Introduction to Management

Lecture 7: Leading to build trust in a global context

Today we will examine the areas that impact an organisation operating in a global context.



What is the nature of leadership?

Which leadership styles are appropriate in different management situations?

How do aspects of leadership effect employer / employee behaviours?

Why are employees and employers interested in the leaders’ capacity to build trust?

Introduction to Management

The context of managers work

Teams and Teamwork

Ethical Management

Leading in a Global Context

Managing Information in Asian Context


What is leadership?

Angela Merkel – Chancellor (Germany); Leader (EU)

Pope Francis – voice for peace, the environment, the poor, and increasing inter-cultural understanding (Italy/Argentina)

Bono – Lead singer, U2 (persuaded debt forgiveness and AIDS funding)

Jeff Bezos – CEO, (USA)

Jack Ma – Executive chairman, Alibaba Group (China)

Zhang Ruimin – CEO Haier Group (China)

José Antonio Abreu – Founder, El Sistema (Venezuela)

Malala Yousafzai – Advocate for education rights (against Taliban)

Derek Jeter – Shortstop & captain, New York Yankees (USA)

Julia Gillard – first female prime minister of Australia

I asked  you one question last week about good and bad leaders and how do you differentiate between them.  Do you remember that question?  Remember the picture from last week (Lincoln and Hitler)  I said think about them.  Good leaders and bad leaders how would you define them?  How would you define badness in terms of leadership, using leadership terms? What I am trying to show you is that leaders are more than just logical thinkers.  They have a combination emotion and cognition.  What I am trying to show you is that they are both effective leaders.  However if you are going to try to define them as good or bad leaders, it’s not a challenging job.  We know who is good and who is bad.  What is difficult is to define what makes a good leader and what makes a bad leader, it is not easy at all.  If we look at this picture, we can easily say who is a good leader and a bad leader.

However, if we are to look at personality traits, how would you apply that theory to define good leadership and bad leadership traits.  How would you use that theory to find some people who look more fit to a situation or their position?  Theory is not very helpful at identify good from bad leaders.  However we have some examples from the readings.  Can you think of any other political or business good leaders? Why are they good leaders?  They have a positive impact on others, on society on their country.  We get to the notion of levels of analysis, micro, macro and meso.

Let’s talk about self-interest.  It’s a good indication about selfish leaders and their orientation. There are many types of leaders.  We need to be able to understand and have a convincing conception of leaders and leadership traits.


Leadership Defined


“a process whereby an individual influences a group of individuals to achieve a common goal.”


This is one way to define leadership – it is a process (read quote)

Who agrees or does not agree with this quote and why?  (take a hand poll)   Why? It’s hard to capture for all time, this concept of leadership.  It’s attached to a situation.  Any other ideas?  (cloud burst open here)  What’s missing here?  There is no way to measure leadership here.  There are more definitions that are more comprehensive and overarching.


Leadership Defined

Some definitions view leadership as:

The focus of group processes

A personality perspective

An act or behavior

The power relationship between leaders & followers

A transformational process

A skills perspective

Components central to Leadership


Is a process

Involves influence

Occurs within a group context

Attends to common goals


And followers are involved together

And followers need each other

Often initiate and maintain the relationship

Are not above or better than followers

Components central to Leadership

Management Activities

Produces order and consistency

Planning & Budgeting

Organizing & Staffing

Controlling & Problem Solving

Leadership Activities

Produces change and movement

Establishing direction

Aligning people


Leadership and Management

Being a manager:  coping with complexity

Companies manage complexity in three ways:

•Determining what needs to be done—planning and budgeting

•Creating arrangements of people to accomplish an agenda—organising and staffing

•Ensuring that people do their jobs—controlling and problem solving


Retired Harvard Business School professsor John Kotter suggests when considering management versus leadership, one is not better than the other, they are complementary systems of action.


Being a leader:  coping with change

Leadership copes with change in three ways:

•Determining what needs to be done—setting a direction

•Creating arrangements of people to accomplish an agenda—aligning people

•Ensuring that people do their jobs—motivating and inspiring


Retired Harvard Business School professsor John Kotter suggests when considering management versus leadership, one is not better than the other, they are complementary systems of action.


