LEADING AND TRUST 7
Chapter 7 Changes from the 9th Edition to the 10th Edition
The entire chapter has been updated with 60 (88%) new references to this new edition.
Only the references to the classic leadership theories have been retained to provide the
original source for further information.
Throughout the chapter, minor changes have been made to shorten the text.
The major section Substitutes for Leadership has been deleted. Resulting in Learning
Outcome 7-6, Work Application 7-11, and Communications skills 6 being deleted.
The opening section, How Leadership Affects Behavior, Human Relations, and
Performance, has been re-written with all new references supporting the importance of
leadership.
The introduction to the Trust section has been re-written with all new references.
The case, Tony Hsieh and Zappos.com, is new.
Chapter 7 Outline
I. HOW LEADERSHIP AFFECTS BEHAVIOR, HUMAN RELATIONS, AND PERFORMANCE
1. Leadership and Management Are Not the Same, 2. Theory and Application
II. LEADERSHIP TRAIT THEORY
A. The Ghiselli Study.
B. Current Studies.
III. BEHAVIORAL LEADERSHIP THEORIES
A. Two-Dimensional Leadership Styles
B. The Leadership Grid.
C. Transformational, Charismatic, Transactional, and Servant Leadership and
Stewardship
IV. CONTINGENCY LEADERSHIP THEORIES
A. Contingency Leadership Theory
B. Leadership Continuum.
C. Normative Leadership Theory.
D. Situational Leadership.
V. SITUATIONAL SUPERVISION
A. Defining the Situation.
B. Using the Appropriate Supervisory Style.
C. Applying the Situational Supervisory Model.
VI. PUTTING THE LEADERSHIP THEORIES TOGETHER
VII. DIVERSITY OF GLOBAL LEADERSHIP
VIII. TRUST
A. Types of Trust
B. Developing Trust
C. Repairing Trust
LECTURE OUTLINE PLUS
Power Point: You may use the Power Point supplement to enhance your lectures. Even if your classroom is not
equipped to use Power Point, you can review the material on your personal computer to get teaching ideas and to
copy the slides. Copies of the slides can be made into overheads.
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
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.
2. Theory and Application. We provide both in this chapter.
Work Application (WA): NOTE: All the work application questions appear in the test bank
so that you can assess students’ ability to apply the concepts to their work world. However,
because student answers will vary, there are no answers in the test bank.
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,
II. LEADERSHIP TRAIT THEORY
KT- Leadership Trait Theory- assumes that distinctive physical and psychological characteristics accounting for effective
leadership.
Inconclusive Findings. 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.
A. The Ghiselli Study. This study concluded that there is no universal list of traits. However, there are six traits, which are
important. 1. Supervisory ability, 2. need for occupational achievement, 3. intelligence, 4. decisiveness, 5. self-assurance, 6.
initiative.
B. Current Studies. Some researchers are still trying to identity important traits to leadership, even though there is agreement
that there is no universal set of traits.
Self-Assessment Exercise 7-1
LO 2. Describe leadership trait theory.
Leadership trait theory assumes that distinct physical and psychological characteristics accounting for effective leadership.
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
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. 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. Both Universities developed major leadership styles shown in Exhibit 7.1.
Exhibit 7.1, Ohio State (University of Michigan) Leadership Model, may be shown to illustrate the four styles.
1. Structuring and consideration styles.
2. Job-centered and employee-centered styles.
3. Using leadership styles.
Application Situations
Two-Dimensional Leadership Styles, AS-7.1
1. A. 1. The manager is giving specific structure with no consideration.
4. B. 2. The supervisor is giving direct structure while showing consideration for Jose.
B. The Leadership Grid. KT- The Leadership Grid- Blake and Mounton’s model identifying the ideal leadership style as having
a high concern for both production and people.
Exhibit 7.2, may be shown to illustrate the five leadership styles.
The five major styles are: 1. (1,1) the impoverished manager; (9,1) the sweatshop manager; (1,9) the country club manager;
(5,5) the organized man manager; and (9,9) the team manager.
WA 3- What are your view on the Leadership Grid? Recall a supervisor you have or had; which of the five styles does the
supervisor use?
SA- While working at GE my supervisor used the 5,5 organized manager approach. As long as we got our standard amount of
Application Situations
The Leadership Grid, AS-7.2
6. A. 1,1. The impoverished manager usually has low results in both.
7. B. 1,9. This is the results of country club leadership.
C. Transformational, Charismatic, Transactional, and Servant Leadership and Stewardship
1. Transformational Leadership. Is about change, innovation, and entrepreneurship
2. Charismatic Leadership. Is about great ability to influence others to follow the leader’s vision.
3. Transactional Leadership. Is based on doing things for each other.
4. Servants and Stewardship. Is based on focusing on helping others succeed.
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
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.
