final Flashcards
leadership in organizations
the ability to influence a group toward the achievement of goals
leadership vs. management
management: coping with COMPLEXITY
leadership: coping with CHANGE
how are leadership and management mutually exclusive?
- many managers/leaders have one skillset but lack the other
- both are necessary for success
Trait Theories
personality, physical or intellectual traits differentiate leaders from non-leaders
- leadership is inherent
- examples are the big five model and the emotional intelligence model
big five model
several dimensions correlate well to leadership performance
- extroversion
- conscientiousness
- openness to experience
emotional intelligence model
social management ability is also a good predictor of leadership
Behavioral Theories
proposes that specific behaviors differentiate from non leaders
- leadership is a skill set and can be taught to anyone
examples: ohio state study and University of Michigan study
Ohio State study
major study evaluated 1000 types of behavior to measure correlation with leadership effectiveness; identified 2 critical behaviors
- initiating structure
- consideration
initiating structure
defining and structuring employee roles to align with organizational goals
consideration
ability to gain trust and respect of followers and make them feel appreciated
University of Michigan study
identified 2 critical leadership behaviors
- employee oriented
- production oriented
employee-oriented
ability to foster interpersonal relationships between leaders and followers
production oriented
ability to understand technical aspect of a job
Contingency Theories
trait and behavior theories cannot explain for all situations
- environment in which the leader exists is the primary determinant
example: Fiedler’s model
Fiedlers model
theory matches the leader to the situational context
- leadership style is fixed; we cannot change our style
- the situation determines the type of leader required
- anyone can be a successful leader if their leadership style matches the situational needs
Fiedlers model (again)
leaders are either
- task-motivated
- relationship-motivated
Effectiveness is dependent on 3 variables:
- leader-member relations
- task structure
- position power
-seeks to explain why good leaders can fall in certain situations
transformational leaders
leaders are individuals who inspire their followers through words/ideas
- typically described as extraordinary, heroic and visionary
- inspire their followers to transcend their self-interests
transactional leadership
guide followers by clarifying task and goal requirements
4 traits of transformational leaders
- articulate vision
- personal risk
- sensitivity to others
- extraordinary behavior
examples of transformational leaders
steve jobs, richard branson, jack welsh
- ghandi, nelson mandela
servant leader model
leaders who lead by giving priority to the needs of colleagues and serving others
- popularized by ken blanchard and robert greenleaf
- modeled on Lao Tzu, buddha, Ghandi
examples of servant leader model
- SAS
- zappos
- REI
- Starbucks
steps of servant leader model
listening empathy healing awareness persuasion conceptualization foresight stewardship
leadership impact on org culture
- culture reflects the senior leadership, good or bad
- ethical leaders create ethical cultures
leadership impact on consumer perception
- CEO serves as a physical representation of the org
- consumer perceptions of org is colored by the perception of the CEO/leader
- impacts both consumers AND potential employees
examples of leadership impact
- warren buffett on berkshire hathaway
- dan cathy on chik fil a
- travis kalanick on uber
organizational culture
a common perception, belief, or system of shared meaning held by the organizations members
organizational culture is defined by
Leadership/Managements:
- employee selection
- establishment of rules/boundaries
- serve as role models
examples of organizational culture
- new/departing CEOS
- coaching changes in sports
- 89% of new hire failures are due to poor cultural fit
- AOL’s “cultural ambassador hiring program”
Schein’s Model of Organizational Culture
3 Levels: artifacts, belief and values, underlying assumptions
level 1: artifacts
characteristics: symbol stories rituals ceremonies
example of a symbol
architecture, logos, clothing, decor
example of stories
frequently told, historical meaning
example of rituals
everyday practices repeated over and ove4r
example of ceremonies
specific activities routinely acted
Level 2: beliefs & values
charactieristics: ideals, goals, printed material
example of ideals
values, aspirations
example of goals
strategic plan (mission statement)
example of printed material
publications, official documents
Level 3: underlying assumptions
characteristics: deeply held, unconscious beliefs
example of deeply held unconscious beliefs
values accepted as being self-evident, taken for granted
correlation between strong organizational culture and company performance
- 26 leading companies given a “culture score”
- earnings evaluated over 10 years
- 6 or 7 “high performers” had about average earnings
3 ways culture hinders change
barrier to change
barrier to diversity
barrier to acquisitions and mergers
barrier to change
occurs when cultures values are not aligned with the values necessary for rapid change
barrier to diversity
