Trust and Power in Leadership Scope: • • • • • • Concept of Trust in Leadership Dimensions of Trust How to build and maintain Trust Concept of Power in Leadership Sources and types of Power Role of Power and Trust in Leadership The Concept of Trust ▪ Among all the attributes of great leaders of our time, one thing stands above the rest - TRUST ▪ This single thing is that they are all highly trusted ▪ A leader may have a compelling vision, rock-solid strategy, excellent communication skills, innovative insight, and a skilled team ▪ If people do not trust the leader, results can never be achieve d The concept of Trust • Leaders who inspire trust in their followers reap better output, morale, retention, innovation, loyalty, and revenue • Mistrust breeds disbelief, frustration, low productivity, lost sales, corruption, and turnover or attrition (people leaving) • Trust affects a leader’s impact and the company’s bottom line more than any other single thing. The Concept of Trust • One of the biggest mistakes most leaders often make is to assume that followers trust them simply by virtue of their titles • Trust is not a benefit that comes already packaged with the nameplate on your door or vehicle; it must be earned • Leaders are trusted only to the extent that people believe in their ability, consistency, integrity, and commitment to deliver Trust Defined • Trust is defined as the willingness of one party to be vulnerable to another party based on the belief that the latter party is competent, open, concerned and reliable (Krammer et al., 1996) • Trust can also be defined as the confidence that one reposes in another, while faithfully believing that the other party will not act opportunistically, advantageously, or exploitatively to their detriment. • Thus, the believer believes strongly that the trust he/she has in the other person would not be betrayed Dimensions of Trust • • • • • Integrity Competence Consistency Loyalty Openness Types of Trust • Competence • Based on skills, ability, resources, and the motivation to get the job done. • The person who can make things happen. You may not like or get along well with that person, but if you want to get the job done, you trust that this is the right person to do it. Types of Trust • Benevolence • This is a trust reposed in a person who has good intentions towards you • Benevolent trust leaders always look out for their subordinates to bring them information that protects them or advance their goals • Even when not with them, someone with benevolent trust will not resort to undermining others. Types…. • Integrity : • This type of trust is driven by moral character of uprightness. • The person always operates with integrity no matter who is involved and regardless of how they feel about him/her. • They will always operate according to their principles. Building & Maintaining Trust • Clarity: • People trust clarity and mistrust ambiguity. Be clear about your mission, purpose, expectations, and daily activities. • When a leader is clear about expectations, it yields positive results. • Compassion: • Followers get cynical about whether someone really has their best interests in mind or at heart • “Do unto others as you would have them do unto you” is not just an old saying. It is a bottom-line truth. Follow it, and you will build trust. Building & Maintaining Trust Character: • Followers accept those who do what is right ahead of what is easy. • Leaders who have built this pillar consistently do what needs to be done. Great leaders do what is right rather than what is easy. • Contribution: • Few things build trust quicker than actual results. At the end of the day, people need to see outcomes. • You can have compassion and character, but without the results you promised, people will not trust the leadership. • Be a contributor who delivers real results. Building & Maintaining Trust Competency: People have confidence in those who stay fresh, relevant, and capable The humble and teachable person keeps learning new ways of doing things and stays current on ideas and trends Arrogant attitude prevents one from growing, and compromises others’ confidence in them. There is always more to learn by cultivating the habit of reading and listening to fresh information. Building & Maintaining Trust • Connection: • People want to follow and be around friends—and having friends is all about building connections. • Trust is all about relationships, and relationships are best built by establishing genuine connections. • Ask questions, listen, and above all, show gratitude—it is the primary trait of truly talented connectors. Develop the trait of gratitude, and you will be a magnet. Building & Maintaining Trust • Commitment: • Followers believe in those who stand through adversity. • People trusted and followed all the great leaders such as Jesus, and Mohammed because they saw commitment and sacrifice for the greater good. • Commitment builds trust. Building & Maintaining Trust Consistency: • In every area of life, it is the little things—done consistently— that make the big difference. • If I am overweight, it