Art and Science of Leadership, The, 7th Edition Afsaneh Nahavandi Solution Manuals

Type:

Solution Manual

Resource:

Art and Science of Leadership

Edition:

7th Edition

Author(s):

Afsaneh Nahavandi

Instructor’s Manual

The Art and Science of Leadership Seventh Edition

Afasaneh Nahavandi

.

1

TABLE OF CONTENTS

SECTION ONE _______________________________________________________________________Page INTRODUCTION, COURSE OUTLINES 3 SUMMARY OF EXERCISES AND SUGGESTED ASSIGNMENTS

10

SECTION TWO _____________________________________________________________________________ CHAPTER MATERIALS 17

PART ONE ______________________________________________________________________________ BUILDING BLOCKS Chapters 1 through 5 present the building blocks and foundational theories 18 of leadership.

CHAPTER 1 DEFINITION AND SIGNIFICANCE OF LEADERSHIP

19

CHAPTER 2 THE GLOBAL AND CULTURAL CONTEXTS

32

CHAPTER 3 THE FOUNDATIONS OF MODERN LEADERSHIP

54

CHAPTER 4 INDIVIDUAL DIFFERENCES AND TRAITS

74

CHAPTER 5 POWER

85

PART II CONTEMPORARY CONCEPTS Chapters 6 and 7 present theories that currently dominate the field of leadership including charismatic, transformational, and authentic leadership, and a consideration of upper-echelon and nonprofit leadership CHAPTER 6 Current Era in Leadership: Inspiration and Connection to Followers

99

CHAPTER 7 Other Leadership Perspectives: Upper Echelon and Nonprofit Leadership

113

.

2

PART III LEADING Chapters 8, 9, and 10 focus on key aspects of leading people and organizations including leading teams and change and developing leaders.

CHAPTER 8 LEADING TEAMS

130

CHAPTER 9 LEADING CHANGE

146

CHAPTER 10 DEVELOPING LEADERS

160

.

3

.

4

INTRODUCTION ______________________________________________________________________________ The topic of leadership is challenging and stimulating for students and faculty. Whether the course is offered as part of an undergraduate curriculum, as a graduate business elective, in an educational leadership program, or in a public administration program, it is always popular. The newfound interest in the topic, which has led to the publication of many widely available popular books, is further bringing students back to leadership classrooms. It is easy for them to get frustrated and disappointed, however.

Leadership may appear easy to define and interesting to write about, but it is difficult to teach. It is a field that contains many well-developed theories, is replete with empirical challenges, and continues to be highly divided.

The goal of the “Art and Science of Leadership” is to move beyond the differences and the divisions and to provide students with a theory- and research-based, integrative, hands-on, and practical view of leadership. The seventh edition of the book builds on the strengths of the first six editions and introduces some new emphasis and many updated theories, examples, and cases. The many debates and controversies within the field of leadership are presented in this edition as they were in the previous ones. As in previous editions, I continue to emphasize integration of the concepts and distilling useful and practical concepts from each theory while taking a cross-cultural perspective. The guiding philosophy and assumptions remain the same. These include: • • • • • •

Leadership is about others. Leaders exist to help others achieve their goals.

Leadership is a complex process that cannot be explained by one word, one concept, or through a simple definition or action.

We all can learn to become better leaders. For some of us, the learning is easier in certain areas than in others, but with practice and support from our organizations, we all can improve our leadership skills.

A cross-cultural perspective is essential to understanding leadership. Leadership is not a culture-free process.

Theories are useful tools. Although they sometimes appear esoteric, complicated, and even contradictory, theories are useful tools that help clarify the complex process of leadership.

Application and practice are essential to learning. You cannot learn to lead from a book or in a classroom alone. To learn to lead, you have to practice.

As is the case with every edition, extensive research has gone into this edition. I also had the opportunity to teach several large undergraduate leadership classes for the past couple of years and my students’ feedback has shaped many of the revisions that you will see in this edition. Although the overall structure remains the same, the outline in many chapters has been changed, and several new features have been added to ensure that students can learn more easily and apply what they learn more readily. Specific changes include: • • • •

Close to two hundred new references have been added throughout the chapters, almost all dating from 2010 forward.

Close to 150 references were removed either because newer, more current research was available, the examples no longer fit, or leaders had left or retired.

Updated and revised learning outcomes for each chapter.

Two new pedagogical features in all the chapters: o Each chapter starts with a “The Leadership Question” that focuses the student on the theoretical or practical issues covered in the chapter. The question is specifically addressed at some point in the chapter in “Leadership Question Revisited” segment. o Each chapter includes a “What Do You Do?” feature that presents a brief action-oriented scenario to help students connect the material with hands-on applications.

In addition to general updates of research and examples in all the chapters, six of the ten chapters have been substantially revised. Changes include:

.

5

•

In Chapter 2: o A substantial revision of the presentation of the GLOBE research o Substantial revision and of the material on gender and diversity o New exercise added—World Map o Cultural Mindset self-assessment revised

•

In Chapter 4: o New material and new self-assessment on proactive personality o New material on the Dark Triad replaces separate coverage of Machiavellianism and Narcissism o Extensive revision on the section on leaders who fail o New case about Zhang Xi of Soho-China

•

In Chapter 6: o Chapter is retitled to address the new era in leadership research o Extensively revised presentation of value-based leadership including servant, authentic, and positive leadership o New “Applying What You Learn: Balancing a Positive Approach with Realism” o Revised self-assessment on authentic leadership o Extensive revision of the Avon-Andrea Jung case to reflect her leaving the company

•

In Chapter 7: o New “Leading Change: Public Allies” o Extensive revision of the Leadership in Action case to reflect changes in leadership at P&G

•

In Chapter 8: o New Leading Change: Google” o New material on helping teams become effective

•

In Chapter 9: o Structure of the chapter has been revised o New Leading Change: Ford’s Alan Mulally” o New exercise—The 6 hats o Extensively revised Leadership in Action that reflects company’s change in policy

Regardless of the level at which leadership is taught, it is generally taught as an elective. Therefore, the content of the course remains very much up to the instructor. Most faculty who teach a leadership course have some degree of expertise in the topic. They are likely to have their own favorite materials and lectures. I developed the contents of this handbook based on those assumptions. In addition to the multiple choice and true/false questions that are provided for this edition, you will find potential assignments throughout the handbook. I also provide a summary and detailed outline of every chapter for quick review.

I focused on providing the instructor with directions and ideas for the exercises and other activities presented in the text. I have tested all of the exercises at the end of the chapters in my classes over the past 30 years. Many are appropriate for all students; some work better with students with more work experience. In spite of some differences, however, they are all accessible and relatively easy to use. The clear majority are designed to be used as a brief supplement to a topic during a class period; a few are lengthy enough to take up a whole class. I provide two brief course outlines along with a table of activities to help instructors design their courses and decide which activities are appropriate for their class.

.

6

SAMPLE COURSE OUTLINES ______________________________________________________________________________ Sample course outline for 15 weeks with one-150 minute period a week Week

Topic

1.

Introduction: Definitions significance of leadership

2.

The global culture

3.

The cultural context: Gender and diversity

context:

and

National

Reading and assignments Chapter 1

other

Chapter 2 Self-assessment 2.1: What is your primary cultural background?

Self-assessment 2.2: Do you have a cultural mindset?

Chapter 2 Self-assessment 2.3: Exploring views of women

.

Class activities Exercise 1.1: More than meets the eye Exercise 1.2: What is leadership?

Exercise 1.3: Images of leadership Exercise 1.4: Understanding the leadership context Case analysis: David Neeleman Exercise 2.1: World map Exercise 2.2: Proverbs Exercise 2.3: Narian bridges Case analysis: Leadership based on ancient principles

Exercise 2.4: Leadership and gender Exercise 2.5: Is this sexual harassment?

7

4.

Foundations of modern leadership I

Chapter 3 Self-assessment 3.1: Determining your LPC Self-assessment 3.2: Assessing a leadership situation Self-assessment 3.3: Identifying your ingroup and out-group

Exercise 3.1: The toy factory Exercise 3.2: Using the normative decision model

5.

Foundations of modern Leadership II

6.

Individual differences and traits

Chapter 4 Self-assessments 4.1 to 4.6

Exercise 4.1: Your ideal organization Case analysis: Zhang Xin

7.

Power

Chapter 5 Self-assessment 5.1: Understanding your sources of power and influence Self-assessment 5.2: Views of power Self-assessment 5.3: Recognizing blocks to empowerment

Exercise 5.1: Words of wisdom Exercise 5.2: Who holds power Case analysis: the last CEO of Lehman Brothers

8.

9.

Midterm exam Current approaches: Charismatic leadership

Chapter 6

10.

Contemporary concepts Transformational leadership and value-based approaches

Exercise 6.1: Do you know a charismatic leader Exercise 6.2: Charismatic speech Exercise 6.3: Analyzing a charismatic speech Case analysis: The rise and fall of Andrea Jung

11.

Upper-echelon leadership

12.

Leading teams

Chapter 8 Self-assessment 8.1: Delegation Self-assessment 8.2: Are you a team leader?

Exercise 7.1: Understanding strategic forces Exercise 7.2: Your organization Exercise 7.3: The influence process Case analysis: Leadership musical chairs at P&G Exercise 8.1: To delegate or not to delegate Exercise 8.2: Strategies for becoming a self-leader Case analysis: John Mackey

13.

Leading change

Chapter 9 Self-assessment 9.1: Building credibility Self-assessment 9.2:

Exercise 9.1: Analyzing and planning for change Exercise 9.2: Creativity and parallel thinking

and

nonprofit

Chapter 6 Self-assessment 6.1: Authentic leadership Self-assessment 6.2: Positive leadership Chapter 7 Self-assessment 7.1: Strategic leadership type

.

Case analysis: The caring dictator

8

Creativity 14.

Developing leaders

15.

Final examination

Chapter 10 Exercise 10.1: Identifying your mentoring needs Self-assessment 10.1: My personal mission statement

.

Case analysis: Best Buy’s almost transformation Case analysis: Developing leaders at Southwest Airlines

9

Sample course outline for 15 week with two 75 -minute periods a week Session 1.

Topics Introduction: Definitions

Readings

2.

Significance of leaders

Chapter 1

3.

Obstacles to leadership Leadership and management The global context: National culture

Chapter 1

4.

5.

The global context: National culture

6.

The cultural context: Gender and diversity

7.

The global and cultural contexts History and foundations Theoretical foundations: Fiedler and Normative decision model

8.

9.

10.

11.

12.

13.

14.

15.

Class activities Exercise 1.1: More than meets the eye Exercise 1.2: What is leadership?

Exercise 1.3: Images of leadership Exercise 1.4: Understanding the leadership context Case analysis: David Neeleman

Chapter 2 Self-assessment 2.1: What is your primary cultural background?

Chapter 2 Self-assessment 2.2: Do you have a cultural mindset?

Chapter 2 Self assessment 2.3: Exploring views of women Chapter 2

Exercise 2.1: World map Exercise 2.2: Proverbs

Exercise 2.3: Narian bridges

Exercise 2.4: Leadership and gender Exercise 2.5: Is this sexual harassment?

Case analysis: Leadership based on ancient principles Exercise 3.1: The toy factory Exercise 3.2: Using the normative decision model

Chapter 3 Chapter 3 Self assessment 3.2: Assessing a leadership situation Self assessment 3.1: Determining your LPC Theoretical foundations: Chapter 3 Path-goal, substitutes, Self assessment attribution, and Leader- 3.3: Identifying member exchange your in-group and out-group Theoretical foundations: Chapter 3 Case analysis: The caring dictator Comparison of the models and their contribution Individual differences: Chapter 4 Exercise 4.1:Your ideal demographic factors, values, Self-assessments 4.1 organization abilities, and skills and 4.2 Individual differences: Big Chapter 4 Case analysis: Zhang Xin Five, proactivity, type A, and Self-assessments 4.3 to self-monitoring 4.5 Individual differences: The Chapter 4 Dark Triad and destructive Self-assessment 4.6 leadership Understanding power Chapter 5 Exercise 5.1: Words of wisdom Self-assessment 5.1: Exercise 5.2: Who holds power Understanding your sources of power and .

10

16.

Changing faces of power

influence Self-assessment 5.2: Views of powers Chapter 5 Self-assessment 5.3: Recognizing blocks to empowerment

17.

18.

Midterm examination Current approaches: Charismatic leadership

Chapter 6

19.

Current approaches: Transactional and transformational leadership Current approaches: Valuebased leadership

20.

21.

Upper-echelon leadership

22.

Upper-echelon and nonprofit leadership

23.

Participative leadership

24.

Teams and superleadership

25.2 25.

26.

27.

Leading change: Models of change Leading change: Managing change

28.

Leading change: Visionary leadership Developing leaders

29.

Developing leaders

30.

Case analysis: The last CEO of Lehman Brothers

Exercise 6.1: Do you know a charismatic leader?

Exercise 6.2: Charismatic speech Exercise 6.3: Analyzing charismatic speech Case analysis: The rise and fall of Andrea Jung

Chapter 6

Chapter 6 Self-assessment 6.1: Authentic leadership Self-assessment 6.2: Positive leadership Chapter 7 Self-assessment 9.1: Strategic leadership type Chapter 7

Chapter 8 Self-assessment 8.1: Delegation Chapter 8 Self-assessment 8.2: Are you a team leader?

Chapter 9

Exercise 7.1: Understanding strategic forces Exercise 7.2: Your organization Exercise 7.3: The influence process Case analysis: Leadership musical chairs at P&G Exercise 8.1: To delegate or not to delegate?

Exercise 8.2: Strategies for becoming a superleader Case analysis: John Mackey of Whole Foods

Exercise 9.1: Analyzing and planning for change Exercise 9.2: Creativity 9.2: and parallel thinking

Chapter 9 Self-assessment Creativity Self-assessment 9.1: Case analysis: Best Buy’s Building credibility almost transformation Chapter 10 Exercise 10.1: Identifying your mentoring needs Chapter 10 Case analysis: Developing Self-assessment 10.1: leaders at Southwest My personal mission Airlines statement Final examination

.

11

SUMMARY OF EXERCISES AND SUGGESTED ASSIGNMENTS ______________________________________________________________________________ The following table presents a summary of all the self-assessments and exercises at the end of each chapter in the text. The table indicates 1) whether the activities require individual or group work, in some cases both, 2) whether they can be done in class or require work at home, 3) the approximate time needed to complete the activity, 4) the complexity level, and 5) whether the activity can be used as a course assignment.

Individual or group The rating of individual (I) or group (G) indicates whether students have to work on this activity by themselves or in groups. In many cases both are required, as students have to complete an individual section before moving to group activities (e.g., Exercise 5.3 “Recognizing blocks to empowerment”).

Some activities require no prior individual work or are too complex for individual students to complete alone. Others, such as the self-assessments, require only individual work.

In class or at home Some of the activities can be assigned as homework for students to complete outside of class. These are marked “H.” Others require work in class either individually or in groups; they are indicated by “C.” Time needed The time estimates provided are approximate minimum time required to complete an activity. Ten minutes is used as the base minimum, although many of the self-assessments are likely to take the students less than 10 minutes to complete. The majority of exercises requires around 30 minutes. The time needed often varies depending on class size.

Complexity level A rating of 1, 2, and 3 is used to evaluate the complexity level of each activity. o 1 = Low complexity This rating indicates simple exercises that do not require a high level of skill or major time commitment. For example, the first two activities (Exercise 1.1 and 1.2) are both rated as a “1.”

They are both appropriate for getting the faculty and the student used to experiential exercises.

Most of the self-assessments, which the students will be doing on their own, are also rated as low complexity. o

2 = Moderate complexity This rating indicates that the activity requires some skills and generally a time commitment of 30 minutes or longer. For example, Exercise 2.3 “Leadership and gender,” and 5.2 “Who holds power in your organization?” are rated as a “2” because they require students to integrate information from the chapters in order to complete the exercise.

o

3 = High complexity A rating of 3 indicates that the activity is complex and time consuming. Activities rated as a “3” either require complex role plays (e.g., Exercise 2.2 “Narian bridges”) or complex integration and application of course concepts (e.g., Exercise 3.2, “Using the normative decision model,” and 6.2 “Charismatic speech”).

Course assignment

 This symbol in the table and in the Leader’s Handbook indicates that the activity is well suited for use as a course assignment, graded or otherwise. The assignments are described throughout the handbook.

.

12

Activities and Assignments Activity and page Individual Home (H) number (I) or or in class Group (G) (C) Chapter 1: Definition and significance of leadership What do you do?

I and G H or C

Time needed

Complexity level

Appropriate for course assignment

10 minutes

1

Leadership challenge: I and G H or C Moving to leadership Exercise 1.1: More than I or G H or C meets the eye: characteristics of leaders Exercise 1.2: What is I and G C leadership?

Exercise 1.3: Images of G C leadership Exercise 1.4: I and G H or C Understanding the leadership context Leadership in action: I or G H or C David Neeleman reinvents airlines Chapter 2: The global and cultural contexts What do you do?

I and G H or C

15 minutes

1

20 minutes

1

  

25 minutes

1

25 minutes

1

25 minutes

3



25 minutes

3



10 minutes

1

What do you do?

I and G

H or C

10 minutes

1

Leadership challenge: Juggling cultures Exercise 2.1: World map

I and G

H or C

15 minutes

1

  

I and G

C

10 minutes

1

Exercise 2.2: Proverbs as a window to leadership Exercise 2.3: Narian bridges Exercise 2.5: Is this sexual harassment?

Self-assessment 2.1: What is your primary cultural background?

I and G

H or C

20 minutes

1

G

C

60 minutes

3

G

C

30 minutes

2

I

H

20 minutes

2

Individual (I) or Group (G) I

Home (H) or in class (C) H

Time needed

Complexity level

Appropriate for course assignment

5 minutes

1



15 minutes

2

25 minutes

3

 

10 minutes

1

Activity number

and

page

Self-assessment 2.2: Do you have a cultural mindset?

Self-assessment 2.3: I H Exploring view of women Leadership in action: I or G H or C Leadership based on ancient principles Chapter 3: The foundations of modern leadership What do you do?

I and G H or C

.

 

 13



Leadership challenge: the in-group applicant

I and G

H or C

15 minutes

1

Exercise 3.1: The toy factory Exercise 3.2: Using the normative decision model Self-assessment 3.1: LPC

G

C

75 minutes

3

I and G

H and C

45 minutes

3

I

H

10 minutes

2

20 minutes

2



15 minutes

2



25 minutes

3



10 minutes

1

 

Self-assessment 3.2: I H or C Assessing a leadership situation Self assessment 3.3: I H Identifying your in-group and out-group Leadership in action: The I or G H or C caring dictator Chapter 4: Individual differences and traits What do you do?

I and G H or C Leadership challenge: Using psychological testing Exercise 4.1: Your ideal organization

I and G

H or C

15 minutes

1

I and G

C

30 minutes

2

.



14

Activity number

and

page

Self-assessment 4.1: Value systems Self-assessment 4.2: Emotional intelligence Self-assessment 4.3: Proactivity Self-assessment 4.4: Type A

Individual (I) or Group (G) I

Home (H) or in class (C) H

Time needed

Complexity level

Appropriate for course assignment

5 minutes

1

I

H

10 minutes

1

I

H

5 minutes

1

I

H

5 minutes

1

   

H

5 minutes

1

H

5 minutes

1

H or C

25 minutes

3

H or C

10 minutes

1

I and G

H or C

15 minutes

1

I and G

C

20 minutes

1

I

H

15 minutes

2

I

H

10 minutes

2

I

H

10 minutes

1

I

H

10 minutes

2



I or G

H or C

25 minutes

3



Self assessment 4.5: Self I monitoring Self-assessment 4.6: I Narcissism Leadership in action: I or G Zhang Xin: The humble Chinese billionaire Chapter 5: Power and leadership What do you do?

I and G Leadership challenge: How much is enough?

Exercise 5.1: Words of Wisdom Exercise 5.2: Who holds power in your team/organization?

Self-assessment 5.1: Understanding your sources of power and influence Self assessment 5.2: Views of power Self-assessment 5.3: Recognizing blocks to empowerment Leadership in action: The last CEO of Lehman Brothers: Richard Fuld

.

       

15

Activity number

and

page

Individual (I) or Group (G) Chapter 6: Current era in leadership What do you do?

I and G

Home (H) or in class (C)

Time needed

Complexity level

Appropriate for course assignment

H or C

10 minutes

1

I and G

H or C

15 minutes

1

 

I or G

H or C

10 minutes

2

G

H and C

60 minutes

3



Exercise 6.3: Analyzing G charismatic speech Self-assessment 6.1: I Authentic leadership Self-assessment 6.2: I Positive leadership Leadership in action: I or G Andrea Jung’s rise and fall at Avon Chapter 7: Other leadership perspectives What do you do?

I and G

H and C

60 minutes

3

H

10

1

H

10

1

H or C

25 minutes

3

   

H or C

10 minutes

1

Leadership challenge: BODs and CEOs Exercise 7.1: Understanding strategic forces Exercise 7.2: Your organization

I and G

H or C

15 minutes

1

G

C

30 minutes

2

I and G

C

25 minutes

2

Exercise 7.3: Influence process Self-assessment 7.1: What is your strategic leadership type?

I and G

C

30 minutes

2

I

H

15 minutes

1

Individual (I) or Group (G) I or G

Home (H) or in class (C) H or C

Time needed

Complexity level

Appropriate for course assignment

25 minutes

3



I and G

H or C

10 minutes

1

I and G

H or C

15 minutes

1

 

Leadership challenge: Standing up to a charismatic but unethical leader Exercise 6.1: Do you know a charismatic leader?

Exercise 6.2: Charismatic speech

Activity number

and

page

Leadership in action: Leadership musical chairs at P&G Chapter 8: Leading teams What do you do?

Leadership challenge: Who gets the project

.

   

16

Exercise 8.1: To delegate or not delegate

G

C

45 minutes

3

Exercise 8.2: Strategies for becoming a self-leader Self-assessment 8.1: Delegation scale

I

H

45 minutes

3

I

H

5 minutes

1

Self-assessment 8.2: Are you a team leader?

I

H

5 minutes

1

Leadership in action: John Mackey of Whole Foods

I or G

H or C

25 minutes

3



I and G

H or C

10 minutes

1

I and G

H or C

15 minutes

1

 

G

C

45

2

G

H or C

60 to 75 minutes

2

I

H

15 minutes

2

I

H

15 minutes

2

Chapter 9: Leading change What do you do?

Leadership challenge: Implementing unpopular change Exercise 9.1: Analyzing and planning for change Exercise 9.2: Creativity and parallel thinking the six hats method Self-assessment 9.1: Building credibility Self-assessment 9.2: Creativity

.



 

17

Activity number

and

page

Individual (I) or Group (G) I or G

Leadership in action: Best Buy’s almost transformation Chapter 10: Developing leaders What do you do?

I and G Leadership challenge: Finding the right fit Exercise 10.1: Identifying your mentoring needs and potential mentors Self-assessment 10.1: My personal mission statement Leadership in action: Developing leaders at Southwest Airlines

Home (H) or in class (C) H or C

H or C

Time needed

Complexity level

Appropriate for course assignment

20 minutes

3



10 minutes 15 minutes 30 minutes

1

I and G

H or C

I

H

I

H or C

30 minutes

3



I or G

H or C

25 minutes

3



.

1

  

3

18

SECTION TWO _____________________________________________________________________________ CHAPTER MATERIALS

.

19

PART ONE ______________________________________________________________________________ BUILDING BLOCKS

Chapters 1 through 5 present the building blocks and foundational theories of leadership.

.

