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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-1Copyright 2008 Pearson Education Canada

    Chapter 11

    Leadership and Trust

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-2Copyright 2008 Pearson Education Canada

    LEARNING OUTLINEFollow this Learning Outline as you read and study this chapter

    Managers Vs. Leaders

    Contrast leaders and managers Early Leadership Theories

    Discuss what research has shown about leadership

    traits

    Contrast the findings of the four behavioural

    leadership theories

    Explain the dual nature of a leaders behaviour

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-3Copyright 2008 Pearson Education Canada

    LEARNING OUTLINE (contd)Follow this Learning Outline as you read and study this chapter

    Contingency Theories of Leadership

    Explain how Fiedlers theory of leadership is acontingency model

    Contrast situational leadership theory and the leader

    participation model

    Discuss how path-goal theory explains leadership

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-4Copyright 2008 Pearson Education Canada

    LEARNING OUTLINE (contd)Follow this Learning Outline as you read and study this chapter

    Cutting-edge Approaches to Leadership

    Differentiate between transactional and

    transformational leaders

    Describe charismatic-visionary leadership

    Discuss what team leadership involves

    Current Leadership Issues

    Describe the five sources of a leaders power

    Discuss the issues todays leaders face

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    115

    Managers Versus LeadersNot all leaders are managers, nor are all

    managers leaders.

    Managers Persons whose influence on others is limited to the appointed

    managerial authority of their positions to reward and punish.

    Leaders

    Persons with managerial and personal power who can influenceothers to perform actions beyond those that could be dictated by

    those persons formal (position) authority alone.

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    ManagersVersus Leaders

    May Have

    Managerial

    Authority and

    Influence Others

    Appointed andHave Formal

    Authority

    Managers Leaders

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-7Copyright 2008 Pearson Education Canada

    Exhibit 8.1 DistinguishingManagership from Leadership

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-8

    Copyright 2008 Pearson Education Canada

    Early Leadership Theories Trait Theories (1920s30s)

    Research that focused on identifying personal

    characteristics that differentiated leaders from non-leaders was unsuccessful

    Later research on the leadership process identified seven

    traits associated with successful leadership: Drive, the desire to lead, honesty and integrity, self-confidence,

    intelligence, job-relevant knowledge, and extraversion

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-9

    Copyright 2008 Pearson Education Canada

    Exhibit 8.2 Seven Traits Associatedwith Leadership

    Drive

    Desire to lead Honesty and integrity

    Self-confidence

    Intelligence Job-relevant knowledge

    Extraversion

    Source: S.A. Kirkpatrick and E.A. Locke, Leadership:

    Do Traits Really Matter?Academy of Management

    Executive, May 1991, pp. 48-60; and T.A. Judge, J.E.

    Bono, R. Ilies, and M. Werner, Personality and

    Leadership: A Qualitative and Quantitative Review,

    Journal of Applied Psychology, August 2002, pp. 765-

    780.

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-10

    Copyright 2008 Pearson Education Canada

    Behavioural Theories University of Iowa Studies (Kurt Lewin)

    Identified three leadership styles:

    Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback

    Laissez-faire style: hands-off management

    Research findings: mixed results No specific style was consistently better for producing better

    performance

    Employees were more satisfied under a democratic leader than anautocratic leader

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-11

    Copyright 2008 Pearson Education Canada

    Behavioural Theories (contd) Ohio State Studies

    Identified two dimensions of leader behaviour Initiating structure: the role of the leader in defining his or her role

    and the roles of group members Consideration: the leaders mutual trust and respect for group

    members ideas and feelings

    Research findings: mixed results High-high leaders generally, but not always, achieved high group

    task performance and satisfaction

    Evidence indicated that situational factors appeared to stronglyinfluence leadership effectiveness

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-12

    Copyright 2008 Pearson Education Canada

    Behavioural Theories (contd)

    University of Michigan Studies

    Identified two dimensions of leader behaviour Employee oriented: emphasizing personal relationships

    Production oriented: emphasizing task accomplishment

    Research findings: Leaders who are employee oriented are strongly associated with

    high group productivity and high job satisfaction

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-13

    Copyright 2008 Pearson Education Canada

    Behavioural Theories (contd)

    Managerial Grid

    Appraises leadership styles using two dimensions:

    Concern for people

    Concern for production

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-14

    Copyright 2008 Pearson Education Canada

    Exhibit 8.4The

    ManagerialGrid

    Source: Reprinted by permission of

    Harvard Business Review. An exhibit

    from Breakthrough in Organization

    Development by Robert R. Blake,

    Jane S. Mouton, Louis B. Barnes,and Larry E. Greiner, November

    December 1964, p. 136. Copyright

    1964 by the President and Fellows of

    Harvard College. All rights reserved.