Four types of power


–The right to perform or command; it comes with the job


–The extent to which a person is able to influence others so they respond to orders

•Personalised power

–Power directed at helping oneself

•Socialised power

–Power directed at helping others


Although everyone is not suited to be a good leader, evidence shows that people can be trained to be more effective leaders. In response, more companies are using management development programs to build a pipeline of leadership talent. Total US spending by organisations for leadership training was $61.8 billion in 2014 and $70.6 billion in 2015.

People who pursue personalised power—power directed at helping oneself—as a way of enhancing their own selfish ends may give the word power a bad name. However, there is another kind of power, socialised power—power directed at helping others. This is the kind of power you hear in expressions such as ‘My goal is to have a powerful impact on my community’.


Five sources of power

1.Legitimate power

–Results from managers’ formal positions within the organisation

2.Reward power

–Results from managers’ authority to reward their subordinates

3.Coercive power

–Results from managers’ authority to punish their subordinates

4.Expert power

–Results from one’s specialised information or expertise

5.Referent power

–Derived from one’s personal attraction (strong, visionary leadership)



Alex compliments his co-worker Joe on the great job he has done on the weekly report and also informs their mutual boss. Alex is using ______ power.






The correct answer is ‘C’, reward power.


The Nature of Leadership

The nature of leadership

Leading is the process of inspiring others to work hard to accomplish important tasks.

It is also one of the four functions that constitute the management process.

Planning sets the direction and objectives; organising brings the resources together to turn plans into action; leading builds the commitments and enthusiasm needed for people to apply their talents fully to help accomplish plans; and controlling makes sure things turn out in the right way.


Five approaches to leadership


Trait Approach: do leaders have distinctive personality characteristics?

Trait approaches to leadership

–    Attempt to identify distinctive characteristics that     account for the effectiveness of leaders

Typical traits of successful leaders:




4.High energy

5.Task-relevant knowledge

Traits play a central role in how we perceive leaders and they ultimately affect leadership effectiveness. This is why researchers have attempted to identify a more complete list of traits that differentiate leaders from followers.

Researcher Ralph Stogdill concluded in 1948 there were five traits that were typical of successful leaders. Steve Jobs seemed to embody the traits of a successful leader—do his personality traits have something to teach us about leadership?


Key positive leadership traits

Traits associated with women leaders

Although there are substantially fewer women than men in senior leadership roles but similar numbers to men in mid-level positions

Women executives score higher than their male counterparts on a variety of measures, from producing high-quality work to goal setting and mentoring employees


Women tend to have more leadership traits than men, but hold fewer leadership positions. CEOs believe this may be because women lack significant general management experience and have not been around long enough to be selected.

Some people believe that male stereotyping and exclusion from important informal networks contribute to the problem. Other reasons may be because women are not willing to compete as hard as men or make the necessary personal sacrifices.

Consider showing this CNN Money video about Sheryl Sandberg’s advice for men and women (3:32):


Male and female leadership traits compared

Research reveals the following four conclusions:

1.Men display more task leadership and women more relationship leadership

2.Women use a more democratic or participative style than men while men use a more autocratic and directive style

3.Female leadership is associated with more cohesion, cooperative learning and participative communication among team members

4.Peers, managers, direct reports and trained observers rate women executives as more effective than men; men rate themselves as more effective than women evaluate themselves


Beyond the text, here is some additional information about the differences and similarities between female and male leaders.

The increase in the number of women in the workforce has generated much interest in understanding the similarities and differences between female and male leaders. Research reveals these four conclusions:

1.Men displayed more task leadership and women more relationship leadership

2.Women used a more democratic or participative style than men, and men used a more autocratic and directive style

3.Female leadership was associated with more cohesion, cooperative learning and participative communication among team members.

4.Peers, managers, direct reports and trained observers rated women executives as more effective than men; men rated themselves as more effective than women evaluated themselves


Behaviour Approach: do leaders show distinctive patterns of behaviour?

Behavioural leadership approaches

–Attempt to determine the distinctive styles used by effective leaders

–All models of leadership behaviour consider:

1.Task orientation, versus

2.People orientation


Maybe what’s important to know about leaders is not their personality traits but rather their patterns of behaviour. This is the line of thought pursued by those interested in behavioural leadership approaches.