20

CHAPTER 1 DEFINITION AND SIGNIFICANCE OF LEADERSHIP __________________________________________________________________ Chapter Overview This chapter introduces students to the concepts of leadership and leadership effectiveness by providing working definitions and limitations of the concepts. The applicability and limitations of existing models and theories are discussed. Obstacles to effectiveness and the differences between leadership and management are presented. Roles and functions of leaders are outlined followed by a presentation of the arguments regarding the importance of leadership in organizational performance. Current trends and changes in organizations are considered along with the factors that are leading to those changes with a focus on demographic trends. Barriers to effective leadership are considered.

Chapter Objectives OBJECTIVES and

✓

Discuss the major obstacles to effective leadership Compare and contrast leadership and management List the roles and functions of leaders and managers

✓

THROUGH FEATURES, TABLES, and FIGURES The Leadership Question, The Leadership Question Revisited Leading Change: The Container Store” Table 1.1: Significance of leadership Applying What You Learn: Leadership Basics

✓

Table 1.2: Managers and leaders

Exercise 1.3

✓

Exercise 1.1 Exercise 1.2 Exercise 1.3

Explain the changes in organizations and how they affect leaders

✓

Summarize the debate over the role and impact of leadership in organizations

✓

Figure 1.1: Leader’s functions in shaping organizational culture Applying What You Learn: Leadership Basics What do you do?

Figure 1.2: Control versus results-oriented leadership Figure 1.3: Factors fueling changes in organizations and their leadership Figure1.4: Diversity in the U.S. population Table 1.3: U.S. demographic highlights and trends Applying What You Learn: Leadership Basics) Table 1.1: Significance of leadership

Define leadership effectiveness

THROUGH BASIC TEXT

THROUGH EXERCISES Exercise 1.1 Exercise 1.2 Exercise 1.3

Exercise 1.1 Exercise 1.2 Exercise 1.3 Exercise 1.4

Exercise 1.3

Chapter Outline The Leadership Question Some leaders are focused on getting things done while others put taking care of their followers first. Some look at the big picture, and others hone in on the details. Is one approach better than the other? Which do you prefer?

.

21

1.

Effective leadership

a.

Who is a leader?

A leader is defined as any person who influences individuals and groups within an organization, helps them in the establishment of goals, and guides them toward achievement of those goals, thereby allowing them to be effective.

The definition includes four elements: 1) group process; there are no leaders without followers, 2) leadership involves interpersonal influence, 2) action and goal orientation, and 3) hierarchical relationship. b.

When is a leader effective?

The issue of effectiveness is complex and multifaceted with different theories focusing on different aspects including group performance, employee satisfaction, and organizational change. c.

Effectiveness vs. success

Luthans’s research on the difference between effective and successful leaders is presented. In many cases, those who are effective are not always successful. Effective leaders communicate with followers, manage conflict, and train and develop subordinates; successful leaders focus on networking and taking care of their supervisors.

Ideally, effectiveness should include both elements of taking care of followers and also external factors.

The case of the New York Times illustrates the possible dichotomy. d.

An integrative definition

Definition includes internal stability and health, external adaptability, and goal achievement.

A leader is effective when his or followers achieve their goals, can function well together, and can adapt to the changing demands from external forces.

Leadership Question Revisited Summarizes the complexity of the definitions of leadership and effectiveness and emphasizes the importance of the context and situation in determining what effectiveness is. e.

Why do we need leaders?

Leadership is a universal concept that has existed throughout history and in all cultures. People need leaders: 1) because groups need to stay orderly and focused, 2) to accomplish tasks, 3) to make sense of the world, and 4) as a romantic ideal. f.

Research on significance of leadership

Arguments over the impact of leadership in organizations are presented in this section. In spite of strong popular beliefs that leaders are important, research findings have not been very supportive of the concept (Table 1.1). The impact of the leader is often affected by situational characteristics that limit his or her power and discretion. These factors are described in detail in chapters 6 and 7. The view that leaders impact their organizations directly through their actions and decisions, or indirectly through the vision they provide, is reaffirmed.

Leading Change The Container Store is an organization with a unique culture focused on customers and on taking care of employees who are the ones who deal with the customers. Its definition of effectiveness is “making the customer dance” from delight at having a product that fits her needs. They create their culture through careful selection, extensive training, high pay, taking care of employees through work-life balance, and a family-friendly environment. The leaders are focused on the culture and on maintaining it. .

22

2.

Obstacles to effective leadership

Discussion of obstacles to effective leadership focuses on the need to practice various leadership skills in an atmosphere that encourages experimentation and tolerates mistakes. Organizational rigidity, lack of opportunity for practice, uncertainty, organizational complexity, and inaccessible academic research are all obstacles to effective leadership.

3.

Leadership and management

Arguments about the difference between leadership and management are presented. Leaders are considered by some to be visionary and future oriented, whereas managers focus on day-to-day routine activities (Table 1.2). The section concludes that effective managers often perform many of the duties and activities ascribed to leaders thereby making the distinction between the two concepts somewhat unnecessary.

4.

Roles and functions of leaders

a.

Managerial roles

This section presents Mintzberg’s research on managerial roles and discusses cultural and gender differences in those roles. Research has found that female managers work at a calmer pace and have closer contact with their followers and where a more reflective approach is presented. The concept of web structure is used to describe the style and structure used by female managers. b.

Function of the leader: creation and maintenance of an organizational culture

The key role of leaders in the creation and maintenance of an organization’s culture are discussed. The processes used by leaders to shape culture are role modeling, setting up the reward system, hiring decisions, and decisions regarding strategy and structure (Figure 1.1).

Applying What You Learn: Leadership Basics Focuses on leadership as a long-term journey rather than a destination and emphasizes learning. Basic leadership factors include finding your passion, learning about yourself, experimenting with new situations, getting comfortable with failure, paying attention to the environment, and keeping a sense of humor.

5.

Changes in organizations and expectations of leaders

The current trends and changes in the United States and many other Western organizations are described with focus on the quality, empowerment, and participative management movements.

What do you do? The short scenario illustrates the ongoing challenges organizations and leaders face in adapting to new leadership models that recommend participation, openness, and flexibility. Although many organizations state such approaches as their practice or their goal, many continue to implement more traditional models that may not fit well with some employees and managers. As a practical matter, one leader, especially one who is not at the highest levels of an organization, cannot push for rapid change. The most reasonable approach is to “nudge” for small changes, demonstrate their success, and build on such success. In some cases, though, organizations and their leaders do not welcome change. If there is not room for change, employees need to reevaluate the fit between them and the organization. a.

New roles for leaders

New roles are presented (Figure 1.2). b.

Factors fueling changes

.

23

Factors fueling those changes (Figure 1.3) are summarized including demographic changes (Figure 1.4 and Table 1.3), globalization, characteristics of a new generation of employees, increased level of education, and the quality movement. c.

Barriers to change

Focuses on the difficulties faced by many organizations in moving toward new leadership and management models. Increased financial pressures, focus on individuals, and absence of teams at higher levels of decision-making, as well as the difficulty leaders have in giving up control after having been trained in a top-down style for many years, are discussed as the primary barriers to change in organizations.

6.

Summary and conclusions

Review and Discussion Questions 1.

• • • •

What are the essential components of the definition of leadership?

First, leadership is a group and social phenomenon; there can be no leaders without followers.

Leadership is about others.

Second, leadership necessarily involves interpersonal influence or persuasion. Leaders move others toward goals and actions.

Third, leadership is goal directed and action oriented; leaders play an active role in groups and organizations. They use influence to guide others through a certain course of action or toward the achievement of certain goals.

Fourth, the presence of leaders assumes some form of hierarchy within a group. In some cases, the hierarchy is formal and well defined, with the leader at the top; in other cases, it is informal and flexible.

A leader is a person who influences individuals and groups within an organization, helps them establish goals, and guides them toward achievement of those goals, thereby allowing them to be effective.

2.

• • •

What are the essential components of the definition of leadership effectiveness?

Achieving goals Maintaining internal stability and health Adapting to the external environment

Leaders are effective when their followers achieve their goals, can function well together, and can adapt to changing demands from external forces.

3.

• • • •

Why do we need leaders?

To keep groups orderly and focused. Whereas individual group members may have common goals, they also have individual needs and aspirations. Leaders are needed to pull the individuals together, organize, and coordinate their efforts.

To accomplish tasks. Groups allow us to accomplish tasks that individuals alone could not undertake or complete.

To make sense of the world. Groups and their leaders provide individuals with a perceptual check.

To be romantic ideals. Leadership is needed to fulfill our desire for mythical or romantic figures who represent us and symbolize.

4.

Provide one example each of an effective leader and a successful leader. Consider how they differ and what you can learn from each.

Examples students provide should include one or more of the elements that define both leaders and leadership effectiveness. .

24

5.

What are the obstacles to effective leadership? How have the nature and occurrence of such obstacles changed in recent years? Why? •

Organizations face considerable uncertainty that creates pressure for quick responses and solutions.

External forces, such as voters and investors, demand immediate attention. In an atmosphere of crisis, there is no time or patience for learning. Uncertainty creates a vicious cycle that allows no time for the learning that would help current crises continue. The lack of learning and experimentation in turn causes the continuation of the crises, which makes the time needed to learn and practice innovative behaviors unavailable.

Organizations are often rigid and unforgiving. In their push for short-term and immediate performance, they do not allow any room for mistakes and experimentation. The rigidity and rewards systems of many institutions discourage such endeavors.

Organizations fall back on old ideas about what effective leadership is and, therefore, rely on simplistic solutions that do not fit new and complex problems.

Organizations develop a particular culture that strongly influences how things are done and what is considered acceptable behavior. As leaders try to implement new ideas and experiment with new methods, they may face resistance generated by the established culture.

The difficulty involved is understanding and applying the findings of academic research.

• • • •

6.

Based on your knowledge of the field of management and your personal definition of leadership, how are management and leadership similar or different? How can the differences be reconciled? How do these differences add to our understanding of leadership?

Students should address one or more of the following: Management Focus on the present Maintain status quo and stability Implement policies and procedures Maintain existing structure Remain aloof to maintain objectivity Use position power

7.

Leadership Focus on the future Create change Initiate goals and strategies Create a culture based on shared values Establish an emotional link with followers Use personal power

What are the ways in which leaders influence the creation of culture in their organizations?

Leaders influence their organization’s culture through: • Role modeling • Setting up and enforcing the reward system • Making hiring decisions directly and indirectly • Setting the strategy and structure 8.

What are the elements of the emerging leadership styles? What are the factors that support such styles?

The roles of leaders are changing demanding new styles of leadership that focus more on results than on control (Figure 1.2). Increasingly, leaders give up many of their traditional managerial roles and focus more on providing vision, guidance, and leadership. They allow employees to organize and plan activities and even control their own work while sharing responsibility for the results with their leaders.

Some of the primary factors fueling theses changes include: demographic changes, employee expectations, worldwide political changes, and increased globalization (Figure 1.3).

9.

What obstacles do new leadership styles face in traditional organizations? How can obstacles to new models be overcome? .

25

Some of the barriers or obstacles to the use of new leadership styles are: • Seeking quick results • Financial pressures • Lack of teams in upper management • Relying on old methods • Fear of experimentation • Rewards for status quo • Rewards for individual performance only The Leadership Challenge: Moving the Leadership The leadership challenge for this chapter focuses the challenges people face when they move to a leadership role. The dilemma is to how maintain existing relationships with those who used to be your equals while establishing authority and fulfilling leadership roles. This is a common challenge that many students face as they are promoted to supervisory positions, often over their friends or individuals who are much older than they are. Some of the issues that students must consider are: •

How to establish authority.

Establishing authority and hierarchy is necessary, but it is often overdone and exaggerated by inexperienced leaders. Although followers must understand that the newly promoted person has different roles and responsibilities, there is no need to completely separate from the group and become overly autocratic, a mistake that many new supervisors make.

• Specific actions to help the transition: o Get advice and help. It is essential that the new leader seeks advice from those with more experience and training whenever available. Rely on old mentors or find new ones. o Seek training. The training can be technical to help learn the task better so that he or she can help the team, or understand the legal and operational aspects of the job or interpersonal to learn to manage the team better, provide feedback, delegate, and so on. o Practice your story. There may be some challenges about why you got the job over other people. Prepare a clear explanation that outlines your strengths without putting down others (e.g., “I have been going to school for that past two years while working with you and have attended all the available training so that I could be ready to move up. It is important for all us to keep up with our education and skills. I would be happy to help you figure out what you need to do to get there.”) o Network. Establish new contacts with other supervisors and leaders at the same level. o Maintain friendly relationships with those who were your equals. The boundaries are sharper, but there is no need to cut off previous friendships. o Continue seeking help and advice from followers. Although the new leader has some new roles, the previous relationships are still needed to get the job done. o Clearly explain your new role to those who either do not understand (use the “story” you have developed) it or prefer to ignore it.

• Things to avoid: o Although maintaining good relationships is essential, trying to continue being “one of the boys” is difficult. Some boundaries must be established. o Overplaying the leader role. Becoming autocratic and heavy handed is not the solution and likely to destroy productive relationships. o Don’t pretend to know all the answers. Particularly in Western cultures, admitting to not knowing something is fully acceptable for a leader. Rely on your team.

.

26

Chapter 1 Experiential Exercises Exercise 1.1: More than meets the eye—characteristics of leaders This simple exercise is designed to demonstrate to students how complex leadership and its definitions can be. Students often develop a long list of characteristics, traits, and behaviors, but cannot agree on which ones are essential and necessary for effective leadership. Additionally, they quickly realize that they do not have most of those characteristics and neither do many effective leaders they may know.

Total time: Mininum 25 to 30 minutes.

Materials needed: paper and pencil for students; use of board; flip chart.

1.

Characteristics essential to leadership (5 minutes) Ask students individually to write down as many traits, behaviors, and characteristics of what they think good leaders must have. Tell them to complete the phrase: “A good leader must/should, do, be . . .”

2.

Essentials (7 minutes) Assign students to groups, or let them pick their own, and ask them to pare down the list to 7 to 10 characteristics. What do they consider essential? Which ones make or break a leader?

This is a pretty lively stage because chances are that they will not easily agree on what is essential, a fact that is partly the point of this exercise.

3.

How do you match up? (7 minutes) Instruct the students to discuss the following: • How many of the characteristics do you personally have?

• Can you ever match up to the list you just developed?

• If you do not, how does that affect your ability to lead?

• Do you know any effective leader who lacks one or more of the characteristics?

• Do you think the characteristics are essential to that person’s effectiveness?

4.

Complexity of leadership (5 to 10 minutes) • There are many traits/behaviors associated with leadership • Not everyone agrees on what is essential • One person almost never has all the traits • Having all the traits is not necessary for good leadership • Traits alone do not make a leader—the situation is important • Each person must consider their own strengths and capabilities and the situation when addressing important traits and behaviors Option: This exercise works very well as an in-class introductory activity, instead of students working individually and in groups. The activity takes between 15 and 20 minutes.

Step 1: Solicit characteristics from students and record them on the board, developing a long list.

Encourage them to suggest behaviors and traits.

Step 2: Review each item on the list and ask students whether they consider it essential or optional and delete those the class generally agree are optional. You are likely to get much disagreement. You should keep any that the students think are essential or feel strongly about. This should result in a long list, which is the goal.

Step 3: Lead a discussion starting with asking students: How many of you have all these traits?

How many of you do all these things well?

Does that mean you cannot lead?

The prompts in Step 4 above (Complexity) can be used to lead the discussion. .

27

Exercise 1.2: What is leadership?

This exercise is designed to help students develop a personal definition of leadership and understand how their personal view of ideal leadership affects their assumptions and future behaviors as leaders.

The exercise can be used in a variety of ways, from a cooperative learning exercise as presented in the text to an individual assignment focusing on only the first step.

Total time: Minimum 25 minutes; maximum time depends on number of students and groups.

Materials needed: Paper and pencil; use of board; flip chart can be useful for development of group definitions and presentations.

Part 1: Describe Ideal Leader (Individual work; 5 to 10 minutes) Either as a homework assignment or as an in-class exercise, ask students to list the desirable and undesirable characteristics of their ideal leader. The desirable characteristics are sometimes easier than the undesirable ones. You can help students with the second category by asking them to consider characteristics and behaviors that their ideal leader would not have. For example: “My ideal leader would not make arbitrary decisions or would not be indecisive.” Although some overlap is to be expected, students should be encouraged to avoid simply listing opposite characteristics in the two lists.

Examples of typical items listed by students Desirable Integrity Good interpersonal skills Enthusiasm Decisiveness Competence Charisma Good communication skills Openness to others’ ideas Participative decision-making Vision

Undesirable Autocratic leadership No concern for others Dishonesty Manipulativeness Arbitrariness Self-centeredness Unresponsiveness Closed-mindedness Unwillingness to accept feedback

Option: The personal list developed by each student can be used as a basis for evaluating what students have learned in class and how their thinking has evolved, their assumptions have been changed or reaffirmed. The lists can be collected by the instructor and handed back the last week of class.

Part 2: Develop Group Definition (Group work; 10 to 20 minutes) As with all group exercises in the book, the instructor has the option of either assigning groups or allowing students to select their own groups. Groups of larger than six tend to be inefficient and often have trouble reaching a group decision in the limited time allocated in class. Ideal size is four to five members.

Ask students to keep their own list intact and write the group list on a separate piece of paper.

This part of the exercise often generates considerable in-group discussion as students compare their lists. Although some common items are listed by different students, there are also many that show up on only one or two people’s lists. Through the discussion, students realize the highly personal nature of definitions of leadership. If the groups are culturally diverse, cultural differences in leadership may also surface. Similarly, there often is a gender difference in images of ideal leadership. For example, decisiveness and “in charge” characteristics are more often part of male students’ definitions than part of female students’.

Option: Groups can be assigned based on gender or other cultural characteristics to accentuate cultural differences and focus discussion on the cultural elements of ideal leadership.

.

28

Part 3: Present and Defend (7 minutes per group) Each group is asked to make a three-to-five-minute presentation listing their ideal leader’s desirable and undesirable characteristics and briefly explaining the reason for their choices.

Option: Group presentations can be replaced by the instructor asking each group for their first, second, third, and so forth characteristic in a round robin fashion until all items are recorded on the board.

Part 4: Common Themes (Class discussion; 10 to 15 minutes) Part 4 focuses on in-class discussion of images of ideal leadership. The lists generated by the groups are used as the basis for this discussion. The focus should be on the complexity and diversity of leadership images and the implications for understanding the process of leadership.

With the recent push toward empowerment and participative decision-making, common themes among students’ list often include issues of participation, autonomy, having a vision as essential to ideal leadership. Undesirable characteristics often focus around lack of integrity, too much control, and inability to motivate followers.

The discussion can include cross-cultural differences in leadership. The instructor or the students can bring in material about how culture impacts our images of ideal leadership. Hosftede’s cultural dimensions also provide a good basis for discussion. For example, in high power distance and uncertainty avoidance cultures, ideal leaders are likely to be expected to provide answers to all follower questions. Additionally, expectations of employee participation and empowerment are likely to be low.

In masculine cultures, the element of taking care of followers is likely to be less pronounced than in feminine cultures. Concern for individuals and individual attention to followers is likely to be lower in collectivist than in individualist cultures.

Overall: This is a very simple exercise for both students and faculty. It can serve as a nice ice breaker the first week of class and help point out the richness of concept and process of leadership and prepare students for the broad diversity of topics and issues that will be discussed throughout the term.

.

29

Exercise 1.3: Images of Leadership As with Exercise 1.1, this exercise is designed to help students clarify their personal assumptions about leadership. It can be used alone or in conjunction with Exercise 1.1. Using images to clarify ideal leadership is generally appealing to students. Although the exercise has a group-discussion component, the exercise is not designed as a cooperative learning exercise. Group discussions help students finetune and clarify their personal definitions.

Total time: Minimum 25 minutes.

Materials needed: Paper and pencil; use of board by instructor.

Part 1: Select your image (Individual work; 5 to 7 minutes) Similar to the popular organizational metaphor exercise, students are encouraged to develop their personal image or metaphor of leaders. Commonly used metaphors include leader as: Sport coach Team facilitator Train engineer

Orchestra conductor Jungle/safari guide Ringmaster

Head of family Therapist Obstacle remover

Ask students to pick an image/metaphor and list the implications of that metaphor for the role and behavioral expectations of leaders. For example, an orchestra conductor is the undeniable leader of the orchestra; nothing happens without his or her direction. He or she is in full control and often dictates the actions of others. The organization, on the other hand, is fully synchronized and acts in total coordination and unison. The head of the family is similarly in full control, although the sense of total cooperation and focused action is lacking. The head of a family has responsibility for the emotional and psychological well-being of members, a factor that is lacking from an orchestra. The issue of conflict is also part of a family much more so than an orchestra.

Students are often very creative with their images. The instructor’s goal should be to guide them in the understanding of the implications of the image they select.

Part 2: Share and Clarify (Small group discussion; 10 to 15 minutes) Small groups can be used as a sounding board for students to help them clarify the implications of the image that appeals to them.

Option: This step can be skipped to move directly to class-discussion, especially in small classes (under 25 students) where whole-class discussions are possible. Having small group discussions allows students to fine-tune their images and think about the consequences.

Part 3: Class Discussion (10 to 15 minutes) The discussion questions allow for exploration of various images and their implications for organizations. Some images are becoming obsolete while others are gaining ground. For example, team facilitator is a very popular metaphor although students are often not fully aware of the implication of such an image for the structure of an organization or its potential shortcomings. Namely, team facilitators do not make decisions for their teams; their role is to support, guide, and encourage. The implications of such a style in times of crisis when quick decision-making is essential need to be explored.

Option: As with Exercise 1.1, discussion of cross-cultural differences in images of leadership is very appropriate. Particularly, the diversity of images that are used in the United States can be pointed out as resulting from the cultural diversity within the population.

Overall: As with Exercise 1.1, Exercise 1.2 is very simple and easy to execute. The development of images triggers lively and interesting discussion among the students and makes this an ideal ice breaker for the first week of class.

.

30

Exercise 1.4: Understanding the Leadership Context This exercise is designed to help students understand the various contextual factors that have the potential to affect leadership. It presents a fairly complex concept and may be difficult for younger and less experienced students to grasp. However, more experienced students with some work experience should not have any difficulty picking a leader that they know or have known and to identify the various contextual factors that affect the person’s leadership concept. This exercise can be used both individually and for a group activity. The group discussions often allow students to grasp the concept of context. It also can be assigned as part of graded class assignment.

Total time: Minimum 25 minutes.

Materials needed: Paper and pencil; use of board by instructor.

Part 1: Individual/Group work (15 minutes) Student should select either a leader they know and have worked with or a business or political leader with whom they are familiar. This can be done individually or as group. Once the leader is selected, the students must consider the context in which the leader operates. Not all these factors may be relevant; however, students should be encouraged to explore the context may be relevant and influence how the leader makes decisions and acts.

1.

Long-term historical, political, and economic forces include such factors as: • The history of the organization if it has been around for a while • The national history, if relevant (for example, the organization may have a long-standing positive or negative reputation) • Political factors (for example, the organization may be tied to a particular political party or system) • Long-term economic factors (for example, the steel industry has long-term economic factors to consider 2.

Current contemporary forces include such factors as: • Cultural diversity (changes in the demographic and cultural makeup of the organization’s customers and other stakeholders) • Social values that may affect the organization, its products and services (for example, fast-food companies are affected by the increase in obesity in the United States) • Technology (for example, many organizations are seeing competitors who operate online services similar to theirs; or organizations are expected to provide online services for their customers) • The economy • Social changes (for example, a more conservative political and social climate may affect the products and services an organization offers or how it advertises them) 3.

• • • • • •

The immediate context includes such factors as: The organizational culture and climate The structure of the organization The organization’s performance The products and services delivered The various suppliers The followers (their abilities, strengths, and weaknesses)

.

