SlideShare presentation for Week 7 PSY 126 with Dr. Eisenhard.

1. Leading & Trust
Matthew L. Eisenhard, Psy.D.
Week 7: Psychology for Business & Industry

2. Leadership
 LEADERSHIP
 The process of influencing employees to work
toward the achievement of objectives.
 Leadership Quotes…
◦ John F. Kennedy
 “Leadership and learning are indispensible to each other.”
◦ Colin Powell
 “Leadership is solving problems.”
◦ Dwight D. Eisenhower
 “Leadership is the art of getting someone else to do something you want
done because he wants to do it.”
◦ Harry S. Truman
 “Men make history , and not the other way around. In periods where there
is no leadership, society stands still. Progress occurs when courageous ,
skillful leaders seize the opportunity to change things for the better.”
◦ Peter Drucker
 “Management is doing things right; leadership is doing the right things.”

3. Leadership
• Strong leadership skills are needed in today’s
teamwork oriented business model.
▫ There are various different styles of leadership.
▫ Leadership can make a difference in performance
– for individuals and organizations.
▫ http://www.youtube.com/watch?v=FmpIMt95ndU

4. Leadership & Management
• These two elements are often used synonymously…
• They are related but different…
• Management has five functions:
▫ PLANNING
▫ ORGANIZING
▫ STAFFING
▫ LEADING
▫ CONTROLLING
• Leadership is a function of management.
▫ You can be a good manager without being a good leader and vice versa.
▫ Good leadership is often a shared activity in an organization.
• What does it take to be a good leader & what is the best leadership style?
▫ No universal agreement.
▫ So let’s look at some of the theories…..

5. Leadership Trait Theories
• Assume there are distinctive physical and
psychological characteristics that account for
effective leadership.
▫ Yes…personality traits do effect leadership style.
▫ But after 70 years of research
we still cannot identify a specific
list of traits that all successful
leaders have in common.

6. Leadership Trait Theories
• Ghiselli Study – most publicized trait theory.
▫ Listed 6 Traits
 SUPERVISORY ABILITY
 Getting the job done through others.
 NEED FOR ACHIEVEMENT
 Seeking responsibility.
 INTELLIGENCE
 Good judgment – reasoning –
thinking.
 DECISIVENESS
 Solving problems and making decisions.
 SELF-ASSURANCE
 Seeing yourself as capable.
 INITIATIVE
 Self-starter – no need for supervision.

7. Leadership Trait Theories
• Current Studies
▫ Wall Street Journal/Gallup – Found 3 Traits.
 INTEGRITY
 INDUSTRIOUSNESS
 GETTING ALONG WITH OTHERS
Self-Assessment Exercise 7-1
Total Score for each column.
 5 -25
Overall.
◦ 15-75
In general – higher scores mean better chances for
success.

8. Behavioral Leadership Theories
Assume that there are distinctive styles
that effective leaders use consistently,
that is, that good leadership is rooted in
behavior.
◦ Two-Dimensional Leadership Styles
◦ The Leadership Grid
◦ Transformational, Charismatic,
Transactional, and Servant Leadership and
Stewardship

9. Two-Dimensional Leadership Styles
 1945 – Ohio State University Study to determine
effective leadership styles - their findings…
Initiating Structure/Job-Centered
 How much does the leader take charge?
Consideration/Employee Centered
 How much does the leader interact with employees?
Combinations: (Exhibit 7.1)
 1 = High Structure/Low Consideration
 2 = High Structure/ High Consideration
 3 = High Consideration/ Low Structure
 4 = Low Consideration/ Low Structure

11. Leadership Grid
 Blake & Moulton’s Model (1964-1991)
 Ideal leadership style has high concern for both the
job and the people.
 They Identify 5 Major Styles:
◦ IMPOVERISHED MANAGER (1.1)
 Low concern for both job & people.
 Does minimum work to keep his/her job.
◦ SWEATSHOP MANAGER (9.1)
 High concern for job – low for people.
 Uses power to coerce people & treats them like machines.
◦ COUNTRY CLUB MANAGER (1.9)
 High concern for people – low for job.
 It’s all about be friendly and having good relationships.
◦ ORGANIZED-PERSON MANAGER (5.5)
 Medium concern for both job and people.
 Runs middle of the road to keep both going well.
◦ TEAM MANAGER (9.9)
 High concern for both people and job.
 Participation, commitment and resolving conflict are tops.

