Leadership and Decision Making | My Assignment Tutor

1Leadership and DecisionMakingLecture 10What are the challenges of strategicleadership and innovation?➢ Strategic leadership creates the capacityfor ongoing strategic change.➢ Components of strategic leadership: Determining the organization’s purpose orvision. Exploiting and maintaining the organization’score competencies. Developing the organization’s human capital. Sustaining an effective organizational culture. Emphasizing and displaying ethical practices. Establishing balanced organizational controls.21 22What are the challenges of strategicleadership and innovation?➢ Sustainable competitive advantage relies on creativityand innovation.➢ Creativity is the generation of a novel idea or uniqueapproach to solving problems or crafting opportunities.➢ Innovation is the process of creating new ideas andputting them into practice3What are the challenges of strategicleadership and innovation?➢ Two forms of innovation: Process. Results in better ways of doing things. Product. Results in the creation of new or improved goods andservices.➢ Innovations require invention and application. Invention. Act of discovery. Development of new ideas. Application. Act of use. Implementation of new ideas.43 43What are the challenges of strategicleadership and innovation?➢ Leadership responsibilities for the innovation process: Imagining. Designing. Experimenting. Assessing. Scaling.5What is the nature oforganizational change?➢ Change leader. A change agent who takes leadership responsibility forchanging the existing pattern of behavior of anotherperson or social system.➢ Change leadership. Forward-looking. Proactive. Embraces new ideas.65 64Change leaders versus status quomanagers.7What is the nature oforganizational change?➢ Top-down change. Strategic and comprehensive change that is initiated withthe goals of comprehensive impact on the organization andits performance capabilities. Driven by the organization’s top leadership. Success depends on support of middle-level and lowerlevel workers.87 85What is the nature oforganizational change?➢ Bottom-up change. The initiatives for change come from any and all parts ofthe organization, not just top management. Crucial for organizational innovation. Made possible by: Employee empowerment. Employee involvement. Employee participation.9What is the nature oforganizational change?➢ Integrated change leadership. Successful and enduring change combinesadvantages of top-down and bottom-upapproaches. Top-down: Breaks up traditional patterns. Implements difficult economic adjustments. Bottom-up: Builds capability for sustainable change. Builds capability for organizational learning.109106What is the nature oforganizational change?➢ Transformational and incremental change. Unplanned change. Response to unanticipated events. Good leaders act on opportunities for reactivechange. Planned change Aligning the organization with anticipated futurechallenges. Activated by proactive leaders who are sensitive toperformance gaps. Transformational change ⎯ major andcomprehensive redirection. Incremental change ⎯ adjusting existing systemsand practices.11What is the nature oforganizational change?➢ How to lead transformational change: Establish a sense of urgency for change. Form a powerful coalition to lead thechange. Create and communicate a change vision. Empower others to move change forward. Celebrate short-term “wins” and recognizethose who help. Build on success; align people and systemswith new ways. Stay with it; keep the message consistent;champion the vision.1211127What is the nature oforganizational change?➢ External forces for change: Globalization. Market competition. Local economic conditions. Government laws and regulations. Technological developments. Market trends. Social forces and values.➢ Internal forces for change: Arise when change in one part of the system createsthe need for change in another part of the system. May be in response to one or more external forces.13What is the nature of organizationalchange?➢Organizational targets for change: Tasks People Culture Technology Structure1413148How can planned organizational changebe managed?➢ Force-coercion strategy of change. Uses power bases of legitimacy, rewards, andpunishments to induce change. Relies on belief that people are motivated byself-interest. Direct forcing and political maneuvering. Produces limited and temporary results. Most useful in the unfreezing phase.15How can planned organizationalchange be managed?➢ Rational persuasion strategy of change. Bringing about change through persuasionbacked by special knowledge, empirical data,and rational argument. Relies on expert power. Relies on belief that reason guides people’sdecisions and actions. Useful in the unfreezing and refreezing phases. Produces longer-lasting and internalizedchange.1615169How can planned organizationalchange be managed?