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-15

    Copyright 2008 Pearson Education Canada

    Exhibit 8.3 Behavioural Theories of Leadership

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition8-16

    Copyright 2008 Pearson Education Canada

    Contingency Theories of Leadership The Fiedler Model

    Effective group performance depends upon the match between

    the leaders style of interacting with followers and the degree to

    which the situation allows the leader to control and influence

    Assumptions:

    Different situations require different leadership styles

    Leaders do not readily change leadership styles

    Matching the leader to the situation or changing the situation to make it

    favourable to the leader is required

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-17Copyright 2008 Pearson Education Canada

    Contingency Theories (contd) The Fiedler Model (contd)

    Least-preferred co-worker (LPC) questionnaire

    Determines leadership style by measuring responses to 18 pairs of

    contrasting adjectives

    High score: a relationship-oriented leadership style

    Low score: a task-oriented leadership style

    Situational factors in matching leader to the situation: Leader-member relations

    Task structure

    Position power

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-18Copyright 2008 Pearson Education Canada

    Exhibit 8.5 Findings of the Fiedler Model

    Poor

    Good

    Highly FavourableSituation Favourableness: Moderate Highly Unfavourable

    IGoodHigh

    GoodHigh

    Strong Weak

    GoodLow

    Weak

    PoorHigh

    Strong

    PoorHighWeak

    PoorLow

    Strong

    PoorLow

    Weak

    GoodLow

    Strong

    II III IV V VI VII VIIICategoryLeaderMember

    RelationsTask StructurePosition Power

    RelationshipOriented

    TaskOriented

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-19Copyright 2008 Pearson Education Canada

    Contingency Theories (contd) Hersey and Blanchards

    Situational Leadership Theory (SLT)

    Successful leadership is achieved by selecting aleadership style that matches the level of the followersreadiness

    Acceptance: do followers accept or reject a leader?

    Readiness: do followers have the ability and willingness toaccomplish a specific task?

    Leaders must give up control as followers become morecompetent

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-20Copyright 2008 Pearson Education Canada

    Contingency Theories (contd) Hersey and Blanchards Situational Leadership

    Theory (SLT) (contd)

    Creates four specific leadership styles incorporating

    Fiedlers two leadership dimensions:

    Telling: high tasklow relationship leadership

    Selling: high taskhigh relationship leadership

    Participating: low taskhigh relationship leadership

    Delegating: low tasklow relationship leadership

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-21Copyright 2008 Pearson Education Canada

    Contingency Theories (contd)

    Hersey and Blanchards Situational Leadership

    Theory (SLT) (contd)

    Identifies four stages of follower readiness:

    R1: followers are unable and unwilling

    R2: followers are unable but willing

    R3: followers are able but unwilling

    R4: followers are able and willing

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-22Copyright 2008 Pearson Education Canada

    Exhibit 8.6 Hersey and Blanchards

    Situational Leadership Model

    Source: Reprinted with permission from the Center for Leadership

    Studies. Situational Leadership is a registered trademark of the Center

    for Leadership Studies. Escondido, California. All rights reserved.

    S3 S2S4 S1

    STYLE OF LEADER

    Task Behaviour

    High

    Low High

    High relationshipand low task High task andhigh relationship

    Low relationshipand low task

    Moderate

    Follower Readiness

    LowHigh

    Ableand

    willingAbleand

    unwillingUnable

    andwilling

    Unableand

    unwilling

    R4 R3 R2 R1

    High task andlow relationship

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-23Copyright 2008 Pearson Education Canada

    Contingency Theories (contd)

    Leader Participation Model (Vroom and Yetton)

    Leader behaviour must be adjusted to reflect the task

    structure

    Suggests appropriate participation level in decision

    making

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-24Copyright 2008 Pearson Education Canada