31

Option: For students who have no or limited work experience, the instructor can assign a well-known leader using articles for current headlines. I have successfully used President George W. Bush and asked students to identify the contextual factors that have affected his decision to launch the war with Iraq.

You can also use President Obama’s leadership context with issues such as health care or the budgetary disagreements. You can also compare the context two years ago to the current context. Although the long-term and contemporary elements remain the same, the immediate context has changed. The contextual factors to consider in this case are: Long-term historical, political, and economic factors The Middle-East situation (Arab-Israeli conflict; Iran) Oil History of Republican Party The United States as the policeman of the world Contemporary context The first Gulf War Conservative vs. liberals The United States as the remaining superpower Prior actions by Bill Clinton Immediate context The terrorist attacks of 9/11 The war in Afghanistan The Iraq War The Neoconservative agenda The support and dissent from traditional allies The conservative agenda The concern of a legacy How the task is defined (easy victory; welcome by Iraqis) International goals Domestic goals Followers (voters on both sides of the political lines) The 2008 U.S. presidential election Part 2: Discussion and presentation (10 minutes) Each group is asked to present their leader and outline the contextual factors that impact the leader’s decisions and actions. Similarities and differences between the leaders’ different context can also be discussed. The instructor can highlight how some of the contextual factors strongly influence and limit a leader’s ability to make decisions or take certain course of action. For example, with President Bush as the example, the first Gulf was, the 9/11 attacks, and the conservative agenda all provided a very strong context that determined many of his actions.

Overall: The Leadership Context exercise is a powerful way to focus students’ attention on the importance of the leadership context instead of looking only at the leader characteristics.

.

32

David Neeleman Reinvents Airlines Case summary The case discussed David Neeleman founder of Morris Air, JetBlue, and most recently the Brazilian airline Azul. JetBlue is one of the success stories in the U.S. airlines industry and Azul appears to be following the same path. JetBlue has been very successful while breaking all the rules of the industry.

Its small size, dedicated staff, no-layoff policy, unusual routes, and willingness to innovate have allowed it to achieve success. In spite of low prices, the airline pampers its customers with individual TV sets, chocolate chip cookies, and outstanding service. JetBlue’s president David Neeleman relies on his employees for ideas and innovation. The airline’s “can do” attitude and its reliance on innovation play a great part in its success.

1. What are the key elements of JetBlue’s culture?

Focus on the customer, getting information from all sources, and maintaining a strong team spirit within the company are the key elements of JetBlue’s culture. The company aims at pleasing its customers by pampering them and addressing their needs. JetBlue also listens to its employees, tries to create an egalitarian culture when participation is encouraged, and works on leaving the “we-they” attitude that typifies management and labor in most company behind.

2. What role does the leader play in the development and maintenance of the culture?

Because JetBlue is still young, the impact of its founder, David Neeleman is still highly pervasive. His entrepreneurial, high-risk approach to business is evident in all aspects of the company. He is present and active in all aspects of the business. He serves as the formal leader, making key decisions, but he also serves as a role model, through his interaction with customers, his willingness to listen to his employees, his active engagement in the company, and his informal demeanor. The “image” of an effective and engaged leader is further communicated from customers and from employee to employee to reinforce his role and his power over the company. The company’s creativity and willingness not to follow industry rules is also a reflection of Neeleman’s entrepreneurial spirit.

.

33

CHAPTER 2 THE GLOBAL AND CULTURAL CONTEXTS _______________________________________________________________ Chapter Overview This chapter considers the cultural context of leadership at the national, small-group, and organizational levels. After defining culture, four models of national culture are presented: Hall’s high- and lowcontext, Hofstede’s five dimensions, Trompenaars’s dimensions, and the Global Leadership and Organizational Behavior Effectiveness (GLOBE) research. The impact of group culture in terms of gender and diversity is considered, and the causes and solutions to leadership differences based on gender and other small-group membership are presented. The concept of developing a cultural mindset is presented to provide leaders and organizations as a way of managing diversity.

Chapter Objectives OBJECTIVES

Define culture and its three levels and explain the role it plays in leadership

THROUGH BASIC TEXT

THROUGH FEATURES, TABLES, and FIGURES

THROUGH EXERCISES

✓

Table 2.1 Figure 2.1 What do you do?

Exercises 2.1 through 2.3

Leadership Challenge Apply Hall’s model of national culture to leadership situations

✓

Figure 2.2

Apply Hofstede’s model of national culture to leadership situations

✓

Table 2.2 Table 2.3

Apply Trompenaar’s model of national culture to leadership situations

✓

Figure 2.3

Apply the GLOBE model of national culture to leadership situations

✓

Figure 2.4 Table 2.4

Identify the impact of gender on leadership

✓

Table 2.5 Leading Change: Deloitte Supports All Its Employees

Exercise 2.4 Exercise 2.5 Self-assessment 2.3

Address how leaders can develop a cultural mindset

✓

Applying What You Learn: Using Culture to Be Effective Figure 2.5

Self-assessment 2.1 Self-assessment 2.2

Present the steps organizations can take to become more multicultural

✓

Figure 2.6 What do you do?

Leadership in Action: Leadership Based on Ancient Principles

.

34

Chapter Outline The Leadership Question provides a starting point for discussing the role of culture.

1.

Definitions and levels of culture

a.

Definitions and characteristics

Culture consists of the commonly held values within a group of people and includes norms, customs, values, and assumptions that guide behavior (Table 2.1). b.

Levels of culture

Three levels of culture are identified. These are: national, ethnic or other cultural groups within a nation, and organization culture (Figure 2.1).

2.

Models of national culture

a.

Hall’s high-context and low-context cultural framework

Hall’s model is based on the communication context. Members of high-context cultures rely on context, nonverbal cues, and situational factors to communicate. Those from low-context cultures focus on explicit messages. Examples of each type of culture are provided (Figure 2.2). b.

Hofstede’s five cultural dimensions

Hofstede’s model of culture classifies cultures based on five dimensions (Table 2.1). Harry Triandis further refined the model by adding the concept of tight and loose cultures, and the vertical and horizontal dimension to individual—collectivism (Table 2.2). c.

Trompenaars’s dimensions of culture

Trompenaars’s model focuses on cross-cultural organizational cultures (Figure 2.3).

What do you do? The scenario illustrates the challenges of leading a multicultural team where members have different values and priorities and different approaches to work resulting in conflict and discord. Although some the conflict may be related to individual differences rather than culture as the group members think, culture may play a role in how each member sets priorities and how each prefers to work. Providing cross-cultural awareness is a starting point to allow the group members to assess where the origins of the conflict may be and moving toward using the differences as a strength rather than as a source of conflict. Becoming aware that people behave the way they do partly because of their values and culture, rather than to be disagreeable or because they are wrong, can help most reasonable people adjust their reactions and responses. Cultural awareness training can help group members learn about national and group cultural differences in values and can be a positive step in resolving the conflict. It may also be helpful to train the group on conflict resolution methods that can help them put their cultural knowledge to work. d.

GLOBE: Global leadership and organizational behavior effectiveness research

The GLOBE research is the most current most extensive research on cultural dimensions and proposes nice cultural values to help understand different cultures. The research suggests that culture impacts, but does not predict, leadership behavior through people’s expectations—what GLOBE has labeled culturally endorsed theory of leadership (CLT). It provides many refined dimensions to classify and understand cultures: power distance, uncertainty avoidance, humane orientation, collectivism I— Institutional, collectivism II—In group, assertiveness, gender-egalitarianism, future orientation, and performance orientation. .

35

The GLOBE country clusters and their cultural values are presented in Figure 2.4. These values indicate country cluster practices as they are.

GLOBE’s six CLTs are: charismatic and value-based, team-oriented, participative, humaneoriented, autonomous, and self-protective. Table 2.4 summarizes the CLTs that indicate what each country clusters thinks is ideal leadership.

Applying What You Learn: Using Culture to Be Effective outlines the key factors for managers to build the culture of their organization. They include: clear definition of desired culture, sharing with employees, adjusting the reward system, attention to details, and “walking the talk.”

3.

Group culture: gender and diversity

Anecdotes of gender differences and similarities are presented are presented. a.

Current state of women in organizations

Summarizes the various statistics that point to gender inequality in the United States and in other countries. b.

Causes of gender inequality

Suggested reasons for gender inequality in leadership and in organizations are summarized in Table 2.5.

Factors that are likely to contribute to inequality include: challenges in balancing work life, persistent stereotypes, and discrimination. Other factors that are mentioned but not likely to be the cause are: gender differences in style and effectiveness, commitment to work, and level of education.

Leading Change Deloitte supports all its employees: Deloitte, one of the Big Four accounting firms, is taking steps to increase the diversity of its employees, who are 92% white. CEO Barry Salzberg has made diversity a major strategic focus. The company has broadened its recruiting base and has implemented a program called Mass Career Customization that provides all employees, not just women and minorities, with an opportunity to develop their own career path based on their needs and work-life balance. Deloitte has received much recognition for the program.

The Leadership Question Revisited points out that there are some universal leadership ideals as indicated by the GLOBE research, whereas others are culture-specific. Integrity seems to be one of the universal desired leadership characteristics.

4.

Developing a cultural mindset

To address the challenges of managing a diverse organization successfully, leaders have to develop a cultural mindset which is a way of thinking and an outlook where culture is taken into consideration in deliberations, decisions, and behaviors, and organizations have to become more multicultural. a.

Characteristics of a cultural mindset

A cultural mindset is the basis for cultural competence since it focuses on how one thinks. Figure 2.5 presents the cognitive, behavioral, and skill-based elements of a cultural mindset which allows for the adoption of a multicultural approach in organizations. b.

The multicultural organization

The key factors in becoming a multicultural organization are presented in Figure 2.6.

What do you do? The scenario presents a recruiting dilemma that many organizations face. When looking for new employees, many organizations rely on existing employees to recommend people they know. Although the practice appears logical because it allows organizations to hire people they know .

36

they can trust, it poses a challenge related to diversity. If the organization is not diverse, relying on recommendations of employees will simply reinforce the lack of diversity because research shows that most people trust and interact with those who are similar to them. To make an organization more diverse and multicultural, leaders often have to use novel techniques for recruiting employees, as is illustrated in several examples in the chapter.

5.

Summary and conclusions

Review and Discussion Questions 1.

What are the four models of culture, and how do they affect leadership?

The four models of culture are: Hall’s cultural context, Hofsted’s five cultural dimensions, Trompernaars’s dimensions, and GLOBE. All models, in different ways, address cultural differences and values that affect social and interpersonal interactions. As such, they all address differences in who people consider leaders and what traits and behaviors they consider to be effective leadership. For example, Hall addresses communication context differences. Leaders from high and low-context cultures approach their followers differently. Similarly, Hofstede’s five dimensions all deal with cultural values that may impact leadership. Trompenaars’s model and GLOBE were specifically developed to address organizational and leadership settings.

2.

How are the different models of culture similar? What unique contributions does each model make?

All four models address key national cultural differences that affect people’s behavior. They all therefore assume that culture has a potential to affect behavior. Hofstede is one of the most often cited and oldest models of the role of culture in organizational settings. His five dimensions provide a clear and concise way to comparing cultures. Trompenaars provides a clear focus on how national culture may impact organizational settings. GLOBE is the most comprehensive model to date with extensive research based in more than 60 countries. GLOBE and Hofstede share several cultural dimensions.

GLOBE, however, provides more precise research and finer differences among cultural groups. GLOBE further provides detailed research about cultural values as they actually are and leadership ideals (CLT) that show what people would like their ideal leaders to be.

3.

How would the definitions of leaders and effectiveness differ based on the different cultural values presented by Hofstede, Trompenaars, and the GLOBE findings?

Trompenaars’s research and GLOBE address this issue most directly. Trompenaars provides a model of four cross-cultural organizational cultures that each includes a different type of leadership (Figure 2.3).

GLOBE outlines CLTs described in Table 2.4 and describes not only how leadership actually differs based on cultural values within each country cluster, but how people within each culture have different ideals of leadership.

4.

How does group membership impact leaders and leadership?

In addition to national culture, a person’s cultural background includes various groups such as gender, ethnicity, religion, or other groups. Each cultural group develops unique characteristics that have the potential to affect leadership. For example, research about gender differences shows that there may be persistent differences in how men and women lead. Similarly, even if the leader is not affected by his or her group membership, others may perceive him or her differently based on such membership. For example, women and minorities may not be as easily accepted as leaders or their competence may be challenged.

5.

What are the factors that contribute to the inequality of men and women in the workplace?

.

37

Table 2.5 summarizes the research on the suggested causes of gender inequality in leadership and in organizations. The often cited causes include: gender differences in leadership and management style, difficulty of balancing work and life, gender differences in commitment to work, gender differences in education, stereotypes, and discrimination. Among these, challenges of balancing work and life, stereotypes, and discrimination have been shown to be the cause of gender inequality. Other factors have not been supported by research. Women may have different leadership style, but the difference is often having a more participative and transformation style, which has been shown to be more effective.

Although women do take time to have children, they more often than not come back to work. The gender differences in education actually favor women with a larger majority of women earning undergraduate and graduate degrees in many areas.

6.

What are the elements of a cultural mindset?

A cultural mindset is a way of thinking and an outlook where culture is taken into consideration in deliberations, decisions, and behaviors. It is the basis for cultural competence and cultural literacy, concepts that are often used in organizations. A cultural mindset includes cognition—a way of thinking (self-awareness, curiosity, including culture in problem-solving, adopting a multicultural lens), behavior —the way people act (self-presentation, verbal and nonverbal cues, interaction, and addressing cultural issues), and skills (interpersonal, communication, language) (see Figure 2.5).

7.

How can organizations become more multicultural?

The starting point to successfully becoming multicultural is a leadership with a cultural mindset. Other factors include: accountability, proper recruiting, having role-models, education and training, research and measurement, setting the right policy, and generally monitoring and implementing a supportive culture (Figure 2.6).

8.

Why are leaders so important in that process?

As illustrated in many of the examples in the chapter, organizations where the leader has a commitment to diversity are more often successful in becoming multicultural. Having a leader with a cultural mindset is key because the leader not only makes the key decisions, but also role models desired behaviors, sets the reward system, and shapes the culture of an organization. Without support from leadership and without leaders who have a cultural mindset, organizations will have difficulty becoming and remaining multicultural.

The Leadership Challenge: Juggling Cultures The leadership challenge for this chapter focuses on the impact of culture. The dilemma for the leader is to balance culture, organizational needs, fairness, and legal standards. Some of the issues that students must consider before making their decision are: • The Saudi culture. Saudi Arabia is a Muslim country where because of religious traditions and requirements, women have practically no role in public life and business transactions. Women are not only covered from head to toe when out in public, they are also often segregated from men.

Although these standards are not as strictly enforced on non-Muslim and Western women, they still find their freedom highly restricted when traveling or living in Saudi Arabia. In addition to the limited role of women, the Saudi culture is generally high-context, collectivistic, power and statusoriented, ascriptive in that who you are is more important than your performance, and with a longterm orientation. Students should be directed to do some research regarding the culture. Web sites such as www.executiveplanet.com can provide a quick overview.

• Legal requirements. Depending on the country, there may be clear antidiscrimination laws protecting women and minorities. For example, antidiscrimination and equal opportunity apply to all U.S. companies, regardless of where they operate. Other Western countries do not have as specific legal requirements regarding discrimination. The argument that Saudi culture does not welcome women may therefore, in and of itself, not be legally defensible. Managers are required, at the very minimum, to uphold the laws of the country in which they operate. .

38

• •

Company interest. It is in the company’s best interest to have its best and most experienced negotiator represent it. Sending an inexperienced person may be highly detrimental.

Fairness and equity. Regardless of legal requirements, standards of fairness and equity should prevent discriminating against a person based on sex. Not sending in the female executive to Saudi Arabia, simply because she is female and she may encounter problems, is not fair or equitable and may set a bad precedence, as well as open up the company to legal action.

Given the complexity of these issues, a simple solution of is not likely to work. Sending the female executive to Saudi Arabia may not be feasible, although many foreign women function well in those environments. They are often treated as a “third gender,” neither male, nor quite female. Whether this would work in this case depends on the existing relationship with the Saudi clients. Some possible solutions may be: • Holding negotiations in another country, such as the United Arab Emirates, Egypt, or Lebanon, which are all close to Saudi Arabia but not as restrictive concerning the role of women and may provide a comfortable compromise.

• Sending the female executive’s manager, if it is a male, along as the front person. She could then provide “support” to her boss.

• Hiring a local or third-party negotiator that would report to and work with the female executive.

Powerpoints slides provide additional information about a further addition to the Hofstede’s concept of individualism—collectivism proposed by Harry Triandis. The concept of Vertical and Horizontal individualism—collectivism refines the dimension by introducing the issue of hierarchy vs. egalitarianism. Vertical cultures are hierarchy based, whereas horizontal ones are egalitarian.

.

39

Chapter 2 Experiential Exercises Exercise 2.1: World Map I have used this exercise as an introductory ice breaker in most of my culture classes or lectures. It is simple and quickly illustrates the power of one’s cultural lens.

Total Time: 5 to 20 minutes (5 minutes to draw the map; another 5 to review or longer if you have students work in groups).

Materials Needed: Paper and pencil.

Instructor preparation: You will need to have a world map available either in hard copy or online to show students when they have completed their task.

Instruct the students to draw the 7 continents, or as many as they can, on a sheet of paper.

When they are done, show them the world map you have prepared. Discuss the following: 1.

How many continents did you place correctly?

You can use a 1 to14 scale for them to score themselves—1 point for getting the continent, another for placing it correctly.

Most U.S. students have limited knowledge of geography and many are not able to place all seven continents, some cannot name all seven.

2.

Where did you start your map? What’s the first place you drew? What continent is in the center? Why? Most students start with their own continent/country and place it in the center of page. I often have nonU.S. students and there are clear differences among them regarding where they start and what is in the center, allowing for a simple demonstration. My students have primarily been from the Northern hemisphere, so the occasional Australian or other student from the Southern part of the globe provides an additional perspective.

3.

What does your map tell you about your knowledge of the world?

The way students draw their map reflects how they see their world with their own continent/country at the center. Because many cannot accurately draw the map, their lack of knowledge of the physical geography is likely to be matched by a lack of cultural knowledge. The exercise demonstrates the limited world view that many of us have.

I often have students who are expert world travelers, for example military personnel or expats.

They often perform better at this exercise further demonstrating how travel can help in gaining a world view, at least to some extent.

Exercise 2.2: Proverbs as a Window to Leadership This is a simple and engaging exercise that relies on proverbs to demonstrate cultural differences and their implications for management. Students can be assigned to complete the exercise either in class or outside of class and discuss their views in class. You can also ask students to propose their own proverbs; this could be particularly interesting if you have a culturally diverse group.

Total time: 20 to 30 minutes (10 minutes to complete exercise, individual 10–20 minute discussions to review implications for leadership).

Materials needed: Paper and pencil; board for discussion.

.

40

Instructor “Cheat” Sheet U.S. Proverbs Actions speak louder than words.

Strike while the iron is hot.

Time is money.

God helps those who help themselves.

Other Countries One does not make the wind, but is blown by it (Asian cultures).

Order is half of life (Germany).

When spider webs unite, they can tie up a lion (Ethiopia).

We are all like well buckets, one goes up and the other comes down (Mexico).

Sometimes you ride the horse; sometimes you carry the saddle (Iran).

We will be known forever by the tracks we leave (Native American—Dakota).

One finger cannot lift a pebble (Hopi).

For, no matter how concealed, force begets resistance (Lakota).

Implications for Leadership Low-context, action-oriented culture. Leaders are expected to clearly role-model expected behaviors.

Short-term orientation. Expectation of quick decisions and actions.

Short-term and achievement orientation.

Masculine and individualistic culture based on selfreliance. Leaders and followers are expected to take action.

Implications for Leadership Clear indication of “being” culture with focus on fatalism.

Leader will not be expected to be strongly action-oriented; expectations of harmony with the environment.

Importance of structure. Leader expected to focus on clarifying task.

Collectivistic culture where group effort is valued. Leader is expected to lead teams not focus on individuals.

Fatalistic culture. Things happen outside the control of people. Leader must go with the flow.

Fatalistic culture. Events happen and life is cyclical.

Leader must accept such an approach and go with the flow.

Importance of harmony and long-term thinking. Leader must guard reputation, consider long-term impact of actions.

Collectivist culture where group actions are valued over individual achievement. Leader must work with group to perform.

Cooperative culture based on consensus. Leader must not be autocratic and must build group consensus.

Discussion Points The key to this exercise is to explore the differences without considering what is right or wrong.

Students must, however, be encouraged to explore their own cultural values and consider their implications for assumptions and expectations of leaders. The cultural values that may be unconscious can become obvious by becoming aware of the assumptions of other cultures.

What are the key assumptions in my culture that may guide what I expect of leaders and how they should behave?

• How would such assumptions work or not work in other cultures?

• Which assumptions from other cultures would be hardest to work with? Why? Overall: The proverb exercise is a simple and powerful introduction to revealing cultural assumptions and their potential impact on leadership and to providing examples for the various cultural dimension models discussed in the chapter. Being aware of the presence of cultural differences is the first step toward cultural competence.

.

41

Exercise 2.3: Narian Bridges Narian Bridges is a very engaging cross-cultural role play designed to allow students to experience the challenges of interacting with different cultures. Although no out-of-class preparation is needed for the students, the instructor needs to decide on team assignments prior to class. You can expect considerable frustration on the part of U.S. teams and lively discussion about how to deal with cross-cultural differences and conflicting goals.

Total time: Minimum 60 minutes.

Materials needed: Access to 2 separate rooms (quiet hallway or sitting area) to allow for separate planning for each cultural group.

Part 1: Background (Individual reading; 10 minutes) Ask all students to read “Background” information on pp. 58–59.

Instructor’s preparation: The instructor needs to decide on team assignments prior to class. The only restriction is that Mr. Dafti has to be male; all other roles can be assigned to either male or female students. Selection of students to play Narian or U.S. roles can be made randomly or based on each student’s personal characteristics. For example, students who show “typical” American characteristics, such as assertiveness and directness, can be assigned to the U.S. team to emphasize those roles, or they can be put in Narian teams to allow them to experience a different culture.

Both the Narian and U.S. team can function with just two members. Depending on class size, some teams may have three members whereas others only two. Keeping the Narian and U.S. teams at no more than three allows for all members to participate. Students assigned to teams larger than three are unlikely to have the opportunity to role play.

For each role-play group, assign: Narian Team U.S. Team Mr. Dafti (male student) U.S. team leader Naran Team member 1 Touran (optional) Team member 2 (optional) Call students’ names and pair them up with their Narian and U.S. role play groups before you provide further instructions. There is no restriction on the overall number of role play groups. Provide students with role play instruction sheets appropriate for their role (see end of this chapter).

Part 2: Role Play (Preparation: 15 minutes; Role play: 15 to 20 minutes) Preparation: Separate the Narian and U.S. teams by sending U.S. team to another room. Review instructions on the role play sheets with Narian and U.S. teams separately, reminding each group about basic role-play rules: • Stay in the general guidelines provided by your role • Improvise as needed while keeping goal in mind • Practice role for a few minutes alone or with your team • Provide rich role play so that others can respond to you • Be as creative as you feel comfortable; some of the students will play roles more intensely than others; differences are normal In helping each group of students prepare for their roles while answering their questions, the instructor can provide them with the following information.

Narian teams: The description of Narian culture matches that of a high power distance, feminine, vertical collectivist culture with moderate uncertainty avoidance. The culture has many elements of middle-eastern cultures. Students find the highly differentiated but equal gender roles both surprising and comfortable. Issues that need to be emphasized in preparing students to role play Narians are:

.

