Business Leadership Unit 4: Leading & Controlling

Leading

The process of inspiring others to work hard to accomplish important tasks. A leader builds people’s commitment and enthusiasm to apply their talents and accomplish tasks.

Which leadership characteristic is most important?

Research Shows Empathy is the Most Important Leadership Quality: “the ability to understand and share the feelings of another person”

Managers vs. Leaders

All managers should be effective leaders but not all leaders are managers.

Manager

A person who is responsible for the work of others

● Skills of a manager:

○ Interpersonal

○ Communication

○ Motivation

○ Organization

○ Delegation

○ Forward planning

○ Strategic thinking

○ Problem solving

○ Technical expertise

○ Mentoring

Leader

Inspires others to work hard to accomplish important tasks

● SKILLS:

○ Communication

○ Motivation

○ Delegation

○ Positivity

○ Trustworthiness

○ Creativity

○ Feedback

○ Responsible

○ Commitment ○ Flexibility

Visionary Leader

Bring to the situation a clear and compelling sense of the future.

● Provide an understanding of the actions needed to get there successfully.

● Inspire others to take the actions necessary to turn a vision into a reality.

Principles for Visionary Leadership

1. Challenge the Process

2. Show Enthusiasm

3. Help others to act

4. Set the example

5. Celebrate achievements

What is power?

The ability to:

● get someone else to do something you want done.

● make things happen the way you want them to.

Power in Management

It is not the desire to control others for personal gain or satisfaction. It is the desire to influence and control others for the good of the group or organization. The “positive” face of power is the foundation of effective leadership.

There are six sources of power

1. Legitimate Power

2. Reward Power

3. Coercive Power

4. Referent Power

5. Expert Power

6. Relational Power

Each source of power falls into two categories:

1. Positional Power

Based on things managers can offer to others. (Legitimate Power, Reward Power, Coercive Power)

2. Personal Power

Based on how managers are viewed by others. (Referent Power, Expert Power, Relational Power)

Legitimate power

Definition: The capacity to influence other people by virtue of formal authority or the rights of others.

“You have to do what I ask because I am the boss”

● Leader is regulated and controlled by organizational rules or by a law

● One with legitimate power has power because of their position or status

Position Examples

● CEO, VP, Department Heads, Managers (anyone who is someone else’s boss)

Leader Examples

● Mr. Faus → a teacher has authority over the students in their class

● Mr. Lozon (my manager) → assigns classes and helps with development

● Airport Security→ insist on screening you and your baggage before you board your flight

Reward power

Definition: Reward power is the power of a manager to give some type of reward to an employee. Rewards can be tangible or intangible. “If you do what I ask, I’ll give you a reward”

Demonstration Examples: Offering something of value such a pay raises, premotions, special assignments, time off, gifts and compliments.

Leader Examples: Teachers, politicians, managers, parents, coaches, etc...

Coercive power

Definition: Forcing employees to follow orders by threatening them with punishment if the employee does not comply. “If you don’t do what I want, I’ll punish you”

Demonstration Examples: Threats of: write-ups, demotions, pay cuts, layoffs, and terminations - if employees do not follow orders.

The state imprisons those who do not act in accordance with its legal mandates.

Leader Examples:

○ Joseph Stalin

○ Putin

○ Hitler

○ Pablo Escobar

Expert power

Definition: Expert power is based on your knowledge, experience, and special skills and talent that one has.

“You should do what I want because of my special expertise and/or information”

Examples: →Leading by example

→ Constructive criticism

→ Teaching lessons

→ Parenting

→ Higher up authority ie. police man

Referent power

Definition: A person with referent power is idolized by their followers. Others have a desire to be like them and be around them.

“You should do what I want because you want to be like me“

Leader Examples:

- Oprah Winfrey

- Martin Luther King Jr.

- Chris Hadfield

- Michael Jordan

- Freddie Mercury

Example of Referent Power in Today’s World

Referent power comes up a lot in society today.

In school, the more popular you are considered, better people think of you and the more people want to be just like you. Power is considered by what friends you have and how many you have while you are in school.

One of the biggest applications of referent power is in social media. If you have a large amount of followers you have a lot of power and influence.

Relational power

Definition: the ability to function well as a part of a team working toward a collective goal, and the power to influence people to work towards that collective goal.

“You should do what I want because it is in the best interest of the team”.

● People teaming up, helping each other out, and stick together within an organization

● Teamwork is becoming more prevalent in business, leaders need to be able to work with others towards a collective goal

● Leader Examples:

○ David Suzuki

○ Volunteer groups (Habitat for Humanity)

○ Sports teams

Managerial Power =

Positional Power + Personal Power

To be a successful leader, an individual must know the types of power they possess AND appropriately use them to achieve goals and pursue a shared vision.

