Principles of Management #4

Chapter 10,11,12

Kouzes & Posner’s 5 Key Behaviors of Best Leaders

Challenge the conventional process/practices/beliefs

Enable others to act

Inspire a shared vision

Model the way

Encourage the heart

Vision

A mental image of a possible and desirable future state of the organization (ideal & unique)

Why may a vision fail?

Only reflects leader’s personal needs

Ignores various stakeholders’ needs

Circumstances may dictate that the vision must change

Managers

Dealing with day-to-day complexities of the organization.

Planning and budgeting routines

Keeping everything running

Leaders

Effectively orchestrating important change

Setting direction for the firm

Inspiring people to attain the vision

Supervisory leadership

Behavior that provides guidance, support, and corrective feedback for day-to-day activities

Strategic leadership

Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future.

Trait Approach

Attempts to identify the personal characteristics that great leaders share

Behavioral Approach

Attempts to identify the behaviors that great leaders share

Situational Approach

Proposes that:

Universally important traits & behaviors do not exist

Effective leadership behavior varies from situation to situation

Effective Followers

Think independently but are committed to organizational goals.

Demonstrate enthusiasm and commitment to the organization, a person, or a purpose outside their own interests 
Master important skills

Hold high performance standards

Leader-Member Exchange Theory

Highlights importance of leader behaviors not just toward the group (original focus), but also toward individuals on a personal basis. 

Managers must consider cross-cultural differences.

Maintenance behaviors such as trust, open communication, mutual respect, mutual obligation, and mutual loyalty form the cornerstone of relationships that are satisfying and perhaps more productive.

Autocratic leadership

Leaders make decisions on their own and then announces those decisions to the group
results in higher performance

Democratic Leadership

Leaders solicit input subordinates
on average, results in most positive attitudes

Laissez-faire leadership

Leaders essentially make no decisions
on average, results in more negative attitudes and lower performance

Vroom Model of Leadership

Focuses on the participative dimension of leadership

5 decision styles of Vroom Model

Decide: Managers make the decision alone and then announce it to the group

One-on-one consultation: Managers present the program to group members individually, obtains their suggestions, and then makes the decision.

Consult the group: managers present the problem to group members at a meeting, gets their suggestions, and then makes the decision

Facilitate: Managers present the problem to the group at a meeting, defines the problem and its boundaries, and then facilitate group member discussion as members make the decision

Delegate: Managers allow the group to define for itself the exact nature and parameters of the problem and then develop a solution.

Vroom Model relies on situational factors used to analyze a problem

Decision significance to the success of the project or organization

Importance of commitment to the decision

Leader’s expertise in relation to the problem

Likelihood of commitment from the team to a decision that you might make on your own

Group support for objectives at take in this problem

Group expertise in relation to the problem

Team competence in working together in solving problems
Works like a funnel

Fielder’s Contingency Model of Leadership Effectiveness

Postulates that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation.

Least-preferred coworker (LPC) scale

Presumed to measure a leader’s motivation

Ask leaders to think of all the people that they have worked with and to select their least-preferred coworker.
Assume that the descriptions in the LPC scale say more about the leader than about the least-preferred coworker

High LPC leaders are more concerned with inter-personal relations → Relationship motivation

Low LPC leader are more concerned with task relevant problems → Task Motivation

Hersey and Blanchard’s Situational Theory

A life cycle theory of leadership postulating that a manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important

Leader’s relationship behavior should start low, gradually increase, but then decrease again as follower readiness increases

Leader’s task behavior shown by the straight line, should start high when followers lack readiness and then continuously diminish as they gain readiness.

Psychological maturity

An employee’s self confidence and self-respect

Job maturity

Level of employee’s skills and technical knowledge relative to the task being performed.

Path-Goal Theory

Concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals.

4 Leadership Behaviors of Path-Goal Theory

Directive leadership, a form of task performance-oriented behavior

Supportive leadership, a form of group maintenance-oriented behavior

Participative leadership, or decision style

Achievement-oriented leadership, or behaviors geared toward motivating people, such as setting challenging goals and rewarding good performance

Personal characteristics of Followers

Authoritarianism: The degree to which individuals respect, admire, and defer to authority

Locus of control: The extent to which individuals see events as under their control

Ability: People’s beliefs about their own capabilities to do their assigned jobs

Environmental pressures and demands

Tasks: The degree to which tasks are well structured

Formal authority system: The degree to which the formal authority system is dissatisfying

Primary work group: The degree to which work group provides individuals social support

Charismatic Perspective

Leaders who appear dominant, self-confident, and convey a strong conviction in the moral righteousness of their beliefs, and they are able to arouse a sense of excitement and adventure in followers.