42

• • • • • •

Maintain good interpersonal relations in all situations Avoid open conflict and disagreement among yourselves and with U.S. teams Be very respectful and polite with one another and with U.S. team Appear confident, stick to your ground without being rude and confrontational Remember that you know the U.S. culture and language well Keep the social goal of the meeting in mind at all times; this is not a negotiation session

U.S. teams: Initially, the U.S. team members have an easier task because they are role-playing a culture with which they are familiar. The U.S. culture is moderate-to-low power distance, masculine, individualistic, and tolerant of uncertainty. Issues that need to be emphasized in preparing students to role-play U.S. team members are: • Remember that your goal is changing the contract and that your success depends on getting Dafti to agree with the changes • Appear confident and knowledgeable • Rely on your relationship with the two Narian associates, Naran and Touran, and on your information about Narian culture • Remember that the Narians speak English well and are familiar with U.S. culture Once both groups are prepared (approximately 15 minutes), invite the U.S. team back and inform them that they have a maximum of 20 minutes for the role play. Each group of U.S. and Narian teams can sit in clusters to start their interaction.

Part 3: Debriefing (Class discussion; 20–30 minutes) The role-play is likely to cause much frustration for U.S. team members who will in most cases not achieve their goals. The Narian members are likely to observe the pushiness of U.S. teams. Class debriefing can start with allowing each role-play group to describe the interaction and the outcome while students share their role-play instructions with their counterparts.

Discussion should include issues of goal differences, rudeness of one culture vs. the other’s unwillingness to talk business, and potential solutions. Other discussion themes can include: • Leadership differences. The Narians consider their leader to be the infallible head of their family.

There is strong loyalty and sense of respect. As a result, they will not disagree with their leader and will not be co-opted by the U.S. team members even when their leader is “wrong.” Such views sharply differ with those of the U.S. teams who have the “correct” solution and put the objective truth ahead of respect for the leader.

• How to handle goal differences. All role-play groups are likely to have been frustrated because of their divergent goals. Discussion of and solutions for how to handle such differences are often lively.

Many U.S. teams find a partial solution that satisfies the Narians by focusing on long-term accomplishments.

Overall: The Narian Bridges is a powerful role-play that works even with students and instructors who have limited experience at role play or cross-cultural situations. The issues at play tie in directly with the cultural dimensions presented in the chapter.

.

43

Exercise 2.4: Leadership and Gender In the United States, as in many other, but not all, cultures, the images of leadership are closely tied to typical male behaviors. For example, leaders and males are supposed to be aggressive, dominant, and competitive. Females on the other hand are typically expected to be submissive, quiet, and cooperative.

The female gender roles are generally inconsistent with the traditional views of leadership.

Although some students are aware of the link between gender and leadership, many assume that such links do not exist any longer. This exercise is designed to explore the relationship between gender roles and leadership.

Total time: Minimum 30 minutes Materials needed: Paper, pencil, use of board or flip chart.

Part 1: Assign groups and develop list (Group work; 10 to 15 minutes) • Divide class into three groups; the composition can be random or based on existing groups • Assign each group to develop a list of ten characteristics using the work sheet on p. 44 of the text based on one of the three instructions provided at the end of chapter • Allow each group 10–15 minutes to prepare their list • Instruct them to be ready to make a brief 2–4 minute presentation to the class Part 2: Presentation and discussion (In-class discussion; 10 to 15 minutes) After the three groups have made their presentations, discussion should focus around: • The relationship between leadership and the male and female gender roles • Current changes in the definition of leadership and how they relate to gender roles • Potential cross-cultural differences regarding views of both leadership and gender roles In most cases, the majority of the traits and behaviors used to describe the male gender role are similar to those used to describe leaders. Traditional female gender roles are typically not associated with leadership. An interesting point of discussion is the similarity between many of the new leadership roles of facilitator, motivator, and coach and the female gender role.

Overall: This relatively simple exercise can be a powerful demonstration of the strength of gender stereotypes. Focus on the future and changes in our views of leadership allow for a view of the future and the role of culture.

.

44

Exercise 2.5: Is this Sexual Harassment?

Sexual harassment is considered a form of discrimination in the United States (although not in many other countries). As such, it is one of the potential reasons why women do not achieve their full potential in organizations. The exercise is designed to provide clarity regarding what sexual harassment is. This is a sensitive topic and always engenders much heated discussion, sometimes some hostility.

Although students can be assigned to complete the exercise at home, classroom discussion, facilitated by the instructor is essential to understanding the concept.

Total time: 5 to 10 minute per scenario Materials needed: Paper, pencil, use of board or flip chart.

Procedure: You can assign a few or all of the scenarios. Each presents different cases, some clear and some not so clear. Students can review the scenarios prior to class or during class, then be assigned to small groups to further discuss them, before discussing them in class.

Scenarios 1.

Clear quid-pro-quo situation involves grade in exchange for relationship. This is a simple and undisputable case of sexual harassment with one person, in this case an instructor with power, demanding a relationship from another with less power.

2.

This is a case of harassment or “stalking” (as some students may call it). While clearly not sanctioned by an organization and not involving a differential power, the unwanted attention of a sexual nature, that makes the other person uncomfortable, can be considered harassment. This scenario illustrates that harassment does not require a formal institutional setting, unequal power or quid-proquo. Unwanted advances that make a person uncomfortable are considered harassment.

3.

This is a case of sexual harassment. One person is the target of ridicule and unwanted action of a sexual nature by co-workers. This case illustrates that men can also be the victim of harassment and that there does not need to be a boss–employee relationship. In this case, co-workers are creating a hostile work environment for Ricardo. Their actions should not be tolerated by the organization and they provide Ricardo with a clear case of harassment.

4.

While this case shows physical contact between a boss and an employee, it does not constitute harassment. The physical contact is not unwelcome and is well accepted and understood by both parties.

A simple act of friendship, such as a hug, does not constitute harassment, unless it is unwelcome or makes other people uncomfortable.

5.

This is a complex situation that does not clearly involve harassment. Because the relationship was consensual and both parties understood the challenges and consequences, it is not harassment. Two employees engaged in a relationship that did not work out; both are uncomfortable with the aftermath; one is complaining. Although their inability to work together is based on their past relationship, there is no intentional or unintentional harassment. The organization can hold both of them responsible and should take action to help solve the situation (e.g., move one or both to other departments or locations).

However, this situation is no different than two people simply not getting along based on various personality differences. This scenario presents an example of why many organizations have a “no dating” policy. Although such policies appear reasonable, they are difficult to enforce and maybe even not reasonable considering how much time we all spend at work.

6.

Although Nadine’s behavior may be somewhat sexual, neither she, nor her co-workers are uncomfortable with their relationships. This does not constitute harassment. However, should other people, for example people visiting the office, complain about the bantering, the situation may approach a hostile environment.

7.

Greece is a warm culture where physical contact between men is fully acceptable. Men often walk hand-in-hand and embrace freely to express their friendship and affection. Such close physical contact between men is uncomfortable and considered inappropriate in some other cultures. It is likely that Nicholas was acting in accordance to his culture’s norms and not paying attention to U.S. norms.

While his actions made his co-workers uncomfortable, his intentions were most likely not what is believed. This case illustrates the importance of being aware of basic cultural differences when interacting with different cultures. .

45

8.

This is a clear case of sexual harassment. Although the harassing behavior is not within an organization and comes from “suppliers,” they are interfering with Kim’s ability to do her job and they are creating a clear hostile work environment. Kim’s manager is responsible and liable to address the issue with the construction company which is also both responsible and liable. The source of sexual harassment can be internal (e.g., boss or co-workers) or external (e.g., customers, suppliers). In all cases, when a hostile environment exists and one’s ability to work is affected, there is sexual harassment and it must be addressed.

9.

This is a clear case of sexual harassment from a customer. It is no different than the first case in the series. The customer is pressuring an employee into a relationship with an implicit threat to withdraw the contract. Gary is facing a hostile work environment through unwanted sexual attention that interferes with his ability to get his job done. His manager must address the issue.

Other Key Points Students may treat sexual harassment as a “joke.” They often see the victim as overly sensitive and not tough enough to handle the “real world.” Such attitudes must be gently and firmly addressed.

Presenting a definition of sexual harassment may help: Any action that creates a hostile work environment that interferes with accomplishing one’s job.

Managers and organizations must address the problem, and they are liable if they knew or should have known, but took no action.

Some points to address during discussion: • The majority of sexual harassment cases are against women, but men can be victims as well.

• Sexual harassment is about power, not sex.

• The standards set by the U.S. Supreme court are based on what a “reasonable person” would find objectionable.

• Very few baseless cases of sexual harassment are filed.

• Victims of harassment, even when vindicated, often leave their organizations.

• Isolated cases of harassment if not addressed, can affect the culture of the organization.

• Implementing standards of collegiality, civility, and concern for others throughout the organization can help create a positive culture.

• Training about sexual harassment (for example through scenarios such as these) can help prevent its occurrence in many cases.

Overall: The scenarios are engaging and engender lively discussions. Instructors must be very careful about monitoring their students and preventing the discussion to degenerate into sarcastic comments and jokes and, in some cases, harassment of others who disagree. If the class does get out of control (it has happened to me once), it can serve as a “teachable moment” to show the impact of a hostile environment on expression of ideas and learning.

.

46

Self-Assessment 2.1: What is Your Primary Cultural Background?

This self-assessment is designed to enhance students’ awareness of their own cultural background and its potential influence on them. There are no right or wrong answers. It is a good assignment for students to complete after reading the chapter and prior to coming to class for the discussion of culture.

Because many students come from multiple cultural backgrounds, they can be asked to identify their primary background as well as others they believe are significant.

 Course Assignment The self-assessment can be used as a course assignment asking students to apply the concepts they learned in the chapter to analyze and understand their own cultural background. They could use any or all the cultural values model and identify the values that they recognize and provide examples of each.

For example, a student with a Mexican background would address the importance of family and community, the authority of male parents, recount stories they have heard that may reflect the importance of community and respect of authority. They could also address to what extend they personally rely on those values and how their own behavior may reflect them.

If students are from several different backgrounds, this self-assessment can help them identify potential areas of agreement or conflict among the various cultural values they hold. In some cases, students are keenly aware of the differences (e.g., traditional versus modern values; role of women, and so forth). In other cases, this self-assessment may help them identify reasons why some of their values are either very strong or less so.

Option: Students can be grouped during class and asked to compare their cultural backgrounds and how they may influence their thinking and behavior. One alternative would be to create the teams based on similar backgrounds.

.

47

Self-Assessment 2.2: Do You Have a Cultural Mindset?

This self-assessment helps students evaluate the degree to which they have a cultural mindset. There are no right or wrong answers. It should be assigned after reading the chapter, and preferably even after class discussion, about the topic to assure that students have a solid understanding of the concepts before completing the assignment.

 Course Assignment Having an indication of the degree of cultural mindset can provide students a springboard for identifying goals for change and improvement. They can be asked to review each of the questions on the questionnaire and identify areas they may want to target for development. The assignment can serve as a reflection and action plan to help students develop a stronger cultural mindset. The depth and richness of their reflection, analysis, and action plan can be the basis for grading.

.

48

Self-Assessment 2.3: Exploring Views of Women The self-assessment can be assigned to be completed before or after class. It helps students explore their personal views of women in various settings and helps them become aware of how such views may impact them in the workplace. For example, although they may perceive women to have a right to work, they also may believe that women’s primary responsibility is to their family. Such potential contradictions can become the basis for self-awareness.

 Course Assignment The self-assessments can be used to develop students’ self-awareness of their attitudes toward women and begin to address what impact such attitudes may have in their work relationship or in their role as leaders. Although one may expect male students to have more negative attitudes, female students may also hold values about women that may prevent them from succeeding or from helping other women succeed.

.

49

Leadership in Action: Leadership Based on Ancient Principles Case summary The case presents the leadership and culture of the Tata group, India’s industrial conglomerate which includes an informations system, steel, energy, consumer goods, and hospitality companies inside and outside of India including Jaguar, Land Rover, and Daewoo Motors. The company is family-owned and run.

The leadership was recently transferred from Ratan Tata who led for 21 years to Cyrus Mistri. The strength of the management of Tata came to light during the 2008 terrorist attack on one of the Tata-owned hotels in Mumbai where employees selflessly helped trapped guests escape. The Tata group emphasizes cultural diversity and aims at marrying Western capitalist principles with ancient traditions.

1.

What are the characteristics of Tata’s leadership?

The Tata family and the company’s top leadership are Parsi’s who are related to Zorastrians, a religion that dates back more the 2,500 years to ancient Persia. Zoroastrians are still practicing in parts of India and modern Iran. Parsi cultural values include integrity, hospitality, humility, kindness, and selflessness. These values are present in the leadership of Ratan Tata who is known for his humility, tolerance, and low-key, but strong leadership.

2.

To what extent do you think culture plays a role?

Within India, the Tata group heavily recruits from rural areas where people still hold the traditional values that it emphasizes. However, a majority of the company’s business is outside of India. Therefore, Tata focuses on cultural and global diversity as one of its strengths. The fact that India is a highly diverse culture and the owner has strong cultural values both have influenced the emphasis on culture and diversity.

3.

Can the management style be implemented elsewhere?

While the cultural values are unique, Tata has successfully married Western business practices and ancient Indian principles. Many of the latter are consistent with current leadership theories such as those presented in Chapter 6, particularly servant leadership and authentic leadership. Tata is not just an Indian company; it is a global conglomerate. The principles it relies on have already worked in non-Indian cultures and therefore are likely to be transferrable to non-Indian companies.

.

50

Narian Bridges Role Play Instructions Instructions for Mr. Dafti Your culture focuses on harmony and respect for tradition and authority. You are taught from very early in life that disagreeing with others is rude and a sign of selfishness. Differences in points of view are expressed very gently and in an extremely roundabout way. As a result, business discussions are often veiled and lengthy. Leaders and bosses do not discuss the details of business deals. Even major contracts operate on a handshake from the leaders and there have been many conflicts with Western companies over the need to draft precise legal contracts. Narians find this aspect of Western business insulting and accept it very reluctantly.

You come from an old aristocratic Narian family with close ties to the monarchy. You have received your higher education in Europe and Austria. As is the case with many wealthy Narians, you have traveled extensively throughout the world and are very knowledgeable in the cultures and customs of European countries. Your family spends a good deal of its time in Europe every year, and your two daughters are currently going to college in France and Switzerland. However, you have less familiarity with the United States, as you have only been there on two official trips.

Although you are aware of the importance of the United States to your country’s development, you are not very fond of their presence in Nari. You would prefer working with Europeans whom you find more cultured and more “civilized.” The King, however, would like closer ties with the United States and has asked that U.S. companies be given every possible consideration. Americans seem to you to be rude, pushy, and unruly and lacking proper respect for tradition and authority. Your dealings with U.S. companies have led you to believe that their eagerness for contracts with your country often clashes with your culture and way of life. However, the construction company you have been working with on the bridge project has, so far, been easy to work with, and you have found the young engineer in charge of the project, whom you have met once at a cocktail party, to be charming.

The bridge project is particularly interesting to you because one of the bridges that are planned is located near a number of historical and religious sites and its placement and design need to be in harmony with the environment. Therefore, you have personally made several key decisions regarding that one bridge. You are aware that the U.S. construction company is not happy about your choices, but that does not concern you as you believe that their role is to implement the wishes of your government. You have already made up your mind based on the needs of your country. Naran and Touran have been instructed to carry out your wishes and work on the details of the plans.

The head project U.S. engineer has asked for a meeting, and you are welcoming the opportunity to get to know him/her better, particularly in light of your positive first impression and your two associates’ friendship with him/her.

During this meeting, your goal is to solidify the social relationship that is essential to a good business relationship.

.

51

Narian Bridges Role Play Instructions Instructions for Naran and Touran Your culture focuses on harmony and respect for tradition and authority. You are taught from very early in life that disagreeing with others is rude and a sign of selfishness. Differences in points of view are expressed very gently and in an extremely roundabout way. As a result, business discussions are often veiled and lengthy. Leaders and bosses do not discuss the details of business deals. Even major contracts operate on a handshake from the leaders and there have been many conflicts with Western companies over the need to draft precise legal contracts. Narians find this aspect of Western business insulting and accept it very reluctantly.

You are both from the higher levels of Narian society. You have traveled extensively around the world and are both U.S.-educated with a BS in Engineering and a Masters in Business. Like many young Narians, you find the excitement of the West, particularly the United States, appealing. You have many American and other Western friends, and you enjoy the openness and relaxed interactions that you have with them. You have a good relationship with the U.S. project head whom you have met on a number of work and social occasions.

In spite of your interest in the West, you remain Narian at heart and you have no ambivalence about your loyalties to your culture and country. The focus on harmony and civility in your culture remains a key focus for you. Like all Narians, you have a strong respect for authority, particularly for Mr. Dafti who has been a mentor for the two of you. You also know his family very well.

You are both aware of the potential problem with one of the bridges. The head U.S. engineer has mentioned it to you. However, you have complete faith in Mr. Dafti’s skills as an engineer and a manager. You have found the U.S. construction company’s insistence on change irritating and have interpreted it as a typical sign of Western impatience and lack of knowledge of Nari. You have tried to explain the reasons to the U.S. engineer without being rude, but you are not sure that you were able to get through. You are welcoming the opportunity for Mr. Dafti to get to know the head project engineer in order to establish better relations. Your role as Mr. Dafti’s associates is to hash out the finer details later.

During this meeting, your goal is to solidify the social relationship that is essential to a good business relationship. You also want to avoid any potential conflict that may jeopardize Mr. Dafti’s trust of the new U.S. associates.

.

52

Narian Bridges Role Play Instructions Instructions for the head U.S. engineer The Narian Bridge Project is key to your company’s success. Although your company has done a lot of business all over the world, this is the first time it has been able to win a contract in Nari by beating several European firms in what appeared to be a secret, very confusing negotiation process. You are still not sure why you were awarded the contract, but are confident that you can perform.

You have been with your company for eight years. As a result of your focus on international management in your MBA, your excellent technical skills, your outstanding performance, and your interest in foreign assignments, you have been put in charge of the key Narian project. You have already spent three successful years overseas, six months of which were spent in another middle-eastern country. You have been in Nari for two months and have very much enjoyed your stay. The culture is very warm and you have made friends with many young Western educated Narians who seem to share many of your values. You have even been trying to recruit several of them to leave Nari to join your firm, but have so far been unsuccessful.

You have instructions from your company to finalize the details of the bridges. Particularly, you need to change the design on one of the bridges. Although you have not had the opportunity to go to the site, your team has. Their analysis, and you agree with it, clearly shows that the location selected for one of the bridges and the design that has been proposed is unworkable. You are proposing to move the location by only three miles and build a much simpler and more functional bridge. Unless you can change the design, you will not be able to complete the project.

Your associates have also been in Nari for more than six months. Like you, they speak a few words of Narian and have found the culture to be welcoming. Their background is more technical and they have the expertise to evaluate and change the design more than you, whereas you have expertise in international negotiations.

You are very optimistic about being able to achieve your goal of reaching a clear final agreement. You have had the contracts with the final changes drafted by your lawyers and reviewed by a Narian attorney. You have them ready for Mr. Dafti. You have met Mr. Dafti once before and found him to be charming. You are close friends with his two associates and, given their background, education, and your conversations with them, you know that they are aware of the location problem. Although you have not been able to get a clear commitment from them, you think that they will support you. You were granted the meeting with Mr. Dafti within days of requesting it. You are ready to do some business!

Your goal is to obtain final agreements as soon as possible, including changes in design of that one bridge, and succeed in this contract in the hope of continued cooperation.

.

53

Narian Bridges Role Play Instructions Instructions for the U.S. team members The Narian Bridge Project is key to your company’s success. Although your company has done a lot of business all over the world, this is the first time it has been able to win a contract in Nari by beating several European firms in what appeared to be a secret, very confusing negotiation process. You are still not sure why you were awarded the contract, but are confident that you can perform.

You each have been with your company for more than five years. As a result of your excellent technical skills, your outstanding performance, and your interest in foreign assignments, you have already been assigned to several foreign countries as technical advisors on a variety of projects. You both tend to spend a limited time in each country, but you have gained considerably successful experiences. Nari has been one of your longer assignments. You have been here for more than six months and have picked up some of the language. You have found the culture to be welcoming. You have made friends with many young Western educated Narians who seem to share many of your values.

Your role has been to hash out the technical details, and, in that capacity, you have worked with several Narian engineers and have met Naran and Touran on many occasions. Your analysis clearly shows that the location selected for one of the bridges and the design that has been proposed are unworkable. You have proposed to move the location by only three miles and build a much simpler and more functional bridge.

Unless you can change the design, you will not be able to complete the project. Your attempts at discussing the problem with your Narian counterparts have not been successful. You hope that the new head U.S. engineer can negotiate the change during an upcoming meeting with Mr. Dafti.

During this meeting, your goal is to support the head U.S. engineer to obtain final agreements as soon as possible, including changes in design of that one bridge and succeed in this contract in the hope of continued cooperation.

.

54

Instructions for LEADERSHIP AND GENDER Male gender roles Your team’s task is to list the typical personality traits and behaviors associated with the male gender roles in the United States.

Be prepared to present your list to the class.

You have 15 minutes.

-----------------------------------------------------------------------------------------------------------------------Instructions for LEADERSHIP AND GENDER Female gender roles Your team’s task is to list the typical personality traits and behaviors associated with the female gender roles in the United States.

Be prepared to present your list to the class.

You have 15 minutes.

--------------------------------------------------------------------------------------------------------------------------Instructions for LEADERSHIP AND GENDER Characteristics of leaders Your team’s task is to list the typical personality traits and behaviors associated with traditional leaders in the United States.

Be prepared to present your list to the class.

You have 15 minutes.

.

55

CHAPTER 3 THE FOUNDATIONS OF MODERN LEADERSHIP __________________________________________________________________________ Chapter Overview This chapter presents an overview of the history of the field of leadership by dividing it into the three eras of trait, behavior, and contingency. It also reviews the early theories of leadership with a focus on contingency models that constitute the foundation of modern leadership. The following models are considered: Fiedler’s Contingency model, the Normative Decision model, Path-goal theory, attributional models, substitutes for leadership, and Leader-Member Exchange.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Identify the three major eras in the study of leadership and their contribution to modern leadership Present and be able to evaluate the contributions of the early theories of leadership including the following: Fiedler’s Contingency Model

✓

The Normative Decision Model

✓

Path-Goal Theory

✓ ✓ ✓

Substitutes for Leadership Leader-Member Exchange

THROUGH FEATURES, TABLES, and FIGURES Leadership in Action: the Caring Dictator

THROUGH EXERCISES Table 3.7 Exercise 3.1

Table 3.1 Figure 3.1 Table 3.2 Applying What You Learn Table 3.3 Table 3.4 Figure 3.2 Leading change: Jim Goodnight of SAS Table 3.5

Self-assessment 3.1 and 3.2

Figure 3.3 Table 3.6 Leadership Challenge: The ingroup applicant

Self-assessment 3.3

✓ ✓

Exercise 3.2

Chapter Outline The Leadership Question presents the age-old leadership questions about whether leaders are born or made and what may be some key characteristics of leaders.

1. a.

A History of Modern Leadership Theory: Three Eras The trait era: Late 1800s to mid 1940s

A review of the methods and results of the early scientific approach to leadership focused on identifying leadership traits is presented. The results of more than 50 years of research indicate that, although some traits are correlated with leadership, no trait or combination of traits can be used to identify leaders.

.

56

b. The behavior era: Mid 1940s to early 1970s The behavior approach to leadership with its focus on measuring leadership behaviors is presented. The results of the Ohio State research yielded the Leader Behavior Description Questionnaire are detailed. c.

The contingency era: Early 1960s to present

Elements of the currently dominant contingency approach to leadership are presented. They include: • There is no one best way to lead.

• The situation and the various relevant contextual factors will help determine which style or behavior is most effective.

• People can learn to become good leaders.