How to Build Managerial Power

Remember there is no substitute for expertise

● Develop likable personal qualities

● Remember that effort and hard work breed respect

● Personal behaviour must match expressed values

Democratic leader

• Employees contribute to the decision-making process

• Employees provide input, information, and creativity

• When to use/advantages:

• Want lots of ideas

• Encourages staff

• Want to increase team spirit and morale

• Want an increase in productivity

• Drawbacks:

• Time consuming

• Result could be inaccurate

• Arguments

• Question if manager is capable

• Employees are not self-directed

Autocratic leader

• Takes control of the situation

• Does not allow employees to participate in decisions

• When to use:

• Decisions must be made quickly

• Additional input would not change the situation

• Unpleasant decisions must be made

• Drawbacks:

• Discontentment

• Employees feel undervalued

• Employees rebel

Laissez-faire leader

• Leaves employees alone to do their job

• When to use:

• Employees are mature and have experience

• Lots of time available

• Drawbacks:

• Employees become directionless, uncertain, and unmotivated

• Employees do not work well as a team

• Poor leadership style for new, inexperienced employees

Transactional leaders

Leaders who use tasks, rewards and structures to influence and direct the efforts of others

Attributes of Transactional Leaders

● Very left-brained (analytical and methodical)

● Tend to be inflexible

● Opposed to change

● Focused on short-term goals

● Favour structured policies and procedures

● Thrive on following rules and doing things correctly

Transformational Leaders

● Leaders who inspire followers to extraordinary performance

● Inspirational leadership influences the beliefs, values and goals of followers

● They create transformations that shift people and organizations to new and better performance

Attributes of Transformational Leaders

● Vision

● Charisma (referent power)

● Symbolism

● Empowerment

● Intellectual Stimulation

● Integrity

Traits Approach

Edwin Locke and Shelley Kirkpatrick identified that great leaders displayed the following characteristics:

● Drive

● Self-confidence

● Creativity

● Cognitive ability

● Business knowledge

● Motivation

● Flexibility

● Integrity

Traits Approach problem

The problem with this theory is that all great leaders have these characteristics, but possessing these characteristics does not guarantee great leadership

Servant leadership

A servant leader is a person who serves followers.

This type of leader seeks to give power to others, to empower them.

The resulting power is very strong because it is fueled by passion.

Qualities of Servant Leaders

1. Value diverse opinions

2. Cultivate a culture of trust

3. Develop other leaders

4. Help people with life issues

5. Encourage

6. Sell instead of tell

7. Think “you”, not “me”

8. Think long-term

9. Act with humility

Blake and Mouton’s Managerial Grid has two dimensions:

1. CONCERN FOR RESULTS/PRODUCTION - Concern for individual efficiency and productivity

2. CONCERN FOR THE PEOPLE - Concern for their individual needs, interests, well-being and personal development

Impoverished Management

● Focuses on the minimum effort to get the work done

● Little concern for either production or people is shown

● Little is accomplished since there is no direction and employees can do as they please

● Disorganization and dissatisfaction

Produce or Perish Management

● Focuses on efficiency of tasks and operations

● The accomplishment of the job is the main concern, regardless of the consequences for employees

● Good results at first, but low morale will impact performance and retention

Middle-of-the-Road Management

● People and production are equally important

● Attempt to balance both results in compromise

● Often produces mediocre results

Country-Club Management

● Focuses on employee’s needs and building relationships

● Leader is interested in being liked by followers

● Fun and relaxed workplace

● Accomplishing the job is of secondary concern

Team Management

● Most effective style, but most difficult to create

● Leader focuses on building participation and support for a shared purpose

Hersey-Blanchard Situational Leadership Model

• Directing: Leaders tell their people exactly what to do, and how to do it

• Coaching: explaining task direction in a supportive and persuasive way, more back and forth communication with followers

• Supporting: emphasizing shared ideas and participate decision making responsibilities

• Delegating: responsibilities passed onto followers, leaders monitor progress, but are less involved in decision making

Stress

A state of tension experienced by individuals facing extraordinary demands, constraints, or opportunities.

