Professional MBA MAN 6244 Organizational Behavior Session 3

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Professional MBA MAN 6244 Organizational
BehaviorSession 3

• Spring 2008
• Class 2009, Session II
• Orlando Metro West
• Dr. B. Wayne Rockmore, APS

This PowerPoint presentation is intended to be a
supplement to your class notes, not a replacement
for them. It provides a general outline of
topics and their relationship to each other.
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Tonights Agenda

• Session 3
• Leadership
• Power Politics
• Session 4 Agenda
• Barriers to Organizational Change
• Organizational Culture (Domestic Global)
• Organizational Structure (Design Issues)

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• Leadership ..
• The art of mobilizing others to want to struggle
  for shared aspirations (James M. Kouzes Barry
  Z. Posner, The Leadership Challenge)
• Leadership is the art of accomplishing more than
  the science of management says is possible (Colin
  Powell)

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The Effective Leader
Knows what they have to

• Give to their employees in
• order to Get the performance they want!

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Leadership Is Both Rational and Emotional

• Leadership

Rational Techniques
Emotional Appeals
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Approaches to Understanding Leadership

• Traits
• Trait theory (the Great Person Theory)
• Behaviors
• Ohio State University and University of Michigan
  Studies
• Situation (The Contingency Approach)
• Basic Leadership Model
• Feidler, Hersey-Blanchard, P-G
• Contemporary
• LMX
• Transactional v. Transformational
• Level 5

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Trait Theory(The Great Person Theory)

• Some people are born leaders
• Leaders differ from others in a small number of
  key traits
• These traits are unchanged over time
• These individuals have the potential to be great
  leaders at any point in time, in any society

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Leaders/Non-leaders Vary on Traits

• Technical knowledge
• Energy
• Height
• Extraversion
• Conscientiousness
• Openness

• Ambition
• Desire to lead and influence others
• Honesty and integrity
• Self-confidence
• Intelligence
• Self-monitoring

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Two Major Style Differences

• Task-oriented (productivity - tasks)
• Initiating structure (Ohio State University),
  production-oriented (University of Michigan)
• Person-oriented (morale - social)
• Consideration (OSU), employee-oriented (UM)

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Behavioral Theories

• Seek to identify key dimensions of leader
  behavior
• Leaders differ not in terms of traits but in
  terms of behavior (how the trait is enacted)
• Focus on differences in behavior between
  effective and ineffective leaders
• SHIFT TO EXAMINING MANAGERS
• Are managers and leaders the same?

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Fiedlers contingency approach

• Leader Style
• LPC (Least Preferred Coworker scale)
• Task-oriented
• Person-oriented
• Situational Control (Favorability)
• Leader-member relations ( or not?)
• Task structure (well defined or not?)
• Position power (strong formal authority or not)
• Leader Effectiveness Performance
• How do these matter?

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Fiedlers contingency approach
Together...
hi LPC
lo LPC
Leader Effectiveness
Increasing favorability
Low situation control
Moderate situation control
High situation control
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Situational leadershipHersey Blanchard
Task behavior
Participating
Selling
High
Relationship behavior
Telling
Delegating
Low
Low
High
Style matched to follower - ability
- willingness
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Path-Goal (based on Expectancy Theory)

• Environment
• characteristics
• Task structure
• Work group

• Leader Behavior
• Directive
• Supportive
• Participative
• Achievement-oriented

• Outcomes
• Performance
• Satisfaction

• Subordinate characteristics
• Ability
• Personality
• Experience

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Building on the Contingency Approaches

• The Basic Leadership Model
• Leadership effectiveness depends on . . .
• The leaders style (person-oriented,
  task-oriented)
• Employee Competency and Fit
• The situation

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An Interactional Framework For Analyzing
Leadership
Leader
Personality Position Expertise, Etc.
Leadership
Followers
Situation
Values Norms Cohesiveness, Etc.
Task Stress Environment, Etc.
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THE BASIC LEADERSHIP MODEL

• Basic Leadership involves an Interaction between
  the Leader, the Followers, and the
  Organizations Situation (A Contingency
  Approach)