• Leadership makes a difference in the effectiveness of groups and organizations.

• Both the personal and situational characteristics affect leadership effectiveness.

2.

Early Theories Fiedler’s Contingency Model

a.

Leader’s style The Least Preferred Co-Worker scale (LPC) is presented as the measure of leader style in the contingency model (Table 3.1).

Task-motivated/low LPC individuals are described as being primarily motivated by task accomplishment.

Relationship-motivated/high LPC individuals are described as primarily motivated by good interpersonal relationships.

The socio-independent/middle LPC individuals are described as generally being unconcerned with others’ opinions.

i.

ii.

Situational control Leader-member relations is the first and most important element of situational control in the contingency model. It is defined as the overall level of trust and cohesion in the group. Without good relations, the leader’s ability to act is seriously affected.

Task structure, which is the second element of situational control, refers to the degree to which the task has clear goals, a clear answer, the number of possible solutions, and the availability of feedback.

Position power is the least influential element of situational control and refers to the leader’s ability to hire and fire and reward subordinates.

Putting it together: Situational control. The three elements described in this section are combined to provide an indicator of the amount of control the leader has over the situation.

iii. Predictions of the model The contingency model predicts that different leadership styles will be effective in different levels of situational control. The task- and relationship-motivated leaders act differently in different situations (Table 3.2). In high- and low-control situations, the task-motivated leader groups perform best, whereas in moderate control, the relationship-motivated leader groups perform well (Figure 3.1). iv. Evaluation and applications Critiques and support for the contingency model are presented.

Applying What You Learn: Putting the Contingency Model to Work presents the Leader Match Concept which is the training method based on the contingency model. The focus is on learning to recognize the various elements of situational control and on adapting the situation to match the leader’s style. Fiedler assumes that the leader’s style is stable and not easily changeable; however leadership situations can change either randomly or as a result of the leader’s actions. The leader’s efforts should be to adapt the situations to fit his/her style. .

57

b.

The Normative Decision Model The Normative Decision Model focuses on decision making, assumes that the leaders can change his or her style, and is concerned with decision quality as the criterion for effectiveness. i.

Leader’s decision styles This section provides a description of the major leader decision styles and sub-styles used in the normative decision model (Table 3.3). They range from autocratic, to consultative, to group decision making.

ii.

Contingency variables: Defining the problem The quality of the decision and follower acceptance are the two situation variables in the normative decision model. The questions and decision rules that are used to understand the leadership situation are discussed (Table 3.4).

iii. The Normative Decision model’s predictions The normative decision model is presented (Figure 3.2). The leader should make decisions alone when there is no time, he or she has all the information that is needed, the leader has support from the group, or followers cannot agree among themselves on a course of action. In other situations, the leader should rely on participation to varying degrees. iv. Evaluation and application Critiques and support for the normative decision model are presented. The model has a narrow focus on decision making, but has been well supported and has broad application to real-life leadership decision making. The focus is on teaching the leader to understanding the leadership situation. c.

Path-Goal Theory i.

The framework The path-goal theory of leadership is presented with focus on the role of the leader to clear paths for subordinates to accomplish goals. The exchange between the leader and followers centers around this obstacle removal role and the exchange of guidance or support from the leader for performance and satisfaction from followers.

The two central hypotheses of the model are discussed. These are: when the task is structured, the leader’s supportive behavior leads to follower satisfaction, whereas when the task is ambiguous, the leader’s structuring behavior leads to satisfaction.

ii.

Evaluation and application Lack of consistent research findings is suggested to be one of the major limitations of path-goal theory. However, the model’s focus on followers’ perception of the task and the role of the leader as obstacle remover provide interesting areas of applications.

Leading Change Jim Goodnight of SAS has built a company based on long-term thinking and taking care of employees and customers. He believes that the company needs to remove day-to-day challenges to allow employees to do their job. He sees the role of the leader as the facilitator of the creative process. d.

Substitutes for leadership The leadership substitutes model is presented (Table 3.5). i.

Evaluation and applications The need for more extensive testing of the model and its components is suggested to be one of the major limitations of the substitutes model. However, the model can be very useful in the current environment of self-managed teams and empowerment where the leader may

.

58

intentionally use the model’s findings to set up organizational and team substitutes to replace the traditional leadership functions.

What do you do? presents the case of a new manager whose team members perform well, but do not seem to rely on the manager. It is a textbook case for the Substitute for Leadership theory. The employees are experienced, work away from the office, and perform well. All are factors that provide leadership substitutes. Although the tendency of many managers would be to push for more contact, this may be a good case of “not messing with success.” You should establish one-on-one connections and establish trust to assure that team members know them can rely on you and on one another, and then focus on strategic issues and on supporting the team members. e.

Leader-Member Exchange i.

The Framework The LMX model (vertical dyad linkage) is presented with the focus on the impact of existence of in-groups and out-groups on organizational performance and leadership effectiveness (Figure 3.3). The three stages of development of the relationship between leaders and followers are described (Table 3.6).

The effect of culture on in-group membership is presented. In many cultures in-group membership is assumed to be based on performance. In collectivistic cultures such Malaysia and many middle-eastern countries, in-group membership tends to be based on family and clan membership.

ii.

Evaluation and Application The model’s lack of clarity regarding the factors that lead to the development of an out- vs. ingroup relationship and the scarcity of research regarding the impact of in- and out-groups on organizations are presented as its major limitations.

The strength of the model is in its intuitive appeal and its potential use for making in- and out-groups effective. Particularly, the use of in-groups can be highly beneficial when membership is fluid and based on performance rather than personal factors.

Examples of the danger of selecting in-group members who are highly homogeneous are presented with focus on top-level executive teams. This homogeneity can be partially blamed for the recent lack of performance of many large U.S. businesses

Leadership Question Revisited clarifies the research findings that leaders are not born and that leadership is much more than a collection of traits. Leaders are made from experience and from the interaction of individual traits with contextual factors.

3.

Summary and Conclusions

Table 3.7 provides a comparison of the models presented in this chapter.

Review and Discussion Questions 1.

What are the similarities and differences between the trait and behavior approaches to leadership?

Both the trait and the behavior approaches are looking for simple explanations of what defines leadership and leadership effectiveness. Both approaches are focused on the leader. The trait approach seeks to identify leader traits that differentiate between leaders and followers and that allow for identification of who is an effective leader. Although the research identified some traits, it was generally not successful in identifying one or a set of trait that define leaders.

The behavior approach is also focused on the leader, but considers behaviors rather than traits.

The advantage of behaviors is that they are more easily observed and measured and can be taught. The behavior approach identified two broad categories of behaviors, task-structuring and relationship.

59

consideration, as the two primary leadership behaviors. However, as was the case in the trait research, it was not clear which set of behaviors is associated with effective leadership.

2.

What are the major assumptions of the contingency approach to leadership?

The contingency approach to leadership states that understanding leadership requires consideration of both the leader and the leadership situation. There is no single best way to lead and what makes a leader effective depends on the characteristics of the leadership situation. For leaders to be effective they need to match the situation either by having different traits, using different behaviors, or by changing the situation.

3.

Define the leadership and situation factors included in Fiedler’s Contingency Model. What are the primary predictions of the model?

The leader characteristic in Fiedler’s model is the style of the leader, either task- or relationshiporientation as measured by the Least Preferred Co-Worker scale. The leader’s style indicates his/her primary motivation and cannot be changed.

The situational characteristics are, in order of importance: the leader-member relations, the task structure, and the position power of the leader. They are combined into situational control which indicates the degree to which leaders have control over the leadership situation.

The model states that leadership effectiveness is a function of the match between leader’s style and situational control. Leaders who are task-motivated are most effective when they have either high or low control. Leaders who are relationship-motivated are most effective when they have moderate control. Because leaders cannot change their style, nor should they according to Fiedler, they must learn to change the situation to fit their style.

4.

After assessing your own style, interview several people with whom you worked to determine whether their perception match your score based on the LPC. Students should focus on asking about how they behave under stress and in different situations rather than ask others to fill out the LPC scale for them.

5.

Provide examples for the situations in which each of the major decision styles of the Normative Decision Model would be appropriate.

Autocratic styles are most effective when the leader has high expertise, little time, and the group is supportive and likely to agree with the leader’s decision. Furthermore, if followers cannot agree on a solution or course of action, the leader can use an autocratic style of decision making.

Consultation should be used when followers’ support is essential in accomplishing the goal, there is time to consult, followers can agree on a solution, or when the leader does not have the necessary information or expertise.

Group decision making should be used when there is time and followers work well together and can agree on a decision.

6.

Provide examples of how the Path-Goal Theory of leadership can be used to improve leadership effectiveness.

The role of the leader according to Path-Goal is to remove obstacles that block the followers’ path to accomplishing goals. If the goal is unclear, the leader needs to provide structure. If the task is uninteresting and boring, the leader needs to be considerate. The leader must understand the needs of followers and what motivates them.

7.

How does the LMX Model differ from all the other contingency theories of leadership?

The LMX proposes that leadership is not a group phenomenon, but rather it is a relationship between a leader and individual followers. The focus therefore should be on the dyad not the group. LMX does not .

60

fully consider the situation; however, it assumes that the leadership situation is different for each follower.

8.

What are the positive and negative impacts of substitutes on leaders and organizations? Provide examples.

Substitutes for leadership can be used to improve the effectiveness of the leader and to free his/her time for other tasks. Substitutes can be very positive if followers are able to do much of their tasks without close supervision, or if the group provides sources of support and motivation. In the most positive situation, substitutes can empower followers to do their job without having to constantly rely on their leader.

In the most negative situation, substitutes can undermine the leaders’ ability to lead and guide followers. If the group acts against accomplishment of goals, if the organization does not provide the leader with enough power or resources to influence the group, if there is so much physical distance and little contact to maintain close group cohesion, the leader will lose his/her ability to influence the group.

9.

How can leaders use the LMX Model in improving their effectiveness?

The relationship with followers is a natural part of leadership as is the formation of in- and out-groups.

These can be used productively by assuring that membership in the in-group is fluid and based on performance. Leaders should actively seek out new members and have different in-groups for different situations and tasks. They also should avoid highly differentiated groups where the out-group members feel highly disadvantaged compared to those who are in the in-group. Leaders should also be mindful of the role of culture when forming in-groups.

10.

Compare and contrast the contingency models of leadership. How do they each contribute to our understanding of leadership?

Comparison of the Early Contingency Models of Leadership

Fiedler’s Model Normative Decision Model Path-Goal Theory

Substitutes

Leader Characteristic LPC based on motivation; not changeable Decision-making style; can be changed Leader behavior; can be changed

Follower Characteristic Group cohesion

Task

Group cohesion

Available information

Individual follower need to grow

Clarity and routineness of task

Leader behavior; can be changed

Group cohesion

Clarity of task; availability of information

LMX

Task structure

Other Factors Position power

Effectiveness Criteria Group performance

Agreement with goals Time

Quality of the decision

Organization culture, structure, and processes

Follower satisfaction and motivation Need for leader

Quality of relationship with follower

Leadership Challenge This challenge is related to the role of culture in determining in-group membership. India is a collectivist culture where people are close to their family and clan members and trust them implicitly while also distrusting outsiders. Objective performance measures are less important than the ability to trust family members. There are also no formal laws against nepotism. .

61

In such circumstances, the office manager is behaving in good faith and trying to help his boss.

Although it is possible that he is just trying to find a job for an incompetent relative, it is more likely that he would like to look good in front of the new boss, find a good assistant, and also help a relative.

He has a lot to lose from recommending someone who is not competent and the relative has a lot to lose if he does not perform well.

The most prudent course of action is not to reject the “cousin” outright. Give him careful consideration, interview him, test him out. You also should show appreciation to the office manager for his initiative. If the cousin is a good fit, it’s an easy hire. If he is not a good fit, it is fine to seek out other candidates without accusing the office manager of anything negative.

In a country where community is important and people tend to be polite and less direct especially in the work place, it is important to tread lightly and make sure everyone saves face while also assuring that you hire someone who can do the job.

.

62

Chapter 3 Experiential Exercises Exercise 3.1: The Toy Factory This exercise uses the making of origami toy wolves as a setting to demonstrate the effect of the three major leadership behaviors of autocratic, democratic, and laissez faire. Groups of students are assigned a leader who has instructions to act in one of the three ways. The groups then compete for the production of toys. The exercise is lengthy, but well worth the time. Issues of productivity, quality, and satisfaction of leader and followers under different leadership behaviors can be discussed.

The different options in assignment of students (described below) can lead to a very effective demonstration for both leaders and followers .

Total time: Minimum 75 minutes Materials needed: Paper, ruler, pencil/pen, and scissors.

Part 1: Preparation and leader training (10–15 minutes) Instructor preparation: • The instructor needs to become familiar with the steps in making the origami wolves (see instruction sheet) before class. He/she also needs to either ask students to bring their own paper or provide 20–30 sheets for each group.

• Group students in 6 teams of 4–6 (larger teams can be used in large classes), and select team leaders. Making the assignments before class allows the instructor to select certain individuals with particular styles and tendencies. For example, a student who has shown strong controlling and domineering tendencies can be selected to act as an authoritarian leader or as a democratic leader.

Assigning him/her to either a comfortable or an opposite style yields different results and different experiences for both the team leader and the followers.

• If the class is small, laissez-faire style can be skipped using only democratic and autocratic leaders.

• One or two students can be selected to assist the instructor in training the leaders, in quality control, and as observers.

Leader training: • The exercise starts with the instructor training the selected team leaders either before class or at the beginning of class. The leaders have to be trained in wolf-making without their group being present. Leaders can be trained by demonstrating wolf-making, sharing written instructions with team leaders, and allowing them to make a practice toy with the instructor.

• Provide each team leader with their Leader Style instruction sheet.

• Remind them that the Leader Style instructions are confidential and that they should not share them with their team or with other team leaders.

• Remind leaders that they should not provide their team members with the written instructions for toy making, but rather, that they should train them on how to make the toys. This step forces the leader to interact with followers rather than simply handing out the written instructions.

Part 2: Toy production (25–30 minutes) Instructor needs to explain the purpose of the exercise as follows: The goal of this exercise is to make as many high quality toy wolves as you can in a 15 minute period. Your team leader has been trained in the skill of origami wolf-making and will provide you with instructions. You have 5 minutes to set up your teams and 15 minutes to produce the wolves.

The production run ends after 15 minutes. Instructor and assistant(s) check quality and count production of each group.

Part 3: Debriefing and discussion (25–30 minutes) Instruct team members to complete the Toy Factory worksheet on p. 43.

.

63

Start discussion by asking each team, in a round-robin fashion to 1) describe their leader’s behavior and style, 2) express their level of satisfaction, and 3) suggest improvements.

Ask each team leader to describe their style and express their views. Focus class discussion around issues of differences among the leader behaviors and styles and their effect on subordinates’ satisfaction, productivity, and quality.

In most cases, the exercise demonstrates, as research findings suggest, that: • Followers of democratic leaders are more satisfied • Teams led by autocratic leaders produce more • Teams led by laissez-faire leaders are frustrated and are neither productive nor satisfied If team leaders were assigned to styles that were “incongruent” with their personal style, they often express frustration and difficulty in implementing the required styles. In that case, discussion of the possibility of changing one’s leadership style can be undertaken.

Concepts of contingency leadership can also be introduced or discussed by analyzing the leadership situation (short-term outcome, time pressure, no worry about follower satisfaction) and analyzing why one style may work better than others.

Overall: The exercise provides a vivid demonstration of the different leader behaviors and potentially of the difficulty and challenge leaders face when they attempt to change their behaviors.

.

64

Exercise 3.2: Using the Normative Decision Model The scenarios in this exercise are designed to demonstrate the various situations described in the normative decision model. The questions following each scenario walk students through the problem identification questions prescribed by Vroom and Yetton (see Table 3.4). The exercise works equally well as an individual assignment after students have read Chapter 3 or as a group exercise to demonstrate how to use the model.

Scenario Solutions Centralizing Purchasing 1.

What type of problem is it?

Group problem; decision will affect all purchasing managers.

2.

•

Problem identification questions: Is there a quality requirement?

Yes; some decisions regarding both process and outcome are clearly better than others.

•

Does the leader have enough information to make a high-quality decision?

Maybe, although individual managers may have other information that, at this point, is not available to the manager.

•

Is the problem clear and structured?

Yes; cost reduction and economies of scales are needed •

Is employee acceptance of the decision needed for its implementation?

Yes; acceptance and buy in of all individual managers are absolutely key.

•

Would subordinates accept the decision if the leader makes it alone?

No; managers are used to independence and autonomy, they can drag their feet forever and sabotage any decision they don’t agree with.

•

Do subordinates share the organization’s goals for the problem?

Probably yes; the organization’s overall efficiency is at stake.

•

Is there conflict among subordinates (are they cohesive) regarding the problem?

Probably yes; the larger facilities would like more autonomy than others.

3.

Which decision rules apply?

The leader does not have all the information (AI is eliminated).

Subordinates have enough information and expertise and quality is important (CII and GII are acceptable).

Quality is important, leader lacks information, problem is somewhat unstructured, and interaction among subordinates is important (AI, AII, and CI are eliminated).

Subordinate buy-in is essential (AI, AII, and CI are eliminated).

Buy-in is important and subordinates are likely to disagree over solution; interaction among them is encouraged (AI, AII, and CI are eliminated).

.

65

Quality and buy-in are both important.

Acceptance is important but not guaranteed and subordinates share the goal of the organization (AI, AII, CI, and CII are eliminated).

4.

What are the acceptable decision styles?

GII, which applies to group decision and requires involvement of the group in decision making, is the acceptable decision style. With some management of process and egos, CII may also be an option, especially if managers cannot agree on a solution after extensive discussions.

Why? The subordinates (managers in this case) have power and information and share in the organization’s goals. Their expertise and buy-in are key to a successful decision.

5. What are unacceptable decision styles?

AI, AII, CI which apply to group decision, but involve leader making the decision alone, are not acceptable.

Why? The managers can easily sabotage the outcome through various direct and indirect means. The potential change in the purchasing process affects their autonomy and constitutes a major change for them. Such a change cannot succeed without their buy in.

Selecting the Interns 1.

What type of problem is it?

Individual decision 2.

•

Problem identification questions: Is there a quality requirement?

Yes; it is important to have good interns.

•

Does the leader have enough information to make a high-quality decision?

Yes; the leader and the assistant know the job requirements and the candidates.

•

Is the problem clear and structured?

Yes; the job is simple.

•

Is employee acceptance of the decision needed for its implementation?

Not really; acceptance is likely to happen anyway.

•

Would subordinates accept the decision if the leader makes it alone?

Yes; previous interns have been good and the position is temporary.

•

Do subordinates share the organization’s goals for the problem?

Yes.

.

66

•

Is there conflict among subordinates (are they cohesive) regarding the problem?

No. 3.

Which decision rules apply?

The leader and assistant have all the information.

Subordinate, in this case the assistant, has all the necessary information and expertise.

Subordinate has the same goal as the leader and the organization.

Subordinate buy-in is likely regardless of decision.

There is no conflict among the subordinates; only one person is really involved.

Quality is important and buy-in guaranteed.

Acceptance is important and very likely.

4.

What are the acceptable decision styles?

All styles are acceptable in this case. AI and AII are more efficient ways of making the decision. DI is probably the best style.

Why? The assistant has all the information and the expertise. Delegation of the decision would free up the leader’s time and provide a growth opportunity for the assistant while guaranteeing a quality decision.

5.

What are unacceptable decision styles?

There really are no unacceptable styles, although group decision in this case would be unnecessary, and inefficient.

Moving to a New Location 1.

What type of problem is it?

Group problem; decision will affect all employees.

2.

•

Problem identification questions: Is there a quality requirement?

No; both locations are equally acceptable.

•

Does the leader have enough information to make a high-quality decision?

Yes; there are reports available.

•

Is the problem clear and structured?

Yes; the two possible decisions are equally attractive.

•

Is employee acceptance of the decision needed for its implementation?

Not really; the leader has the power to make the decision.

•

Would subordinates accept the decision if the leader makes it alone?

Yes, although there may be some initial unhappiness.

.

67

•

Do subordinates share the organization’s goals for the problem?

Probably yes; the overcrowding problem is recognized and a solution is desired.

•

Is there conflict among subordinates (are they cohesive) regarding the problem?

Yes; there is no agreement as to who should stay and who should move; there are also individual differences within departments.

3.

Which decision rules apply?

The leader has all the information and the expertise.

The subordinates are not likely to have all the information from all the departments.

Although there is agreement on the overall goal, there are differences on who should move.

Quality is not a central issue and the leader has information.

Subordinate buy-in is not required.

There is disagreement over the solution.

Quality is not a central factor and buy-in will follow.

Acceptance is desired and likely to happen given eventual outcome.

4.

What are the acceptable decision styles?

AI, AII, CI are likely to be the best styles in this case. The leader needs to make a final decision.

Why? The leader has all the necessary information and expertise; there is a genuine time pressure, subordinates are not likely to agree on one solution although they will accept the leader’s decision. CI may not be viable given the time pressure.

5.

What are unacceptable decision styles?

CII and GII are not desirable.

Why? Group decision making is inappropriate given that subordinates conflict on the desired outcome and given the time pressure to make a quick decision.

.

68

Self-Assessment 3.1: Determining Your LPC This self-assessment is the LPC scale that students can use to determine their task or relationshipmotivation within the contingency model. It is beneficial for students to have completed the scale prior to the lecture on the contingency model. However, they need precise instructions on how to fill out the scale. These should mention: • Select your LPC carefully; if you have several people in mind, select the one with whom you had the most difficulty working.

• Select an LPC who is a real person; don’t make up an imaginary one.

• Your LPC has to be someone with whom you have worked on a task; it could be a work or social situation.

• You may or may not like your LPC as well as not being able to work with them • Rank your selected person based on your own perception; do not to worry about how he/she may appear to others.

These instructions are important to assure that students complete the scale properly.

The score is interpreted as follows: • If your score is 73 or above, you are a relationship-motivated (high-LPC) person.

• If your score is 64 or below, you are a task-motivated (low-LPC) person.

• If your score is between 65 and 72, you are a socio-independent (middle-LPC) person.

Relationship-motivated/high LPC The students sometimes have trouble making the jump from describing another person to describing their own style. It helps to point out to them that their perception and description of their LPC is a reflection of their motivational preferences.

.

69

Self-Assessment 3.2: Assessing a Leadership Situation The three scales in this self-assessment measure leader member relations, task structure, and position power. The students can use them to determine the level of situational control they face as a leader. The scale can be used either before or after the lecture on the contingency model. Students who have no or limited work experience should be encouraged to use a school work group, sports team, or community or church group where they have been the leader as the basis for their self-assessment. This selfassessment works well as a simple individual task to help students understand their leadership style and the importance of situational contingencies in leadership effectiveness.

• It is important to remind students that the leader’s perception is important • Check on student’s rating for the task structure scale to assure that they complete Part II correctly Option: The self-assessment can be used as the basis for a group exercise. Students’ self-assessment can be used as the basis of class discussion about the various aspects of the contingency model.

Total time: Minimum 35 minutes in class (15 minutes for completing self-assessment, 20 minutes for group discussion); depends on the number of teams (5 minutes per team) Materials needed: Paper and pencil; board or flip chart can be useful.

Step 1: Individual Description (Individual work; 10 minutes) Assign the self-assessment to students preferably before class as a homework assignment or during class. As noted above, it is most effective prior to the discussion about the contingency model.

Step 2: Group Discussion (Group work; 20 minutes) The group portion of this exercise should be done after the discussion of the contingency model.

Students should have a good understanding of the model’s assumptions and predictions in order to analyze each member’s leadership style, situational control, and the issue of fit.

