MGMT Textbook - Chapter 17 - PDF

Chapter 17 Being an Effective Leader Learning Objectives 17.1 Define leader and leadership. 17.4 Describe contemporary views of leadership. 17.2 Compare and contrast early theories of 17.5 Compare the vario...

Chapter 17 Being an Effective Leader Learning Objectives 17.1 Define leader and leadership. 17.4 Describe contemporary views of leadership. 17.2 Compare and contrast early theories of 17.5 Compare the various theories of leadership for leadership. their validity. 17.3 Describe the three major contingency theories 17.6 Discuss twenty-first century issues affecting of leadership. leadership. Employability Skills Matrix This matrix identifies which ng features and end-of-chapter n io y io e ki on lit at g si l at n on cia in lic led material will help you develop bi ti ic Th ra sp So pp w un bo al A no specific skills employers are m ic lla K m it Re looking for in job candidates. Co Co Cr It’s Your Career ✓ ✓ ✓ Skill Boxes Workplace Confidential ✓ ✓ Learning from Failure ✓ ✓ Ethical Dilemma ✓ ✓ Skill Practice Skill Exercise ✓ ✓ Working Together ✓ ✓ ✓ My Turn to Be a Manager ✓ ✓ ✓ Cases Case Application ✓ ✓  Dr. Delos “Toby” Cosgrove is a cardiac surgeon by training, having performed more than 22,000 operations. But in 2004, he switched roles to become president and CEO of the Cleveland Clinic. He held that position until he retired at the end of 2017. In those thirteen years, the clinic opened locations in Toronto and Abu Dhabi, increased visits from 2.8 million to 7.1 million, and grew revenues from $3.7 billion to $8.5 billion.1 Cosgrove’s leadership was critical in leading the clinic’s dramatic growth, expansion, and status as the number two hospital in the US. Among his accomplishments were reorganizing clinical services into a patient-centered model of care designed around organs and diseases rather than doctors; and implementing “new ways for patients to access care anytime, anywhere, with walk-in appointments, and virtual visits by phone or tablet.” Let’s begin this chapter by clarifying who leaders are and what leadership is. WHO are leaders, and what is leadership? Our definition of a leader is someone who can influence others and leader LO17.1 who has managerial authority. Leadership is a process of leading a Someone who can influence others and group and influencing that group to achieve its goals. It’s what leaders do. who has managerial authority Are all managers leaders? Because leading is one of the four management func- tions, yes, ideally, all managers should be leaders. Thus, we’re going to study leaders leadership A process of influencing a group to and leadership from a managerial perspective.2 However, even though we’re looking at achieve goals these from a managerial perspective, we’re aware that groups often have informal lead- ers who emerge. Although these informal leaders may be able to influence others, they have not been the focus of most leadership research and are not the types of leaders we’re studying in this chapter. Leaders and leadership, like motivation, are organizational behavior topics that have been researched a lot. Most of that research has been aimed at answering the question: What is an effective leader? Let’s look at some early leadership theories that attempted to answer that question. EARLY leadership theories People have been interested in leadership since they started coming to- LO17.2 gether in groups to accomplish goals. However, it wasn’t until the early part of the twentieth century that researchers actually began to formally study leader- ship. These early leadership theories focused on the leader (leadership trait theories) and how the leader interacted with his or her group members (leadership behavior theories). Leadership Traits Researchers at the universities of Florida and North Carolina reported that taller men, compared to shorter men, tended to possess higher levels of social esteem, be- come successful leaders, earn more money, and have greater career success.3 What does a study of height have to do with trait theories of leadership? Well, that’s also what leadership trait theories have attempted to do—identify certain traits that all leaders have. Leadership research in the 1920s and 1930s focused on isolating leader traits— that is, characteristics—that would differentiate leaders from nonleaders. Some of the traits studied included physical stature, appearance, social class, emotional sta- bility, fluency of speech, and sociability. Despite the best efforts of researchers, it proved impossible to identify a set of traits that would always differentiate a leader (the person) from a nonleader. Maybe it was a bit optimistic to think that a set 481 482 Part 5 Leading Exhibit 17-1 Ten Traits Associated with Leadership 1. Drive. Leaders exhibit a high effort level. They have a relatively high desire for achievement, they are ambitious, they have a lot of energy, they are tirelessly persistent in their activities, and they show initiative. 2. Desire to lead. Leaders have a strong desire to influence and lead others. They demonstrate the willingness to take responsibility. 3. Honesty and integrity. Leaders build trusting relationships with followers by being truthful or nondeceitful and by showing high consistency between word and deed. 4. Self-confidence. Followers look to leaders for an absence of self-doubt. Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions. 5. Intelligence. Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct decisions. 6. Job-relevant knowledge. Effective leaders have a high degree of knowledge about the company, industry, and technical matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions. 7. Extraversion. Leaders are energetic, lively people. They are sociable, assertive, and rarely silent or withdrawn. 8. Proneness to guilt. Guilt proneness is positively related to leadership effectiveness because it produces a strong sense of responsibility for others. 9. Emotional intelligence. Empathetic leaders can sense others’ needs, listen to what followers say (and don’t say), and read the reactions of others. 10. Conscientiousness. People who are disciplined and able to keep commitments have an apparent advantage when it comes to leadership.4 of consistent and unique traits would apply universally to all effective leaders, no matter whether they were in charge of Procter & Gamble, the Moscow Ballet, the country of France, a local collegiate chapter of Alpha Chi Omega, a McDonald’s franchise, or Oxford University. However, later attempts to identify traits consis- tently associated with leadership (the process of leading, not the person) were more successful. Ten traits shown to be associated with effective leadership are described briefly in Exhibit 17-1. Researchers eventually recognized that traits alone were not sufficient for iden- tifying effective leaders, since explanations based solely on traits ignored the interac- tions of leaders and their group members as well as situational factors. Possessing the appropriate traits only made it more likely that an individual would be an effective leader. Therefore, leadership research from the late 1940s to the mid-1960s concen- trated on the preferred behavioral styles that leaders demonstrated. Researchers won- dered whether something unique in what effective leaders did—in other words, in their behavior—was the key. Leadership Behaviors Carter Murray, CEO of the advertising agency FCB, once told a colleague, “Look, I think you’re amazing, incredibly talented and you can do even more than you think in your wildest dreams. And I am not going to manage you to do that. You will determine that yourself.”5 In contrast, Martha Stewart, founder of Martha Stewart Living Omnimedia, was known for her demanding leadership approach. It was re- ported that she micromanaged employees and treated them as a commodity.6 These two leaders, as you can see, behaved in two very different ways. What do we know about leader behavior and how can it help us in our understanding of what an effec- tive leader is? behavioral theories of leadership Theories that identify behaviors that Researchers hoped that the behavioral theories of leadership would provide differentiate effective leaders from more definitive answers about the nature of leadership than did the trait theories.7 ineffective leaders The four main leader behavior studies are summarized in Exhibit 17-2.  