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BASIC LEADERSHIP MODEL

• Employee
• Needs
• Interest
• Desires
• Goals
• Expectations

• Manager
• Needs
• Interest
• Desires
• Goals
• Expectations

• Organization
• Needs
• Interest
• Desires
• Goals
• Expectations

The Managers Leadership Style
Organizational Goal Achievement
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Follower Traits That Influence the Leadership
Process

• Motivation
• Number of followers
• Trust and confidence
• (Interactional Justice)

• Expectations
• Personality
• Maturity
• Competency levels

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Followers Can Make a Bigger Contribution By

• Being more proactive in solving organizational
  problems.
• Becoming better skilled at influencing upward.
• Staying flexible and open to opportunities.

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How Leaders Interact with Followers

• Create environments where followers innovations
  and creative contributions are welcome.
• Encourage growth and development in followers.
• Interested in the big picture of followers work.
• Motivate followers through more personal and
  intangible factors.
• Redefine the parameters of tasks and
  responsibilities.
• Change situations rather than just optimize their
  groups adaptation to it.

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Leadership Characterization
Commitment
Meets
Fails
Champion
Wanna-be
V a l u e s
Shares
Non- Supportive
Misfit
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Contemporary Approaches to Leadership

• Previous approaches focus on average leadership
  style
• Assume leader treats all employees the same
• LMX
• Leadership is dyadic (subordinates are treated
  differently)
• Transformational (vs. Transactional)
• Transactional leadership occurs when leaders and
  followers are in an exchange relationship in
  order to get needs met.
• Transformational leadership serves to change the
  status quo by appealing to followers values and
  their sense of higher purpose.
• Level 5 blends personal humility and professional
  will beyond vision, resource allocation
  effectiveness or technical competence.

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Leader-member Exchange (LMX)

• Leaders give autonomy, involvement
• In exchange for commitment, effort, performance
• Two types of followers
• Cadre (In-group) Lots of latitude, higher
  performance, lower turnover, higher satisfaction
• Hired hands (Out-group) Little latitude, lower
  performance, higher turnover, lower satisfaction
• Based on trust, dependability, competence,
  compatibility with leader, fit with mission,
  culture
• Generally, we think of the leader as making this
  choice (whos in or out)

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Leader-member Exchange (LMX)

• Not necessarily bad! But . . .
• But, different management style needed with each,
  and there is the challenge
• Need to be careful in how subordinates get
  categorized as in-group or out-group
• Can miss positive outcomes of high quality
  exchanges by miscategorizing subordinates
• Give all subordinates opportunity to be in the
  in-group

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Differentiating Characteristics

• Transactional Leadership
• Non-emotional exchange between supervisor and
  subordinate
• Contingent rewards
• Management by exception
• Maintains performance - on duty tasks
• Transitional Leadership
• Charisma
• Individualize consideration
• Intellectual stimulation
• Go beyond routine accomplishments
• Employees go beyond their expectations

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Charismatic Leadership

• Five characteristics
• Vision
• Personal risk (conviction, self-sacrifice)
• Environmental sensitivity/perceived as a change
  agent
• Sensitivity to followers needs
• Unconventional behavior
• A return to focusing on Leaders rather than
  managers

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Building Enduring GreatnessLevel 5 Leader

• Level 5 Level 5 Executive -- builds enduring
  greatness through a blend of personal humility
  and professional will
• Level 4 Effective leader -- catalyzes
  commitment to and vigorous pursuit of a clear and
  compelling vision, stimulating higher performance
  standards
• Level 3 competent manager organizes people and
  resources toward the effective and efficient
  pursuit of pre-determined objectives
• Level 2 contributing team member contributes
  individual capabilities to the achievement of
  group objectives and works effectively with
  others in a group setting
• Level 1 highly capable individual makes
  productive contributions through talent,
  knowledge, skills, and good work habits.
• Good to Great (Collins)

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Two Sides of Level 5 Leadership