The goal of this portion is to allow students a critical look at the contingency model. In some cases, and for some students, the model predicts leadership effectiveness well. In other cases, the model does not fit well. The focus of the discussion should not be to either propose the contingency model as the “cure-all,” or to discard it if it does not fit. Instead, the instructor should encourage students to use the model as a tool to understand their leadership situation and their style. Particularly, students can discuss: • What important components of each member’s leadership situation were (i.e., was having good relations with subordinates more important than the leader’s power? What caused the most stress? etc.)

• What factors made the effective situations effective and what made the ineffective ones difficult?

• Could each leader have behaved differently? Why or why not?

Step 3: Group Presentations (5 minutes per team) Ask each group to prepare a brief 5-minute presentation that outlines: 1. What they have learned.

2. What they find most useful about the contingency approach.

3. What other information is lacking from the model that might have helped them.

Overall: This exercise, used as an individual assessment or as a group exercise can provide a hands-on conclusion to the presentation of the contingency model. Given the complexities of the model, such applied focus is very helpful to most students. In some cases, the situations described by the students do not support the predictions of the model. I have used those situations as a springboard to presenting other leadership theories such as the normative decision model, the LMX, or transformational leadership, pointing out that no one theory or model will fit all situations.

.

70

 Course Assignment This self-assessment can be used as an assignment for the course. Students would complete the selfassessment and provide an analysis of their own style and the situations in which they were effective and ineffective.

.

71

Self-Assessment 3.3: Identifying Your In-Group and Out-Group This exercise looks at LMX and the impact of in-groups and out-groups from the leader’s point of view.

This self-assessment tends to be more appropriate and effective for students who have managed subordinates. For those students, this self-assessment can be a helpful developmental tool to use to understand the extent to which they use in- and out-groups and their potential impact on their followers and co-workers. This assessment should be completed after students have a good understanding of the LMX concept.

Overall: Students tend to find this assessment to be very informative. Although most have in- and outgroups, few are aware of their impact or even think much about how membership is determined.

 Course Assignment This exercise can be used as an assignment for the course. The students would be asked to record their in-group and out-group as described by the exercise and provide a written analysis of the benefits and disadvantages along with a plan for future action.

.

72

Leadership in Action The Caring Dictator Case summary The case of Jack Hartnett is an excellent illustration of contingency leadership concepts. Hartnett owns 54 restaurant franchises with outstanding financial performance. Additionally, his turnover and training costs are lower than the industry average. Hartnett runs his organization as a benevolent dictator. He demands loyalty and obedience and he takes a personal interest in the personal lives of his managers and employees. The organization does not implement any of the current management methods and is, in many ways, an anachronism. Nevertheless, it is very effective and successful.

1.

How would you describe Jack Hartnett’s leadership style?

Jack Hartnett is a highly authoritarian leader who tolerates very little dissent. He does not allow for participation and demands loyalty and obedience from his employees. Although he is highly authoritarian, he also shows a high degree of care and concern about the lives of his employees. He does not hesitate to get involved in their personal problems. He runs his organizations like a traditional, patriarchal family where the father figure is both benevolent and the unquestioned leader.

2.

Why is he successful? Would you work for him?

The success of Hartnett’s organization illustrates the concept of contingency leadership. Although his style of leadership may appear to be outdated, it works for his organization and for the restaurant franchise business. It is important to note that D. L. Rodgers Corporation is a small business.

Additionally, the restaurant franchise business requires tight financial control and a strong focus on standardization and short-term results in order to be financially viable. Hartnett’s style fits the industry and the culture he has created. Additionally, through careful recruiting and selection of employees, he assures the continuation of the culture he has created. He picks people who can work with him and in the organizational culture he has created. The key factor is the fit between the leader and the organization.

Whether students decide if they would like to work for Hartnett or not is greatly dependent on their personality and individual values. These topics are discussed in the next chapter. The Hartnett case can be revisited after discussion of individual differences.

.

73

Wolf-Making Instructions

1. Fold up one corner of rectangular paper to make a square

4. Fold one flap up

7. Rotate 45 degrees

10. Fold center point down

2. Cut off top and Discard

3. Fold to the left

5. Turn over

6. Fold other flap up

8. Fold ends to center

11. Draw in eyes

9. Separate flaps

12 Fold tail up and ears forward

.

74

Leader Style Instructions for TOY FACTORY Democratic and participative As the team leader, you are required to be open and participative. Consult with your team members, ask for their input, treat them as equals, and encourage them to participate and provide suggestions.

Remember not to share these instructions or the written wolf-making instructions with your team members.

---------------------------------------------------------------------------------------------------------------Leader Style Instructions for TOY FACTORY Autocratic and decisive As team leader, you are the expert on this task. Provide the team members with directions and tell them what you expect of them. There is not much time for participation and suggestions. Focus on the task and get going.

Remember not to share these instructions or the written wolf-making instructions with your team members.

---------------------------------------------------------------------------------------------------------------Leader Style Instructions for TOY FACTORY Laissez-faire As the team leader, simply provide instructions on how to make the toys and then leave your team alone to produce the items. Try to limit your contact with them and do not provide them with too many instructions. Let them do their job.

Remember not to share these instructions or the written wolf-making instructions with your team members.

.

75

CHAPTER 4 INDIVIDUAL DIFFERENCES AND TRAITS ______________________________________________________________________________ Chapter Overview This chapter discusses the role that individual differences and traits play in leadership. Individual differences discussed include demographic factors, values, abilities (including intelligence and emotional intelligence) and skills, and several personality traits including the Big Five, locus of control, Type A, self-monitoring, Machiavellianism, and narcissistic personality. The chapter discusses how individual difference characteristics provide limits to leaders’ behavior and ability and ease of learning new behaviors and styles. The focus is to view individual difference characteristics as a self-assessment and developmental tools for identifying strengths and weaknesses.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Explain the elements and impact of individual difference characteristics in leadership Discuss the role demographic characteristics play in leadership.

Identify the impact of values on leadership.

Present the relationship between abilities and skills and leadership including emotional intelligence and creativity Highlight the role of the key personality traits relevant to leadership. Big Five and other personality traits in leadership

✓

The Big Five

✓

THROUGH FEATURES, TABLES, and FIGURES Figure 4.1 and 4.2

Exercise 4.1

Leadership in Action: Zhang Xin

✓

Table 4.1

✓

Self-assessment 4.1

✓

Table 4.2 Table 4.3

Self-assessment 4.2

✓

Table 4.4

The proactive personality Type A

THROUGH EXERCISES

Figure 4.3

Self-assessment 4.3

Figure 4.4 Leading Change

Self-assessment 4.4

.

76

Self-monitoring

Self-assessment 4.5

The dark triad

Be able to individual characteristics appropriately

use

Table 4.5 Figure 4.5 Applying What You Learn: Dealing with Narcissistic and Abusive Bosses Leadership Challenge: Using Psychological Testing

Self-assessment 4.6

Chapter Outline The Leadership Question focuses on some personal characteristics that impact leadership.

1.

Elements and impact of individual difference characteristics

A framework for understanding individual difference characteristics is presented where the effect of both heredity and environment are emphasized. The major individual characteristics of personality, values, and abilities and skills are defined. The combined role of individual differences and the situation are clarified by proposing a model that defines behavioral zones of comfort and discomfort (Figure 4.1). a.

A discussion of dynamic nature of personality and the role and importance of the situation and context is presented.

Individual characteristics play the strongest role in determining behavior when the situation does not provide clear guidelines. They also set limits and create a behavioral range, rather than dictate behaviors (Figure 4.2).

2.

The Demographic Characteristics of Leaders

Research indicates that in spite of women and minorities entering the workforce in record numbers, the strong majority of U.S. leaders are still male and white and forms a homogeneous group. This homogeneity may provide some constraints in creativity.

3.

Values

a.

National culture and values

After defining values as long lasting beliefs about what is worthwhile and desirable, the impact of culture on values is discussed. Cultural values introduced in Chapter 2 are used to explain cross-cultural differences in value systems. b.

Generational differences in values

The role of age and generational differences are presented (Table 4.1). The different view of ethics as a value is discussed. c.

Values and ethics

Ethics is one of the values that has strong impact on leadership. The relativist and universalist views of ethics are presented and cultural differences in ethics are considered.

4.

Abilities and skills

.

77

The role of intelligence and technical, interpersonal, and cognitive skills are discussed. a.

Intelligence

The research on the link between intelligence and leadership is presented. Although intelligence and leadership are generally found to be related, the relationship is complex and moderated by many different factors. b.

Practical and emotional intelligence

Although cognitive ability is important, practical intelligence addresses the skills people use to solve everyday challenges. Emotional intelligence which includes ability to relate to others (Table 4.2) may have greater impact on leadership effectiveness. c.

Creativity

The four characteristics of creative people presented and their potential importance to leadership is discussed. They include: Perseverance in the face of obstacles, willingness to take risks, willingness to grow and openness to new experiences, and tolerance for ambiguity.

5.

Skills

As leaders move up in their organization, they require more interpersonal and conceptual skills and less technical skills (Table 4.3).

6.

Personality traits that contribute to leadership

The interest in the role of traits has been revived, with research by Kirkpatrick and Locke in 1991 that identified personal characteristics that are preconditions for rather than determinants of effective leadership. These are: Drive, desire to lead, honesty, self-confidence, intelligence, and knowledge of the business.

The rest of the chapter presents various other personality traits that may impact how leaders lead.

What do you do? The employee’s behavior may be as much a function of her personality as they are a function of her environment. She has some of the preconditions for being a good leader including drive, desire to lead, and knowledge of the business. However, working with others is also essential to effectiveness as a leader or followers. Getting a strong performer on the team is always a good opportunity. However, her potential weaknesses are likely to detract from her performance. Pointing that out to her is the path to getting her to moderate or change her behaviors. It also may be that being in a new environment will show a different side of her. In either case, you need to monitor the situation and address issues that may arise objectively, quickly and consistently. a.

The Big Five personality dimensions

The Big Five personality dimensions, which have been found to be consistent components of personality, are described (Table 4.4). Although none are strong predictors of leadership, conscientiousness and extraversion have the strongest links to work-related behaviors. b.

Proactive personality

Proactive individuals take control to influence events in their lives and attribute things that happen to them to their own efforts and abilities. The focus is on changing the environment rather than being constrained by it. They tend to be more satisfied with their life and their work and be more

.

78

entrepreneurial. All of these characteristics are likely to help those in leadership positions by allowing leaders to focus on action and achieving goals (Figure 4.3). c.

Type A

Type A behavior pattern and its core element of need for control are described, and the research about work-related behaviors is presented (Figure 4.4). Specifically, the Type A’s time urgency, competitiveness, polyphasic behaviors, and hostility and their related behavior of poor delegation, preference for working alone, action-orientation, high perception of stress, and harder work are discussed.

Leading Change The case presents Jeffrey Katzenberg, co-founder of Dream Works Animation SKG which has produced hits such as Monsters vs. Aliens and Shrek. It traces his early days as a demanding, angry, and often unreasonable executive at Disney who pushed his employees beyond their limits.

Katzenberg, who was very publicly fired from Disney in 1994, has slowly evolved into a somewhat calmer and more balanced person who is aware of his effect on followers and focuses on cultivating them. d.

Self-monitoring

Self-monitoring refers to the degree to which people are capable of reading and using environmental and social cues. This ability to perceive and evaluate situations correctly is suggested to be key to leadership effectiveness. e.

The dark triad

The dark triad refers to a combination of three socially malevolent characteristics and behaviors that include Machiavellianism, subclinical narcissism, and subclinical psychopathy, all described in Table 4.5. All three entail malevolent, self-promoting, disagreeable, emotionally cold and duplicitous characteristics. Leaders with these characteristics get ahead without establishing connections with others but by being manipulative and ruthless. (Figure 4.5) Applying What You Learn: Dealing with Abusive Bosses provides advice on how to manage and survive abusive leaders through careful documentation, keeping a cool head, and knowing when to leave the situation.

Leadership Question Revisited emphasizes that no one trait or even a set of traits determines who will lead and be effective. Because some characteristics are important and others may prevent effectiveness, leaders need to be aware of their own traits, strengths, and weaknesses.

7.

Using individual characteristics

This section focuses on the importance of self-awareness and the judicious use of individual characteristics in identifying and training leaders. While various characteristics have links to leadership, they are not appropriate for personnel decisions and should rather be used as developmental tools.

8.

Summary and conclusions

Review and Discussion Questions 1.

What is the impact of individual characteristics on behavior?

Individual characteristics include demographic, physical, psychological and behavioral factors that make an individual unique. Although all of these can impact leadership, they are by no means the strongest determinant of leadership effectiveness. The collection of many different individual characteristics help determine what makes a person unique. They further provide a range within which people are comfortable. Behaviors that are closest to who a person is are easy to learn and comfortable. .

79

Those that are far from the core of who we are, are hard to learn and perform; they are outside our comfort zone.

2.

How do values affect behavior, and what impact does culture have on our value system?

Values are long-lasting beliefs about what is worthwhile, right, and desirable. They have a strong impact on our behavior. Values are strongly influenced by culture at all levels. National culture impacts whether we value individuals or groups, focus on performance, consider time to be an asset, how important we think directness is, and to what extent we emphasize honesty and integrity. Any of these factors can impact a person’s leadership style. Furthermore, generational differences impact our value system and focus. Therefore, awareness of one’s value system is an important part of leader development.

3.

How do new approaches to leadership traits differ from those presented earlier?

The earlier approaches to leadership traits focused on identifying one or more traits that determined who will be an effective leader. The more current approaches recognize the importance of individual characteristics and propose a set of traits that are preconditions for effective leadership, but no required.

They include: Drive, desire to lead, honesty, self-confidence, intelligence, and knowledge of the business.

4.

What role do demographic factors play in leadership?

Demographic factors have not been found to have a direct impact on leadership. However, research shows that the leaders of U.S. organizations share many characteristics and the group is generally highly homogeneous. In one study, they were all male, majority first-born, in their late 50s, right-handed, taller than average with graduate degrees. The fact that the leadership of organizations as a group is highly homogeneous may be cause of concern when considering that it may prevent creativity and diverse viewpoints.

5.

How do emotional intelligence and general intelligence impact leadership?

Many of the components that define traditional intelligence, such as cognitive ability, ability to integrate information, analyze problems, and so forth are related to leadership to some extent. However, research does not indicate a strong relationship between traditional intelligence (IQ) and leadership. In some cases, being too intelligent may impede effective leadership. However, other types of intelligence, particularly emotional intelligence (EQ) have been found to have links to leadership effectiveness. EQ consists of: self-awareness, self-regulations, self-motivation, empathy for others, and interpersonal and social skills. Because EQ is more focused on people than traditional intelligence, it has a closer link to leadership.

6.

What role does creativity play in leadership?

The ability to think in new ways, think outside the box, and see problems from new and novel perspectives are all important to leadership in today’s turbulent environment. Characteristics associated with creativity include: perseverance in the face of obstacles, willingness to take risks, willingness to grow, openness to new experiences, and tolerance for ambiguity. \ 7.

Describe the six personal traits and their implications for leadership.

No single individual trait defines leaders or leadership effectiveness. However, understanding personality traits and being aware of their impact on leadership style is an important part of leader development.

The Big Five personality dimensions have been found to be key components of personality. They are: conscientiousness, extraversion/introversion, openness to experience, emotional stability, and .

80

agreeableness. A number of these traits have links to work-related behaviors; however, in spite of their centrality to personality, they are not strongly related to leadership or leadership effectiveness.

Proactivity is an indicator of an individual’s sense of control over the environment and events.

Proactive people take action to change their environment rather than simply take events as they happen.

They are more satisfied with their life and their work. People who are proactive are likely to be more action-oriented as leaders.

Type A individuals have a strong need for control and are trying to do more in less and less time. The four characteristics of Type As are: time urgency, competitiveness, polyphasic behavior, and hostility. The intense go-getter behavior of Type As stems from their need for control and impact their leadership style. Although little evidence supports that Type A leaders are more effective or perform better, they do set higher goals, work harder, and perceive more stress. Further, the trait impacts leaders’ ability to delegate, work in teams, and do careful and thoughtful planning.

Self-monitoring is an indicator of the extent to which people can read cues from others and the environment and adjust their behaviors to the perceived situational requirements. High self-monitors are chameleon-like and can adapt to many situations. Some research suggests that this openness to experience and ability to adjust may be critical to leadership.

The dark triad describes a set of three malevolent and anti-social traits that are characterized by manipulation, lack of empathy, and self-promotion. Although some of the traits, particularly some degree of narcissism, may be associated with leadership or help some individuals with these traits get ahead, people who have these traits are not able to establish the sincere connection with followers that is at the heart of effective leadership. In your opinion (or based on your experience), do certain characteristics have a greater impact on a person’s leadership style? Explain your answer.

8.

What are the limitations of the personality approach presented in this chapter, and how should the information about personal characteristics be used in leadership?

The information about individual characteristics should not be used for the selection or evaluation of leaders. However, it is an excellent source of knowledge that can help in development. Although many of the measures are robust and well developed, they are not intended for use in organizational or leadership settings and should be used with caution in such settings, if at all.

9.

After completing the personality self-assessment survey at the end of this chapter, consider your personal profile. What is the impact of this profile on your leadership style?

The Leadership Challenge: Using Psychological Testing The leadership challenge asks students to think about the use of psychological testing as a selection tool.

The key point is to reinforce the idea that psychological testing is not a reliable tool for managerial decision making regarding selection and promotion of employees. They should instead be used as a means of self-development. Factors students should consider: • Depending on which tests are used and how they are administered, psychological tests of personality can vary in the degree of reliability and validity. Although organizations use some tests that are well developed, valid, and reliable, they also often use tests that do not satisfy these criteria.

In addition, even with well-developed tests, the link between personality and work-related behaviors and performance is not well established and, in the case of management decisions, not full defensible if challenged.

• Because of these, psychological tests should be used with caution. Their primary and safest use is for development rather than selection or promotion. In this case, the test may be used to help the team become aware of the strengths and weaknesses of its members and as a springboard for team building. o It is key to consider whether all the characteristics listed in the scenario are required for being a good team player. Particularly are assertiveness and competitiveness highly desirable characteristics for a team member. Although these characteristics may typically be important for those in sales and marketing, they may not be necessary, and may even be detrimental for a research team where cooperation and ability to compromise are key.

.

81

o

While individual characteristics are one factor that a leader must consider when selecting followers and team members, issues of diversity should also be part of the criteria. Building diversity is a social and managerial consideration that must be balanced with other needs.

.

82

Chapter 4 Exercises Exercise 4.1: Your Ideal Organization This exercise allows students to experience the impact of personality on various organizational factors first hand. It is most effective if Part I is assigned outside of class, prior to the students’ either reading the chapter or completing the self-assessment at the end of the chapter. Part II can be completed after the students have taken the self-assessments. Discussion can then focus on why student preferences are different. This exercise is very effective as an opener to the personality lecture.

Total time: Minimum 30 minutes in class; an additional 15 minutes required if Part I is assigned in class Materials needed: Paper and pencil; board or flip chart can be useful.

Part I: Individual Description (Individual work; 10–15 minutes) Assign students to complete Part I of this exercise prior to class and prior to reading the chapter or doing the self-assessments. Instruct them to focus on what they would like to see in their ideal organization rather than what they think is possible.

Part II: Group Work (Group activity; 30–40 minutes) The instructor needs to form groups based on the students’ similar scores on the various personality constructs. Depending on class size and composition, you may be able to represent all constructs. For example, you could have a group of Type As and a group of Type Bs; a high- and a low-Mach group; an ST and an NF group, and so on.

The constructs that work best are Type A, MBTI, and Mach. Locus of control can also be effective; self-monitoring does not lead to interesting discussions.

After the groups are assigned, ask each to focus on the similarities of their answers (inside the group) and draw up a brief description of their group’s ideal organization using the questions in Part I. Each group then presents their ideal organization to the class.

Discussion items include the effect of personality on: • Our world and organizational views • Leadership styles and expectations • Control, delegation, and structure • The overall culture and climate of an organization In most cases, the groups differ significantly on their organizational preferences. For example, Type A groups create organizations that provide the leader control; structures are often centralized, whereas issues of control are not as central to Type Bs. High-Mach organizations reflect the group’s suspicion of others. The ST groups’ organizations focus on data, objectivity, and order, whereas the NFs are open and flexible with strong focus on interpersonal relations.

Overall: With some luck and the right personality mix in the classroom, this exercise can provide a vivid example of the impact of personality on organizations. As an introduction to the topic, it can be used to help students understand the individual differences by tying them to a personal experience.

.

83

Self-Assessment 4.1 to 4.6 The self-assessments should be assigned to be completed prior to class. Students having their score on each of the scales allows for a much richer learning environment.

The instructor should take special care in the discussion of EQ, locus of control, Machiavellianism, and narcissism. Students may be upset if their EQ score is low. Similarly, external locus of control often carries negative connotations, as does both being a high or low Mach and high narcissisms. Type A and self-monitoring do not present the same challenge as there is no strong negative connotation associated with either end of the scale.

It is important to stress that these self-assessments are meant to develop a student’s selfawareness. The EQ, proactive, Type A, and narcissism scales in this chapter have not been scientifically tested and validated. They provide students with a general description of their behaviors and preferences.

 Course Assignment All the self-assessments in this chapter can be used to develop students’ self-awareness of their personal characteristics. Students can be asked to describe and analyze each of the characteristics measured in the self-assessments with a focus on identifying resulting strengths and weaknesses.

Students should be reminded that the changing personality is not the goal, rather understanding should be their focus. By developing increasing self-awareness, they can build on their strengths and compensate for their weaknesses.

.

84

Leadership in Action Zhang Xin: The Humble Chinese Billionaire Case summary Zhang Xin ranks fifth on the list of the world’s self-made female Chinese billionaires. She was raised by educated parents who suffered persecution during the Mao’s revolution. Through her intelligence and hard work, she was education in the United Kingdom and eventually started work for Goldman Sachs where, although successful, she did not feel she fit in with the hyper-competitive environment. She returned to China, married an entrepreneur, and together they founded Soho China, the largest commercial real estate company in the country. In spite of her considerable wealth, she remains frugal and humble. She has been recognized for her creativity.

1.

What are Zhang’s key personal characteristics? How do they each contribute to her success?

Zhang is a proactive individual who does not let the situation constrain her progress. She has achieved her success in spite of difficult circumstances and because of her hard work and perseverance. Her humility and her tenacity have been key to her success.

2.

What role does culture play in who she is?

Zhang’s family background, both her parent’s high level of education, and the hardships they experienced during China’s revolution have continued to impact her outlook and behaviors. The hard work and humility are key Chinese cultural values as is her desire to contribute to the good of her community.

.

85

CHAPTER 5 POWER _______________________________________________________________________ Chapter Overview The chapter presents power as a tool that leaders need to use to influence their subordinates. The definition, sources, and consequences of power are presented. The traditional sources of individual power are described, along with power sources that depend on the organizational structure and the sources of power for top executives. The elements of power for teams and team leaders are discussed. The causes, consequences, and solutions to power corruption and abuse are presented along with the current views of power. The concept of empowerment is discussed as a new approach to leaders’ power. The chapter has a strong cross-cultural flavor with many examples of how power is perceived and used differently in different cultures.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT its its

✓

Apply the different sources of individual and team power to achieve goals

✓

Explain the sources and process of power abuse, corruption, and destructive leadership and how to prevent them

✓

Analyze the changes in use of power and the development of empowerment, and explain their consequences for leadership

✓

Define power, consequences, and cultural roots

THROUGH FEATURES, TABLES, and FIGURES Figure 5.1 Figure 5.2 Leadership Challenge: how much is enough Table 5.1 Figure 5.3 Table 5.2 Figure 5.4 Table 5.3 Applying What You Learn: Managing Power when You Are a New Manager Table 5.4 Figure 5.5 Table 5.5 Leadership in Action: The last CEO of Lehman Brothers Table 5.6 What do you do?