Chapter 17 Being an Effective Leader 483 Exhibit 17-2 Behavioral Theories of Leadership Behavioral Dimension Conclusion University of Democratic style: involving subordinates, delegating Democratic style of leadership was most Iowa authority, and encouraging participation effective, although later studies showed mixed Autocratic style: dictating work methods, centralizing results. decision making, and limiting participation Laissez-faire style: giving group freedom to make decisions and complete work Ohio State Consideration: being considerate of followers’ ideas High–high leader (high in consideration and and feelings high in initiating structure) achieved high Initiating structure: structuring work and work subordinate performance and satisfaction, but relationships to meet job goals not in all situations. University of Employee oriented: emphasized interpersonal Employee-oriented leaders were associated with Michigan relationships and taking care of employees’ needs high group productivity and higher job satisfaction. Production oriented: emphasized technical or task aspects of job Managerial Concern for people: measured leader’s concern for Leaders performed best with a 9,9 style (high Grid subordinates on a scale of 1 to 9 (low to high) concern for production and high concern for Concern for production: measured leader’s concern people). for getting job done on a scale of 1 to 9 (low to high) UNIVERSITY OF IOWA STUDIES The University of Iowa studies explored three leadership styles to find which was the most effective.8 The autocratic style autocratic style described a leader who dictated work methods, made unilateral decisions, and lim- A leader who dictates work methods, ited employee participation. The democratic style described a leader who involved makes unilateral decisions, and limits employee participation employees in decision making, delegated authority, and used feedback as an oppor- tunity for coaching employees. Finally, the laissez-faire style leader let the group democratic style make decisions and complete the work in whatever way it saw fit. The researchers’ A leader who involves employees in decision making, delegates authority, results seemed to indicate that the democratic style contributed to both good quan- and uses feedback as an opportunity for tity and quality of work. coaching employees Had the Iowa group found the answer to the question of the most effective lead- ership style? Unfortunately, it wasn’t that simple. Later studies of the autocratic and laissez-faire style A leader who lets the group make democratic styles showed mixed results. For instance, the democratic style sometimes decisions and complete the work in produced higher performance levels than the autocratic style, but at other times it whatever way it sees fit didn’t. However, more consistent results were found when a measure of employee sat- isfaction was used. Group members were more satisfied under a democratic leader than under an autocratic one.9 Now leaders had a dilemma. Should they focus on achieving higher performance or on achieving higher member satisfaction? This recognition of the dual nature of a leader’s behavior—that is, focus on the task and focus on the people—was also a key characteristic of the other behavioral studies. THE OHIO STATE STUDIES The Ohio State studies identified two important dimen- sions of leader behavior.10 Beginning with a list of more than 1,000 behavioral dimen- sions, the researchers eventually narrowed it down to just two that accounted for most initiating structure The extent to which a leader defines of the leadership behavior described by group members. The first was called initiating his or her role and the roles of group structure, which referred to the extent to which a leader defined his or her role and the members in attaining goals roles of group members in attaining goals. It included behaviors that involved attempts consideration to organize work, work relationships, and goals. The second was called consideration, The extent to which a leader has work which was defined as the extent to which a leader had work relationships character- relationships characterized by mutual ized by mutual trust and respect for group members’ ideas and feelings. A leader who trust and respect for group members’ was high in consideration helped group members with personal problems, was friendly ideas and feelings 484 Part 5 Leading and approachable, and treated all group members as equals. He or she showed concern for (was considerate of) his or her followers’ comfort, well-being, status, and satisfaction. Research found that a leader who was high in both initiat- ing structure and consideration (a high–high leader) some- times achieved high group task performance and high group member satisfaction, but not always. UNIVERSITY OF MICHIGAN STUDIES Leadership stud- ies conducted at the University of Michigan at about the same time as those done at Ohio State also hoped to iden- tify behavioral characteristics of leaders that were related to performance effectiveness. The Michigan group also came up with two dimensions of leadership behavior, which they labeled employee-oriented and production-oriented.11 Apple's former senior vice president of retail Leaders who were employee-oriented were described as em- Angela Ahrendts is an employee-oriented leader. Her compassionate and nurturing phasizing interpersonal relationships. The production-oriented leaders, in contrast, behavior toward subordinates helps them tended to emphasize the task aspects of the job. Unlike the other studies, the Michigan realize their full potential, inspires them to researchers concluded that leaders who were employee-oriented were able to get high succeed, and results in their loyalty and group productivity and high group member satisfaction. job satisfaction. Caring for her employees has contributed to Ahrendts’ success as an THE MANAGERIAL GRID The behavioral dimensions from these early leadership entrepreneur and business leader. She has recently left Apple and is now on the board studies provided the basis for the development of a two-dimensional grid for apprais- at Airbnb, where she’s been charged with ing leadership styles. This managerial grid used the behavioral dimensions “concern building community among customers. for people” (the vertical part of the grid) and “concern for production” (the horizontal Source: Then Chih Wey/Xinhua/Alamy Live part of the grid) and evaluated a leader’s use of these behaviors, ranking them on a News/Alamy Stock Photo scale from 1 (low) to 9 (high).12 Although the grid had eighty-one potential categories into which a leader’s behavioral style might fall, only five styles were named: impover- high–high leader A leader high in both initiating structure ished management (1,1, or low concern for production, low concern for people), task and consideration behaviors management (9,1, or high concern for production, low concern for people), middle-of- the-road management (5,5, or medium concern for production, medium concern for managerial grid people), country club management (1,9, or low concern for production, high concern A two-dimensional grid for appraising leadership styles for people), and team management (9,9, or high concern for production, high concern for people). Of these five styles, the researchers concluded that managers performed best when using a 9,9 style. Unfortunately, the grid offered no answers to the question of what made a manager an effective leader; it only provided a framework for concep- tualizing leadership style. In fact, little substantive evidence supports the conclusion that a 9,9 style is most effective in all situations.13 Leadership researchers were discovering that predicting leadership success involved something more complex than isolating a few leader traits or preferable behaviors. They began looking at situational influences; specifically, which leadership styles might be suitable in different situations and what these different situations might be. CONTINGENCY theories of leadership “The corporate world is filled with stories of leaders who failed to LO17.3 achieve greatness because they failed to understand the context they were working in.”14 In this section, we examine three contingency theories—Fiedler, Hersey-Blanchard, and path-goal—that focus on context. Each looks at defining lead- ership style and the situation and attempts to answer the if-then contingencies (that is, Fiedler contingency model if this is the context or situation, then this is the best leadership style to use). A leadership theory proposing that effective group performance depends The Fiedler Model on the proper match between a leader’s style and the degree to which the The first comprehensive contingency model for leadership was developed by Fred situation allows the leader to control and Fiedler.15 The Fiedler contingency model proposed that effective group perfor- influence mance depended on properly matching the leader’s style and the amount of control  Chapter 17 Being an Effective Leader 485 and influence in the situation. The model was based on the premise that a certain leadership style