All models of leadership behaviour have in common the consideration of task orientation versus people orientation. Two classic studies from the University of Michigan and Ohio State University will be discussed on the next slides.


University of Michigan model


Jerelyn, a manager, pays close attention to employee productivity and how efficiently the assembly line is moving. Jerelyn is probably:





The correct answer is ‘B’, job-centred.


Ohio State University leadership model


Three dimensions of situational control

•Leader–member relations

–Reflects the extent to which the leader has the support, loyalty and trust of the work group

•Task structure

–Extent to which tasks are routine and easily understood

•Position power

–Refers to how much power a leader has to make work assignments and reward and punish


Once the leadership orientation is known (task-oriented or relationship-oriented), then you determine situational control—how much control and influence a leader has in the immediate work environment.

There are three dimensions of situational control: leader–member relations, task structure and position power.

For each dimension, the amount of control can be high—the leader’s decisions will produce predictable results because he or she has the ability to influence work outcomes. Or it can be low—he or she doesn’t have that kind of predictability or influence. By combining the three different dimensions with different high or low ratings, we have eight different leadership situations. These are represented in the diagram on the next slide.


Applying situational theories

How can you make situational theories work for you?

•Step 1   Identify important outcomes

•Step 2   Identify relevant leadership behaviours

•Step 3  Identify situational conditions

•Step 4  Match leadership to the conditions at hand

•Step 5  Decide how to make the match


What type of leadership would be most effective for this emplyee working at a small, owner-operated grocery store? Do you think she needs more or less task leadership? Why?

How can you make situational theories work for you? A team of researchers proposed a general strategy managers can use across a variety of situations. It has five steps. To describe them, let’s use the example of a sales manager.

Step 1: First identify the goal(s) you want to achieve. For example, a sales manager’s goal might be to increase sales by 10 per cent or reduce customers’ complaints by half.

Step 2: Next identify the specific types of behaviours that may be appropriate for the situation at hand. A sales manager might find path–goal clarifying and supportive behaviours more relevant for the sales team than work facilitation. Don’t try to use all available leadership behaviours. Rather, select one or two that appear most helpful.

Step 3: Fiedler and House both identify a set of potential contingency factors to consider, but there may be other practical considerations. For example, the need to manage a virtual sales team with members from around the world will affect the types of leadership that are most effective.

Step 4: Use your knowledge about power and influence to find the best match between your leadership styles and behaviours, and the situation at hand. A sales manager might find it useful to use the empowering leadership associated with work-facilitation behaviours and avoid directive leadership.

Step 5: Managers can use guidelines from either contingency theory or path–goal theory: change the person in the leadership role or change his or her behaviour. The organisation employing the sales manager might move him or her to another position because the individual is too directive and does not like to empower others. Or the sales manager could change his or her behaviour, if possible.



Jing Wen is head of a task force consisting of her peers from other departments in the organisation. Jing Wen has:

A.High leader–member relations

B.High task structure

C.High position power

D.Low position power


The correct answer is ‘D’, Low position power.


Authentic Approach

Authentic Leadership is an approach to leadership that Focuses on whether leadership is genuine

Emphasis on:

Trustworthiness: Building legitimacy through honest relationships with followers


Morally grounded leadership

Being responsive to people’s needs.

Alternatives to using the leadership approaches that only emphasises money and profit; ignoring ethics and people


Leadership and vision

Leadership is often associated with vision — a future that you hope to create or achieve in order to improve on the present state of affairs.

The term visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future, as well as an understanding of the actions needed to get there successfully.

Truly great leaders are extraordinarily good at turning their visions into concrete results. Importantly, this involves the essential ability to communicate your vision in such a way that others commit their hard work to its fulfilment.

Visionary leaders inspire others to take the actions necessary to turn vision into reality.

Five principles of visionary leadership

Challenge the process. Be a pioneer; encourage innovation and support people who have ideas.

Show enthusiasm. Inspire others through personal enthusiasm to share in a common vision.

Help others to act. Be a team player and support the efforts and talents of others.