Leading Change: Sharing power and reaping profits

THROUGH EXERCISES Exercise 5.1

Exercise 5.2 Self-assessment 5.1 Self-assessment 5.2

Self-assessment 5.3

Chapter Outline The Leadership Question Power is essential to leadership; but it can also be abused. How can leaders use power to get things done without becoming autocratic or abusive?

1.

Definition and consequences

Power is the ability of one person to influence another person. Authority is power vested in a position. a.

Consequences of using power

Commitment, compliance, and resistance are discussed as the three possible follower reactions to a leader’s use of power. (Figure 5.1)

.

86

b.

Distribution of power

The concentration and distribution of power in organizations is discussed as source of effectiveness. c.

Power and culture

Power distribution and culture: The impact of power on culture is discussed (Figure 5.2). Hofstede’s concept of power distance and tolerance for diversity and Trompernaars’ cultural organizational model are used to explain cross-cultural difference in power. On the one hand, the Chinese, Mexican, French, Italian, and German cultures all attribute considerably more power to their leaders than do U.S. subordinates. On the other hand, Swedes have little need for hierarchy and authority and as a result can function easily in leaderless team environments.

2.

Sources of power

a.

Sources of power related to individuals

Sources and consequences: French and Raven’s five sources of individual power are described (Table 5.1) and potential reactions to the use of each source by a leader are discussed (Figure 5.3). The sources are: legitimate, reward, coercive, expert, and referent power. Whereas the first three depend on the organization and are more likely to lead to either compliance or resistance, the last two depend on the individual and are more likely to lead to follower commitment.

Using Individual sources of power: Power and influence are compared, and influence tactics and their consequences are discussed. Research outlining the effect of influence tactics available to leaders is summarized, (Table 5.2) and the work of Kotter on career stages and use of different power sources is presented. In early career stages, leaders develop a base of power by building broad networks and establishing credibility through their expertise and demonstration of competence. In middle career stages, the challenge is to use power wisely and ethically, whereas in later stages the issue becomes letting go gracefully (Figure 5.4). b.

Sources of power for teams

The sources of power stemming from organizational structures are presented. These sources are suggested to be key to teams, and team leaders’ ability to achieve their goals (Table 5.3).

Coping with uncertainty: The first structural source of power for teams is their ability to help others cope with uncertainty through obtaining information that they need, through preventing uncertainty by predicting and forecasting events, and through absorption of uncertainty by preventing change from affecting other parts of the organization.

Centrality: The second source of power for teams is the degree to which the team’s activities are key and central to the overall mission and goals of the organization.

Dependability and substitutability: The third source of team power is the extent to which the team’s expertise is needed by others.

Applying What You Learn: Managing Power When You Are a New Manager presents guidelines for establishing and using power well when a person moves to a supervisory level. The focus is on relying on broad sources of power, particularly on the personal one, using followers’ knowledge and feedback, and setting boundaries. c.

Special power sources of top executives

The sources of power of CEOs are described. These include: distribution of rewards and resources, control of decision criteria, and centrality in the information flow. .

87

3.

The dark side of power: Abuse, corruption, and destructive leadership

The growing number of examples of abuse of power in organizations points to a potential problem with having too much power without much accountability. Abuse involves taking advantage of one’s power for personal gain. Corruption is abusing one’s power to benefit oneself or others. Destructive or toxic leadership is leadership that violates the interests of the organization and the well-being of followers.

Abusive and destructive leadership may not be illegal; corruption is. Power tends to increase the distance between leaders and followers and sets the stage for potential abuse. a.

Causes and processes

Both leader and organizational characteristics contribute to abuse of power (see Table 5.4 for a summary).

Leader characteristics include factors such as arrogance, inflated view of self, inflexibility, ruthlessness, and concern with power. Researchers have suggested that “evil” or destructive narcissist managers are more likely to have these characteristics and therefore abuse their power.

Follower characteristics can contribute to corruption. Particularly, silence, agreement, and compliance may feed into the leader’s sense of entitlement.

Organizational factors include the culture of the organization, hiring practices, and centralized structure along with short-term rewards based on limited criteria. b.

The cycle of abuse, corruption, and destruction

The leadership and organizational factors combine to create a corruption cycle presented in Figure 5.5.

Follower compliance, dependence, and submission play a role. c.

Consequences of abuse and corruption

Poor decision making due to poor information is one of the major consequences of excessive power. The development of a separate morality by the leader can also lead to unethical actions. Finally, devaluation of subordinates can create a self-fulfilling prophecy that prevents delegation and empowerment and leads to further isolation and poor decision making. d.

Solutions

In order to prevent power corruption organizations must: encourage open communication, involve leader in day-to-day activities, reduce followers’ dependence on the leader, use objective measures of performance, involve outsiders in decision-making, and change and monitor the culture (Table 5.5).

4.

Empowerment: The changing face of power

a.

Requirements of empowerment

Empowerment is defined as the giving away and sharing of power with those who need it to perform their job. Factors involved in empowerment are presented in Table 5.6.

Leadership factors: To encourage empowerment, the leader must create a positive atmosphere, set high standards, encourage initiative, reward followers, practice equity and collaboration, and have confidence in followers.

Organizational requirements that contribute to empowerment include: decentralized structures, training for leaders and followers, removing bureaucratic barriers, appropriate reward structure, and fair and open policies. .

88

What do you do? presents a case of employees who are taking advantage of empowerment practices and are not pulling their weight. Don’t ignore the problem; address it quickly and directly. The first course of action is accurate data collection and documentation to assure that you have data to support your assertions. Direct, but non-threatening discussion is the next step. You can explain the impact their action is having on the group and involve their co-workers to help convince them of the impact. Make sure that you hear their side of the situation as well. They may face challenges that prevent them from doing their job well in the new environment. For example, having more autonomy may make it harder for them do perform and they may need more directions or training. Empowerment does not mean lower performance; the goal is to help employees become more effective. b.

Impact of empowerment

Much anecdotal evidence supports the positive benefits of empowerment. Empirical research is not as clear. However, the concept is well established in the United States and several other Western countries.

Leading Change presents the case of Brazilian businessman Ricardo Semler who has championed the concept of open book management and practices power sharing, participation management, and empowerment in his company Semco. These practices require extensive training and have led to high performance for the company.

Leadership Question Revisited Effective use of power is about balance and moderation. Leaders should use all power sources depending on the situation and while maintaining integrity, concern for achieving goals, and taking care of their followers.

6.

Summary and conclusions

Review and Discussion Questions 1.

How does power impact the power holders and those who are subject to it?

Power changes both the power holder and those who are subject to it. Having authority over others can have both positive and negative consequences. People can become more action oriented, show more interpersonal sensitivity, focus on rules, and become more generous. Research also shows that power holders can focus on retaining their power, believe they are more in touch with others than they actually are, become oblivious to the needs of others, and lose their ability to empathize.

Those subject to power have three typical reactions. First they can commit to the actions and decisions of the power holder, believing in them and willingly carry out what is asked of them. Second they can simply comply without having any personal commitment. Finally, they can resist power actively.

2.

Provide examples for each personal source of power. Why are some forms of power more influential than others?

Legitimate power: Leaders, bosses, parents, elected officials Reward power: Bosses, parents, clients, customers Coercive power: Bosses, parents Expert power: Specialists, people in all organizational ranks with special information or knowledge, parents (up to a certain age of children!)

Referent power: Leaders, friends, parents The last two do not depend on organizations but rather on the individual; they are therefore more powerful and can be tapped even without a formal title.

3.

Provide scenarios for the appropriate use of each source of power.

All sources of individual power can be used by leaders to influence their followers. The first three sources, legitimate, reward, and coercion, depend on access to formal titles and organizational .

89

resources. While it is legitimate to use them, their use often leads to compliance rather than commitment from followers. Coercion particularly may have negative consequences and should be used sparingly.

Referent and expert power depend on the individual and can be used with all groups at any time.

When using power with co-workers and other people at the same level, while legitimate power (an official title) and reward power (giving them something they want) may work, again using referent and expert power is more likely to lend desired results.

4.

Provide examples of the use of different influence tactics.

Influence Tactic

Power Source

Appropriate to Use With . . .

Rational persuasion Inspirational appeal Consultation Ingratiation Personal appeal Exchange

Expert and access to information Referent

Supervisors

Effectiveness Commitment Moderate

Subordinates and colleagues

High

All Referent Referent Reward information All Legitimate Coercive

Subordinates and colleagues All levels Colleagues Subordinates and colleagues

High Moderate Moderate Moderate

Subordinates and colleagues Subordinates and colleagues Subordinates

Low Low Low

Coalition building Legitimate tactics Pressure 5.

and

and

Provide examples of how teams can use the sources of power available to them.

The key to the success of teams is for them to do “real” work that is significant and important and to be empowered to implement their decisions. Therefore, having access to power is essential for their success. The following are sources of power available to teams.

Coping with uncertainty Centrality

Based on the ability to reduce uncertainty for others Based on being central to how the organization achieves its mission and goals

Dependency Substitutability

Based on others depending on power holder to get their work done Based on providing a unique and irreplaceable service or product to others

6.

How are the team sources of power different from those available to individuals?

The sources of power for teams mirror those used by individuals to some extent. For example, dependency and substitutability relate to expertise. However, the team sources of power depend on the team fulfilling and supporting strategic actions for the whole organization. The ability to cope with uncertainty, for example, helps the organization achieve its goals.

7.

What are the factors that contribute to power abuse, corruption, and destructive leadership?

Leader, follower, and organizational characteristics can all contribute to corruption. Although followers are almost never the starting point or the source of corruption and abuse, their actions or inactions contribute to the cycle. Leader and organizational characteristics can have equal influence. An arrogant, narcissistic, and unethical leader will not be able to abuse power as easily in an organization that does not tolerate it and has in place ways to address power abuse. Similarly, a culture that may encourage abuse and corruption is not likely to encourage all leaders to abuse power.

.

90

Leader Characteristics and Behavior • Inflated view of self • Arrogant and controlling • Rigid and inflexible • Sense of entitlement • Willing to use and exploit others • Lack of empathy and caring for others • Disinhibited, vicious, ruthless • Overly concerned with power 8.

Follower Characteristics and Behavior • Fear • Silence • Agreement • Compliance • Inaction • Flattery

Organizational Factors • Organizational culture • Separation of leaders and followers • Hiring practices based on personal relationships rather than objective criteria • Short-term oriented reward system with limited criteria • Centralized organizational structure • High uncertainty and chaos • Highly unequal power distribution

What can be done to prevent or eliminate abuse of power and corruption?

Solutions to corruption and abuse must address the leader, followers, and organizational characteristics.

The following help: • Clear message and consistency regarding a no tolerance policy • Holding the leaders accountable for their decisions and actions • Reducing uncertainty so that everyone knows what the goals and limits are and can follow rules • Training for leaders and followers to be aware of corruption and organizational policies regarding abuse and corruption • Protecting employees by providing ways of reporting abuse and whistle-blowing without fear of retribution • Open communication at all levels that allow information to flow freely. A highly secretive atmosphere and centralized information provides fertile ground for abuse • Leader involvement in day-to-day activities to reduce the distance between leaders and followers as much as possible; contact between them increases cohesion and allows for informal interaction 9.

What are the key roles of a leader in implementing empowerment?

Leaders play a key role in creating a culture and environment where empowerment can flourish. It is the leader who must share power in order to empower followers. Additionally, the leader must: • Create a positive emotional atmosphere • Set high performance standards to motivate followers • Encourage initiative and responsibility • Reward followers openly and personally • Practice equity and encourage collaboration • Carefully monitor and measure performance and provide feedback 10.

Could empowerment lead to powerless leaders? Why or why not?

Although the leader must give away some of his power when empowering followers, and it may appear initially that he/she does not have as much do to and as many responsibilities, empowering followers actually increases the leader’s power and influence. While the leader may not be “doing” as many of the same things, he/she will most likely increase his/her power by developing a performing and cohesive group. The leader also will have more time to actually lead, and provide direction, inspiration, and recognition, all of which increase his/her power with followers. If empowerment is implemented well, it is likely to lead to higher performance which also increases the leader’s credibility and status, therefore power, in the organization.

.

91

The Leadership Challenge: How Much Is Enough?

The leadership challenge presents the highly controversial issue of executive salaries which, particularly in the United States, have reached astronomical proportions. The key issues for students to consider in the debate are: • The reasons for high salaries. These include: market forces and competition for executive talent, the need to retain top talent, the high risk and high responsibility that top level executives shoulder, compensating executives in a way that will commensurate with the performance of their organization and that encourages them to perform their best.

• The question of fairness and equity when compared to middle level management and lower level salaries and wages is highly subjective. Students should be encouraged to debate what fairness means. Their responses will reflect their personal values. The class is unlikely to come to a consensus on what is fair; however, the exploration of various points of view are key.

• The need to attract the best talent to help an organization out of crisis.

• The impact of high salary differential on the morale of others in the organization.

In preparation for this assignment students should be encouraged to read articles about executive salaries. Useful information can be found in several of the Web sites listed at the end of the chapter: http://www.rileyguide.com/execpay.html http://www.aflcio.org/corporateamerica/paywatch/index.cfm http://bwnt.businessweek.com/exec_comp/2002/index.asp

.

92

Chapter 5 Experiential Exercises Exercise 5.1: Words of Wisdom This exercise allows students to explore different views and definitions of power by considering quotes about power. The quotes are from various cultures further allowing for an exploration of cultural issues in power.

Option: The exercise can be done individually before class but is best done in a group setting in class after students have reviewed the quotes individually either before class or in class. This type of activity works equally well with younger students and those with some work experience.

Total time: Minimum 20 minutes in class Materials needed: Paper and pencil Part I: Individual review (Individual work; 5 minutes) Ask students to complete part I either before class or during class. Ask them to think about what the quote would mean if implemented in today’s organizations and explore why the quotes appeal to them.

It works well as an introductory exercise before the material on power is covered in class.

Part II: Group discussion (Group work; 15 to 20 minutes) In this part of the exercise, groups of 5 to 7 students are asked to repeat their review and selection as a group. The group discussions should consider the following: • Different ways of using power • The potential impact of power on followers and organizations • Possible reasons why students prefer different quotes • Cultural issues that may play a role There are clearly no right or wrong answers. The point is to explore what power means, how people like to use it, and how it impacts people. Each group can be given 4 to 5 minutes to present their favorite quotes and explain their reasoning.

Overall: This exercise is an easy and effective way of introducing the complexity of power and its importance to followers and organizations. It also allows for review and discussion of cultural factors and their impact on leadership.

Quote Be the chief, but never the lord (Lao Tzu) There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty (John Adams) I know of no safe repository of the ultimate power of society but people.

And if we think them not enlightened enough, the remedy is not to take the power from them, but to inform them by education (Thomas Jefferson) Justice without force is powerless; force without justice is tyrannical (Blaise Pascal)

Knowledge is power (Francis Bacon)

Implications Egalitarian approach where the leader is seen as guide Indicates the typical U.S. ambiguous and sometimes difficulty relationship with power. Recommends balance and egalitarian relationships

Another quote that indicates the U.S. difficult relationship with power which is necessary, but should be watched. Strong democratic view of power as necessary, but must be carefully watched. Interesting possible link to how Semco is managed

Quote is from French philosopher Pascal who was part of the enlightened movement that informed many of the principles of the French and American revolutions. Emphasizes the importance of power, and the need for careful handling of power to assure fairness Links using information and expertise as a source of power .

93

Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men (Lord Acton) Power consists of one’s capacity to link his will with the purpose of others, to lead by reason and a gift of cooperation (Woodrow Wilson) I suppose leadership at one time meant muscles; but today it means getting along with people (Gandhi) The problem of power is how to achieve its responsible use rather than its irresponsible and indulgent use—of how to get men of power to live for the public than off the public (J. F. Kennedy) Those who seek absolute power, even though they seek it to do what they regard as good, are simply demanding the right to enforce their own version of heaven on earth. And let me remind you, they are the very ones who always create the most hellish tyrannies. Absolute power does corrupt, and those who seek it must be suspect and must be opposed (Barry Goldwater) The first principal of nonviolent action is that of non-cooperation with everything humiliating (Cesar Chavez) Authority doesn’t work without prestige, or prestige without distance (Charles De Gaulle)

Power is the ultimate aphrodisiac (Henry Kissinger) If you can, help others; if you cannot do that, at least do not harm them (Dalai Lama) One of the saddest lessons of history is this: if we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle. The bamboozle has captured us. Once you give a charlatan power over you, you almost never get it back (Carl Sagan)

Famous quote about the potential for power to corrupt the power holder. Strong negative view of non-egalitarian power

Precursor of empowerment concepts. Functional view of power as a tool to achieve goals in a cooperative manner

View echoed by early management theorist Chester Barnard and other modern approaches to leadership that emphasize relationship with followers One more U.S. suspicious view of power emphasizes the importance of power with a function and a recognition of the potential for abuse

U.S. negative view of power and its potential for abuse.

Strongly worded statement from an icon of conservative U.S. politics. Emphasis on the need to control power

View of power from non-power holders and the need to resist power abuse

Focus on importance of power for leadership and governing and the need to maintain distance from follower to allow for authority. The quote disagrees with many of the current views of power that emphasize equality. Interesting link to French cultural values that focus on authority and hierarchy (e.g., Tromprenaars’ Eiffel Tower) Quote focused on the impact of power on the power holder who feels highly positive but also has potential for addiction Empowering and positive view of power that must be used to help rather than harm others.

Quote focused on the role of followers in allowing abuse and the importance of resisting abuse

.

94

Exercise 5.2: Who holds power in your team/organization?

This exercise is designed to help students recognize the different sources of power that are used in organizations. The exercise is best used for individual work after students have read the chapter. It tends to work best for mature students who have some work experience. However, younger students often have experiences with power in various settings including in their part-time work and in student and volunteer organizations. Students should be reminded to select their examples carefully. They can focus both on individual and groups.

Total time: 10 to 20 minutes Materials needed: Paper and pencil Overall: This exercise is an effective way for students to apply the concepts about sources of power and influence to their personal experiences and thereby gain a deeper understanding of the concepts.

 Course Assignment This exercise can be used as an assignment for the course. It allows students to demonstrate their understanding of the sources of power and influence and apply their knowledge to a real-life situation.

.

95

Self-Assessment 5.1: Understand your sources of power and influence This is an individual exercise that allows students to identify the sources of power and influence they use. The assessment is most effective when used after class discussion of power to assure that students fully understand the concepts before they apply them. As is the case with the next exercise, any debriefing should emphasize the viewpoint that effective leaders should be able to use different sources of power and influence depending on the situational and contextual requirement.

Self-Assessment 5.2: Views of power This is an individual exercise that allows students to identify their views toward the various sources of power. The assessment should be completed before the class on power and used for discussions regarding the consequences of each source of power. Debriefing should include a strong contingency viewpoint whereby not one source is assumed to be better than others. However, it is essential that students understand that the use of each source has consequences for their ability to influence followers.

.

96

Self-Assessment 5.3: Recognizing blocks to empowerment This exercise allows students to assess their organization’s readiness for implementation of empowerment by identifying the leadership and structural blocks. It works best if completed after the discussion of empowerment so that students have a clear understanding of the concept. It can also be a very effective conclusion to the power lecture.

Option: The exercise can be used as an individual assessment to help students understand empowerment better or as a group exercise (after the individual ranking). The group exercise focuses on devising strategies for removing obstacles to empowerment. This type of activity works best with more mature students who have some work experience. I have used it very successfully with part-time MBAs. The group activity is not as effective with traditional undergraduates who have limited or no work experience.

The description below is for the group-based exercise.

Total time: Minimum 30 minutes in class Materials needed: Paper and pencil; board or flip chart can be useful.

Part I: Individual Description (Individual work; 5 minutes) Ask students to rate their organizations on the 16 questions and to calculate their score. They may need your help with the reverse-scored items.

Part II: Strategies for removing obstacles (Group work; 15–20 minutes) In this part of the exercise, groups of students select one of their members’ organizations, clearly identify the blocks to empowerment, and develop strategies for their removal. Issues that they need to consider before they embark in their search for strategies relate to readiness for change and include: • If the group feels that the answer to these questions is generally positive, then they should develop strategies to help move the organization toward empowerment.

• Is the leadership of the organization ready for moving toward empowerment?

• Are employees and managers ready for empowerment?

• Is empowerment appropriate given the culture, strategy, performance levels, and so on?

• Would the stress and pain of moving toward empowerment be worth the potential benefits?

The Instructor needs to point out to the students that their strategies do not have to solve all the problems; each group can set priorities in what can and should be done.

Each group can be given 4–5 minutes to present their organization and their solutions or a general class discussion of the solutions can take place.

Overall: This exercise is very effective with students who already have some experience with teams, quality circles, or empowerment. Working on this exercise allows them to identify the obstacles and understand why the strategies their organization has been trying to implement may not be working.

Discussions invariably turn toward the role of the leader in setting and encouraging a culture that would support sharing of power.

 Course Assignment This exercise can be used as an assignment for the course. The assignment uses the students’ organizations as live cases. The questionnaire is used as a tool to analyze the situation; other analysis can be required along with a description of the organization or departments the student is rating. The strategies portion involves developing and evaluating various alternatives for implementation of new management techniques.

.

97

Leadership in Action The Last CEO of Lehman Brothers: Richard Fuld Case summary Richard (Dick) Fuld is the last CEO of Lehman Brothers, a financial services firm that was founded in 1850 and was one of the first companies to disintegrate and declare bankruptcy in 2008. The company and its CEO have been accused of shady accounting practices that allowed it to hide risky investments.

Fuld has been the head of the company since 1994 and was well known for his expertise and performance and his strong and bullying style. His nickname “the Gorilla” represents both his habitual grunting and his domineering style.

1.

What are the sources of Dick Fuld’s power?

Fuld based his power on developing considerable expertise early in his career. He also built a strong network of friends and political allies who gave him referent power. As he gained official titles and position in Lehmans, he accumulated legitimate power and considerable reward and coercive power along with the official position. He, very astutely, used all the sources of power to build on one another.

He used his legitimate position and the privileges it brought to further develop friendships and contacts.

He used the same power to intimidate those who disagreed with him and reward those whom he liked.

2.

What elements of power corruption are present in this case?

Dick Fuld shows many of the individual characteristics that may lead to abuse and corruption. As his success increased, he developed an inflated view of himself, demonstrated considerable hubris, and became arrogant. His temper further contributed to this. His treatment of subordinates shows his rigidity, sense of entitlement, and willingness to use his power to achieve his goals or simply belittle them. All the while, Fuld handsomely rewarded followers who performed and conformed.

The follower and organizational factors that lead to corruption are also present. Because of his expertise and high performance, there was little accountability as Fuld refused to acknowledge problems. He created a culture of intimidation that rewarded only financial performance while ignoring other potential problems. The intimidation of those who disagreed with him further led to lack of dissent and inflated his sense of power. Aside from bankruptcy, Fuld and the company are accused of financial wrong-doing and subject to investigation.

.

98

PART II CONTEMPORARY CONCEPTS

Chapters 6 and 7 present theories that currently dominate the field of leadership including charismatic, transformational, and authentic leadership, and a consideration of upper-echelon and nonprofit leadership.

.