➢ Shared power strategy of change. Engages people in a collaborative process ofidentifying values, assumptions, and goals fromwhich support for change will naturallyemerge. Time consuming but likely to yield highcommitment. Involves others in examining socioculturalfactors related to the issue at hand. Relies on referent power and stronginterpersonal skills in team situations. Relies on belief that people respond tosociocultural norms and expectations ofothers.17Alternative change strategies andtheir leadership implications.18171810How can planned organizationalchange be managed?➢ Reasons for people resisting change: Fear of the unknown Disrupted habits Loss of confidence Loss of control Poor timing Work overload Loss of face Lack of purpose19How can planned organizationalchange be managed?➢ Methods for dealing with resistance to change: Education and communication Participation and involvement Facilitation and support Facilitation and agreement Manipulation and co-optation Explicit and implicit coercion20192011How can stress be managed in a changeenvironment?➢ Stress A state of tension experienced by individuals facingextraordinary demands, constraints, or opportunities.➢ Stressors Things that cause stress Originate in work, personal, and nonwork situations. Have the potential to influence work attitudes,behavior, job performance, and health.21How can stress be managed in achange environment?➢ Work factors as potential stressors: Includes: Excessively high or low task demands. Role conflicts or ambiguities. Poor interpersonal relationships. Too slow or too fast career progress. Work-related stress syndromes: Set up to fail. Mistaken identity.22212212How can stress be managed in achange environment?➢ Personal factors as potential stressors: Includes needs, capabilities, and personality. Stressful behavior patterns of the Type Apersonality: Always moving, walking, and eating rapidly. Acting impatient, hurrying others, disliking waiting. Doing, or trying to do, several things at once. Feeling guilty when relaxing. Trying to schedule more in less time. Using nervous gestures such as a clenched fist. Hurrying or interrupting the speech of others.23How can stress be managed in achange environment?➢ Nonwork factors as potentialstressors: Includes: Family events. Economics. Personal affairs. “Spill-over” effect on the stress an individual experiencesat work.24232413How can stress be managed in achange environment?➢ Consequences of stress: Constructive stress. Acts as a positive influence. Can be energizing and performance enhancing. Destructive stress. Acts as a negative influence. Breaks down a person’s physical and mental systems. Can lead to job burnout and/or workplace rage.25Potential negative consequences of adestructive job stress-burnout cycle.26252614How can stress be managed in achange environment?➢ Personal wellness: The pursuit of personal and mental potential though apersonal health-promotion program. A form of preventative stress management. Enables people to be better prepared to deal with stress.27Leadership Theories and Model Trait Behavioural Blake and Mouton Contingency Situational Leader-Member Exchange Path-Goal272815 Historic findings reveal that leaders and followersvary by– intelligence– dominance– self-confidence– level of energy and activity– task-relevant knowledge Contemporary findings show that– people tend to perceive that someone is a leader when he orshe exhibits traits associated with intelligence, masculinity,anddominance– people want their leaders to be credible– credible leaders are honest, forward-looking, inspiring, andcompetentLeadership Traits: represent the personal characteristics thatdifferentiate leaders from followers.Trait Theory Gender and leadership– men and women were seen as displaying more task andsocial leadership, respectively– women used a more democratic or participative stylethan men, and men used a more autocratic and directivestyle than women– men and women were equally assertive– women executives, when rated by their peers, managersand direct reports, scored higher than their malecounterparts on a variety of effectiveness criteriaTrait Theory (continued)293016Validity of Trait Theory Research has failed to: Prove the same traits apply at all times to all leaders Shows that the same traits always differentiate leadersfrom followers Fails to consider followers and situational factors Organisations who rely on the Trait theory, undertakespecific psychometric analysis in the HRM processes Traits are good to know anyway – they identify yourstrengths and weaknesses and allow you to map them intoyour work environment Traits rely on situations too – certain situations needcertain traits if the situations don’t arise neither does theleadership potential Leaders can only lead when people want to followBehavioural TheoryEmphasis is that the individual can be taught certain behaviouralcharacteristics to make them a leader Initiating