would be most effective in different types of situations. The keys were to (1) define those leadership styles and the different types of situations and then (2) identify the appropriate combinations of style and situation. Fiedler proposed that a key factor in leadership success was an individual’s basic leadership style, either task-oriented or relationship-oriented. To measure a lead- er’s style, Fiedler developed the least-preferred coworker (LPC) questionnaire. least-preferred coworker (LPC) This questionnaire contained eighteen pairs of contrasting adjectives—for exam- questionnaire A questionnaire that measures whether a ple, pleasant–unpleasant, cold–warm, boring–interesting, or friendly–unfriendly. leader is task or relationship oriented Respondents were asked to think of all the coworkers they had ever had and to describe that one person they least enjoyed working with by rating him or her on a scale of 1 to 8 for each of the eighteen sets of adjectives (the 8 always described the positive adjective out of the pair, and the 1 always described the negative adjective out of the pair). If the leader described the least-preferred coworker in relatively positive terms (in other words, a “high” LPC score), then the respondent was primarily inter- ested in good personal relations with coworkers and the style would be described as relationship-oriented. In contrast, if you saw the least-preferred coworker in relatively unfavorable terms (a low LPC score), you were primarily interested in productivity and getting the job done; thus, your style would be labeled as task-oriented. Fiedler did acknowledge that a small number of people might fall between these two extremes and not have a cut-and-dried leadership style. One other important point is that Fiedler assumed a person’s leadership style was fixed and stable, regardless of the situation. In other words, if you were a relationship-oriented leader, you’d always be one, and the same would be true for being task-oriented. After an individual’s leadership style had been assessed through the LPC, it was time to evaluate the situation in order to match the leader with the situation. Fiedler’s research uncovered three contingency dimensions that defined the key situational fac- tors in leader effectiveness. Leader–member relations: the degree of confidence, trust, and respect leader–member relations employees have for their leader; rated as either good or poor. One of Fiedler’s situational contingencies Task structure: the degree to which job assignments are formalized and that describes the degree of confidence, trust, and respect employees have for structured; rated as either high or low. their leader Position power: the degree of influence a leader has over activities such as hiring, firing, discipline, promotions, and salary increases; rated as either strong or weak. task structure One of Fiedler’s situational contingencies Each leadership situation was evaluated in terms of these three contingency that describes the degree to which variables, which, when combined, produced eight possible situations that were either job assignments are formalized and favorable or unfavorable for the leader. (See Exhibit 17-3.) Categories I, II, and III structured were classified as highly favorable for the leader. Categories IV, V, and VI were mod- position power erately favorable for the leader. And categories VII and VIII were described as highly One of Fiedler’s situational contingencies unfavorable for the leader. that describes the degree of influence a leader has over activities such as hiring, Once Fiedler had described the leader variables and the situational variables, he firing, discipline, promotions, and salary had everything he needed to define the specific contingencies for leadership effec- increases tiveness. To do so, he studied 1,200 groups where he compared relationship-oriented versus task-oriented leadership styles in each of the eight situational categories. He concluded that task-oriented leaders performed better in very favorable situations and in very unfavorable situations. (See the top of Exhibit 17-3, where performance is shown on the vertical axis and situation favorableness is shown on the horizontal axis.) On the other hand, relationship-oriented leaders performed better in moderately favorable situations. Because Fiedler treated an individual’s leadership style as fixed, only two ways could improve leader effectiveness. First, you could bring in a new leader whose style better fit the situation. For instance, if the group situation was highly unfavorable but was led by a relationship-oriented leader, the group’s performance could be improved by replacing that person with a task-oriented leader. The second alternative was to change the situation to fit the leader. This could be done by restructuring tasks; by 486 Part 5 Leading Exhibit 17-3 The Fiedler Model Good Task Oriented Performance Relationship Oriented Poor Situation Favorableness: Highly Favorable Moderate Highly Unfavorable Category I II III IV V VI VII VIII Leader–Member Good Good Good Good Poor Poor Poor Poor Relations Task Structure High High Low Low High High Low Low Position Power Strong Weak Strong Weak Strong Weak Strong Weak increasing or decreasing the power that the leader had over factors such as salary increases, promotions, and disciplinary actions; or by improving leader–member relations. Research testing the overall validity of Fiedler’s model has shown considerable evidence to support the model.16 However, his theory wasn’t without critics. The major criticism is that it’s probably unrealistic to assume that a person can’t change his or her leadership style to fit the situation. Effective leaders can, and do, change their styles. Another is that the LPC wasn’t very practical. Finally, the situation variables were difficult to assess.17 In spite of these shortcomings, the Fiedler model showed that effective leadership style needed to reflect situational factors. Hersey and Blanchard’s Situational Leadership Theory Paul Hersey and Ken Blanchard developed a leadership theory that has gained a strong following among management development specialists.18 This model, called situational leadership theory (SLT) situational leadership theory (SLT), is a contingency theory that focuses on fol- A leadership contingency theory that lowers’ readiness. Before we proceed, two points need clarification: why a leadership focuses on followers’ readiness theory focuses on the followers and what is meant by the term readiness. 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 the leader does, the group’s effectiveness depends on the actions of the followers. This important dimension has been overlooked or underemphasized in most leadership theories. And readiness readiness, as defined by Hersey and Blanchard, refers to the extent to which people The extent to which people have the have the ability and willingness to accomplish a specific task. ability and willingness to accomplish a SLT uses the same two leadership dimensions that Fiedler identified: task and specific task relationship behaviors. However, Hersey and Blanchard go a step further by consider- ing each as either high or low and then combining them into four specific leadership styles, described as follows: Telling (high task–low relationship): The leader defines roles and tells people what, how, when, and where to do various tasks. Selling (high task–high relationship): The leader provides both directive and supportive behavior.  