Set the example. Provide a consistent role model of how others can and should act.

Celebrate achievements. Bring emotion into the workplace and rally ‘hearts’ as well as ‘minds’.


Transformational Approach

Transformational leadership

–Transforms employees to pursue organisational goals over self-interests

–Leaders are influenced by individual characteristics and organisational culture

–Whereas transactional leaders try to get people to do ordinary things, transformational leaders encourage their people to do exceptional things


It’s important to note that transactional leadership is an essential prerequisite to effective leadership, and the best leaders learn to display both transactional and transformational styles of leadership to some degree. Research suggests that transformational leadership leads to superior performance when it augments or adds to transactional leadership. Transformational leaders, in one description, ‘engender trust, seek to develop leadership in others, exhibit self-sacrifice, and serve as moral agents, focusing themselves and followers on objectives that transcend the more immediate needs of the work group’. Whereas transactional leaders try to get people to do ordinary things, transformational leaders encourage their people to do exceptional things—significantly higher levels of intrinsic motivation, trust, commitment and loyalty—that can produce significant organisational change and results.

Can students think of some examples of transformational leaders? Famous examples might include Dr. Martin Luther King Jr, Nelson Mandela, Oprah Winfrey, Winston Churchill and Steve Jobs.

What makes this style of leadership so appealing?


Four key behaviours of the Transformational Approach

1.Inspirational motivation: ‘Let me share a vision that transcends us all.’

2.Idealised influence: ‘We are here to do the right thing.’

3.Individualised consideration: ‘You have the opportunity to grow and excel here.’

4.Intellectual stimulation: ‘Let me describe the great challenges we can conquer together.’


Martin Luther King Jr addressed the people during the March on Washington at the Lincoln Memorial. This is where he gave his famous ‘I have a dream’ speech. Do you think charismatic business leaders like King are able to be more successful than conventional and conservative managers?


Implications of the Transformational Approach

1.Can improve results for both individuals and groups

2.Can be used to train employees at any level

3.Requires authentic and ethical leaders


You can use the four types of transformational behaviour just described to improve results for individuals: such as job satisfaction, organisational commitment and performance. You can also use them to improve outcomes for groups—an important matter in today’s organisation—where people tend not to work in isolation but in collaboration with others.

Not just top managers but employees at any level can be trained to be more transactional and transformational. This kind of leadership training among employees should be based on an overall corporate philosophy that constitutes the foundation of leadership development.

While ethical transformational leaders enable employees to enhance their self-concepts, unethical ones select or produce obedient, dependent and compliant followers. The ethical things that top managers should do are on the next slide.


Employ a code of ethics The company should create and enforce a clearly stated code of ethics.
Choose the right people Recruit, select and promote people who display ethical behaviour
Make performance expectations reflect employee treatment Develop performance expectations around the treatment of employees; these expectations can be assessed in the performance–appraisal process
Emphasise the value of diversity Train employees to value diversity
Reward high moral conduct Identify, reward and publicly praise employees who exemplify high moral conduct

The ethical things top managers should do be effective transformational leaders

Source: These recommendations were derived from J. M. Howell and B. J. Avolio, The ethics of charismatic leadership: submission or liberation? The Executive, May 1992: 43–54.



Jim, a manager, uses rewards and discipline to motivate subordinates, but does this as a way of helping them reach their full potential. This is called:

A.Contingent leadership

B.Transformational leadership

C.Developmental consideration

D.Democratic leadership


The correct answer is ‘B’, Transformational leadership.


Servant Leadership Approach

–Focuses on providing increased service to others—meeting the goals of both followers and the organisation—rather than to oneself

1. Focus on listening
2. Ability to empathise with others’ feelings
3. Focus on healing suffering
4. Self-awareness of strengths and weaknesses
5. Use of persuasion rather than positional authority
6. Broad-based conceptual thinking
7. Ability to foresee future outcomes
8. Belief they are stewards of their employees and resources
9. Commitment to the growth of people
10. Build community within and outside the organisation

Servant leadership is not a quick-fix approach to leadership. Rather, it is a long-term approach to life and work. It is considered a higher leadership modality than transformational leadership.  The ten characteristics of the servant leader are shown here.