Transformational Perspective

Leaders who motivate people to transcend their personal interests for the good of the group.

Transactional Perspective

Leaders view management as a series of transactions in which they use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered.

Authenticity Leadership

A style in which the leader is true to himself or herself while leading
Attributes like honesty, genuineness, reliability, integrity, and trustworthiness

Pseudo-transformational leaders

Talk about positive change but allow their self-interest to take precedence over followers’ needs

Non-traditional Leadership Roles

Servant-leader, Shared, Bridge, Lateral

Servant-leader

A leader who serves others’ needs while strengthening the organization.

Shared Leadership

Rotating the leadership in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.

Bridge Leaders

Leaders who bridge conflicting value systems or different cultures

Lateral Leadership

Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.

Power

The ability to influence others

Sources of power in organizations

Legitimate, Reward, Coercive, Referent, Expert

Goal-Setting Theory

People have conscious goals that energize them and direct their thoughts and behaviors toward a particular end.

Law of Effect

Behavior that is followed by positive consequences will likely be repeated

Reinforcers

Positive consequences that motivate behavior.

4 types of Consequences

Positive Reinforcement: Desirable consequences

Negative Reinforcement: Remove/withhold an undesirable consequences

Punishment: Administer an undesirable consequence

Extinction: Withdraw/fail to provide a reinforcing consequence

Effective Tools for Reinforcing

Rewards, Punishment, Feedback

Expectancy Theory

Proposes that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and how highly they value that outcome.

Expected Value

Expectancy x Instrumentality x Valence

Expectancy

Perceived likelihood that their efforts will enable them to attain their performance goals

Outcomes

A consequences a person receives for their performance

Instrumentality

The perceived likelihood that performance will be followed by a particular outcome

Valence

The value an outcome holds for the person contemplating it. It can be positive or negative.

Maslow’s Need Hierarchy

Physiological - Food, water, sex, and shelter.

Safety or security - Protection against threat & deprivation

Social - Friendship, affection, belonging, and love

Esteem - Independence, achievement, freedom, status, recognition, and self-esteem

Self-actualization - Realizing one’s full potential; becoming everything one is capable of being.

Alderfer’s Three Work-Related Needs

Existence needs - All material and physiological desires

Relatedness Needs - Involve relationships with other people and are satisfied through the process of mutually sharing thoughts and feelings.

Growth Needs - Motivate people to productively or creatively change themselves or their environment

McClelland’s Needs

Achievement - A strong orientation toward accomplishment and an obsession with success and goal attainment

Affiliation - A strong desire to be liked by other people

Power - A desire to influence or control other people

QWL Program Categories

Adequate and fair compensation

A safe and healthy environment

Jobs that develop human capacities

A chance for personal growth and security

A social environment that fosters personal identity, freedom from prejudice, a sense of community, and upward mobility

Constitutionalism - The rights of personal privacy, dissent, and due process

A work role that minimizes infringement on personal leisure and family needs

Socially responsible organizational actions.

Extrinsic Rewards

Given by the boss, the company or some other person

Intrinsic Rewards

Derived directly from performing the job itself

Hygiene Factors

Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied if they are poorly managed

No matter how good these factors are, they will not make people truly satisfied or motivated to do a good job.

Motivators

Factors that make a job more motivating, such as more job responsibilities, opportunities for personal growth and recognition, feelings of achievement

When motivators are present, jobs are presumed to be satisfying and motivating for most people.

Hackman & Oldham Model

Skill variety - Different job activities involving several skills and talents

Task Identity - The completion of a whole, identifiable piece of work

Task Significance - An important, positive impact on the lives of others

Autonomy - Independence and discretion in making decisions

Feedback - Information about job performance

Equity Theory

State that people asses how fairly they have been treated according to two key factors: outcomes and inputs.

Procedural Justice

Using a fair process in decision making and making sure others know that the process was as fair as possible

Costly Consequences of Job Dissatisfaction

Higher turnover and absenteeism

Less good citizenship

More grievances and lawsuits

Strikes

Stealing, sabotage, and vandalism

Poorer mental and physical health

More injuries 

Poor customer service

Lower Productivity and profits.