Chapter 17 Being an Effective Leader 487 Participating (low task–high relationship): The leader and followers share in decision making; the main role of the leader is facilitating and communicating. Delegating (low task–low relationship): The leader provides little direction or support. The final component in the model is the four stages of follower readiness: R1: People are both unable and unwilling to take responsibility for doing something. Followers aren’t competent or confident. R2: People are unable but willing to do the necessary job tasks. Followers are motivated but lack the appropriate skills. R3: People are able but unwilling to do what the leader wants. Followers are competent, but don’t want to do something. R4: People are both able and willing to do what is asked of them. SLT essentially views the leader–follower relationship as being like that of a parent and a child. Just as a parent needs to relinquish control when a child becomes more mature and responsible, so, too, should leaders. As followers reach higher levels of readiness, the leader responds not only by decreasing control over their activities but also by decreasing relationship behaviors. The SLT says if followers are at R1 (unable and unwilling to do a task), the leader needs to use the telling style and give clear and specific directions; if follow- ers are at R2 (unable and willing), the leader needs to use the selling style and display high task orientation to compensate for the followers’ lack of ability Dan Reynolds, leader of the group Imagine Dragons, uses the participative approach and high relationship orientation to get followers to “buy into” the leader’s desires; if of the path-goal theory. His approach to followers are at R3 (able and unwilling), the leader needs to use the participating style songwriting is that each member writes songs to gain their support; and if employees are at R4 (both able and willing), the leader constantly and works on putting together their doesn’t need to do much and should use the delegating style. songs as a group. Reynolds strives to create a SLT has intuitive appeal. It acknowledges the importance of followers and builds shared environment in which band members work together as a unit. on the logic that leaders can compensate for ability and motivational limitations in Source: Derek Storm/Everett Collection/Alamy their followers. However, research efforts to test and support the theory generally Stock Photo have been disappointing.19 Possible explanations include internal inconsistencies in the model as well as problems with research methodology. Despite its appeal and wide popularity, we have to be cautious about any enthusiastic endorsement of SLT. Path-Goal Model Another approach to understanding leadership is Robert House’s path-goal theory, path-goal theory which states that it’s the leader’s job to provide followers with information, support, or A leadership theory that says the other resources necessary to achieve goals. Path-goal theory takes key elements from leader’s job is to assist followers in attaining their goals and to provide the expectancy theory of motivation.20 The term path-goal is derived from the belief direction or support needed to ensure that effective leaders remove the roadblocks and pitfalls so that followers have a clearer that their goals are compatible with the path to help them get from where they are to the achievement of their work goals. goals of the group or organization House identified four leadership behaviors: Directive leader: Lets subordinates know what’s expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. Supportive leader: Shows concern for the needs of followers and is friendly. Participative leader: Consults with group members and uses their suggestions before making a decision. Achievement-oriented leader: Sets challenging goals and expects followers to perform at their highest level. In contrast to Fiedler’s view that a leader couldn’t change his or her behavior, House assumed that leaders are flexible and can display any or all of these leadership styles depending on the situation. As Exhibit 17-4 illustrates, path-goal theory proposes two situational or contin- gency variables that moderate the leadership behavior–outcome relationship: those in the environment that are outside the control of the follower (factors including task 488 Part 5 Leading Exhibit 17-4 Environmental Path-Goal Model Contingency Factors Task Structure Formal Authority System Work Group Leader Behavior Outcomes Directive Performance Supportive Satisfaction Participative Achievement Oriented Subordinate Contingency Factors Locus of Control Experience Perceived Ability structure, formal authority system, and the work group) and those that are part of the personal characteristics of the follower (including locus of control, experience, and perceived ability). Environmental factors determine the type of leader behavior required if subordinate outcomes are to be maximized; personal characteristics of the follower determine how the environment and leader behavior are interpreted. The theory proposes that a leader’s behavior won’t be effective if it’s redundant with what the environmental structure is providing or is incongruent with follower characteris- tics. For example, some predictions from path-goal theory are: Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. The followers aren’t sure what to do, so the leader needs to give them some direction. Supportive leadership results in high employee performance and satisfaction when subordinates are performing structured tasks. In this situation, the leader only needs to support followers, not tell them what to do. Directive leadership is likely to be perceived as redundant among subordinates with high perceived ability or with considerable experience. These followers are quite capable, so they don’t need a leader to tell them what to do. The clearer and more bureaucratic the formal authority relationships, the more leaders should exhibit supportive behavior and de-emphasize directive behavior. The organizational situation has provided the structure as far as what is expected of followers, so the leader’s role is simply to support. Directive leadership will lead to higher employee satisfaction when there is substantive conflict within a work group. In this situation, the followers need a leader who will take charge. Subordinates with an internal locus of control will be more satisfied with a participative style. Because these followers believe they control what happens to them, they prefer to participate in decisions. Subordinates with an external locus of control will be more satisfied with a directive style. These followers believe that what happens to them is a result of the external environment, so they would prefer a leader who tells them what to do. Achievement-oriented leadership will increase subordinates’ expectancies that effort will lead to high performance when tasks are ambiguously structured. By setting challenging goals, followers know what the expectations are. A review of the research to test path-goal theory suggests mixed support.21 To summarize the model, however, an employee’s performance and satisfaction are likely to be positively influenced when the leader chooses a leadership style that compensates  Chapter 17 Being an Effective Leader 489 for shortcomings in either the employee or the work setting. However, if the leader spends time explaining tasks that are already clear or when the employee has the abil- ity and experience to handle them without interference, the employee is likely to see such directive behavior as redundant or even insulting. CONTEMPORARY views of leadership What are the latest views of leadership? Given the widespread interest in LO17.4 the topic of leadership, you won’t be surprised to learn that there are a number of new and interesting directions in leadership research. We review a number of them in the following pages. Leader–Member Exchange (LMX) Theory Have you ever been in a group in which the leader had “favorites” who made up his or her in-group? If so, that’s the premise behind leader–member exchange (LMX) leader–member exchange theory theory.22 Leader–member exchange theory (LMX) says leaders create in-groups (LMX) and out-groups, and those in the in-group will have higher performance ratings, less The leadership theory that says leaders create in-groups and out-groups and turnover, and greater job satisfaction. those in the in-group will have higher LMX theory suggests that early on in the relationship between a leader and a performance ratings, less turnover, and given follower, a leader will implicitly categorize a follower as an “in” or as an “out.” greater job satisfaction That relationship tends to remain fairly stable over time. Leaders also encourage LMX charismatic leader by rewarding those employees with whom they want a closer linkage and punishing Someone to whom followers attribute those with whom they do not.23 For the LMX relationship to remain intact, however, heroic or extraordinary leadership both the leader and the follower must invest in the relationship. abilities when they observe certain It’s not exactly clear how a leader chooses who falls into each category, but evi- behaviors and tend to give power dence shows that in-group members have demographic, attitude, personality, and even gender similarities with the leader, or they have a higher level of competence than Richard Branson, founder of the Virgin Group, has out-group members.24 The leader does the choosing, but the follower’s characteristics demonstrated an ability to inspire his employees drive the decision. as Virgin has expanded into an array of different businesses—from music to space travel. Research on LMX has been generally supportive. It appears that leaders do dif- Branson is the model of a charismatic leader. ferentiate among followers; that these disparities are not random; and followers with Source: Kristin Callahan/Everett Collection/ in-group status will have higher performance ratings, engage in