Exhibit 7.3, Fiedler’s Contingency Theory Model may be shown to determine the appropriate leadership style for a given
situation.
Answer the three questions and follow the decision tree until you get to the end, which states the appropriate style for the
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
Application Situations (It is helpful to answer the three questions in Exhibit 7-3 to get the answers.)
Contingency Leadership Theory, AS 7.3
11. 8/A. Relations are poor, the task is unstructured, and power is weak. Task oriented leadership is appropriate.
12. 2/A. Relations are good, the task is structured, and power is weak (Jennie’s manager enjoys hiring and
13. 7/A-or-B. Relations are poor, the task is unstructured, and power is strong. Either task or relationship is
14. 4/B. Relations are good, the task is unstructured, and power is weak. Relationship-oriented leadership is
15. 5/B. Relations are poor, the task is structured, and the leader has strong power. Relationship-oriented leadership
B. Leadership Continuum. KT- Leadership continuum- Tannenbaum and Schmidt identified this continuum with boss-centered
vs. employee-centered leadership at the extremes.
Exhibit 7.4 Continuum of Leadership Behavior, may be shown to list the seven leadership styles.
When selecting a style the three factors to consider are: 1. the manager, 2. the subordinates, 3. the situation.
SB 7-2A (Option A) A Leadership Style Role Play, may be used to illustrate the different Leadership Continuum Styles.
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
Application Situations
Leadership Continuum, AS 7.4
16. E. 5. The manager has asked for suggestions, but has retained authority to make the actual decision.
19. C. 3. Ideas were presented with questions invited.
20. F. 6. The decision is left to the group, but they have clear limits with three alternatives to pick from. With style 7
C. Normative Leadership Theory. KT- 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. The model is not shown until Chapter 12 with
group decision-making. The five leadership styles are: 1. decide, 2. consult individually, 3. consult group, 4. facilitate, 5.
delegate.
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
D. 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,
2. Leadership continuum- Tannenbaum and Schmidt’s identified boss-centered and employee-centered leadership at the
3. Normative leadership theory- Vroom and Yetton’s Decision Tree Model that enables the user to select one of five leadership
4. Situational leadership- Hersey and Blanchard’s model for selecting one of four leadership styles that fits the employees’
V. SITUATIONAL SUPERVISION
Self-Assessment Exercise 7-2.
Determining Your Preferred Supervisory Style. (Say: There are twelve situations calling for supervisory action. After selecting
alternatives, there is a heading “to determine your supervisory style” followed by a box. After placing your selected alternatives
in the appropriate boxes, and totaling responses in each of the four vertical columns you have determined your preferred
supervisory style. Does everyone understand how to determine his or her style?)
Model 7.1, Situational Supervision p may be shown while covering this section.
BMV-7 Behavior Module 7, Situational Supervision, may be shown before, after, or in place this section. BMV-7 illustrates the
four leadership styles in Model 7-1.
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 (C-1). KT- Consultative Style (S-C) involves high directive/high supportive behavior, and is
appropriate when interacting with moderate capability employees (C-2). KT- Participative Style (S-P) is characterized by low
directive/high supportive behavior, and is appropriate when interacting with high-capability employees (C3). KT- Laissez-faire
Style (S-L) entails low directive/low supportive behavior, and is appropriate when interacting with outstanding employees
(C-4).
LO 5. Explain four situational supervisory styles.
The four styles are: Autocratic – high directive/low support. Consultative – high directive/high support. Participative – low
SB 7-2B (Option B) A Leadership Style Role Play, may be used to illustrate the four situational leadership styles. Or
BMV-7 may be used to illustrate the four styles.
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.
SB 7.1- Situational Supervision, may be used to develop student’s leadership ability. It is helpful, but not necessary to view
BMV-5 video module 7 before doing this exercise.
VE Video Exercise 7-1 Situational Supervision, may be used with our without SB 7-1.
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
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
VI. PUTTING THE LEADERSHIP THEORIES TOGETHER
Exhibits 7-5, Leadership Theories, and more effectively 7-6, Leadership Styles may be shown to compare similarities and
differences in leadership theories.
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
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.
NOTE: This section has been eliminated in the 10e, but you can present it if you want too.
SUBSTITUTES FOR LEADERSHIP
Three characteristics may substitute for leadership: (1) subordinates, (2) task, (3) organization.
WA – Do you agree that characteristics of subordinates, task, and the organization can substitute for management 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
VII. DIVERSITY OF GLOBAL LEADERSHIP
Japanese, European, and American leadership styles do vary. And the global e-organization is affecting leadership.