structure: define & structure behaviour pattern in achievinggoal Consideration: trust, consideration and empathy for sub-ordinates Employee-Oriented Leader: with emphasis on interpersonal relationship Production-Oriented Leader: with emphasis on taskResearch concluded the most effective leaders were those with highdegree of interpersonal relationships who achieved greater success inachieving goalsWe are as strong as the weakest link!313217 Ohio State Studies identified two critical dimensions of leader behavior.1. Consideration: creating mutual respect and trust with followers2. Initiating Structure: organizing and defining what groupmembers should be doing University of Michigan Studies identified two leadership styles that weresimilar to the Ohio State studies– one style was employee centered and the other was job centered Blake and Mouton’s Managerial Grid represents four leadership stylesfound by crossing concern for production and concern for people• Research shows that there is not one best style ofleadership. The effectiveness of a particular leadership styledepends on the situation at hand.Behavioral Styles TheoryBlake & Mouton Model Authoritarian-Obedience: task oriented withlittle attention to co-operation & collaboration Team Management: promote team working inachieving common goal Country-Club Management: build strongrelationship with people with little attention totask Impoverished Management: no commitment torelationship or task333418The Leadership GridHigh 1,9 9,9people;ough atrust and respectMiddle-of-the-road Management5,5sible throughry level.Adequate organizatimaintaining morale ofon performance is pospeople at a satisfacto Country Club Management Team Management8 Thoughtful attention to the needs Work accomplishment is fromof the people for satisfying committed 7 relationships leads to a interdependence thrcomfortable, friendly organization “common stake” in organization6 atmosphere and work tempo purpose leads to relationships of5 4 balancing the necessity to get work out while3 Impoverished Management Authority-Compliance ManagementExertion of minimum effort to get required Efficiency in operations results from arranging2 work done is appropriate to sustain conditions of work in such a way that humanorganization membership. elements interfere to a minimum degree1 1,1 9,19 Low 1 2 3 4 5 6 7 8 Low Concern for Results HighConcern for PeopleAuthority Compliance Heavy emphasis on task and job requirements People are tools for getting the job done Controlling, Demanding, Hard-Driving and Overpowering353619Country Club Management Low concern for TaskAccomplishment High concern for interpersonalrelationships Agreeable, eager to help,comforting, uncontroversial Gets things done by creating apositive climateImpoverished Management The leader does not care about the task or personalrelationships Goes through the motions Indifferent, non-committal, resigned, apathetic373820Middle of the RoadManagement Leaders as compromisers Emphasizes lack of conflict, and try’s to attain someinterpersonal contact Swallows conviction in the interest of “progress”Team Management Strong driver on both tasks and interpersonalrelationships. Stimulates participation, acts determined, gets issuesinto the open enjoys working394021Contingency Theory of Leadership Contingency theory of leadership assumes that there is no onebest way to lead. Effective leadership depends on the leader’sand follower’s characteristics as well as other factors in theleadership situation.Central Features of the ContingencyTheory of Leadership❖ Best way: there is no one best way to lead.❖ Leadership style: Different leadership stylesare appropriate for different situations.❖ Middle ground: The contingency theorystresses the views that (a) there is somemiddle ground between the existence ofuniversal principles of leadership that fit allsituations and (b) each situation is uniqueand therefore must be studied and treatedas unique.414222Central Features of the ContingencyTheory of Leadership (Cont.)❖ Focus: The contingency theories ofleadership we studied focus on threevariables: (a) leader’s style; (b) follower’smotivation and skill; and (c) the nature ofthe task.❖ Adaptability of leadership style: For anindividual leader, this theory assumesthat leadership is changeable and shouldbe variable for different situations.Fiedler’s Leadership ContingencyModelTask -oriented style Reclationships-orientedonsiderate styleTask oriented styleFavorable leadershipsituationSituation intermediatein favorable lenses forleaderUnfavorable leadershipsituation434423Fiedler’s Leadership ContingencyModel (Cont.)Leader’s Motivational Situational FavorablenessOutcome System Major variables 1. Leader-MemberIn Fiedler’s RelationshipsContingency Leadership Style 2. Task StructureEffectivenessTheory 3. Leader’s PositionPowerFiedler’s Leadership Contingency Model(Cont.)Synthesis of the Fiedler Contingency ModelPerformance