more helping or “citi- Alamy Stock Photo zenship” behaviors at work, and report greater satisfaction with their boss.25 Charismatic Leadership Richard Branson, founder of the Virgin Group, is a person who exudes en- ergy, enthusiasm, and drive. He has pursued his vision for Virgin with seri- ous intensity and has demonstrated an ability to inspire his employees as it expanded into an array of different businesses—from music to space travel. Branson is what we call a charismatic leader—that is, someone to whom followers attribute heroic or extraordinary leadership abilities when they ob- serve certain behaviors and tend to give power.26 A number of authors have attempted to identify personal characteristics of the charismatic leader.27 The most comprehensive analysis identified five such characteristics: they have a vision, the ability to articulate that vision, a willingness to take risks to achieve that vision, a sensitivity to both envi- ronmental constraints and follower needs, and behaviors that are out of the ordinary.28 An increasing body of evidence shows impressive correlations between charismatic leadership and high performance and satisfaction among fol- lowers.29 Although one study found that charismatic CEOs had no impact on subsequent organizational performance, charisma is still believed to be a desirable leadership quality.30 But we can’t ignore that charisma has a poten- tial downside. Charismatic leaders who are larger than life don’t necessar- ily act in the best interests of their organizations.31 Research has shown that 490 Part 5 Leading individuals who are narcissistic are also higher in some behaviors associated with charismatic leadership. Many charismatic—but corrupt—leaders have allowed their personal goals to override the goals of their organizations. Charismatic leaders at Enron, Tyco, WorldCom, and HealthSouth recklessly used organizational resources for their personal benefit and unethically violated laws to inflate stock prices, and then cashed in millions of dollars in personal stock options. Hopefully the corrupt charis- matic leaders at these organizations stand out largely because they’re the exceptions. If charisma is desirable, can people learn to be charismatic leaders? Or are char- ismatic leaders born with their qualities? Although a small number of experts still think that charisma can’t be learned, most believe that individuals can be trained to exhibit charismatic behaviors.32 For example, researchers have succeeded in teaching undergraduate students to “be” charismatic. How? They were taught to articulate a far-reaching goal, communicate high performance expectations, exhibit confidence in the ability of subordinates to meet those expectations, and empathize with the needs of their subordinates; they learned to project a powerful, confident, and dynamic presence; and they practiced using a captivating and engaging voice tone. The researchers also trained the student leaders to use charismatic nonverbal behaviors, including leaning toward the follower when communicating, maintaining direct eye contact, and having a relaxed posture and animated facial expressions. In groups with these “trained” charismatic leaders, members had higher task perfor- mance, higher task adjustment, and better adjustment to the leader and to the group than did group members who worked in groups led by noncharismatic leaders. One last thing we should say about charismatic leadership is that it may not always be needed to achieve high levels of employee performance. It may be most appro- priate when the follower’s task has an ideological purpose or when the environment involves a high degree of stress and uncertainty.33 This distinction may explain why, when charismatic leaders surface, it’s more likely to be in politics, religion, or wartime, or when a business firm is starting up or facing a survival crisis. For example, Martin Luther King Jr. used his charisma to bring about social equality through nonviolent means, and Steve Jobs achieved unwavering loyalty and commitment from Apple’s technical staff in the early 1980s by articulating a vision of personal computers that would dramatically change the way people lived. Transformational-Transactional Leadership transactional leaders Many early leadership theories viewed leaders as transactional leaders; that is, Leaders who lead primarily by using leaders who lead primarily by using social exchanges (or transactions). Transactional social exchanges (or transactions) leaders guide or motivate followers to work toward established goals by exchanging transformational leaders rewards for their productivity.34 But another type of leader—a transformational Leaders who stimulate and inspire leader—stimulates and inspires (transforms) followers to achieve extraordinary (transform) followers to achieve outcomes. Examples include Jim Goodnight of SAS Institute and Reed Hastings at extraordinary outcomes Netflix. They pay attention to the concerns and developmental needs of individual followers; they change followers’ awareness of issues by helping those followers look at old problems in new ways; and they are able to excite, arouse, and inspire followers to exert extra effort to achieve group goals. Transactional and transformational leadership shouldn’t be viewed as opposing approaches to getting things done.35 Transformational leadership develops from trans- actional leadership. Transformational leadership produces levels of employee effort fyi and performance that go beyond what would occur with a transactional approach alone. Moreover, transformational leadership is more than charisma because the transformational leader attempts to instill in followers the ability to question not only Forty-seven percent of employ- established views but also those views held by the leader.36 ees with uninspiring leaders The evidence supporting the superiority of transformational leadership over (those at or below the 10th transactional leadership is overwhelmingly impressive. For instance, studies that percentile on inspiring and looked at managers in different settings, including the military and business, found motivating others) say they have considered quitting.37 that transformational leaders were evaluated as more effective, higher performers, more promotable than their transactional counterparts, and more interpersonally  Chapter 17 Being an Effective Leader 491 Learning from FA I L U R E The Firing of Steve Jobs at Apple Some stories are so good that they’re hard to believe. Steve Sculley proved unable to turn the Apple “ship” around. Jobs’s story at Apple is one of those. He co-founded the Under Sculley, Apple turned out flops like the Newton company, got fired, and then came back to save it. MessagePad, a personal assistant device that was ahead Jobs and Steve Wozniak founded Apple in 1976. of its time and just didn’t function very well. The board fired Wozniak handled the technical stuff and Jobs was the ideas Sculley in 1993. Over the next several years, new CEOs guy and took care of the business side. As the company were hired, but the company continued its decline. grew, they brought in professional management to oversee In 1996, the board realized its mistake and reached out operations. In 1983, Jobs personally recruited then-PepsiCo to Jobs. In the interim, he had created a small PC maker, CEO John Sculley to take over the helm at Apple. But Jobs NeXT. Apple bought NeXT and brought back Jobs as its and Sculley quickly butted heads. Sculley saw Jobs as a “interim” CEO. Two years later, the “interim” title was zealot who was more concerned with turning out beautiful dropped and Jobs was back in the driver’s seat. The rest products than making money. Sculley cut heavily into Jobs’s is history. Jobs oversaw the resurgence of Apple with in- responsibilities. Their conflict reached a peak in 1985, with novative products like the iMac, iPod, iPhone, and iPad— company sales in decline. Jobs went to Apple’s board of and turned it into the most valuable company in the world. directors to protest constraints that Sculley was placing on Apple’s board had learned that Jobs was truly a unique tal- Jobs. The board sided with Sculley, and Jobs was essen- ent and that it was OK to admit they had made a mistake in tially ousted. ever letting him go.38 sensitive.39 In addition, evidence indicates that transformational leadership is strongly correlated with lower turnover rates and higher levels of productivity, employee satis- faction, creativity, goal attainment, follower well-being, and corporate entrepreneur- ship, especially in start-up firms.40 Authentic Leadership The late Senator John McCain and the former CEO of Home Depot, Frank Blake, are examples of authentic leaders. McCain never shirked from his moral standards, nor authentic