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Learning Module 1-Second Semester Freshmen

(Business Human Relations)

CHAPTER 3:

LEADING AND TRUST

LEARNING OBJECTIVES:

After completing this chapter you should be able to:

1. Explain what leadership is and how it affects behavior, human relations, and performance.

2. Describe leadership trait theory.

3. List and describe four behavioral leadership theories.

4. List and describe four contingency leadership theories.

5. Explain four situational supervisory styles.

6. Identify three characteristics that substitute for management.

7. Briefly describe the five dimensions of trust.

LEARNING CONTENTS:

I. HOW LEADERSHIP AFFECTS BEHAVIOR, HUMAN RELATIONS, AND

PERFORMANCE

KT- Leadership is the process of influencing employees to work towards the achievement of objectives. A leader using one style will behave differently than another leader using a different style. The leader's style also affects the type of human relations between the leader and followers.

Leaders can affect followers’ performance, but not always.

LO 1. Explain what leadership is and how it affects behavior, human relations, and performance.

Leadership is the process of influencing employees to work towards the achievement of objectives. A leader using one style will behave differently than another leader using a different style. The leader's style also affects the type of human relations between the leader and followers.

Leaders can affect followers’ performance, but not always.

1. Leadership and Management Are Not the Same. You can be a manager due to your position, but your position doesn't mean you can influence employees as a true leader.

WA 1- Give detailed reasons why leadership skills are important to a specific organization.

SA- Leadership is in my mind the most fundamental trait necessary to be an effective supervisor.

Without a respected leader, people within the group will take advantage and not work as hard to achieve the goals. Although leadership is very important, it is also important to have a happy medium where the employees also feel like they count too.

II. LEADERSHIP TRAIT THEORY

- Leadership Trait Theory- assumes that distinctive physical and psychological characteristics accounting for effective leadership.

Researchers tried to identify a set of characteristics that successful leaders possess. If there were such a list one could compare candidates to the list and only appoint those people who would be successful. However, they could not come up with a universal list; so much less research is now done in this area.

LO 2. Describe leadership trait theory.

Leadership trait theory assumes that distinct physical and psychological characteristics accounting for effective leadership. According to Ghiselli, the major leadership traits needed for success are: supervisory ability, the need for occupational achievement, intelligence, decisiveness, self-assurance, and initiative.

WA 2- What are your views on trait leadership theory? Recall a supervisor you have or had; which of Ghiselli's six traits does the person have? Which traits does the person lack?

SA- I do not believe that leaders are born and not made. Some of these traits may be hereditary though, like in the Kennedy family. But others, like supervisory skills may be taught and developed. My supervisor possessed all six of these traits whether she knew it or not.

III. BEHAVIORAL LEADERSHIP THEORIES

KT- Behavioral leadership theories- assume that there are distinctive styles which effective leaders use consistently. They were looking for the one best leadership style to use in all situations.

A. Basic Leadership Styles. They are autocratic, democratic, and laissez-faire. You have most likely heard of these styles before taking this course.

B. Two-Dimensional Leadership Styles. At the Ohio State University and University of Michigan they conducted research which concluded that supervisors interact with employees on two dimensions: initiating structure--job-centered, or consideration--employee-centered styles.

1. Structuring and consideration styles.

2. Job-centered and employee-centered styles.

3. Using leadership styles.

LO 3. List and describe four behavioral leadership theories.

Behavioral leadership theories assume that there are distinctive styles which effective leaders use consistently. The five theories are:

1. Basic leadership style-autocratic, democratic, laissez-faire. 2. Two-dimensional leadership styles. Structuring and consideration styles-Ohio State and Job-centered and Employee-centered styles-University of Michigan. 3. The Leadership Grid- Blake and Mounton's model identifying the ideal leadership style as having a high concern for both production and people. 4.

Transformational leadership- leaders bring about change, innovation, and entrepreneurship by taking the organization through three acts.

IV. CONTINGENCY LEADERSHIP THEORIES

KT- Contingency leadership theories- assume that the appropriate leadership style varies from situation to situation.

A.Contingency Leadership Theory. KT- Contingency leadership theory- is Fiedler's model used to determine whether leadership style is task or relationship oriented, and whether the situation matches the style. The three important aspects of this theory are: (1) Leadership style. The LPC scales are used to determine if one's preferred style is task or relationship oriented. (2) Situational favorableness. The three variables are: leader member relations, task structure, and position power. (3) Determining the appropriate leadership style.

WA 4- What are your views on Contingency Leadership Theory? Do you agree with Fiedler's recommendation to change the situation rather than the leader's style?

SA- I like this approach because of the boss I have now. My boss could not change styles, he is task oriented and does not like people. He does not get much work done because of his poor relations, and the fact that employees do not have clear goals. If this situation were changed so that we had clear goals, we would not have to interact much with the boss; he would be in a more favorable situation for his style.

B. Leadership Continuum. KT- Leadership continuum- Tannenbaum and Schmidt identified this continuum with boss-centered vs. employee-centered leadership at the extremes.

WA 5- What are your views on the Leadership Continuum? Recall a supervisor you have or had; which of the seven styles does the supervisor use?

SA- I like this model because it gives you flexibility to select one of seven styles on a continuum.

My boss last summer tended to use the #5 style. He used to present ideas to me about a task that I would do, we talked about how to do the task, than he would make the decision on how I would do it.

WA 6- What are your views on Normative Leadership Theory? Recall a supervisor you have or had; which of the five styles does the supervisor use?

SA- I think that the Normative Leadership Theory is basically the same as the leader continuum, only it has five leadership styles instead of seven; and it requires you to answer seven questions.

