Essentials of Organizational Behavior, 8/e
Stephen P. Robbins
Chapter 10
Leadership and
Creating Trust
© 2005 Prentice-Hall
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After reading this chapter, you should be able to:
1) Summarize the conclusions of trait theories
2) Identify the limitations of behavioral theories
3) Describe Fiedler’s contingency model
4) Summarize the path-goal theory
5) List the contingency variables in the leader-participation model
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© 2005 Prentice-Hall

After reading this chapter, you should be able to:
6) Differentiate transformational from transactional leadership
7) Describe the pros and cons of charismatic leadership
8) Explain the role of emotional intelligence in leadership effectiveness
9) Identify situations when leadership may not be relevant
10)Summarize how leaders can build trust
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Leadership
• Ability to influence a group toward the achievement of goals
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Trait Theories – 1990s
Seven traits seemed to differ leaders from non-leaders:
• ambition and energy
• desire to lead
• honesty and integrity
• self-confidence
• intelligence
• high selfmonitoring
• job-relevant knowledge
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• Researchers began organizing traits around the Big Five personality framework
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• Resulted in consistent and strong support for traits as predictors of leadership
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• Traits do a better job at predicting the emergence of leaders than in actually distinguishing between effective and ineffective leaders
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Behavioral Theories
• Assumes people can be trained to lead
• Researched the behaviors of specific leaders
• Provides the basis of design for training programs
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Ohio State Studies
• Developed two categories of leadership behavior
– Initiating structure - attempts to organize work, work relationships, and goals
– Consideration - concern for followers’ comfort, well-being, status, and satisfaction
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University of Michigan Studies
• Employee-oriented - emphasize interpersonal relations
• Production-oriented emphasize the technical or task aspects of the job
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Limitations of Behavioral
Theories
• Did not identify consistent relationships between leadership behavior and group performance
• Missing consideration of the situational factors that influence success and failure
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Contingency Theories
• Fiedler
• Path-goal
• Leader-participation
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Fiedler Leadership Model
• Effective group performance depends on the proper match between the leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader
• Least-preferred co-worker (LPC) questionnaire
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Fiedler Contingency Dimensions
• Leader-member relations
• Task structure
• Position power
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Fiedler Model
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Leader-Member Exchange Theory
• Leaders do differentiate among followers
• Disparities are far from random
• Followers with in-group status have:
– higher performance ratings
– lower turnover intentions
– greater satisfaction with their superiors
– higher overall satisfaction than those in the out-group
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Path-Goal Theory
• Leader’s job is to assist followers in attaining their goals and to provide the direction and support needed to ensure that their goals are compatible with the overall objectives of the organization
• Acceptable, Motivational
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Path-Goal Theory
• Directive leader
• Supportive leader
• Participative leader
• Achievement-oriented leader
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Path-Goal Theory
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Leader-Participation Model
• Leader behavior must adjust to reflect the task structure
• Sequential set of rules that should be followed in determining the form and amount of participation in decision making
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Transactional leaders - motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational leaders - inspire followers to transcend their own selfinterests for the good of the organization
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Charismatic Leadership Theory
• Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors
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Charismatic Leaders
• Have vision
• Willing to take risks to achieve that vision
• Sensitive to both environmental constraints and follower needs
• Exhibit behaviors that are out of the ordinary
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How Charismatic Leaders
Influence Followers
• Articulates an appealing vision
• Communicates high performance expectations
• Conveys, through words and actions, a new set of values
• Makes self-sacrifices and engages in unconventional behavior to demonstrate convictions about the vision
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Increasing body of research shows impressive correlations between charismatic leadership and high performance and satisfaction among followers
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Contemporary Issues
• Role of emotional intelligence in leadership effectiveness
• Ethical implications in leadership
• Need to modify leadership style to cultural differences
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Emotional Intelligence (EI)
• Recent studies indicate that EI is the best predictor of who will emerge as a leader
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What is Trust?
• A positive expectation that another will not--through words, actions, or decisions--act opportunistically
• Familiarity, Risk
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Trust Dimensions
Integrity
Competence Consistency
Loyalty Openness
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Three Types of Trust
• Deterrence-based
• Knowledge-based
• Identification-based
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How to Build Trust
• Practice openness
• Be fair
• Speak your feelings
• Tell the truth
• Show consistency
• Fulfill your promises
• Maintain confidences
• Demonstrate competence
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Summary
1) Summarized the conclusions of trait theories
2) Identified the limitations of behavioral theories
3) Described Fiedler’s contingency model
4) Summarized the path-goal theory
5) Listed the contingency variables in the leader-participation model
10-34
© 2005 Prentice-Hall

Summary
6) Differentiated transformational from transactional leadership
7) Described the pros and cons of charismatic leadership
8) Explained the role of emotional intelligence in leadership effectiveness
9) Identified situations when leadership may not be relevant
10)Summarized how leaders can build trust
10-35
© 2005 Prentice-Hall