Test 2 Flashcards
Major Leadership Theories. What is situational leadership
Always ask 3 questions before choosing how to act:
- 1.How much control do I have in this situation?
- 2.How able and willing are my followers to follow?
- 3.How urgent is the situation?
Then use the continum in the picture to know what to do
**this is also know as contingency leadership
Lessons from Home Depot (2)
Calculation of turnover costs. If you can decrease this, it can be a lot of savings
Don’t need to calculate, but understand the information that you need to do that:
- # of Employees (around 300,000)
- Replacement cost (1:1)
- average Salary (30K)
= (300,000*.14)*30,000 = $1.26 Billion
Customer satisfaction
They had less employees, which is why it was low
Solution: “more aprons on the floor” = more people there (who are well trained) to help out
Main causes of faulty reward systems (4)
&
How to Fix Faulty Reward Systems (Kerr Article)
Causes:
- Fascination with Objective Criterion = simple, quantifiable standards and metrics work in work with highly predictable outcomes, but this can be “faulty” when applied elsewhere
- Overemphasis on Visible Behaviors = whoever scores the goal gets the recognition, but the person who passed her the ball. Same in that team-building and creativity may be underemphasized because it isn’t “visible” to managers
- Hypocrisy (what behaviors are really desired?) = the rewarder may have been getting the desired outcome, in spite of claims that the behavior was not actually desired.
- Emphasis on Other Ends like morality or equity (instead of efficiency) = the 1994 Clinton health plan was a system that rewarded inefficiency, while arguing that this was for some “higher objective”
How to fix = Our reward systems need to align with the right outcomes. Example: we usually ask “did you visit”, but do we want to reward for just a visit? We need to change.
ESSAY: 5 Types (or Sources) of Power*
- Expert [PERSONAL] = Based upon an individual’s special knowledge and/or skills
- Referent [PERSONAL] = Based upon admired personal qualities and reputation
- Legitimate [ORGANIZATIONAL] = Based upon an individual’s position in the formal hierarchy
- Reward [ORGANIZATIONAL] = Based upon the capacity to control distribution of valued rewards
- Coercive [ORGANIZATIONAL] = Based upon fear, intimidation, and the capacity to control punishment
Essay: briefly explain any 3 or 4 of those 5 sources of power, and what could you do to increase in those things. Or what types of power do you think each person holds in this situation, and what would you do if you’re participant A in order to increase your power.
Major Leadership Theories. What is a behavioral leader?
- = do as I’m doing (e.g., in remember the Titans, Gary wanted team-focused behaviors, but Julius isn’t seeing that from Gary. Bottom line:be the EXAMPLE! The things you say matter, so you better embody those (be consistent) )
- These leaders are:
- People-oriented (Consideration) = look out for employee’s welfare
- Task-oriented = assign specific tasks and push employees to reach performance
- These leaders are:
ESSAY: Daniel Pink What Motivates us? Key Takeaways
Key motivators:
- Autonomy – one day of autonomy produces something that would’ve never emerged (get out of their way)
- Mastery – we care about mastery (this can be hard b/c we aren’t there long enough to be a master) - this can be done on or off the clock
- Purpose – organizations want to have a transcendent purpose (how does their role fit in with the purpose)
if it’s a more complex tasks, higher incentives leads to poorer performance. But incentives can increase performance in mechanical tasks
Pay just enough to take money off the table as an issue
Customer Outcomes – SRR (p. 134) = this is a measure that tells you if you got “what’s right” for the customer
S - satisfaction
R - repurchase
R- recommend
Manage by Exception (2 main things)
-
BREAK THE GOLDEN RULE - everyone is different:
- Becca likes beating others. Adam likes beating himself
-
Ask your people:
- Ask your employee about his/her goals
- How does she like recognition (was is most meaningful recognition)
- Ask about past mentors. How did they help?
Major Leadership Theories. What are 4 characteristics of a transformational leader?
Charisma + the 3 I’s:
- Charisma – higher than average
- Individual consideration = customize behaviors and message to individual followers, based on their needs
- Intellectual stimulation = Steve Jobs good = trying to cause others to think differently and push them beyond
- Inspirational motivation = hold people to a higher bar, but they express confidence that they can hit those marks
Define the Right Outcomes – Chapter 4
Rules of Thumb for When to Focus on Steps (not Autonomy for Employees) (3 points) and when to not (1 point)
- Activities involving Accuracy and Safety - don’t break the bank
- Following External Standards -
- The Steps don’t obscure the Outcomes - don’t let the creed overshadow the message - Airlines letting on-time numbers overrule customer satisfaction.
- Don’t try this with Customer Satisfaction
Major Leadership Theories. What is transformational leadership (4 things)
- 1.Create vision – going to the moon
- 2.Communicate vision – JFK communication to the nation tha he would put money into the space program, cause his vision was to get to the moon
- 3.Modeling the Vision – (Kotter doesn’t talk about this much) if you’re going to transform a team, you better live it. Be the model!
- 1.Julius and Gary
- 4.Building Commitment – because there is a compelling vision and we see a vision in the leader, it builds commitment. They’re energized by what they see happening.