Sources of Stress

a. Work Factors

○ Work demands (high or low)

○ Long hours

○ Interpersonal relationships

○ Unrealistic deadlines

○ Difficult managers

b. Personal Factors

○ Physical Health

→ Lack of sleep

→ Poor nutrition

→ Lack of physical activity

○ Type A Personality

→ Achievement-oriented

→ Impatient

→ Perfectionist

c. Non-Work Factors

○ Family and family events

○ Economics

○ Personal affairs

○ Outside interests

Impacts of Stress in the Workplace

1. Concern for Employees

2. Productivity

3. Creativity

4. Return on Investment

Impact of Stress on the Job

1. Constructive Stress - often called eustress

○ Benefits:

i. Positive impact

ii. Feel energized

iii. Stimulates creativity

iv. Encourages increased effort

v. Enhances performance

2. Destructive Stress - often called distress

○ Costs

i. Overload and breakdown of mental and physical systems ii. Absenteeism

iii. Job dissatisfaction

iv. Addictions

v. Decreased performance

vi. Increased disease

vii. Depression

Physical Symptoms of Destructive Stress

● Change in eating habits

● Sleeping problems

● Depression

● Anxious, nervous feelings

● Irritability

● Upset stomach

● Inability to concentrate

Stress Management Strategies

1. Prevent it from happening

2. Wellness programs

3. Flex schedules

4. Take control

5. Talk about it

6. Laughter

7. Exercise

8. Do things for others

9. 8 hours of sleep

Conflict

A disagreement between two or more people.

Types of Conflict

● Substantive Conflict

○ Disagree on goals, resources, policies, job assignments

● Emotional Conflict

○ Results from feelings of anger, distrust, dislike, fear

Competition is a form of Conflict

● Competition is a form of conflict

● Sides disagree about who should win

● It is a peaceful conflict, which is resolved within a set of agreed upon rules

Constructive/Functional Conflict

● Increased creativity and innovation

● Greater effort

● Increased cohesion and collaboration

● Reduced tension and stress

Destructive/Dysfunctional Conflict

● Bad for people and the organization

● Examples:

○ Two employees unable to work together

○ Overbearing manager

○ Country Club manager

● Potential Causes:

○ Low productivity

○ Low job satisfaction

○ High stress

Five major sources of conflict within organizations

1. Intrapersonal

2. Interpersonal

3. Intragroup

4. Intergroup

5. Interorganizational

Intrapersonal Conflict

● Conflict within an individual

● Types:

○ Approach-Approach Conflict

○ Avoidance-Avoidance Conflict

○ Approach-Avoidance Conflict

○ Multiple Approach-Avoidance

Approach-Approach Conflict

● An individual must choose between two equally attractive alternatives.

● Example: location for a vacation - Australia or Fiji?

Avoidance-Avoidance Conflict

● An individual must choose between two equally unattractive and undesirable goals

● Example: clean room or take out the trash

Approach-Avoidance Conflict

● An individual is simultaneously pushed towards and away from a goal

○ Desire to obtain pushes towards the goal

○ Undesirable aspects push away from the goal

● Example: you want to go to the university of your choice, but you don’t want to put in all the effort it will take to get there

Multiple Approach-Avoidance Conflict

● An individual experiences multiple combinations of approach-avoidance conflict

● Example: you want to buy a house, but you don’t want to: ○ Save for a down payment

○ Pay high interest rates

○ Maintain home

○ Pay property taxes

○ Be locked into one location

Interpersonal

● Conflict between two or more individuals

● They perceive themselves as being in opposition to one another regarding preferred outcomes and/or attitudes, values, or behaviors

Conflict of Interest

A situation in which an entity or individual becomes unreliable because of a clash between personal (or self-serving) interests and professional duties or responsibilities

Intragroup

● Conflict amongst members of a formal/informal group ○ Ex. Marketing department, cross-functional team, party planning committee, etc.

● Conflict will affect the group’s processes and outputs

Intergroup

● Conflict between two or more formal/informal groups

● Competition has the potential to stimulate groups to perform better

Intraorganizational

● Conflict that arises from the way an organization is structured

○ Example: departments competing for resources or attention from upper management

Conflict Resolution Approaches

All conflict resolution approaches have some degree of cooperation and assertiveness.

Cooperation - the process of working together to achieve the same goal.

Assertiveness - to stand up for your own or other people's rights in a calm and positive way. Assertive individuals are able to get their point across without upsetting others, or becoming upset themselves.

Avoidance or Withdrawal Style

● Used when people want to stay out of conflicts, remain neutral, or when conflict is intense

● A manager could use this style to let the conflict work itself out

● Could be a result of avoiding tension and/or frustration

Competition or Authoritative Command Style

● Reflects a win-lose approach to conflict

● Attempting to achieve own goals without concern for others

● Could involves an elements of power, dominance or manipulation

● Effective when an unpleasant decision must be made or when there is not willingness to negotiate

Accommodation or Soothing Style

● Reflects a win-lose approach to conflict ○ “Taking the high ground”

● May represent an altruistic act, a long-term strategy to encourage cooperation (“you win now, I win later”), or simply a submission to the wishes of others

● Usually favourably viewed by others, but could result in being perceived as weak

Benefits of Altruism

● Increases the well-being of others

● Encourages selflessness, which can impact your sense of happiness in life.

● Helps you establish meaningful connections with other people. These relationships could lead to opportunities in the future.

