MAN 6245: Week 5

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MAN 6245 Week 5

• Tonight...
• Review the Lobster Exercise - Presentations
• Determine and Discuss Your KAI Result
• Leadership Theory and Conceptual Models
• Development of Future Leaders
• Power and Politics

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Exercise Life stress scale(perceived
stress, past month) Paper numbered 1-10Note
that the scales change...
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Never Almost never Sometimes Fairly
often Often 0 1 2 3
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• 1. In the last month, how often have you been
  upset because of something that happened
  unexpectedly?
• 2. In the last month, how often have you felt you
  were unable to control the important things in
  your life?
• 3. In the last month, how often have you felt
  nervous and stressed?
• 4. In the last month, how often have you felt you
  could not cope with all the things you had to do?
  
• 5. In the last month, how often have you been
  angered by things that were out of your control?
• 6. In the last month, how often have you felt
  difficulties were piling up so high you could not
  overcome them?

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Never Almost never Sometimes Fairly
often Often 4 3 2 1
0

• 7. In the last month, how often have you felt
  confident about your ability to handle problems?
• 8. In the last month, how often have you felt
  things were going your way?
• 9. In the last month, how often have you felt
  able to control the irritations in your life?
• 10. In the last month, how often have you felt
  you were on top of things?

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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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• So, You
• Want to Assume a Leadership
• Role

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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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Mission, Goals, Strategies v. VISION

• Mission Bounded perception of a desired
  focus/expectation (Who, What we are)
• VISION Focus/direction is less constrained
  (Who, What we are going to be)

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After the Vision
Vision Statement The Difficult Issue Making
IT (Vision or New Map) Happen Key That Everyone
Must SEE IT! Four Processes for Facilitating
Vision Boundary Testing (Conceive) Sign-On
(Conceive gt Believe) Communication
(Believe) Celebration (Achieve)
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Barriers to Effective Leadership
Reaction (Resistance) to Change (Individuals) We
are hardwired (programmed) to resist
change Desire to support successful past
practices Mental/Psychological Constraints Fail
to See the need for change When recognized Fail
to Act Fail to Finish
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The Rational Approach To Organization Change and
the Interactional Framework
Leader
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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
• 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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Traits on which Leaders/Non-leaders Differ

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

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

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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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Contingency Approaches

• Leadership effectiveness depends on . . .
• The leaders style (person-oriented,
  task-oriented)
• The situation

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Fiedlers contingency approach

• Leader style
• LPC (Least Preferred Coworker scale)
• Task-oriented
• Person-oriented

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Fiedlers contingency approach

• Situational control (Favorability)
• Leader-member relations ( or not?)
• Task structure (well defined or not?)
• Position power (strong formal authority or not)
• How do these matter?

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Fiedlers contingency approach
Together...
hi LPC
lo LPC
Leader Effectiveness
low sit. control
mod. sit. control
high sit. control
Increasing favorability
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Other Contingency TheoriesHersey
BlanchardHouse-Path Goal Model
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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)

• Effective leader behavior leads subordinates to
• reach desired goal

• 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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Some things to note

• Leader style
• One style or two
• Fiedler (like Michigan) believes a leader is
  either task-oriented or person-oriented
• Other contingency approaches take the OSU view
  that a leader can be (or should be) both
• Fixed or flexible
• Fiedler believes leader style is fixed, so you
  change the situation
• Other contingency theories suggest leader should
  adapt style to situation

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Some things to note

• Leader effectiveness
• For Fiedler, effectiveness performance
• For other contingency theories, both performance
  and satisfaction are indicators of effectiveness

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Contemporary Approaches to Leadership

• LMX
• Transformational
• Level 5

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Leader-member exchange (LMX)

• Previous approaches focus on average leadership
  style
• Assume leader treats all employees the same
• LMX Leadership is a dyadic thing
• Leaders treat subordinates differently

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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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• Question 1.
• Do you know where you stand with your managerdo
  you usually know how satisfied your manager is
  with what you do?
• 1 Rarely
• 2 Occasionally
• 3 Sometimes
• 4 Fairly often
• 5 Very often

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• Question 2.
• How well does your manager understand your job
  problems and needs?
• 1 Not a bit
• 2 A little
• 3 A fair amount
• 4 Quite a bit
• 5 A great deal

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• Question 3.
• How well does your manager recognize your
  potential?
• 1 Not at all
• 2 A little
• 3 Moderately
• 4 Mostly
• 5 Fully