**NOTE that #3 and #4 are what differentiates a transformational leader from others
Focus on Strengths (First Break All the Rules)
Main Ideas (2)
& Reasons Behind why we don’t focus on strengths(4)
- It’s tempting to try to fix people
- Each person is different and shouldn’t be changed
Reasons:
- Universal Potential? (We think we all have the same potential)
- Persistence Will Always Pay Off? (not everyone will be the best at calculus if they try hard enough)
- Relationships Preoccupied with Weaknesses? (stop trying tofocus on fixing your spouse)
- Who is to Blame for Failure?
Equity Theory
Motivation Theory
individuals are motivated by a sense of fairness in their interactions. Moreover, our sense of fairness is a result of the social comparisons we make. Specifically, we compare our inputs to outcomes with other people’s inputs to outcomes
If underrewarded, then you’re try to grow outcomes by talking to boss or stealing from company. Or shrink inputs by lowering intensity
If overrewareded, grow inputs through more high-quality work
2 Types of Dimensions of Organizational Justice and which one do people care more about?
Distributive Justice – fairness of allocated outcomes (pay raises, promotions, layoffs, other rewards)
Procedural Justice – fairness of the processes that lead to the decisions about employment outcomes
People want a VOICE and CONSISTENCY
if we aren’t happy with the reward we got, then we care a lot more about procedural justice. If we’re happy, I don’t care if the process was fair
(OB) Chapter 6.5 Rewarding Employees: Individual Reward Types (5)
piece rate- employees are paid on the basis of individual output they produce.
bonuses- one-time rewards that follow specific accomplishments of employees.
merit pay- involves giving employees a permanent pay raise based on past performance
commissions- involves rewarding sales employees with a percentage of sales volume or profits generated.
Awards-methods that motivate employees through awards, plaques, or other symbolic methods of recognition by conveying sincere appreciation for employee contributions.
ESSAY: Decision-Making Approaches*
Rational (6 Steps)
(4th step is most challenging and leads to most failures)
&
Satisficing = how is it different than rational? Not first alternative. Imperfect information, but it’s the first alternative that meets the criteria that you have set in your mind (more of a “good-enough” decision
- = bounded rationality model
ESSAY Expectancy Theory*
Will my effort lead to desired performance level?
Will my performance give me the valued outcome that I want?
E –> P –> VO
E = Do i believe that my effort will lead to the desired performance level?
P = if I perform at that level, is that what is rewarded in this organization
VO = do I care about the rewards
Perception Attribution Theory:
Attribution theory helps us answer the question: “Why is this person behaving that way?” We will make significantly different decisions based on whether we attribute others’ behaviors to internal factors (that is just how that person is) or to external factors (something in that employee’s environment is causing this behavior).
Consequences of Sources of Power
Note that Expert and referent are personal, so you can get a lot of power that way (i.e., engagement is best)
Job Characteristics Model
When do you care about this model? This one isn’t just about poor performance. You may want to use it if someone is performing well
Matters when you have high turnover in a particular role because its either
too stressful
too boring
This model can help you redesign the job so that it’s more motivation in the future
What do you need to know?
Left Hand column
[meaningfulness] Skill variety =
[meaningfulness] task identity = do I do something from start to finish? Am I involved in the whole process and not just a part?
[meaningfulness] task significance = do we think this task is meaningful
[responsibility] autonomy
[knowledge of results] feedback = do i get feedback on how well I’m performing from either my boss or technology feedback
Reinforcement (Methods)
Methods:
Think of the Ikea example. If they go back to the usual way of rewarding sales, will they work as hard as they worked on that day when they gave all the revenue to the employees?
Negative reinforcement = •Pop quizzes? When we read and he sees us comment, then he would take away the quizzes
Major Predictors of Job Performance & Turnover (just know the top row)
know the top row of the chart = these are the major predictors
- Job performance = General mental ability = kind of like IQ
- Turnover = poor job performance
ESSAY: Goal-Setting Theory*
if you set good goals, people will be more focused and be more persistent toward the goal outcome
SMART Goals
Specific, Measurable, Aggresive, Realistic, Time-Based
- You want goals that are accepted by employees (set them with employees)
- you use SMART framework to get past general goals (go from general to SMART)
- you want feedback
Reinforcement Schedule
Schedule:
Behaviors:
- Continuous
- IKEA couldn’t do this with their example, b/c they’d lose out (rats that go through the maze, and they get cheese at the end, everytime)
- Problems: costs, and entitlement that no longer motivates (you assume that you’ll get it)
- Fixed ratio:
- You know when the reinforcement will come. Frequent purchase card (every 10th sub you’ll get a free sub)
- Variable Ratio – better from a motivational standpoint
= don’t know when the reinforcement will come (vegas slot machine)
Time (days):
Problem with interval, it doesn’t really motivate you.
Fixed interval
This is your paycheck – this just encourages you to do just enough to keep your job (exception could be commission based)
Variable Interval
Ikea doing it a day of the month, w/o telling them
Someone from headquarters showing up for the day as positive reinforcement
Leader-Member Exchange (LMX)’
- Leader can have an in group and an out group
- Upper left corner of picture = these are characteristics that will be more likely to get you into the in group
- your performance always gives you a better chance to be in the “in-group”
- You want to be in the “in group” – assume this when you go into an organization
- When it’s high-stakes, the leader will turn to the in group
