal to Joe because Joe is loyal to us," says Stanton.

    Group task
    Consider the two leaders described in the case above. What are the critical differences between the two style? If you had to summarize the essence of the leadership style of Jack Welch versus Joe Torre what would that word be? For a moment let us assume away all of the contexts in regards to where they are leaders – that is, disregard the context in which they are leaders. Who do you think the better leader is? Why? Would there be situations where one leadership style is more important than the other? Would you consider each of these as a super leader? Is it possible to combine the best of each into one individual? How would that play out in an organization?

     

    Teaching Tips
    Students will readily identify the task oriented focus of Jack Welch versus the relationship focus of Joe Torre. Encourage them to consider, though, the less obvious questions about the two leaders—for example, in terms of trust.  Lead them to the discussion of the types of trust each leader builds, and whether they both build trust but do it in different ways.  Also encourage the students to consider whether there are any substitutes for leadership existing in either situation (particularly the role of the media, a team, talent, etc).  Finally, these two leaders provide a perfect opportunity for instructors to return students to the chapter on Motivation, and to have them consider whether these leaders motivate employees according to expectancy theory, equity theory, etc. 
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