• WILL
• Creates superb results, a clear catalyst in the
  transition from good to great
• Unwavering resolve to do whatever must be done to
  produce the best long-term results (no matter how
  difficult)
• Sets the standard of building an enduring great
  company, will settle for nothing less
• Takes responsibility for poor resultsdoesnt
  blame other people, external factors, or bad luck

• HUMILITY
• Demonstrates a compelling modesty, shuns public
  adulation, not boastful
• Acts with quiet, calm determination relies
  principally on inspired standards, not inspiring
  charisma, to motivate
• Channels ambition into the company, not the self.
  Sets up successors for even greater success
• Gives credit for success to other people,
  external factors, and good luck

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Leader-member Exchange (LMX)Individual Exercise

• Assessment 7 Evaluative Questions
• Notice that the Scales Change for Questions

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Leader-member exchange (LMX)

• An evaluation
• Above 30 Good!
• 26 - 30 Moderate
• Below 26 Weak
• Below 21 Horrendous (not common)
• Note The supervisor fills out the SLMX and the
  two evaluations
• are matched to assess the quality of
  the relationship

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TopicPower and Politics
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Power Politics Defined

• POWER . . .
• Control and influence over others
• Ability to modify the conduct of other
  individual(s) or group(s)
• POLICITICS . . .
• Power in action, especially informal power

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Sources of Individual Power (French Raven)

• Reward
• Coercive
• Legitimate
• Expert
• Referent
• Consider
• Strength
• Interrelationships

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Another Way to Think About Power Strategic
Contingency Power

• Power of divisions, departments, groups (or
  individuals)
• Power accrues to those who cope w/critical
  organizational problems (critical contingencies
  and uncertainty)
• Critical resources are important, scarce, and
  nonsubstitutable

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Strategies managers use (most frequent to least
frequent)

• Form alliances and coalitions
• Present a persuasive viewpoint
• Deal directly with key decision makers
• Use data to convince others
• Focus on the needs of the target group
• Work around roadblocks
• Exaggerate information
• Use personal attributes

• Use contacts for information
• Surround self with competent others
• Deal with others socially
• Be persistent
• Offer favors/monetary rewards
• Use threats
• Commit the uncommitted
• Use organizational rules
• Give guarantees
• Discredit the opposition

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Strategies for Success
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Gender Differences in Upward Influence (Managers
from Fortune 100 companies)

• Female managers influence attempts
• Showed more concern for others
• Act with organizations broad interests in mind
• Consider how others might feel about influence
  attempt
• Involve others in planning
• Focus on both task and interpersonal aspects of
  the situation

• Male managers influence attempts
• More concern for self
• Act out of self interest
• Less consideration for how others might feel
  about influence attempt
• Work alone in developing their strategy
• Focus primarily on the task

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Gender Differences in Upward Influence

• Female managers
• less likely to compromise or negotiate during
  their influence attempts
• More likely to persist (even to the point of open
  opposition
• ? Neither group was more effective overall

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Topic Power and PoliticsExercise
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Disagree Disagree Neutral
Agree Agree a lot a
little a little a lot
1 2 3
4 5

• 1. The best way to handle people is to tell them
  what they want to hear.
• 2. When you ask someone to do something for you,
  it is best to give the real reason for wanting
  it, rather than reasons that might carry more
  weight.
• 3. Anyone who completely trusts someone else is
  asking for trouble
• 4. It is hard to get ahead without cutting
  corners here and there
• 5. It is safest to assume that all people have a
  vicious streak, and it will come out when they
  are given a chance.

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Disagree Disagree Neutral Agree
Agreea lot a little a
little a lot1 2
3 4 5

• 6. One should take action only when it is morally
  right.
• 7. Most people are basically good and kind.
• 8. There is no excuse for lying to someone else.
• 9. Most people forget more easily the death of
  their father than the loss of their property.
• 10. Generally speaking, people wont work hard
  unless forced to do so.

