12 Chapter Leadership and Trust © Pearson Education Limited 2015 12-1 Learning Outcomes • Define leader and leadership • Compare and contrast early leadership theories • Describe the four major contingency leadership theories • Describe modern views of leadership and the issues facing today’s leaders • Discuss trust as the essence of leadership © Pearson Education Limited 2015 12-2 12.1 Define leader and leadership © Pearson Education Limited 2015 12-3 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 © Pearson Education Limited 2015 12-4 12.2 Compare and contrast early leadership theories © Pearson Education Limited 2015 12-5 Trait Theories of Leadership © Pearson Education Limited 2015 12-6 What Traits Do Leaders Have? © Pearson Education Limited 2015 12-7 Behavioral Theories of Leadership © Pearson Education Limited 2015 12-8 University of Iowa and Ohio State Studies © Pearson Education Limited 2015 12-9 University of Michigan Study and Managerial Grid © Pearson Education Limited 2015 12-10 Leader-Participation Model © Pearson Education Limited 2015 12-17 Path-Goal Theory Four leadership behaviors: • Directive leader • Supportive leader • Participative leader • Achievement-oriented leader © Pearson Education Limited 2015 12-18 Path-Goal Model © Pearson Education Limited 2015 12-19 12.4 Describe modern views of leadership and the issues facing today’s leaders © Pearson Education Limited 2015 12-20 Leader-Member Exchange Theory A leadership theory that says leaders create in-groups and out-groups and those in the ingroup will have higher performance ratings, less turnover, and greater job satisfaction © Pearson Education Limited 2015 12-21 Transactional vs Transformational Leaders Transactional Leaders: Leaders who lead primarily by using social exchanges (or transactions) Transformational Leaders leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes © Pearson Education Limited 2015 12-22 Charismatic vs Visionary Leaders © Pearson Education Limited 2015 12-23 Leaders and Teams © Pearson Education Limited 2015 12-24 Contemporary Issues: Employee Empowerment Managers are increasingly leading by not leading; that is, by empowering their employees © Pearson Education Limited 2015 12-25 Contemporary Issues: National Culture Cross-Cultural Leadership • Korean leaders are expected to be paternalistic toward employees • Arab leaders who show kindness or generosity without being asked to 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 © Pearson Education Limited 2015 12-26 Contemporary Issues: Emotional Intelligence (EI) EI, more than any other single factor, is the best predictor of who will emerge as a leader © Pearson Education Limited 2015 12-27 12.5 Discuss trust as the essence of leadership © Pearson Education Limited 2015 12-28 The Importance of Trust Practice openness Be fair Speak your feelings Tell the truth Be consistent Fulfill your promises Maintain confidences Demonstrate confidence © Pearson Education Limited 2015 12-29 A Final Thought on Leadership Leadership may not always be important! © Pearson Education Limited 2015 12-30 © Pearson Education Limited 2015 12-31