strong cultures put considerable pressure on employees to conform, which may lead to institutionalized bias; lack o diversity of thought/perspective (group think)
barrier to acquisitions and mergers
incompatible cultures can destroy a merger
culture as an obstacle to change
approx 75% of merger failures are due to cultural intertia
microsoft example of culture change
near-monopoly status created a culture notorious for being risk averse and has resulted in lack of innovation and “copy cat” approach to product development
sprint/nextel example of culture change
nextel’s laid back “start up” atmosphere clashed with sprint’s formal bureaucratic style
daimler/chrysler example of culture change
incompatible cultural differences boomed merge
hewlett-packard example
a series of leadership changes and merger with Compaq conflicted with traditional “HP Way” culture
CSR/Ethical Organizations
- increasing focus on CSR as a critical component of culture
- critical to attracting/retaining both employees AND customers
- emphasis on triple bottom line (people, planet, profit)
Impacts of CSR
- employee engagement: strong CSR makes 55% higher morale and 38% higher loyalty
- customer loyalty: 75% of customers will switch to a brand with a good cause
Examples of CSR companies
whole foods
REI
starbucks
spiritual organizations
workplace spirituality
- closely related to servant leadership
- recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community
- NOT about organized religious practices; about helping employees find meaning and purpose in their work and reach their potential
4 characteristics of spiritual organizations
- sense of purpose
- trust/respect
- humanistic work practices
- toleration of employee expression
examples of spiritual organizations
- Apple (meditation rooms)
- Google (meditation programs)
- McKinsey (offers framework to clients based on meditiation
organizational communications
encompasses any and all communications that occur inside and/or outside of an organization
internal communication
written, email, IM, teleconferencing
external communication
communications with customers, stakeholders, general public etc
internal communication types
- down: managerial direction to employess
- up: employee feedback to leadership
- lateral: cross-team/division collaboration
benefits of strong internal communcations
- messaging: clear/consistent regarding key issues
- crisis migration: eliminates anxiety, uncertainty, rumors etc. allows leaders to maintain control over the internal narrative
- collaboration/coordination: creates effectiveness
- leadership/management: fundamental to it being effective
internal communcation channels
face to face email IM enterprise social-networking video conferences
Face to Face
pros: greatest emotional content
cons: no documented, written record. not effective for official correspondence
pros: quickly written, sent and stored; low cost for distribution
cons: messages can be misinterpreted, not appropriate for negative messages, overused and overloading readers
IM
pros: explosive growth in business, fast and inexpensive
cons: instrusive&distracting, can be seen as too informal
enterprise social networking
pros: internal corporate networks such as IBMs Blue pages
cons: can reduce productivity if not used constructively
video conferencing
pros: now uses inexpensive webcams and laptops in place of formal videoconferencing rooms
cons: certain situations still require face to face interaction
social networking
- 90% of fortune 500 firms have adopted social networking
- serves has an administrative database
- serves as “wiki”
- serves as social media tool for employees
social networking examples
- NASA spacebook
- Dell chatter
- IBM’s connections
types of external communication
- public relations
- stakeholder engagement
- customer service
public relations
- general public
- may or may not include customers
- political/governmental groups
stakeholder engagement
- shareholders, board of directors
- political and or government organizations
customer service
- direct customers
- other businesses serving as clients
important of external communications
- open communications with stakeholders, clients, the public is essential
- golden rule of PR: perception is reality
benefits of companies being perceived as honest/good corporate citizens
- easier to recruit employees
- longer retention rate, reducing recruitment costs
- employees are more motivated and productive
- more likely to obtain support from government agencies/regulators
5 Best Practices for managers/leaders
- start at the top
- honesty
- frequency
- feedback (2-way)
- WIIFM (whats in it for me)
starts at the top
leadership must set the example and be the primary “source” of info
honesty
trust/honestly is one of the most desired qualities in any relationship
frequency
must be regular/consistent; when there is interruption we assume the worst
feedback (2 way)
if people feel they are not being listened to, they will not listen
WIIFM
know the needs of employees, clients, stakeholders
power
the capacity that person A has to influence the behavior of person B so that person B acts in accordance with person A’s wishes
power and the general dependency postualte
- power is a function of “dependency”
- power/politics are a natural result of resource scarcity (and are present is any organization)
leadership
- focuses on goal ACHIEVEMENT
- requires COMPATIBILITY with followers
- focuses influence DOWNLOAD
