IRE260 (starting frm lec 8, go over again w post class slides))

Leadership

Influence that part. individuals exert on goal achievement of others in organizational context

• effective leadership enhances productivity, innovation, satisfaction, commitment of workforce

Approaches to Leadership (3)

Structural: who is the leader? defined by organization

Trait: who are effective leaders? what do they bring to grp?

Behavioral/Situational: what behaviors caused them to become leaders? what fo we need in this setting?

Leadership Trait Theories

consider personality, social, physical, intellectual traits to differentiate leaders frm non-leaders (assume traits unchanged over time)

Styles of Leadership

• no best style, successful leadership depends on leader’s behaviour and team members’ ability + confident of followers, contingency theory); leader behaviour change depending on person

Decision Making

• developing commitment to some course of action

• problem-solving (getting frm existing state → desired state)

• involves making choice, a process, committing resources

• can be impacted by strong emotions (may be hinderance) + mood (greatest impact on uncertain, ambiguous/crucial decisions)

Rational Decision Making Process

Perfect vs. Bounded Rationality

Perfect Rationality: decision strategy that is completely informed, logical, oriented towards economic gain.

Bounded Rationality: decision strategy relying on limited information

Economic Person

• can gather info w/o cost + conpletely informed

• perfectly logical

• only one criterion for decision making

Framing

how info abt a problem is presented → powerfully impacts decision

• what problem is

• possible alternatives

Satisficing

stopping when you find a solution that exceeds your expectations

• working under bounded rationality (satisficing > maximizing)

• evaluation of alternatives ceases, solution chosen for implementation

• problem: may miss solutions that could be better because you’ve stopped at one before seeing them

Narrow Framing

compares 2 options

• focuses on tradeoffs

• problem: miss hidden alternatives

Confirmation Bias

seeing information that proves us right

• occurs when we hv preconcieved notions of what the ‘right’ answer should be

• gives us overconfidence in judgement

• ignores vital info

• creates illusion of knowing

Sunk cost fallacy

based on an already made decision that results in a permanent loss of resources → may result in impacts in future decision making

• irrational treatment

• justification for faulty decisions

Escalation of Commitment

Nudge

aspect of choice architecture that alters behaviour in a predictable way without forbidding options/changing economic incentives

• must be easy + cheap

Power + Its Bases (5)

ability to influence someone else’s behaviour

5 Bases of Power:

1. Legitimate Power: delegates/declares power to someone

2. Reward Power: influence others through rewards

3. Coercive Power: influencing others through negative consequences (if you don’t do this, then I will do this ___)

4. Referent Power: others doing nice things for you because they like you

5. Expert Power: from expertise + knowledge

High power → feelings of liberation frm social + normative pressures (“I don’t need to do this because I’m powerful”)

• can cause us to be ethically lost

Political v.s Non-Political Behaviour