Task-orientedGood Relationship-oriented Poor Favorable Moderate UnfavorableCategory I II III IV V VI VII VIIILeader- member Good Good Good Good Poor Poor Poor PoorrelationsTask structure High High Low Low High High Low LowPosition power Strong Weak Strong Weak Strong Weak Strong WeakSource: Stephen P. Robbins, Organizational Behavior, 6th ed. (Englewood Cliffs, N. J.: PreTice Hall, 1993), P. 375.454624Fieldler Model Three variables Leader-Member relations How the members feel about the leader Task Structure Is it structured, or unstructured Position Power Can leader reward/punishVroom-Yetten’s Contingency ModelFigure 5-5 Schematic representation of variables used in leadership researchReprinted from Leadership and Decision-Making by Victor H. Vroom and Philip W. Yetton bypermission of the University of Pittsburgh Press. 1973 by University of Pittsburgh PressSituational variables (1) Organizational (4)effectivenessLeader behavior(3)Personal attributes(2) Situational variables(1a)Is there a Do I have Is the Is acceptance Do subordinates Is conflictquality re- sufficient problem of decision share the organ- among suborquirement such information structured? by subordinates izational goal dinates likelythat one solu- to make a critical to to be obtained in preferredtion is likely high quality effective im- in solving this solutions?to be more decision? plementation? problem?rational thananother?A B C D E F474825Fieldler Model Three variables Leader-Member relations How the members feel about the leader Task Structure Is it structured, or unstructured Position Power Can leader reward/punishContingency Theories – Fiedler Model Leader-member Task structure Position power495026Situational Model Directive are task centred behaviour The assistance of group members through givingdirections, establishing objectives, setting times,defining roles Often asynchronous and one-way Supportive are relationship centredbehaviour Synchronous and two-way Asking for input, problem solving, praising,sharing information, listeningBlanchard and Hersey’s Theory of SituationalLeadershipTask Behavior—The extent to which the leader engages in defining rolesis telling what, how, when, where, and if more than one person whois to do what in: Goal-setting Organizing Establishing time lines Directing ControllingRelationship Behavior—The extent to which a leader engages in two-way(multi-way) communication, listening, facilitating behaviors, andproviding socioemotional support Giving support Communicating Facilitating interactions Active listening Providing feedback515227Blanchard and Hersey’s Theory of SituationalLeadership (Cont.)Decision Styles1. Leader-made decision2. Leader-made decision with Dialogue and/orExplanation3. Leader/follower made decision or followermade decision with encouragement fromleader4. Follower-made decision SellingS2Explain decisions andprovide opportunity forclarificationParticipatingS3Share ideas andfacilitate indecision makingDelegatingS4Turn overresponsibility fordecisions andimplementationTellingS1Provide specificinstructions and closelysupervise performance Follower-Directed Leader-DirectedLowLowHighHighLeader BehaviorTask BehaviorFollower ReadinessHigh Moderate LowR4 R3 R2 R1Relationship Behavior(supportive behavior)Hersey and Blanchard’sSituational Leadership Theory535428Blanchard and Hersey’s Theory of SituationalLeadership (Cont.)Ability: has the necessary knowledge, experience, and skillWillingness: has the necessary confidence, commitment, motivationFollower ReadinessHigh Moderate Low R4R3 R2 R1Able and AWilling Uor Confident oFollower Direble but Unabnwilling Willr Insecure or Coctedle but Unableing Unwillinnfident or InsecLeader Directedandgure When a leader behavior is used appropriately with its corresponding level of readiness, it is termed a HighProbability Match. The following are descriptors that can be useful when using situational leadership forspecific applications.S1 S2 S3 S4Telling Selling Participating DelegatingGuiding Explaining Encouraging ObservingDirecting Clarifying Collaborating MonitoringEstablishing Persuading Committing FulfillingSituational ApproachCombines tasks & relationship behaviour Telling – high task, low relationship Selling – high task, high relationship Participating – low task, high relationship Delegating – low task, low relationshipWith different degree of individual maturity M1 – neither competent nor confident M2 – motivated but lack skills M3 – able but unwilling to follow leaders M4 – able & willing to do as asked555629Tri-Dimensional Leader Effectiveness Model▪ Insert Figure 2.5Leader-Member Exchange Theory(LMX)FIGURE 5: Leader-Member Exchange TheoryPersonal compatibilityand/or subordinatecompetence LeaderSubordinate A Subordinate B Subordinate C Subordinate DSubordinate ESubordinate FIn-GroupOut-GroupHigh interactionsFormal relations Trust575830Path-Goal Theory59


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