Can students think of some examples of servant leaders? Famous examples might include Abraham Lincoln, Eleanor Roosevelt, Mahatma Gandhi, Saint (Mother) Teresa.

What makes these types of leaders so appealing to their followers?


Values, attitudes and Behaviour why is this important for leaders?


Trust Equation -David Maister



Trust is essential to leadership. A truism indeed. But how trustworthy are we? Is there a way to find out? And can trust be measured? Those are questions that David Maister, Charles M. Green and Rob Galford explored in their book, The Trusted Advisor. Now Green has taken the endeavor one step further with the development of an online self assessment that measures an individual’s “Trust Quotient.”


Inclusive Leadership

See Supplemental Readings for more information


In a volatile and complex world, predicting the future with precision is a risky business. We can be sure, however, about four global mega-trends that are reshaping the environment and influencing business priorities:1

First, diversity of markets: Demand is shifting to emerging markets. With their growing middle class, these new markets represent the single biggest growth opportunity in the portfolio of many companies around the world.

Second, diversity of customers: Customer demographics and attitudes are changing. Empowered through technology and with greater choice, an increasingly diverse customer base expects better personalization of products and services.

Third, diversity of ideas: Digital technology, hyper-connectivity, and deregulation are disrupting business value chains and the nature of consumption and competition. Few would argue against the need for rapid innovation.

Fourth, diversity of talent: Shifts in age profiles, education, and migration flows, along with expectations of equality of opportunity and work/life balance, are all impacting employee populations.

Putting this into the context of leaders, inclusive leadership is about:

Treating people and groups fairly—that is, based on their unique characteristics, rather than on stereotypes

Personalizing individuals—that is, understanding and valuing the uniqueness of diverse others while also accepting them as members of the group

Leveraging the thinking of diverse groups for smarter ideation and decision making that reduces the risk of being blindsided

Trait 1: Commitment

Highly inclusive leaders are committed to diversity and inclusion because these objectives align with their personal values and because they believe in the business case.

Trait 2: Courage

Highly inclusive leaders speak up and challenge the status quo, and they are humble about their strengths and weaknesses.

Trait 3: Cognizance of bias

Highly inclusive leaders are mindful of personal and organizational blind spots, and self-regulate to help ensure “fair play.”

Trait 4: Curiosity

Highly inclusive leaders have an open mindset, a desire to understand how others view and experience the world, and a tolerance for ambiguity.

Trait 5: Culturally intelligent

Highly inclusive leaders are confident and effective in cross-cultural interactions.

Trait 6: Collaborative

Highly inclusive leaders empower individuals as well as create and leverage the thinking of diverse groups.


How do leaders build and maintain trust with team members?

Be fair, truthful and respectful to others.

Be aware of and sensitive to the stage of the teams development.

Communicate so people are kept informed, but do not over share with team members either too much or irrelevant information.

Develop a code of practice or team rules, so everyone knows where they stand. This helps them to make patterns of the communication and behaviour predictable, which is particularly important for virtual teams

Invest in relationships with staff to hear and understand, so that communication is genuinely two-way. This requires some humility and acknowledging you may no have all the answers.

Reference L Kinicki. S. L and Williams.


Assessment 2 – Part 2 (Report)

Although you worked in a team for your presentation, your personal experience and perspective on how the team functioned to complete the project will be unique.

To consolidate your learning, each team member must submit their own individual report.  In this report, you will reflect on what you learned about managing and working in diverse groups.



Next Lecture?

Teams and Teamwork Week 5
Ethical Management Week 6
Leading in a Global Context Week 7
Managing Information Week 8 Assessment 2 due

Next week

Managing Information

Introduction to Management

The Context of Managers Work

Teams and Teamwork

Ethical Management

Leading in a Global Context


Hall, E. T. 1959. The Silent Language, Doubleday.

Kinicki. S. L and Williams. P (2018) Management a practical Introduction. McGaw-Hill Education (Australia) Pty. Ltd.

Liu, X., Magjuka, R. J., & Lee, S.-H. 2008. An examination of the relationship among structure, trust, and conflict management styles in virtual teams. Performance Management Quarterly, 21: