12 Chapter

Leadership
and
Trust

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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.

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12.1
Define leader and
leadership.

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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.

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12.2 Compare and
contrast early
leadership
theories.

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Trait Theories of Leadership

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What Traits Do Leaders Have?

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University of Iowa and Ohio State
Studies

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University of Michigan Study and
Managerial Grid

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Situational Leadership

Which leadership styles might be suitable in

different situations, and what are those
different situations?

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12.3 Describe the four
major contingency
leadership
theories.

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Least-Preferred Coworker
Questionnaire

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The Fiedler Model

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Situational Leadership Theory

Why does a leadership theory focus on the

followers?

What does readiness mean?

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Situational Leadership Theory
(cont.)

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 17
following among
firing, discipline, management
promotions, development
and salary increases; specialists.
rated as either strong or weak. This model, called situational
leadership theory (SLT)in, is a ofcontingency theoryvariables,
that focuses on followers’ readiness.
Situational Leadership Theory
Each leadership situation was evaluated terms these three contingency
Before
which we proceed,
when combined produced two pointssituations
eight possible need clarification: Why ora leadership theory focuses on the
that were either favorable
unfavorable for the leader. (See the bottom of the chart in Exhibit 17-3.) Situations I, II,
and followers, and
III were classified whatfavorable
as highly is meantfor theby theSituations
leader. term readiness.
IV, V, and VI were

(cont.)
The emphasis on the followers in leadership effectiveness reflects the reality that it is
the followers who accept or reject the leader. Regardless of what EXHIBIT 17-3
the leader does, the group’s
The Fiedler Model
effectiveness depends on the actions of the followers. This important dimension has been
Good
overlooked or underemphasized in most leadership theories. And readiness Task
Oriented
, as defined by
Hersey and Blanchard, refers to the extent to which people have the ability and willingness
Performance

to accomplish a specific task.

SLT uses the same two leadership dimensions that Fiedler identified: task and relation-
ship behaviors. However, Hersey and Blanchard go a step further by considering each as
either high or low and then combining them into four specific leadership Relationship styles described
as follows: Poor Oriented

Situation Favorableness: Highly Favorable Moderate Highly Unfavorable

€ Telling (high task–low relationship): The leader defines roles and tells people what,
Category I II III IV V VI VII VIII
how, when, and
Leader–Member Good where
Good to do
Good various
Good tasks.
Poor Poor Poor Poor
Relations
€ Selling (high task–high relationship): The leader provides both directive and supportive
Task Structure High High Low Low High High Low Low
behavior.
Position Power Strong Weak Strong Weak Strong Weak Strong Weak

€ Participating (low task–high relationship): The leader and followers share in decision
making; the main role of the leader is facilitating and communicating.
Delegatingmodel
€ contingency
Fiedler (low task–low relationship):
leader–member The leader provides
relations positionlittle
powerdirection or support.
A leadership theory proposing that effective One of Fiedler’s situational contingencies that One of Fiedler’s situational contingencies that
group performance depends upon the proper describes the degree of confidence, trust, and
The final component in the model is the four stages of follower readiness:
match between a leader’s style and the respect employees had for their leader
describes the degree of influence a leader has
over activities such as hiring, firing, discipline,
degree to which the situation allows the leader task structure promotions, and salary increases
to control and influence
€ R1: People are both unable
least-preferred coworker (LPC) and unwilling to take responsibility for doing something.
One of Fiedler’s situational contingencies that
describes the degree to which job assignments
Followers
questionnaire aren’t
A questionnaire that measures whether a
competent or confident.
are formalized and structured

leader is task or relationship oriented

Leader-Participation Model

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Path-Goal Theory

Four leadership behaviors

• Directive leader
• Supportive leader
• Participative leader
• Achievement-oriented leader

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Path-Goal Model

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12.4 Describe modern
views of leadership
and the issues
facing today’s
leaders.

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Leader-Member Exchange Theory

A leadership theory that says leaders create

in-groups and out-groups and those in the in-
group will have higher performance ratings,
less turnover, and greater job satisfaction.

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Transactional vs Transformational
Leaders

Transactional Leaders Transformational

Leaders who lead Leaders
primarily by using social leaders who stimulate
exchanges (or and inspire (transform)
transactions). followers to achieve
extraordinary
outcomes.

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Charismatic vs Visionary Leaders

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Leaders and Teams

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Contemporary Issues: Employee
Empowerment

Managers are increasingly leading by not

leading; that is, by empowering their
employees.

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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 do 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.

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Contemporary Issues: Emotional
Intelligence (EI)

EI, more than any other single factor, is the

best predictor of who will emerge as a leader.

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12.5
Discuss trust as
the essence of
leadership.

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The Importance of Trust
1. Practice openness.
2. Be fair.
3. Speak your feelings.
4. Tell the truth.
5. Be consistent.
6. Fulfill your promises.
7. Maintain confidences.
8. Demonstrate confidence.

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A Final Thought on Leadership

Leadership may not always be important!

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© Pearson Education Limited 2015 12-34
14 Chapter

Foundations
of Control

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Learning Outcomes

• Explain the nature and importance of control.

• Describe the three steps in the control process.
• Discuss the types of controls organizations and
managers use.
• Discuss contemporary issues in control.

© Pearson Education Limited 2015 14-36

14.1
Explain the nature
and importance of
control.

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The Communication Process

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The Importance of Control

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14.2
Describe the three
steps in the control
process.

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The Control Process

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Measuring Performance
Sources of information
• Personal observation
• Statistical reports
• Oral reports
• Written reports

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Criteria for Measurement

What managers measure is probably more important to the

control process than how they measure.

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Range of Variation

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Comparing Performance to Goals

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Correcting Performance

• Immediate corrective action

• Basic correction action

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Revising Standards

If performance consistently exceeds the goal,

then the goal may need to be raised.

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14.3
Discuss the types
of controls
organizations and
managers use.

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Feedward Control

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Concurrent Control

Control that takes place while a work activity

is in progress.

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Feedback Control

Control that takes place after a work activity is

done.

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Keeping Track of an Organization’s
Finances: Ratio Analysis

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Keeping Track of an Organization’s
Finances: Budget Analysis

Budgets are used for both planning and

controlling.

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Keeping Track of an Organization's
Information

Management Information System (MIS):

A system used to provide management with
needed information on a regular basis.

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Keeping Track of Employee
Performance

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Keeping Track with a Balanced
Scorecard Approach
• Financial
• Customer
• Internal Processes
• People/innovation/growth assets

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14.4
Discuss
contemporary
issues in control.

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Contemporary Issues
1. Cross-cultural differences
2. Workplace concerns

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Cultural Differences

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Controlling Technology Usage

Is my work computer really mine?

Do I have a right to privacy at work?

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Controlling Employee Theft

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Controlling Workplace Violence

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© Pearson Education Limited 2015 14-63