leadership Leaders who know who they are, know was he afraid to oppose the majority. Blake took responsibility for a data breach of what they believe in, and act on those the company’s computer systems that led to the theft of 56 million credit card num- values and beliefs openly and candidly bers. This theft happened just before Blake’s retirement, and he could have easily left the crisis for the new CEO to deal with. Mary Barra, CEO of General Motors, is Authentic leadership focuses on the moral aspects of being a leader. Authentic an ethical leader. She is placing public leaders know who they are, know what they believe in, and act on those values and safety ahead of profits after the company’s installation of faulty ignition switches in beliefs openly and candidly. More specifically, authentic leaders have been found to millions of vehicles. possess four qualities: they’re self-aware, transparent, openly solicit views that chal- Source: Tom Williams/CQ Roll Call/Newscom lenge their deeply held positions, and guided by strong moral standards.41 They’re also typically humble. The combination of these qualities lead followers to consider them as ethical people and trust them as a result. When leaders practice what they preach, or act on their val- ues openly and candidly, followers tend to develop a strong affective commitment and trust in their leader and, to a lesser degree, to improve their performance and organiza- tional citizenship behavior.42 Ethical Leadership Shortly after becoming CEO of General Motors, Mary Barra faced a character-defining choice: Should she take responsibility for the company’s installation of faulty igni- tion switches in millions of vehicles even though she was not 492 Part 5 Leading CEO at the time? Barra chose to take the high road: “I want to start by saying how sorry personally and how sorry General Motors is for what has happened.”43 She then appointed Jeff Boyer as the vice president of global safety. Barra said that “if there are any obstacles in his way, Jeff has the authority to clear them. If he needs any ad- ditional resources, he will get them.”44 Mary Barra is an example of an ethical leader because she is placing public safety ahead of profits. She is holding culpable employ- ees accountable, and she stands behind her employees by creating a culture in which they feel that they could and should do a better job. Leadership is not value-free. In assessing its effectiveness, we need to address the means that a leader uses to achieve goals as well the content of those goals. The role of the leader in creating the ethical expectations for all members is crucial.45 Ethical top leadership influences not only direct followers but spreads all the way down the com- mand structure as well, because top leaders set expectations and expect lower-level leaders to behave consistent with ethical guidelines.46 Leaders rated as highly ethical tend to be evaluated very positively by their subor- dinates, who are also more satisfied and committed to their jobs, and experience less strain and turnover intentions.47 Followers of such leaders are also more motivated, perform better, and engage in more organizational citizenship behaviors and fewer counterproductive work behaviors.48 Servant Leadership An extension of ethical leadership has recently gotten the attention of leadership servant leadership researchers. The concept is called servant leadership.49 Servant leaders go be- Leadership that goes beyond self- yond their self-interest and focus on opportunities to help followers grow and de- interest and focuses on opportunities to velop. What’s unique about servant leadership is that, relative to other approaches help followers grow and develop to leadership, it puts the needs of followers ahead of attending to one’s own needs. Its specific characteristics include caring about followers’ personal problems and well-being; empowering followers with responsibility and decision-making influ- ence; helping subordinates grow and succeed; and serving as a model of integrity.50 Syliva Metayer, CEO of Sodexo Corporate Services Worldwide, provides an example of servant leadership. “I’ve been CEO for 18 months, so I’m learning,” says Dr. Martin Luther King, Jr. provides an example Metayer. “I‘m learning that to be a CEO is to be a servant. My main job is to support of servant leadership, which is defined as leadership that goes beyond self-interest and our employees, and be a support to our clients and to our consumers.”51 Other, more focuses on opportunities to help followers notable examples of servant leaders include Martin Luther King Jr., Nelson Mandela, grow and develop. Mother Teresa, and Mahatma Gandhi. Source: GL Archive/Alamy Stock Photo One study of seventy-one general managers of restaurants in the US and over 1,000 of their employees found that servant leaders tend to create a culture of service, which in turn improves restaurant performance and enhances employees attitudes and performance by increasing employees’ identification with the restau- rant.52 Another study of Chinese hairstylists found similar results, with servant leadership predicting customer satisfaction and stylists’ service performance.53 One interesting aside is that servant leadership may be more prevalent and effective in certain cultures.54 When asked to draw images of leaders, for example, US subjects tended to draw them in front of the group, giving orders to followers. Singaporeans, in contrast, tended to draw leaders at the back of the group, acting more to gather a group’s opinions together and then unifying them from the rear. This suggests that the East Asian prototype is more like a servant leader, which might mean servant leadership is more effec- tive in these cultures. Followership Here’s a statement beyond debate: You can’t be a leader without any follow- ers! So leaders can only be as effective as their ability to engage followers. However, it’s only recently that students of leadership have begun considering the role of followers in the leadership process.55  Chapter 17 Being an Effective Leader 493 The leader–follower interaction is two-way. First, it’s obvious that leaders need to motivate and engage their followers to achieve end goals. But often overlooked is the fact that followers influence the attitudes, aptitudes, and behaviors of leaders.56 The two need to work together to move the collective forward.57 The recent attention on followership has underscored that leadership is a pro- cess that emerges from a relationship between leaders and followers who are bound together as part of the same social group. For success, followers need a set of skills that are complementary to those of the leader.58 What defines a good follower? Through most of the 20th century, the answer was unquestioned obedience and deference to a leader. But today, when leaders engage in less unilateral decision making and more collaboration, great followership is charac- terized by a different set of qualities:59 1. They can manage themselves. Effective followers are self-directed. They are self-motivated and can work without close supervision. 2. They are strongly committed to a purpose outside themselves. Effective followers are committed to something—a cause, a product, a work team, an idea, an organization—in addition to the care of their own lives. Most people like working with colleagues who are emotionally, as well as physically, committed to their work. 3. They are enthusiastic. They approach their work with a positive attitude. They “buy into” their leader’s vision. 4. They build their competence and focus their efforts for maximum impact. Effective followers master skills that will be useful to their organization, and they hold higher performance standards than their job or work group requires. 