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• Question 4.
• Regardless of how much formal authority s/he has
  built into his/her position, what are the chances
  your manager would use his/her power to help you
  solve problems in your work?
• 1 None
• 2 Small
• 3 Moderate
• 4 High
• 5 Very high

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• Question 5.
• Again, regardless of how much formal authority
  your manager has, what are the chances that s/he
  would bail you out at his/her expense?
• 1 None
• 2 Small
• 3 Moderate
• 4 High
• 5 Very high

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• Question 6.
• I have enough confidence in my manager that I
  would defend and justify his/her decision if s/he
  were not present to do so.
• 1 Strongly disagree
• 2 Disagree
• 3 Neutral
• 4 Agree
• 5 Strongly agree

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• Question 7.
• How would you characterize your working
  relationship with your manager?
• 1 Extremely ineffective
• 2 Worse than average
• 3 Average
• 4 Better than average
• 5 Extremely effective

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Leader-member exchange (LMX)

• An evaluation
• Above 30 good!
• 26 - 30 moderate
• Below 26 poor
• 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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Leader-member Exchange (LMX)

• Leaders give autonomy, involvement
• In exchange for commitment, effort, performance

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Leader-member exchange (LMX)

• Two types of followers
• Cadre (In-group)
• Hired hands (Out-group)
• Based on trust, dependability, competence,
  compatibility with leader, fit with mission,
  culture
• Generally, we think of the leader as making this
  choice (whos in, out)

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Leader-member Exchange (LMX)

• In-group Lots of latitude, higher performance,
  lower turnover, higher satisfaction
• Out-group Little latitude, lower performance,
  higher turnover, lower satisfaction
• When performance assessed by supervisor, not
  differences in objective indicators of performance

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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 mis-categorizing subordinates
• Give all subordinates opportunity to be in the
  in-group

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Transformational Leadership

• Distinguish between
• Transactional and Transformational Leadership
• 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.

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Transactional leadership

• Three characteristics
• Non-emotional exchange between supervisor and
  subordinate
• Contingent rewards
• Management by exception
• Maintains performance - on duty tasks

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Transformational leadership

• Three characteristics
• 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 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

• 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

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How Leaders Really DevelopMcKinsey Study The
Top 200

• Role models

• Being mentored

Winning the War for Talent
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Process for Developing Executive Talent
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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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PROVEN PROCESSES FORDEVELOPING EXECUTIVE TALENT

• ? Exxons World-wide Program
• ? The Coaches Playbook
• ? Hard Rock Café
• ? G.A.P. (Growth Action Plan)

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What Is A Playbook, G.A.P or Plan?

• An opportunity for direct reports to give
  feedback to their coach Manager/leader)
• Anonymous, Inclusive, Consistent
  criteria/measures
• Enables Executive/managers to practice Leadership
  development by assessing
• Whether employees perceive equity in their
  relationship with the company and immediate
  manager/leader.
• How the manager/leaders style and approach (what
  they Give) impacts employees performance and
  development.
• Helps prioritize development/training needs
• Establishes a baseline for future (criteria)
  measurement of executive/ leadership
  developmental effectiveness

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The Coaching Playbook Approach (Continued)

• Links specific developmental strategies to
  desired organizational and employee outcomes.
• Giving executives/managers a game plan from which
  to coach
• The Playbook Approach links to how leaders really
  develop day-to-day on the job and thru stretch
  assignments
• Brings on the job reality to traditional
  ongoing company training programs
• It provides the most desired and effective means
  of developing organizational talent coaching

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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
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Source McKinseyCompany
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Summary (Continued)
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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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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
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9
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Source McKinseyCompany
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Power and Politics

• Power defined
• Control and influence over others
• Ability to modify the conduct of other
  individual(s) or group(s)

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Sources of Individual Power (French Raven)

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

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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)

• 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

• 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

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Strategies for Success
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A Power and Politics AssessmentIndividual
Exercise
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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
Agree a lot a little
a little a lot 1
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 ProcessReverse 2, 6, 7, 8 (51, 42,
33, 24,15)Then total all items
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Individual Factors

• Locus of control
• Self-monitoring
• Machiavellianism
• Investment in the organization
• Perceived job alternatives
• Expectations of success

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Individual Factors (Power, Political)

• 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
behavior)

• 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)