My boss used the GII style most of the time.

C. Situational Leadership. KT- Situational leadership- Hersey and Blanchard's model for selecting one of four leadership styles that fits the employees' maturity level in a given situation.

LO 4. List and describe four contingency leadership theories.

Contingency leadership theories assume that the appropriate leadership style varies from situation to situation. The four theories are:

1. Contingency leadership theory- Fiedler's model used to determine whether leadership style is task or relationship oriented, and whether the situation matches the style.

2. Leadership continuum- Tannenbaum and Schmidt's identified boss-centered and employeecentered leadership at the extremes.

3. Normative leadership theory- Vroom and Yetton's Decision Tree Model that enables the user to select one of five leadership styles that is appropriate for the situation.

4. Situational leadership- Hersey and Blanchard's model for selecting one of four leadership styles that fits the employees' maturity level in a given situation.

V. SITUATIONAL SUPERVISION

A. Defining the Situation.

(The following is not word for word out of the text, (Say: The first thing to do is determine the capability level of the followers. (1) Low C-1. Unable and/or unwilling to perform task without directions from the supervisor. (2) Moderate C-2. Somewhat able and willing to perform task.

But need direction and support from supervisor. (3) High C-3. Able to do the task but may lack confidence or motivation to perform without supportive behavior from supervisor. (4)

Outstanding C-4. Able and willing to perform task without directions or support from the supervisor.

B. Using the Appropriate Supervisory Style. The style to use is based on the followers’ capability level. The four supervisory styles are: KT- Autocratic Style (S-A) involves high directive/low supportive behavior, and is appropriate when interacting with low capability employees. KT-

Consultative Style involves high directive/high supportive behavior, and is appropriate when interacting with moderate capability employees. KT- Participative Style (S-P) is characterized by low directive/high supportive behavior, and is appropriate when interacting with high-capability employees. KT- Laissez-faire Style entails low directive/low supportive behavior, and is appropriate when interacting with outstanding employees.

LO 5. Explain four situational supervisory styles.

The four styles are: Autocratic - high directive/low support. Consultative - high directive/high support. Participative - low directive/high support. Laissez-faire - low directive/low support.

C. Applying the Situational Supervisory Model.

1. Determine employee capability level

2. Identify each supervisory style of all four alternatives

3. Select the appropriate style/behavior to match the employee capability level.

WA 7- What are your views on situational supervision? Recall a supervisor you have or had; which of the four styles does the supervisor use? Would you use the model on the job?

SA- From using this model in class I can see the logic and how feasible it is. My present boss, a resident director (R.D.) on campus housing, uses the laissez-faire style. She lets me handle my floor the way I want, so long as there are no problems. I use this model now as a resident assistant (R.A.), when faced with problems on my floor. I will use it after I graduate as well.

WA 8- Which of the four supervisory styles would you like your boss to use with you? Why would you prefer this particular style?

SA- I would like a boss who has a participative style when I graduate from college. I would like this style because I could learn from my boss while also contributing my own ideas.

VI. PUTTING THE LEADERSHIP THEORIES TOGETHER

WA 9- Which leadership theory/model do you prefer? Why?

SA- I like situational supervision because it is designed to tell you which style to use in a given situation, and it is quick and easy to use.

WA 10- Describe the type of leader you want to be.

SA- I want to be an effective and respected successful leader. I want to lead by example. I will work hard, yet will be patient and diligent with my employees. I will use a lot of positive reinforcement to lead and motivate employees.

VII.

SUBSTITUTES FOR LEADERSHIP

Three characteristics may substitute for leadership: (1) subordinates, (2) task, (3) organization.

WA 11- Do you agree that characteristics of subordinates, task, and the organization can substitute for leadership directive and support? Explain your answer.

SA- Kind of. It's the individual, or subordinate that counts. Some people need a lot of directive and/or support from a manager while others don't.

LO 6. Identify three characteristics that substitute for management.

Characteristics of: 1. subordinates, 2. task, 3. the organization.

VII. DIVERSITY OF GLOBAL LEADERSHIP

Japanese, European, and American leadership style do vary. And the global e-organization is affecting leadership.

VIII. TRUST

A. Types of Trust

1. Deterrence-Based Trust. It is based on fear of reprisal if the trust is violated. It is how new relations begin.

2. Knowledge-Based Trust. It is based on experience in dealing with others to predict behavior.

3. Identification-Based Trust. It is based on emotional connection-friendship. Employees look out for each other’s best interest and act for the other; it is the highest level of trust.

WA 12- Give an example of each of the three levels of trust you experienced on the job.

SA- When I first went to work at McDonald’s, I didn’t know anyone so I was on the deterrencebased trust because I wanted to fit in. With time, I was on the knowledge-based trust with most coworkers. I did make to friends, so we were on the identification-based trust level.

B.Developing Trust

LO 7. Briefly describe the five dimensions of trust.

1. Integrity—being honest, truthful, and sincere.

2. Competence—having technical and interpersonal knowledge, ability, and skill.

3. Consistency—using the same behavior in similar situations.

4. Loyalty—looking out for the interest of others.

5. Openness—accepting new ideas and change.

6. Risk and Destroying Trust – trust requires risk, and it is much easier to destroy than build trust.

WA 13- What is your strongest and weakest dimension of trust at work? How will you improve your trustworthiness, or what tips will you implement?

SA- I’d say my strongest is loyalty and my weakest is competency. I will do my best to complete each task. I can also be more truthful at work, as I sometimes lie and don’t always tell it like it is.

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