    Contingency Theories (contd) Leader Participation Model Contingencies:

    Decision significance

    Importance of commitmentLeader expertise

    Likelihood of commitment

    Group support

    Group expertise

    Team competence

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-25Copyright 2008 Pearson Education Canada

    Exhibit 8.7 Path-Goal TheoryEnvironmentalContingency Factors

    Task StructureFormal Authority SystemWork Group

    SubordinateContingency FactorsLocusof ControlExperiencePerceived Ability

    Leader BehaviourDirectiveSupportiveParticipativeAchievement Oriented

    OutcomesPerformanceSatisfaction

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-26Copyright 2008 Pearson Education Canada

    Contingency Theories (contd) Path-Goal Model

    Leaders job is to assist his or her followers in

    achieving organizational goals

    Leaders style depends on the situation:

    Directive

    Supportive

    Participative

    Achievement-oriented

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1127

    Path-Goal Leadership Behaviors Directive leader

    Lets employees know what is expected of them, schedules work to be done,

    and gives specific guidance as to how to accomplish tasks.

    Supportive leader

    Is friendly and shows concern for the needs of employees.

    Participative leader

    Consults with employees and uses their suggestions before making a

    decision.

    Achievement-oriented leader

    Sets challenging goals and expects employees to perform at their highest

    levels.

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-28Copyright 2008 Pearson Education Canada

    Contemporary Approaches to Leadership Transactional Leadership

    Leaders who guide or motivate their followers in the

    direction of established goals by clarifying role and taskrequirements

    Transformational Leadership

    Leaders who inspire followers to go beyond their own

    self-interests for the good of the organizationLeaders who have a profound and extraordinary effect on

    their followers

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-29Copyright 2008 Pearson Education Canada

    Contemporary Approaches to Leadership

    (contd)

    Charismatic Leadership

    An enthusiastic, self-confident leader whose personality

    and actions influence people to behave in certain waysCharacteristics of charismatic leaders:

    Have a vision

    Are able to articulate the vision

    Are willing to take risks to achieve the vision Are sensitive to the environment and to follower needs

    Exhibit behaviours that are out of the ordinary

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    FOM 11.30

    Charismatic Leadership Self-confidence

    Vision

    Ability to articulate a vision

    Strong convictions

    Extraordinary behaviour

    Appearance as change agent

    Environmental sensitivity

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-31Copyright 2008 Pearson Education Canada

    Contemporary Approaches to Leadership(contd)

    Charismatic Leadership (contd)

    Effects of Charismatic Leadership Increased motivation, greater satisfaction

    More profitable companies

    Charismatic leadership may have a downside:

    After recent ethics scandals, some agreement that CEOs with lessvision, and more ethical and corporate responsibility, might be

    more desirable

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-32Copyright 2008 Pearson Education Canada

    Contemporary Approaches to Leadership(contd)

    Visionary Leadership

    A leader who creates and articulates a realistic, credible,and attractive vision of the future that improves upon the

    present situation

    Visionary leaders have the ability to:

    Explain the vision to others

    Express the vision not just verbally but through behaviour

    Extend or apply the vision to different leadership contexts

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    FOM 11.33

    Extendthe Vision

    Explainthe Vision

    Expressthe Vision

    Visionary Leadership

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1134

    Visionary Leadership

    A vision should create enthusiasm, bringing energy and

    commitment to the organization.

    The key properties of a vision are inspirational possibilities that are

    value centered, realizable, and have superior imagery and

    articulation.

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-35Copyright 2008 Pearson Education Canada

    Exhibit 8.8 Specific TeamLeadership Roles

    Team Leader

    Roles

    Liaison with

    External

    Constituencies

    Coach

    Conflict

    ManagerTroubleshooter

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1136

    The Challenge of Team Leadership Becoming an effective team leader requires:

    Learning to share information.

    Developing the ability to trust others.

    Learning to give up authority.

    Knowing when to leave their teams alone and when to intercede.

    New roles that team leaders take on

    Managing the teams external boundary

    Facilitating the team process

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-37Copyright 2008 Pearson Education Canada

    Current Leadership Issues Managing Power

    Legitimate power The power a leader has as

    a result of his or herposition

    Coercive power The power a leader has to

    punish or control

    Reward power The power to give positive

    benefits or rewards

    Expert power

    The influence a leader can

    exert as a result of his or

    her expertise, skills, or

    knowledge

    Referent power

    The power of a leader that

    arises because of a

    persons desirable

    resources or admired

    personal traits

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1138

    Other Leadership Variables

    National culture

    Leadership styles reflect the cultural conditions that

    followers have come to expect. Leadership theories developed in the United States have an American

    bias.

    Power distance

    Varies among cultures and affect participativemanagements effectiveness

    High power distance = autocratic leadership style

    Low power distance = participative leadership style

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1139

    Other Leadership Variables (contd) Emotional Intelligence (EI)

    Considered to be the trait difference that makes an

    individual into a star performer

    Is an essential element of effective leadership

    Components of EI

    Self-awareness

    Self-management

    Self-motivation

    Empathy

    Social skills

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1140

    Substitutes for Leadership Employee characteristics

    Experience

    Training Professional orientation

    Indifference toward

    organizational regards

    Job characteristics Unambiguous

    Routine

    Intrinsically satisfying

    Organizational

    characteristics

    Explicit formalized goals Rigid rules and procedures

    Cohesive work groups

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    FOM 11.41

    Trust as the Foundation of Leadership

    Willing to be vulnerable

    Ability to gain knowledge and creative thinking

    In times of change and instability, people turn to

    personal relationships

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-42Copyright 2008 Pearson Education Canada

    Developing Trust Credibility (of a Leader)

    The assessment, by a leaders followers, of the leadershonesty, competence, and ability to inspire

    Trust The belief of followers and others in the integrity, character,

    and ability of a leader

    Dimensions of trust: integrity, competence, consistency, loyalty,

    and openness Trust is related to increases in job performance,

    organizational citizenship behaviours, job satisfaction, andorganization commitment

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    Copyright 2005 Prentice Hall, Inc. All rights reserved.

    1144

    Types Of Trust Deterrence-based trust

    Trust based on fear of reprisal if the trust is violated

    Knowledge-based trust

    Trust based on the behavioral predictability that comes from a

    history of interaction

    Identification-based trust

    Trust based on an emotional connection between the parties

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-45

    Copyright 2008 Pearson Education Canada

    Tips for Managers:Suggestions for Building Trust Practise openness

    Be fair Speak your feelings

    Tell the truth

    Show consistency

    Fulfill your promises

    Maintain confidences

    Demonstrate competence

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-46

    Copyright 2008 Pearson Education Canada

    Providing Moral Leadership

    Addresses both the moral content of a leaders goals

    andthe means used to achieve those goals

    Ethical leadership is more than being ethical

    Includes reinforcing ethics through organizational

    mechanisms

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-47

    Copyright 2008 Pearson Education Canada

    Providing Online Leadership

    Challenges of Online Leadership

    Communication Choosing the right words, structure, tone, and style for digital

    communications

    Performance management Defining, facilitating, and encouraging performance

    Trust Creating a culture where trust is expected, encouraged, and

    required

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-48

    Copyright 2008 Pearson Education Canada

    Understanding Gender Differencesand Leadership

    Research Findings

    Males and females use different styles:

    Women tend to adopt a more democratic or participative

    style unless in a male-dominated job

    Women tend to use transformational leadership

    Men tend to use transactional leadership

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    Chapter 8, Stephen P. Robbins, Mary Coulter, and Nancy Langton,Fundamentals of Management, Fifth Canadian Edition 8-49

    Exhibit 8.9 Where Female Managers

    Do Better: A Scorecard

    Source: R. Sharpe, As Leaders, Women Rule, BusinessWeek, November 20. 2000, p. 75.

    Noneof the five studies set out to find gender differences. They stumbled on them whilecompiling and analyzing performance evaluations.

    Skill (Each check mark denotes which groupscored higher on the respective studies)

    * In one study, womens and mens scores in these categories were statistically even.

    MEN WOMENMotivating OthersFostering CommunicationProducing High-Quality WorkStrategic PlanningListening to Others

    Analyzing Issues

    **

    *

    Data: Hagberg Consulting Group, Management Research Group, Lawrence A. Pfaff, PersonnelDecisions International Inc., Advanced Teamware Inc.