● Creates stronger social bonds, which can help you achieve your goals.

● Helps foster a sense of belonging, increasing one’s quality of life.

Compromise Style

● Based on a give-and-take process

● Normally involves negotiation and a series of concessions (granting something to the other party)

● Does not maximize joint outcomes but instead achieves a moderate outcome for each party

Collaboration or Problem Solving Style

● Represents a desire to work together and maximize joint outcomes (win - win approach)

● Characteristics:

○ Conflict is natural, helpful, and leads to more creative solutions

○ People show trust and honesty with others

○ Everyone has an equal role in resolving the conflict and opinions are viewed as equally legitimate

○ Higher commitment to the solution is likely from both parties

○ People do not make sacrifices simply for the good of the group (that is a compromise)

Conflict Management Strategies

1. Prevent it from happening

2. Conflict Training

3. Understand Personalities

4. Understand how the communication process can lead to conflict

5. Restorative Justice

Restorative Justice

● A method of dealing with conflict.

● A approach that attempts to bring restitution to victims of conflict and crime, in a more personal, respectful and individual healing environment.

● Objective is to bring healing to all involved, and allow everyone affected by the conflict, to grow and change.

What are the five ways leaders can make decisions?

1. Decide alone

2. Consult indiv.

3. Consult w group

4. Facilitate group

5. Delegate group

When do authority decisions work best?

Leaders have expertise

Leaders are confident

Others are likely to accept

Little time to make decisions

When do consultative and group decisions work best?

Leaders lacks expertise

Problem is unclear

Acceptance by others necessary

Adequate time is available

According to the Vroom-Jago model, how should a leader decide between an authority decision and a group decision?

Look at who has info and expertise

Acceptance and commitment critical for implementation

Time pressure

← Authority decision    Consultative decisions     Group Decision →

What is a charismatic leader?

Persons whose visions and personalities have an extraordinary impact on others

How does emotional intelligence relate to leadership?

A leader strong in ei possesses self-awareness

Explain the gender-similarity hypothesis. What differences exist between the leadership styles of men and women?

Women emphasize communication and gathering ideas and opinions from others. “Take care” not “take charge”

What is interactive leadership?

Motivating others, fostering communication, listening, mentoring, and supporting high-quality work. - usually done by women

What is moral leadership?

Leadership by ethical standards

What is authentic leadership?

High level  of self-awareness and clearly understands their personal values

Peter Drucker is an influential management consultant, what wisdom does he offer leaders?

“Leadership is work”

Summarize Fielder’s Contingency Theory

Good leadership depends on a match between leadership style and situational demands

According to the Fielder’s Contingency Theory model, what is “task structure”?

the clarity of the tasks required to complete a project

Provide an example of high and low task structure

When task structure is low (unstructured), group tasks are ambiguous, with no clear solution or correct approach to complete the goal. 

When task structure is high (structured), the group goal is clear, unambiguous and straightforward: members have a clear idea about how to approach and reach the goal.

According to the Fielder’s Contingency Theory model, what is “position power”?

the amount of power you have to direct the group, and provide reward or punishment

high and low position power.

If you’re a high LPC leader, you’re a relationship-oriented leader

If you’re a low LPC leader, you’re a task-oriented leader.

Discuss which classical leadership style is demonstrated by Jim White in the movie. Provide examples that support your response.

White involves the team in decision-making processes. He listens to the concerns and opinions of the athletes and their families, fostering a sense of participation and collaboration. An example is when White consults with the team about whether they should attend a meet, considering their family commitments and ensuring that the decision is a collective one.

Discuss how each type of power is used to influence behaviour in the movie. Provide a specific example that illustrates how the power is used.

Legitimate, reward, coercive, expert, referent, relational

position as teacher, has the opportunity to open the doors for prosperous opportunities (scholarships etc.), has the power to punish through kicking people off the team for example, Understanding in sports and training techniques, becomes a respected figure, the relationships and camaraderie formed among the athletes and McFarland

Jim White demonstrates multiple different types of power in the movie. Provide suggestions that will allow him to improve his managerial power and become a more effective leader.

Improve adaptability - Give flexible advice to athletes based on their personal needs

According to Blake & Moutons managerial grid, which type of leader is Jim White? Provide examples to support your answer.

Team management - He cares about the athletes and their families trying to give them an escape from poverty. He cares about results - big focus on the performance of the team

Using the Hersey-Blanchard Situational Leadership, discuss how Jim White demonstrates the following leadership styles: Directing, Coaching, Supporting, Delegating

Telling the athletes how and when to train, teaching running techniques and pacing strategies, motivating athletes at the races, trusting athletes to manage their training 

What are the 5 sections of the Blake and Moutons managerial grid?

impoverished, country club, authority-compliance, team and middle-of-the-road