5. They are courageous, honest, and credible. Effective followers establish themselves as independent, critical thinkers whose knowledge and judgment can be trusted. They hold high ethical standards, give credit where credit is due, and aren’t afraid to admit their mistakes. INTEGRATING THEORIES OF LEADERSHIP We’ve introduced a number of leadership theories in this chapter. Let’s LO17.5 try to see what commonalities might exist between these theories, how they might be complementary or overlap, and how they can be integrated to help you better understand what makes an effective leader. TRAITS. Let’s begin with traits. Although there is no single trait or set of traits that are unique to leaders, several traits seem to regularly appear in research studies of leaders. We noted ten of them in Exhibit 17-1. Of these, the most powerful appear to be intelligence, emotional intelligence, and conscientiousness.60 But these traits may more accurately reflect the perception of leadership rather than actual leadership effectiveness.Our conclusion is that even if traits play a role in defining leaders, their role is small and dependent on situational factors. BEHAVIORS. The behavioral theories we discussed focused on a number of dimensions: democratic, autocratic, and laissez-faire styles; directive and participative; initiating structure and consideration; employee-oriented and production-oriented; concern for people and concern for production. Even the most cursory review of these dimensions suggests considerably overlap, if not redundancy. In addition, transitional, transformational, charismatic, and leader-member exchange theories all include leadership behaviors. Efforts to streamline these behaviors have found that three metacategories encom- pass almost all of these:61 494 Part 5 Leading Task-oriented behavior. This describes transactional leader behavior, initiating structure, directive behavior, and production orientation. Relations-oriented behavior. This describes leaders who care about their followers’ needs, treats members equally, and who are friendly and approachable. This would describe consideration, a democratic style, employee and people oriented, participative behavior, transformational leadership, and LMX’s in-group. Change-oriented behavior. This leader behavior includes communicating a vision of change, encouraging innovative thinking, and risk-taking. It’s a major component of both transformational and charismatic leadership. Using these three behaviors, researchers have found that relations-oriented lead- ership accounted for most of the differences in both employee commitment and job performance.62 In terms of reducing redundancy and confusion, efforts at comparing ethical and authentic leadership with transformational leadership found considerable overlap. Specifically, it appears that transformational leadership encompasses almost all of the same variables as ethical and authentic leadership.63 So while both authentic and ethical leadership may help understand a few focused employee outcomes, they don’t “offer much that transformational leadership does not already provide.”64 Meanwhile, transformational leadership does appear to be related to employee commitment, trust, satisfaction, and performance. CONTINGENCY FACTORS. There is no shortage of contingency factors that have been introduced to help explain when leaders are most likely to be effective. Some, however, appear to be more relevant. We’ll look at four. A follower’s experience appears important. The more experience an employee has, the less dependent he or she is on a leader. It appears a leader’s guidance is particu- larly important when an employee is new. But experienced employees don’t require close supervision and are likely to find task-oriented behavior by a leader as unneces- sary or even insulting. A followers’ ability also appears important. Like experience, high levels of ability allow employees to perform their work with minimal supervision. Let’s Get REAL The Scenario: Kevin Krossber Brianna Porter is struggling with her role as a team leader at a Director of Operations nonprofit organization that provides support programs for at-risk youth in her community. She recently was promoted to lead a team of fundraisers that reach out to local businesses and wealthy individuals to secure the funding that keeps the organization running. She initially took a “hands-off” approach and encouraged her staff to make their own decisions on who to target for donations. But now donations are declining, and she knows she needs to intervene. What advice can you give Brianna on how to be supportive of her team? Source: Kevin Krossber Knowing what you want accomplished may seem clear to you, but it is even more important that your team shares that same vision. You won’t all be working toward the same goal if your team does not understand how to accomplish the goal. Make the effort to be involved, meet with your staff, and provide clear direction on how to be successful so your team can be confident with their ability to do what is expected of them. If you expect your team to work hard to produce quality results, you must lead by example to show them it can be done.  Chapter 17 Being an Effective Leader 495 Culture has consistently shown to be a highly relevant contingency variable in leadership.65 Organizational culture shapes what leadership style is appropriate. Regardless of a leader’s predisposition, what’s defined as “appropriate” in a prison or military organization is likely to be very different than in a consulting firm or an academic department in a university. National culture also shapes what’s appropriate and acceptable. The same relations-oriented style that’s appropriate and effective in Sweden is likely to be seen as weak and ineffective in Mexico. LEADERSHIP issues in the twenty-first century Today’s leaders face some important issues. In this section, we look at LO17.6 several of them. Managing Power Where do leaders get their power—that is, their right and capacity to influence work actions or decisions? Five sources of leader power have been identified: legitimate, coercive, reward, expert, and referent.66 Legitimate power and authority are the same. Legitimate power represents the legitimate power power a leader has as a result of his or her position in the organization. Although The power a leader has as a result of his people in positions of authority are also likely to have reward and coercive power, or her position in the organization legitimate power is broader than the power to coerce and reward. Coercive power is the power a leader has to punish or control. Followers react coercive power to this power out of fear of the negative results that might occur if they don’t com- The power a leader has to punish or ply. Managers typically have some coercive power, such as being able to suspend or control demote employees or to assign them work they find unpleasant or undesirable. Reward power is the power to give positive rewards. A reward can be anything a reward power person values, such as money, favorable performance appraisals, promotions, interest- The power a leader has to give positive rewards ing work assignments, friendly colleagues, and preferred work shifts or sales territories. Expert power is power based on expertise, special skills, or knowledge. If an expert power employee has skills, knowledge, or expertise that’s critical to a work group, that per- Power that’s based on expertise, special son’s expert power is enhanced. skills, or knowledge Finally, referent power is the power that arises because of a person’s desirable referent power resources or personal traits. It develops out of admiration of another and a desire Power that arises because of a person’s to be like that person. Referent power explains why celebrities are paid millions of desirable resources or personal traits dollars to endorse products in commercials. Marketing research shows that people like Ariana Grande, Kim Kardashian, and LeBron James have the power to influence your choice of beauty products and athletic shoes. Most effective leaders rely on several different forms of power to affect the behav- ior and performance of their followers. For example, the commanding officer of one of Australia’s state-of-the-art submarines, the HMAS Sheean, employs different types of power in managing his crew and equipment. He gives orders to the crew (legiti- mate), praises them (reward), and disciplines those who commit infractions (coercive). As an effective leader, he also strives to have expert power (based on his expertise and knowledge) and referent power (based on his being admired) to influence his crew. fyi When employees trust their leaders: Developing Credibility and Trust We saw the importance trust plays in a variety of leadership theories. In fact, it’s prob- 23 percent of employ- ees offer more ideas and ably fair to say that a lack of credibility and trust is likely to undermine leadership. solutions But how can leaders build credibility and trust? Let’s start with making sure we know 21 percent of employees what the terms mean and why they’re so important. are willing to work longer The main component of credibility is honesty. Surveys show that honesty is con- hours67 sistently singled out as the number one characteristic of admired leaders. “Honesty is absolutely essential to leadership. If people are going to follow someone willingly, whether it be into battle or into the boardroom, they first want to assure themselves that the person is worthy of their trust.”68 In addition to being honest, credible lead- ers are competent and inspiring. They are personally able to effectively communicate 496 Part 5 Leading WORKPLACE CONFIDENTIAL A Micromanaging Boss Micromanaging has been described as “probably the most who, with little experience, are fearful of delegation and common complaint about a boss.” What exactly is micro- being held accountable for results. And experienced manag- managing, and what can you do if you find yourself working ers, in a new position, may be overly controlling until they’re for a micromanager? confident of your abilities. So if either you or your boss is A micromanaging boss is someone who wants to con- new, you might want to give it some time. trol every particular aspect, down to the smallest detail, of Changing conditions. A final step before you take any ac- your work. For you, it can be very frustrating, stressful, and tion should be to assess whether conditions have changed. demoralizing. What are some signs that your boss may be If your boss’s micromanaging behavior is a change from micromanaging you? He checks on your progress multiple her past behavior, consider whether it might be justified by times a day, asks for frequent updates, tells you how to changing conditions. Is your organization going through lay- complete tasks, is obsessed with meaningless details, or offs? Is there a major reorganization going on? Has your boss becomes irritated if you make a decision without consult- been given additional projects with pressing deadlines? Has ing him first. But just because your boss monitors your work your boss got a new boss? Any of these types of conditions doesn’t mean he’s a micromanager. Every manager has a re- can increase stress and lead your boss to micromanaging. sponsibility for controlling activities for which he or she is If the conditions creating stress are temporary, her strong responsible. And good managers are detail oriented. The dif- oversight behavior may be just short term. ference is that micromanagers obsess on details, lose sight Talk to your boss. If you’ve come to the conclusion that of priorities, and behave as if they don’t trust you. Good man- your boss’s behavior isn’t temporary and it’s creating difficulties agers, on the other hand, understand the value of delegation. for you to do your job properly, you and your boss need to talk. Unfortunately, you might not always have one of these. It’s very possible your boss is unaware that there’s a There’s a long list of reasons why your boss might be problem. In a nonconfrontational voice, specifically explain micromanaging you. That list would include insecurity, lack of how his oversight is impacting your work, creating stress, trust in others, risk aversion, or lack of confidence in your abil- and making it harder for you to perform at your full capabili- ity. Additionally, other reasons might be having too little to do, ties. You want to show him that you’ve got things under con- thinking he or she is being helpful, or just being a control freak. trol and that you know what his expectations are. Self-assessment. If you feel that your boss is microman- Keep your boss updated. In addition to talking to your aging you, the place to start is with self-assessment. Ask boss, you want to alleviate any concerns she might have that yourself: “Is it me?” Is there any reason your boss might feel work isn’t being done correctly or that she might be unable the need to micromanage? For instance, have you shown up to answer questions about your work progress. This is best late to work? Have you missed some deadlines? Have you achieved by regularly updating her on your work’s status. No been distracted at work lately? Have you made mistakes that boss likes surprises, especially ones that might reflect nega- have reflected negatively on your boss? Start your assess- tively on her management skills. This can best be achieved ment by making sure that your boss’s behavior isn’t rational by proactively providing your boss with updates before and reasonable. they’re requested. New to the job. The next question to ask is: Are either Reinforce your boss’s positive behaviors. When your boss you or your boss new on the job? If you’re new, your boss leaves you alone, let her know you appreciate her hands-off may just be temporarily monitoring your work until he or she approach. Thank her for trusting you. By positively reinforcing is confident of your ability and you prove yourself. If your boss her trust, you increase the probability that she’ll demonstrate is new, either to her current position or in her first managerial more of that behavior. Over time, when combined with your position, you will want to give her some slack as she adjusts. regular updates and your solid performance, you’re very likely Micromanaging is not uncommon among new managers to see a decline in the micromanaging behavior.69 credibility their confidence and enthusiasm. Thus, followers judge a leader’s credibility in terms The degree to which followers perceive of his or her honesty, competence, and ability to inspire. someone as honest, competent, and able to inspire Trust is closely entwined with the concept of credibility, and, in fact, the terms are often used interchangeably. Trust is defined as the belief in the integrity, character, trust and ability of a leader. Followers who trust a leader are willing to be vulnerable to the The belief in the integrity, character, and leader’s actions because they are confident that their rights and interests will not be ability of a leader abused.70 Research has identified five dimensions that make up the concept of trust:71 Integrity: honesty and truthfulness Competence: technical and interpersonal knowledge and skills Consistency: reliability, predictability, and good judgment in handling situations Loyalty: willingness to protect a person, physically and emotionally Openness: willingness to share ideas and information freely  Chapter 17 Being an Effective Leader 497 IT’S YOUR CAREER you share your feelings, others will see you as real and human. How to Be Seen as 4. Tell the truth. Truth is an inherent part of integrity. Once you have lied and been found Trustworthy out, your ability to gain and hold trust is largely To be seen as trustworthy is an obvious asset. As diminished. People are generally more tolerant of a leader, what can you do to get others to trust learning something they “don’t want to hear” than you? It’s no simple task, but the evidence indicates finding out that their leader lied to them. certain actions help to build trusting relationships:73 5. Show consistency. People want predictability. Mistrust comes from not knowing 1. Be open. Mistrust comes as much from what to expect. Let your central values and beliefs what people don’t know as from what they do guide your actions. This increases consistency and know. Keep people informed, make the criteria builds trust. on how decisions are made overtly clear, explain 6. Fulfill your promises. Trust requires that the rationale for your decisions, be candid about people believe you are dependable, so make sure problems, and fully disclose relevant information. you keep your word and commitments. 2. Be fair. Before making decisions or taking 7. Maintain confidences. People trust those actions, consider how others will perceive them in who are discreet and upon whom they can rely. terms of objectivity and fairness. Give credit where They need to feel assured that you will not discuss it’s due, be objective and impartial in performance their confidences with others or betray that appraisals, and pay attention to equity perceptions confidence. If people perceive you as someone in reward distributions. who leaks personal confidences or someone who 3. Speak your feelings. Leaders who convey can’t be depended on, you won’t be perceived as only hard facts come across as cold and distant. If trustworthy. Of these five dimensions, integrity seems to be the most critical when someone assesses another’s trustworthiness.72 Both integrity and competence were seen in our ear- lier discussion of leadership traits to be consistently associated with leadership. Workplace changes have reinforced why such leadership qualities are important. For instance, the trends toward empowerment and self-managed work teams have reduced many of the traditional control mechanisms used to monitor employees. If a work team is free to schedule its own work, evaluate its own performance, and even make its own hiring deci- sions, trust becomes critical. Employees have to trust managers to treat them fairly, and managers have to trust employees to conscientiously fulfill their responsibilities. Also, leaders have to increasingly lead others who may not be in their immediate work group or may even be physically separated—members of cross-functional or vir- tual teams, individuals who work for suppliers or customers, and perhaps even people who represent other organizations through strategic alliances. These situations don’t allow leaders