- influence is ENDURING
power
- used as a MEANS for achieving goals
- requires follower DEPENDENCY
- used to gain LATERAL and UPWARD influence
- influence is FLEETING
formal power
established by an individuals position in an organization
- coercive
- reward
- legitimate
(formal) coercive power
a power base dependent on fear of negative results
ex: peer pressure to conform
(formal) reward power
compliance achieved based on the ability to distribute rewards that others view as valuable
ex: feedback on performance, both for managers and junior employees
(formal) legitimate power
formal authority to control and use resources based on a persons position in the hierarchy
ex: any formal responsibiltiies assigned to a position
personal power
power that comes from an individuals unique characteristics
- most effective and enduring sources of power
1. expert
2. referent
expert personal power
- influence based on special skills, knowledge or experience
ex: critical when info becomes a scarce and/or valuable resource
referent personal power
- influence based on possession by an individual of desirable resources or personal traits
ex: a group member who is charismatic, funny, inspiring
benefits of power/politics
- helps motivate employees (via rewards)
- reinforces organizational “norms”
- clarifies chain of command and responsibilities
negatives of power/politics
- can lead to harassment/bullying
- perceived inequalities lead to disharmony/dissatisfaction
- leads to turnover/absenteeism
strategies to eliminate/reduce dependency
- find resource alternatives
- form alliances, unions, partnerships to reduce the power differential
sexual harassment
- most common and costly abuse of power in the workplace
- an exploitation of an unequal power relationship
- overt actions (physcial touching)
- but also subtle actions (jokes, looks, insinuations) also more common
what % of women in the workplace have experienced harassing behavior
58
what % of women in the workplace have experienced sexual harassment
24%
how many of those who experienced it reported it
41%
how many women experiencing harassment quit their jobs
15%
how many take time off for leave
25%
how much does a victim suffer in productivity
10%
how much does the US gov lose each year due to sexual harrassment
133 million
bullying
- more likely for men to be victims
- more difficult to define
- most forms are NOT considered illegal
how many employees in the workplace have experienced bullying
37%
how many times is the bully the employee’s manager
72%
how much does bullying cost US companies annually
200 billion dollars
how much does employee performance decline due to bullying
20-40%
what % of bullied employees leave their jobs within a year
30%
what % of witnesses to bullying leave their jobs within a year
20%
conflict in organizations
- it is constructive to have SOME conflict
- conflict is a POSITIVE force in group dynamics
- conflict FACILITATES more effective group performance
- too much harmony leads to complacency or groupthink
benefits of organizational conflict
- improves morale
- stimulates new ideas
- critical to growth/innovation
- promotes healthy competition
distributive bargaining
negotiation that seeks to divide up a fixed amount of resources; a win-lose situation
- strategies to utilize coercion, anchoring, deadlines
- goal is to get as much pie as you can
- focuses on position
- low info sharing
- short term relationships
integrative bargaining
negotiation that seeks a win-win solution
- strategies include compromise, collaboration
- goal is to expand the pie
- focus on interests
- high info sharing
- long term relationships
5 approaches to conflict resolution
- competing
- collaborating
- avoiding
- accommodating
- compromising
competing
- best when an immediate decision is needed
ex: emergency situation or when making an unpopular decision
collaborating
best for integrative solutions, and creating a win win
ex: use when critical to get the other partys commitment, long term relationship
avoiding
best for use with trivial issues or insignificant matters
ex: when you prefer to postpone a negotiation or one is impossible
accomodating
- best when trying to satisfy others
ex: when the situation is more important to the other person or you would want to build goodwill (for future favors)
compromising
- best in complex negotiations or both parties equal in power
ex: when opponents are equal in strength, deadline looking, complicated situations
BATNA
best alternative to a negotiated agreement
- lowest acceptable value/outcome to an individual for a negotiated agreement; the alternative to a negotation
- the “bottom line” for negotations, any offer higher is better than nothing and any offer lower its better to just walk away from the table
key negotiation tactics
- anchoring
- opponents BATNA
- bluff BATNA
- deadlines
- bargaining chips
anchoring
an aggressive initial offer used to anchor your position
opponents batna
always best if you know your opposing party’s BATNA
bluff batna
giving the appearance of having a batna
deadlines
force the opposing party to make concessions
bargaining chips
using additional, perhaps unneeded requirements for bargaining
what is the minimum you should have to decide on a job offer
24-48 hours
golden rule of negotations
everything is negotiable
negotation strategies
- always ask for more
- make your care; justify your position
- use a bluff BATNA if needed
