Chapter 11 Leadership and Trust



Chapter 11 Leadership and Trust

Section 11.3 - Contemporary Leadership Issues

Key Terms

• Trust

• Deterrence-based trust

• Knowledge-based trust

• Identification-based trust

Summary

There are several contemporary issues in leadership including team leadership, leadership and national culture, emotional intelligence and leadership, the relevance of leadership, and entrepreneurial leadership.

A meaningful way to describe the team leader’s job is to focus on two priorities: managing the team’s external boundary and facilitating the team process. First, team leaders are liaisons with external constituencies. Second, team leaders are troubleshooters. Third, team leaders are conflict managers. Finally, team leaders are coaches. National culture affects leadership style because leaders cannot choose their styles at will. They are constrained by the cultural conditions that their followers have come to expect. Emotional intelligence – more than I.Q., expertise, or any other single factor—is the best predictor of who will emerge as a leader. The possession of the five components of emotional intelligence—self-awareness, self-management, self-motivation, empathy, and social skills—allows an individual to become a star performer.

Trust, or lack of trust, is an increasingly important issue in today’s organizations. Trust is a positive expectation that another will not—through words, actions, or decisions—act opportunistically. Trust implies familiarity and risk. The key dimensions that underlie the concept of trust are integrity, competence, consistency, loyalty, and openness.

Managerial and leadership effectiveness depends on the ability to gain the trust of followers. There are three types of trust in organizational relationships: deterrence-based, knowledge-based, and identification-based. Deterrence-based trust is trust based on fear of reprisal if the trust is violated. Most new relationships begin on a base of deterrence. Most organizational relationships are rooted in knowledge-based trust. Trust is based on the behavioral predictability that comes from a history of interaction. It exists when you understand someone well enough to be able to accurately predict his or her behavior. In an organizational context, most manager-employee relationships are knowledge based.

Identification-based trust (the highest level of trust) is achieved when there is an emotional connection between the parties. At this level, unquestioned loyalty exists. Most large corporations have broken promises that have led to a breakdown in what was, at one time, a bond of unquestioned loyalty. It’s likely to have been replaced with knowledge-based trust.

Section Outline

Contemporary Leadership Issues

A. What is team leadership?

B. Does national culture affect leadership?

C. How does emotional intelligence affect leadership?

D. Is leadership always important?

Building Trust: The Essence of Leadership

A. What is trust?

B. Why is trust critical to leadership?

C. What are the three types of trust?

1. Deterrence-based trust

2. Knowledge-based trust

3. Identification-based trust

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