12. Transformational, Charismatic, Transactional, &
Servant Leadership & Stewardship
TRANSFORMATIONAL
◦ About change, innovation, and entrepreneurship.
◦ Steve Jobs, Apple.
CHARISMATIC
◦ Have extraordinary influence, gifted, heroic.
◦ Martin Luther King Jr., Mother Theresa.
TRANSACTIONAL
◦ Based on “quid pro quo” – you do something for me, and I’ll
do something for you.
◦ Good negotiators.
SERVANTS & STEWARDSHIP
◦ Primary motives are devotion to the best interests of the
organization as opposed to self-serving, opportunism.
◦ Self-sacrificing.

13. Contingency Leadership Theories
• Assume the appropriate style of leadership
varies depending on the situation.
• Attempt to create win-win situations by giving
support and direction.
• Contingency Theories:
▫ Contingency Leadership Theory
▫ Leadership Continuum
▫ Normative Leadership Theory
▫ Situational Leadership

14. Contingency Leadership Theory
 Fiedler (1951) – determines if style is task or relationship oriented & if it matches the
leaders style.
 If there is no match – then leader should change the situation rather than
leadership style.
 High LPC Leaders = more relationship-oriented.
 Do well in moderately favorable circumstances.
 Low LPC Leaders = more task-oriented.
 Do well in highly favorable or highly unfavorable circumstances.
 Situational Favorableness
 Leader-member relations – good or poor?
 Better relations = more favorable situations.
 Task Structure?
 More structure = more favorable situation.
 Position Power – strong or weak?
 More power = more favorable situation.
 Determining Appropriate Leadership Style
 Refer to Exhibit 7.3.
 Uses three questions about situational favorableness.
 Follows a Decision Tree for determining Appropriate Style.

16. Leadership Continuum
 Tannenbaum & Schmidt – Identifies seven leadership
styles based on the use of boss-centered versus
employee-centered leadership.
 Before selecting one of the 7 leadership styles – three
factors need to be considered:
 The Manager = Preferred Style based on experience and
confidence in employees/subordinates.
 The Subordinates = Preferred Style for the leader –
generally the more willing able they are the more
freedom they should be given.
 The Situation = What is the organizations structure, size,
goals, technology – and what are upper-level managers
leadership styles?

18. Normative Leadership Theory
Vroom & Yetton (2000) – Decision tree method to
choose from 5 leadership styles depending which is
best for the situation (adapted from previous
models).
Five Leadership Styles:
◦ Decide – Leader decides.
◦ Consult Individually – Leader talks to employees separately
to get input – but still makes the decision.
◦ Consult Group – Talks to group of employees for input –
but still makes the decision.
◦ Facilitate – Group meeting/employees share in decision.
◦ Delegate – Group makes the decision.

19. Situational Leadership
• Hersey and Blanchard
• A model to select from 4
leadership styles that
match the maturity level of
the employee in any given
situation.
▫ Refer back to Exhibit 7.1
 Lower right quadrant (1) =
Telling
 Upper right quadrant (2) =
Selling
 Upper left quadrant (3) =
Participating
 Lower left quadrant (4) =
Delegating

20. Your Preferred Leadership Style
• Self-assessment exercise 7.2.
▫ The more evenly distributed the numbers are –
the more flexible your style.
 A 1 or 0 in a column indicates a reluctance to use
that style.
▫ There is no “right” leadership
style.
 This will just help you understand
the way you prefer to use.

21. https://www.youtube.com/watch?v=83yInyY1KLs

22. Situational Supervision
No one leadership style is best.
Supervisory/employee interactions
have two categories:
◦ DIRECTIVE BEHAVIOR
 Focus on getting the job done.
◦ SUPPORTIVE BEHAVIOR
 Focus on encouraging and motivating employees.
The situation is determined by the capability of the employee.
◦ ABILITY
 What level of education, experience, skills do they have?
◦ MOTIVATION
 How much do they want to do the job – will they need
support & encouragement - or will they do it on their
own?

23. Levels of Employee Capability
LOW (C-1)
◦ Need lots of direction and supervision – lack
motivation.
MODERATE (C-2)
◦ Need some supervision – may have high motivation
but still need directions, support and encouragement.
HIGH (C-S)
◦ High in ability – but lack confidence – needs lots of
support and encouragement to get motivated.
OUTSTANDING (C-4)
◦ Got all the knowledge and are highly motivated on
their own.

24. The Supervisory Styles (Reviewed)
AUTOCRATIC (S-A)
◦ Gives direct instructions, close supervision, and does
not consult employee about decisions.
CONSULTATIVE (S-C)
◦ give directions, but may include employee in decisions
– boss still has final word.
PARTICIPATIVE (S-P)
◦ Gives generalized directions but does not closely
supervise – gives support and encouragement and
allows input from employee – boss still has final say.
LAISSEZ-FAIRE (S-L)
◦ Spends little or no time supervising or directing –
here’s the job – do it.