is because I have eaten too much calories over time, not because I ate too much yesterday. • It is the same in leadership. The little things done consistently make a higher level of trust and produce better results. • Great leaders consistently do the small but most important things first. • They make that call and write that “thank you” note. It is important to do the little things consistently. Alternative way of Trust Building • • • • • • • • • • • Clear standards and expectations Listen first Demonstrate respect Practice accountability Be loyal Deliver results and share the credit Keep learning and improving Confront with care, respect and love Keep commitments Model Integrity Extend your trust 1-11 The Concept of Power • Power is defined as the ability to influence others (McClelland & Burnham, 1976) • Power involves the capacity of one party to influence another party (Yukl, 2006) • Hillman (1995) defines power as the agency to act, to do, to be, coming from the Latin word “potere.” • Power also refers to the ability to induce a person to do something he or she would not have otherwise done. 1-11 Sources of Leaders’ Power 1. Position is the formal authority that derives from a person’s title or position in a group or an organization 2. Charisma is the influence that is obtained by a leader’s style or persona. 3. Relationship is the inspiration that leaders gain through their formal and informal networks both inside and outside of their organizations 4. Information is the control that is generated through the use of evidence deployed to make an argument. 1-11 Sources of Leaders’ Power 5. Expertise is the influence that comes from developing and communicating specialized knowledge 6. Punishment is the ability to sanction individuals for failure to conform to standards or expectations 7. Reward is the ability to recognize or award individuals for adhering to standards or expectations 1-11 Types of Power • French and Raven (1959) identified types of power as: • • • • • Legitimate Reward Coercive Expert Referent. 1-11 Types of Power Hershey and Blanchard (1982) added two more to the five as: • Connection • Information French and Raven (1959) • Legitimate • Reward • Coercive • Expert • Referent Note, the seven types of power are further categorized into two: positional and personal 1-11 Positional Power Legitimate power • Sometimes called authority or formal power, it is the one that is derived from the person's position in the organization. • It exists because organizations find it advantageous to assign certain powers to individuals so that they can do their jobs effectively. • All managers have some degree of legitimate power. 1-11 Positional Power Reward power • It is based on the individual's ability to reward desirable behaviour. • It stems partly from legitimate power. • Managers because of their positions have control over certain rewards, such as pay increases, promotions, work schedules, status symbols and recognition awards, which they can use to reward desirable behaviour. 1-11 Positional Power Coercive power • Is the opposite of reward power, and based on the ability of the individual to sanction (punish) or prevent someone from obtaining desirable rewards. • Rewards and punishment are powerful motivational tools, and • Leaders are generally better served by the exercise of reward power than by the exercise of coercive power. 1-11 Positional Power Expert power • Derives from having knowledge that is valued by the organization or individuals with whom the person interacts. • Expertise in a particular field, problem solving and at performing critical tasks. • Expert power is personal to the individual who has the expertise, hence it is different from the other three sources of power previously mentioned. 1-11 Positional Power Referent power • This comes from the individual commanding admiration, loyalty whom people like to emulate • Charismatic leaders have referent power and, often have a vision for the organization they lead • They have strong convictions about the correctness of the vision, and great confidence in their ability to realize the vision, and are perceived by their followers as agents of change. 1-11 Positional Power Connection power : • It is more commonly referred to as networking these days emanating from whom you know, vertically and horizontally, both within and outside the organization. • This may be referred to in some circles as the Old Boys Club and represents many of the political dynamics that make up organizations. 1-11 Positional Power Information Power • This is where the leader possesses needed or wanted information • This is a short-term power that does not necessarily influence or build credibility • It is the type of power that is based on the leader’s possession of, or access to information that is perceived as valuable or vital by others • This power base influences others because they need information for survival. 1-11 Sources of Leader influence over subordinates and likely outcomes 1-11 Sources of Leader influence over subordinates and likely outcomes 1-11 THANK YOU THANK YO 1-11