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Scoring Procedure
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Individual Factors

• Locus of control internal, less political
• Self-monitoring high, more political
• Machiavellianism high, more political
• Investment in the organization more, less
  political
• Perceived job alternatives more, more political
• Expectations of success more, more political

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Organizational Factors (All Increase Political
Behaviors)

• Decline or reallocation of resources
• Low trust
• Role ambiguity
• Unclear performance appraisal system
• Zero-sum reward practices

• Democratic decision making
• High performance pressure
• Self-serving senior managers (politicking
  rewarded and practiced by upper management)

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Strategies for Increasing Using Your Power Base

• Be observant
• Enter high-uncertainty areas
• Create dependencies, provide resources
• Become an expert (enhance legitimacy)
• Build coalitions, expand networks
• Control decision premises (e.g. agenda)
• Explicit preferences, implicit power

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Ancillary Materials

• The following information may prove beneficial to
  you in your executive role or development. It
  will not be discussed specifically in class.
• Dr R

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An Insight to Developing Executive (Leader) Talent

• Why the Leadership Bench Never Gets Deeper
• Ten Insights about Executive Talent Development
• Author Gregory C. Kesler
• HR Planning Society Journal 2002,
• Vol. 25(1)

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COMMITMENT

• The Premise for creating a Successful
  Organizational Talent Development Program
• At any level of the organization
• Commitment is required to
• Continuous assessment of the external environment
  and re-allocation of resources
• Sustain an organizational culture that promotes
  and rewards participation, commitment and the
  risks of a Talent Development Decisions
• Potential v. Specific Development
• Changing Leadership Style
• Mutually Accepted Performance and Development
  Criterion
• Stretch Assignments v. Formal Executive
  Development
• Support of Coaching v. Individual Development
• Development from and Organizational-wide
  Perspective v. Individual Need or Grooming
  Process
• Constructive Feedback (360 Performance
  Management System, Developmental Feedback based
  on Individually Designed Plan, Mentoring)
• Developing Organization Talent Congruent with the
  Organization's vision, goals, strategies,
  resources and performance expectations not that
  of a single division, unit or executive)

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Summary Issues in Developing Organizational
Talent

• Confront continuing change objectively and
  constructively Be sure you understand your
  current Talent Development situation and assess
  the external environment and internal
  capabilities from an organizational perspective,
  with an open-mind and continuously. Remember,
  the world does not stop for any organization
  must create a committed and an adaptive culture.
• Build an engaging, comprehensive and adaptable
  Executive Development Program Communicate the
  uncertainties, realities and point of inflection
  (threat, opportunity, strategy, capabilities and
  the talent needs) that the organization faces.
  Continually remind key organizational members of
  their role and how executive development effects
  the multiple initiatives of the organization.
• Use the collective wisdom of the organization
  Developing talent is an organizational-wide
  objective not individual. Must tap the
  experience, knowledge, energy and history of the
  organization. Multiple input from multiple
  sources. It is more than a Buy-n its genuine
  involvement.

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2
3
Source McKinseyCompany
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Summary (Continued)
Develop multi-assessment and developmental
process To be ensure sustainability and
congruence of a developmental program, the
overall change must include development must be
organizational-wide and use multiple criteria
strategy, organization, structure, operations and
people. Work through leaders at all levels
Leadership is critical, but this is not just
about the CEO (or Senior Executive Team) the
change will need leaders throughout the
organization, building commitment engaging the
all critical elements of developing leadership
talent. Get the right balance between action and
reflection A primary cause of failure in change
efforts (and change methodologies) is to
overemphasise one at the expense of the
other. Demonstrate early success It is not
enough to talk about change people need to
experience it. Create Buy-In through
demonstrating 1) developmental success and
improvements and 2) employee acceptance
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5
6
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Source McKinseyCompany
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Summary (Continued)
Make your change and development process is
unique Your Executive Talent needs are unique
and must follow a tailored, dynamic assessment
and evaluation process to meet your
organizations specific needs Expect resistance,
listen constantly, but be clear about the
expectations Change is not easy. People,
probably including some members of the leadership
team, will undermine the process either through
active opposition or just passive but visible
lack of support. Measure progress Continuously
at every level Constantly and rigorously measure
progress against 1) specific performance and
development standards, 2) changes in individual
and organisational alignment and 3) strategic
performance. Make all of these results widely
visible and use them to adapt future stages of
the change
8
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Source McKinseyCompany