26. Substitutes for Leadership
• Leadership is a shared process in groups.
▫ There is no substitute for leadership in that case.
▫ But there are substitutes for managers.
• The following can provide direction and support:
▫ Characteristics of subordinates
▫ Characteristics of task
▫ Characteristics of the
organization

27. Diversity & Global Leadership
• We are growing more GLOBAL every day.
• Most leadership theories originate in U.S.
▫ Our cultural beliefs and values may not be as
effective in other countries.
• Cultural sensitivity is vital to operations
outside one’s own country.
• E-organizations operate a little differently.
▫ Leaders focus on speed – flexibility – vision.
▫ More written and less face-to-face
communication.
▫ The Virtual Team uses technology to
communicate.

28. Differences in Styles
Leadership styles are not a “one-size-fits-all,” situations
also vary according to cultures.
Korean leaders
◦ Expected to act as father figures to employees.
Arab leaders
◦ Viewed as weak if they show kindness or generosity.
Japanese leaders
◦ Expected to be humble and not speak much .
Scandanavian & Dutch leaders
◦ Embarrass employees publicly rather than motivate
with individual praise.

29. Trust
• In business and life in
general, trust is an
absolute essential.
▫ It is the positive
expectation that
another will not take
advantage of you
• It should not be “given”
but “earned.”
• It takes time to develop
true trust.
• Self-assessment
exercise 7.3.

30. Types or Levels of Trust
• DETERRENCE-BASED
▫ Based on fear.
▫ It is the most fragile since one violation or inconsistency can destroy the
relationship.
• KNOWLEDGE-BASED
▫ Most common in organizations.
▫ Knowledge lets us predict behavior.
▫ The better we know someone the more we can predict their actions.
▫ It is not destroyed by a singular inconsistency - it allows for forgiveness and
moving forward.
▫ Everyone makes mistakes and forgiveness is vital to good relationships.
• IDENTIFICATION-BASED
▫ Emotional connections – friendships.
▫ The highest level of trust.
▫ Gender differences – men state their expectations – women trust others will
anticipate them.

31. Developing Trust
• Integrity
• Competence
• Consistency
• Loyalty
• Openness
• Risk and Destroying
Trust

32. Integrity
• Tell The Truth
▫ The fine line
between truth and
lying is called
tactfulness.
• Keep Your Commitments
▫ Promises made are promises kept.
• Be Fair
▫ Fairness establishes credibility.
▫ Integrity and fairness are core to good business and
relationships.

33. Competence
• Be Conscientious
▫ Do you trust someone who
does shoddy work?
• Know Your Strengths And Limitations
▫ Don’t commit to doing something that you won’t
be able to deliver.
• Admit Your Mistakes
▫ If you are a “know it all” … people tend not to trust
you…we don’t trust or even like people that have
to be right all the time.

34. Consistency
• Keep Commitments
▫ This is a repeat – because it
is very important! Do what
you say you will do.
• Practice What You Preach
▫ If you “talk the talk” … then you must “walk the
walk.” The old saying “do as I say, not as I do” will
not fly.

35. Loyalty
Invest Heavily
In Loyalty
◦ If you display loyalty it will usually be reciprocated –
no one trusts someone who is only taking care of
numero uno.
Maintain Confidences
◦ Don’t repeat things told to you in confidence – no one
trusts a back-stabber or someone who blabs everything
they know.
Don’t Gossip Negatively About People
◦ If you talk about others in a negative way…people
assume you will be doing the same about them as soon
as their backs are turned.

36. Openness
• The Johari Window
▫ Refer to Exhibit 7.8.
▫ Based on self understanding we chose what is
appropriate to share with others.
▫ Disclosure is a gradual and mutual process based
on trust.
• Risk Self-Disclosure
▫ Everyone is vulnerable in some way.
▫ But the rewards of letting yourself be known to
others are worth the risk.

37. Repairing Trust
Trust is earned and builds over time.
Easier to destroy than to build .
Once trust is broken relationships may be mended
but they are never the same again.
Admit mistakes and apologize.
Women generally more willing to
apologize than men.
We find it easier to apologize to
strangers than loved ones.
People get very emotional when
they feel their trust has been
betrayed – stay calm.

38. Key Points
• Explaining Leadership and it’s effects
• Leadership Trait theory
• Behavioral Leadership Theories
• Contingency Leadership Theories
• Situational Supervisory Styles
• Three Substitutes for Leadership
• Diversity and Global Leadership
• Five dimensions of Trust