99

CHAPTER 6 Current Era in Leadership: Inspiration and Connection to Followers _________________________________________________________________________________ Chapter Overview The theories that currently dominate the leadership field are presented. These include charismatic, transformational, and value-based approaches. All focus on the connection between leaders and followers. Charismatic leadership is defined as an intense emotional relationship between leaders and followers where leader, follower, and situational characteristics all play key roles. Transformational leadership, which uses charisma as one of its elements and is focused on large-scale change in organizations, is discussed and contrasted with transactional leadership, which is primarily concerned with exchange between leaders and followers. Value-based approaches include servant, authentic, and positive leadership.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Discuss the distinguishing elements of the new era in leadership research and practice Understand charismatic leadership, explain the leader, follower, cultural, and situational characteristics that contribute to its development, and discuss its positive and negative implications

✓

Distinguish between transactional and transformational leadership and explain factors that contribute to transformational leadership

✓

Describe the value-based approaches to leadership, including servant, authentic, and positive leadership

✓

✓

THROUGH FEATURES, TABLES and FIGURES

THROUGH EXERCISES

Figure 6.1 Table 6.1 Table 6.2 Table 6.3 Table 6.4 Leadership challenge: standing up to a charismatic but unethical leader Figure 6.2 What do you do?

Leading Change: The Unconventional Sir Richard Branson Leadership in action: Andrea Jung’s rise and fall at Avon Figure 6.3 Table 6.5 Applying What You Learn: Balancing a Positive Approach with Realism Figure 6.4 Figure 6.5

Exercise 6.1 Exercise 6.2 Exercise 6.3

Self-assessment 6.1 Self-assessment 6.2

Chapter Outline The Leadership Question Charisma is considered a positive trait for a leader, and charismatic leaders are sought after. Are charismatic leaders always effective and desirable? Is it a necessary element of leadership?

1.

New era in leadership research

.

100

The current era in leadership research is dominated by charismatic and transformational leadership approaches and by the burgeoning interest in value-based perspectives. The benefits include: consideration of leaders as inspirational visionaries, focus on followers’ emotional reactions, consideration of top level leaders, and addressing the affective and cognitive aspects of leadership.

2.

Charismatic Leadership: A Relationship between Leaders and Followers

Charismatic leadership is defined as a relationship between leaders and followers rather than a simple collection of leader traits and behaviors. It involves leaders, followers, and the leadership situation (Figure 6.1). a.

Characteristics of charismatic leaders

The personality and behavioral characteristics of charismatic leaders are presented (Table 6.1) along with several U.S. and international examples of charismatic leaders. High self-confidence and excellent articulation skills are central. b.

Characteristics of followers

The personality and behavioral characteristics of followers of charismatic leaders are discussed (Table 6.2). Loyalty to and obedience of leaders are essential elements. c.

The charismatic situation

Because charismatic leadership is defined as a relationship between leaders and followers, the elements of a charismatic relationship and the situation in which it occurs are key.

External crisis and turbulence is key to the emergence of charismatic leaders (Table 6.3). Whether real or perceived, a sense of crisis and ability for the leader to articulate his/her vision to resolve the crisis are important.

Internal organizational conditions include: the organizational life cycle, the type of task, and the organizational culture and structure. The more uncertainty, the more likely that a charismatic leader will emerge.

Role of culture. The role of culture in charismatic leadership is explored. Some research suggests that cultures with a strong prophetic salvation are more likely to give rise to charismatic leaders than those without such views. These cultures include many with a Judeo-Christian tradition. d.

The dark side of charisma

This section discusses the characteristics of unethical charismatic leaders who use their relationship with followers to pursue their personal goals and agenda. Negative charismatic leaders may also present a flawed vision that is self-serving or unrealistic (Table 6.4). e.

Evaluation and application

The section ends with an evaluation of charismatic leadership concepts. A number of different interpretations of charismatic leadership have been proposed. The concepts have a strong appeal although charismatic leadership should not be viewed as a cure-all.

Leadership Question Revisited Although charisma can be a powerful leadership factor, it also has the potential for being destructive. It is neither a requirement nor sufficient for effective leadership.

Charisma has to be accompanied by the other hard work of leadership.

3.

Transactional and transformational leadership .

101

The concepts of transformational and transactional leadership are presented. Whereas transformational leadership is focused on large-scale change in organizations, transactional leadership focuses on basic exchanges between leaders and followers. a.

Transactional leadership

Contingency reward. Transactional leadership is based on the concept that the leader provides followers with resources and rewards in exchange for motivation and productivity. When well implemented, this exchange is at the heart of motivation and can lead to highly desirable results.

Management by exception (MBE). MBE is another type of transactional leadership where the leader only intervenes when things go wrong, relying on discipline and punishment. MBE is usually associated with follower dissatisfaction and poor performance. b.

Transformational leadership

Transformational leadership is concerned with inspiring followers to enable them to enact revolutionary change in their organization. The components are presented in Figure 6.2.

Charisma and inspiration. The first component of transformational leadership is the creation of an intense emotional bond between leaders and followers through charismatic leadership.

Intellectual stimulation. The second component of transformational leadership is the leader’s ability to challenge followers intellectually to solve problems through new and creative means.

Individual consideration. The third component of transformational leadership is establishment of personal relationships with each follower.

The three components combine to allow leaders to transform organizations.

What do you do? The scenario presents the case of leader who is effective but faces a change in upper management that focuses on change and transformation. As a result, the leader no longer fits well. While effectively managing the status quo is highly valuable, this leader is finding that it is not enough. It may be that the organization actually needs change and transformation; or the new upper leaders simply may want change for the sake of change. In either case, it is important to adjust and fulfill organizational goals. You can try to manage the pace of change by negotiating with your supervisors, but if the lack of fit continues, and if the high stress continues, it may be time to explore other options. c.

Evaluation and application

There are many studies of transformational leadership from those testing the basic hypothesis to several others looking at the concepts across culture and gender. Although the model has been generally supported, further research is needed in regards to the measurement of the concepts. Several recommendations for application include: Projecting confidence, providing a clear vision, encouraging creativity, setting high expectations, and establishing personal relationships with followers.

Leading Change presents the case of Sir Richard Branson, the founder and CEO of the Virgin Group, a family of companies headquartered in London. Branson is a self-made entrepreneur with a flair for outrageous marketing stunts. He has also built his company on the philosophy that leaders must like people and focus on bringing out the best in every employee.

4.

Value-Based Leadership: Servant, Authentic, and Positive Approaches

The theories presented in this section focus on more than leader behaviors and actions; they present a highly emotional process based on fundamental values. .

102

a.

Servant leadership

First proposed by Robert Greenleaf, servant leadership focuses on followers rather than the organization or the leader. Service to followers and their development is essential to effectiveness. The traits and behaviors associated with servant leadership are presented in Figure 6.3. The model is new and has generated much interest, but is not yet well supported by research. b.

Authentic leadership

Authentic leadership focuses on the importance of self-awareness and leadership based on true values and beliefs. The theory proposed that the most effective leaders are those who understand their strengths and true purpose, develop them, and base their leadership on them.

Definition and elements of authentic leadership (Figure 6.4 and Table 6.5) include self-awareness, balanced information processes, behaviors that are true to self, and relational transparency. c.

Positive leadership

The concept of positive leadership is based on a new approach in psychology and organizational behavior that takes a strength rather than a deficit approach. The approach suggests that how one thinks influences behaviors and outcomes and recommends that leaders remain positive and optimistic, focus on strengths, create a positive climate while setting high standards, and dealing with negativity quickly.

The characteristics of positive leaders are presented in Figure 6.5.

Practicing positive leadership requires the following: Being optimistic, encouraging positive deviance, focusing on strengths, creating a positive climate, maintaining positive relationships, having positive communications, and dealing with negativity quickly.

Applying What You Learn: Balancing a Positive Approach with Realism While being positive is an important tool for leaders and can be infectious, it is important for leaders to also be realistic, rely on data, not overestimate strengths, allow for criticism, and push to get all sides and the good and bad news. d.

Evaluation and application

The value-based approaches have yet to be fully and thoroughly evaluated and researched. There is some evidence that they can have positive impact on followers and performance. The approaches emphasize the relationship between leaders and followers.

Spiritual and authentic leadership are focused on an intense bond and relationship with followers much the same way as charismatic leadership is. Some suggest that the root of the charismatic and transformational leadership is authenticity which wins over followers based on the strength of beliefs. The concept of positive leadership is new to the field and allows us to have a look at the way leaders think about their situation and how the way they think may influence their leadership. All three concepts are relatively new and provide ample opportunity for research. e.

A critical look at value-based model

There has been some critiques of value-based approaches that suggest that it can lead to delusional optimism, poor performance when leaders and followers become overly and unrealistically positive, overestimate their strengths, and have a bias for “brightsideness.”

5.

Summary and conclusions.

.

103

Review and Discussion Questions 1.

What are the factors that gave rise to the development of neocharismatic leadership theories?

Neocharismatic leadership concepts address a side of leadership that previous theories do not. It looks at the relationship and emotional bond between leaders and followers and allows us to study leaders who are interesting and appear magical in their powers. The theories also allow us to address how leaders can change organizations and also look at leaders in all levels of the organization.

2.

Describe the elements of charismatic leadership.

Charismatic leadership requires the leader, followers, and the right situation. On the leader side, charismatic leaders are self-confident and expressive, have strong convictions and high energy, and are active image builders and role models. On the follower side, followers have a high degree of esteem and affection for their leader, are loyal and devoted, identify with the leader, are confident in the leader’s abilities, and have high performance expectations and unquestioning obedience. The charismatic situation requires a sense of real or perceived crisis. The crisis can be internal due to poor performance, or external due to a threat. Either way, there must be a sense that change is needed, there is availability of dramatic symbols, and an opportunity for the leader to articulate the vision and the role of followers.

3.

What are the cultural constraints on the development of charismatic leadership?

Charismatic leadership assumes the presence of a savior in times of crisis. The concept of savior is more prominent in Judeo-Christian religions than in other ones. Therefore the concept of charisma is not universal or at least, its presentation in Western research does not apply to all cultures. Many leadership concepts are dependent on the cultural context. Specifically, there are universally positive, negative, and contingent traits: Universally Positive • Being encouraging, positive, and motivational • Having a vision and a plan and being able to make decisions • Being dynamic • Having integrity and being trustworthy • Building teams • Intelligent • Communicator • Win–win problem solver

4.

Universally Negative • Being a loner • Being non-cooperative • Being ruthless and dictatorial • Non-explicit • Irritable

Culturally Contingent • Risk taking • Enthusiasm • How vision is communicated • What constitutes good communication • How much leader is seen as equal

Describe the elements of transactional leadership.

Transactional leadership is made up of two concepts. Contingent reward is based on a formal or informal contract between the leader and followers. The leader sets goals for followers who achieve them in exchange for some reward. Contingent reward is an important and essential part of any good management approach and can lead to positive results.

The second type of transactional leadership is Management by Exception (MBE) where the leader does not engage with followers either through laissez-faire where there is little direction or feedback, or through active MBE where engagement with followers is only to correct and provide

.

104

negative feedback. Both types of MBE can have highly detrimental effects on performance and satisfaction.

5.

How is management by exception different from empowerment?

Some managers confuse MBE with empowerment. In both cases, it appears that the leader lets followers do what they want. That comparison is not accurate. In MBE, the leader does not engage with followers unless it is to criticize. In empowerment, the leader provides latitude for followers to do their job, but is highly active in setting goals, providing guidelines, encouraging, and giving both positive and negative feedback.

6.

Describe the elements of transformational leadership and its role in enacting organizational change.

Transformational leadership is geared toward large-scale change in organizations. Transformational leaders are those who connect with their followers and help them implement change. It has three elements: • Charisma and inspiration that help the followers overcome resistance to change • Intellectual stimulation that provides new ideas and empowers followers to implement change • Individual consideration where the leader individually motivates and encourages followers to implement the change The combination of the three elements energizes followers to accept and implement change.

7.

Compare and contrast value-based, authentic, and positive leadership concepts. Why do these approaches have so much appeal?

The concepts of value-based, authentic, and positive leadership share common elements with other approaches to leadership presented in this chapter. All focus on the relationship between leaders and followers and on the sharing of a vision for the group. Some suggest that authentic leadership is at the root of the other concepts. Although charismatic, transformational, spiritual, and positive leaders all have to necessarily have some degree of authenticity, authentic leaders do not necessarily need to be charismatic, transformational, spiritual, or positive.

Positive leadership offers a fresh approach in that the focus is more on how a leader thinks and less on what he or she is—charismatic, value-based, or authentic, for example. Owing to its roots in psychology, positive leadership has a cognitive approach that emphasizes the perspective leaders choose to take, how they analyze and interpret the situation, and how those processes determine their behavior.

Specifically, positive leaders take on a positive perspective that guides their approach to leading themselves and others.

Value-based, authentic, and positive leadership present opportunities and challenges. The concepts add considerable richness to the study of leadership by introducing and considering the role of emotions, in the case of value-based and authentic leadership, in the leadership process. Additionally, the introduction of hope and optimism which is the basis of all three concepts, to understanding leadership is a significant contribution.

8.

What are the major contributions and shortcomings of neocharismatic approaches to our understanding of leadership?

Charismatic, transformational, value-based, authentic, and positive leadership concepts contribute to the demystification and understanding of leadership processes. They have a broad appeal and provide an intuitive understanding of leadership that is applicable to large-scale leadership situations. They are also responsible for resurgence in the interest in leadership. Because of their relatively recent development, the concepts still require much refinement, and their use in training leaders needs further refinement, particularly with regard to identification of various situations under which change-oriented leadership might be more appropriate and more effective.

.

105

The Leadership Challenge: Standing Up to a Charismatic but Unethical Leader Students are presented with the difficult situation of how to handle a potentially unethical and abusive leader. Issues of unethical charisma as well as “evil managers” (presented in Chapter 4 “Cutting Edge”) are key. Issues students should consider are: • What is objective data as compared to subjective information? Does the follower have enough objective information?

• Personal values and priorities including the importance of career progress and the potential negative consequences of standing up to the leader. Students’ personalities (for example their Mach score) and personal values are key in this analysis.

• How to deal with abusive bosses including careful documentation, awareness of legal rights, knowledge of company policy, as well as company culture.

The answer to this challenge is highly personal and individual. There clearly is no best or correct course of action, except for careful documentation. Students differ considerably in their choice of course of action. The case provides a good opportunity to discuss employee rights, organizational politics, and career management.

.

106

Chapter 6 Experiential Exercises Exercise 6.1: Do you know a charismatic leader?

This exercise is based on the concepts of charismatic leadership. It is designed to allow students to evaluate leaders they know and consider effective in terms of charismatic leadership. It can be used either as an opening or as a conclusion to the topic of charismatic leadership.

Option: Step 4 can be used to make the exercise a group activity. Each group could then select one of its members as leader, analyze his/her behavior, followers’ behavior, and the situational elements that allow for the emergence and effectiveness of charismatic leadership.

 Course Assignment This exercise can be used as an assignment for the course by asking students to describe and analyze a charismatic leader, his/her followers, and the leadership situation.

.

107

Exercise 6.2: Charismatic speech This exercise focuses on the articulation skills of charismatic leaders. One of the major characteristics of charismatic leaders is their ability to articulate their vision clearly and to inspire their followers through their message. Although such skills often take much practice to develop, there are several specific aspects of charismatic speech that can be identified and practiced. This exercise provides students with a list of the major elements of charismatic speech and with an opportunity to practice those skills. It is most effective when assigned after the discussion on charismatic leadership.

Because of the time required to complete this exercise, the groups should be required to do their preparation outside of class after having been provided with the necessary information.

Total time: Minimum 50 minutes preparation (15 with the instructor; 35 in the group); 5 minutes per group presentation.

Materials needed: Paper and pencil; use of board or flip chart.

Step 1: Preparation Students should be assigned to groups of 3 to 5. Existing groups can be used.

• Each group must select a topic for a 5-minute speech. The topics should have the potential to inspire and motivate. Good options are company or school mission statements. Other examples are the introduction of a new product or service to a sales group, the presentation of a major strategic change to a department or team, or the introduction (self or by someone else) of a new leader.

• Each group needs to select the target audience for their speech. All presentations will be made to the class after informing them of the target audience. The intended audience will affect the speech and therefore needs to be identified.

Following are definitions and examples of framing and rhetorical techniques to help the groups prepare for their speeches (for more details see Conger 1989 and 1991).

Framing involves selecting a framework for the message around certain goals. For example, the two statements “our company goal is to build communication devices,” and “our company goal is to connect human beings to one another” deliver the same basic message with very different frames. Some methods for framing are: • Amplify values and beliefs: Select values and stories that illustrate the core higher values that appeal to the audience.

• Bring out the importance of the mission: Emphasize and exaggerate the need for change and the attractiveness of the solution.

• Clarify the need to accomplish the mission: Focus on the “good” of the mission and the dangers of not accomplishing it.

• Focus on the efficacy of the mission: Provide examples of how the mission will work in order to build the audience’s confidence in the correctness of the selected path.

All the above techniques are designed to provide the audience of followers with a reason for accepting the proposed change or idea.

Rhetorical techniques are used to further emphasize the message. These include: • Use of metaphors, analogies, and brief stories to make the mission and goals concrete, set them apart for undesirable things or events that the audience is likely to know, and create the needed emotional reactions in followers.

• Use of language that the audience will understand is key to an effective message.

• Repetition of the key message through various means and media emphasizes its importance.

• Alliteration is the repetition of initial consonants sounds (e.g., mighty mountains of Montana) which provide a pleasing rhythm to the speech.

.

108

•

Nonverbal messages need to be consistent and support the spoken words. For example, the style of dress, clear and confident voice, and lack of hesitation can all be used to further send a message of confidence.

Overall: This exercise is often difficult for students, but it can be very effective. The ability to develop a well crafted message is often closer than most students think and even partially succeeding in that task demonstrates one of the major behavioral components of charismatic leadership. The fact that some students are more comfortable with this exercise than others can also be used to point to the effect of personality on one’s ability to practice and learn new behaviors.

 Course Assignment This exercise can be used as an assignment for an oral presentation in the course. Because of its difficulty, it may not be appropriate for a large percentage. I have used it as an alternative or addition to class participation grade.

.

109

Exercise 6.3: Analyzing a Charismatic Speech This exercise is similar to the previous one, but easier for most students. They find it interesting and it allows them to demystify what often looks like a magical process. It focuses on the articulation skills of charismatic leaders. One of the major characteristics of charismatic leaders is their ability to articulate their vision clearly and to inspire their followers through their message. This exercise provides students with a list of the major elements of charismatic speech and with an opportunity to identify them in charismatic and non-charismatic leaders. It is most effective when assigned after the discussion on charismatic leadership.

Because of the time required to complete this exercise, students should be required to watch the speeches outside of class after having been provided with the necessary information.

Total time: Minimum 30 minutes preparation individually; another 30 minutes in the group.

Materials needed: Paper and pencil; use of board or flip chart.

Step 1: Preparation Students should be assigned to groups of 3 to 5. Existing groups can be used.

• Each group must select or be assigned the one or two speeches they will analyze. Each student should then watch the speech or speeches outside of class and complete an initial assessment.

• In class, the groups can review the speech and complete the assessment again after discussion.

Following are definitions and examples of framing and rhetorical techniques to help the groups prepare for their speeches (for more details see Conger 1989 and 1991).

Framing involves selecting a framework for the message around certain goals. For example, the two statements “our company goal is to build communication devices,” and “our company goal is to connect human beings to one another” deliver the same basic message with very different frames. Some methods for framing are: • Amplify values and beliefs: Select values and stories that illustrate the core higher values that appeal to the audience.

• Bring out the importance of the mission: Emphasize and exaggerate the need for change and the attractiveness of the solution.

• Clarify the need to accomplish the mission: Focus on the “good” of the mission and the dangers of not accomplishing it.

• Focus on the efficacy of the mission: Provide examples of how the mission will work in order to build the audience’s confidence in the correctness of the selected path.

All the above techniques are designed to provide the audience of followers with a reason for accepting the proposed change or idea.

Rhetorical techniques are used to further emphasize the message. These include: • Use of metaphors, analogies, and brief stories to make the mission and goals concrete, set them apart for undesirable things or events that the audience is likely to know, and create the needed emotional reactions in followers.

• Use of language that the audience will understand is key to an effective message.

• Repetition of the key message through various means and media emphasizes its importance.

• Alliteration is the repetition of initial consonants sounds (e.g., mighty mountains of Montana) which provide a pleasing rhythm to the speech.

• Nonverbal messages need to be consistent and support the spoken words. For example, the style of dress, clear and confident voice, and lack of hesitation can all be used to further send a message of confidence Overall: This exercise is interesting for students and is effective in demonstrating one of the powerful tools charismatic leaders often use. It is important to emphasize that non-charismatic leaders can also be highly effective.

.

110

 Course Assignment This exercise can be used as an assignment for an oral presentation in the course or written individual or group assignment. In an oral presentation, each group can present their speech highlighting the areas they have identified either by reading from the speech or showing clips. Many students have strong technological ability and can put together a montage for their presentation. I have used it as an alternative or addition to class participation grade.

If assigned as a written assignment, students can be asked to conduct the evaluation and write a 1–2 page analysis of the elements of charismatic speech.

.

111

Self-Assessment 6.1 and 6.2: Authentic Leadership and Positive Leadership The self-assessments should be assigned to be completed prior to class. Students having their score on each of the scales allows for a much richer learning environment. It is important to stress that these self-assessments are meant to develop a student’s self-awareness. They have not been scientifically tested and validated. They provide students with a general description of their behaviors and preferences and give directions for self-development.

 Course Assignment The self-assessments in this chapter can be used to develop students’ self-awareness of their personal characteristics. Students can be asked to describe and analyze the characteristics measured in the self-assessments with a focus on identifying resulting strengths and weaknesses. Students should be reminded that changing personality is not the goal, rather understanding should be their focus. By developing increasing self-awareness, they can build on their strengths and compensate for their weaknesses.

.

112

Leadership in Action Andrea Jung’s Rise and Fall at Avon Case summary Andrea Jung, Avon’s first female CEO, was highly celebrated as a charismatic transformational leader until she left in 2011 under a cloud of poor performance and legal accusations. She was ranked as one of the best and later one of the worst CEOs. For more than 10 years, she successfully changed Avon by connecting with employees and investors and reinventing the company and herself. She was known for her drive, enthusiasm, and passion for the company. She focused on internal and external communication to build and share a vision of the company she is leading. However poor decisions and not grooming a successor caused her to leave the leadership of Avon.

1.

What are the key elements of Andrea Jung’s leadership style? Consider the various models presented in this chapter.

A passion for her organization, a need for consensus building, high enthusiasm, and a focus on communication are key to Jung’s leadership effectiveness. Her extensive experience in retail and tenure with Avon provide her with the credibility she needs to run her organization. Her insistence on developing a shared vision that fully includes the traditional backbone of the company—the Avon ladies—is evidence of her awareness of the importance of forging a new organizational culture based on the successful elements of the existing one.

A strong conviction and enthusiasm about Avon, high energy and enthusiasm, strong communication skills, and active image building (such as leadership in charities focused on benefiting women) are all elements of charismatic leaders that are present in Jung. Because of some decline in sales and threats from new retail outlets such as the Internet, a sense of urgency and crisis is present.

Not as evident is the strong follower emotional reaction to Jung’s leadership.

In terms of transformational leadership, Jung has demonstrated her ability to intellectually stimulate her followers by allowing and encouraging active participation and ownership of changes implemented in the company. Her high enthusiasm and relentless confidence in the company, along with her consensus building, further help her followers overcome resistance to change.

The most apparent elements of visionary leadership are enthusiasm, collaboration in the development of a vision, and her focus on people.

2.

How do you explain her success and her fall?

Although Jung showed elements of charismatic and transformational leadership and was popular, she also made serious mistakes such as rejecting a potentially lucrative merger. Being charismatic and transformational do not guarantee effectiveness. A leader can inspire and connect with followers, but still make mistakes. Effective leadership is highly complex and no one factor, trait, or behavior predicts how well a leader can do.

.

113

CHAPTER 7 OTHER LEADERSHIP PERSPECTIVES: UPPER ECHELON AND NONPROFIT LEADERSHIP __________________________________________________________________________________ Chapter Overview This chapter focuses on leadership at upper levels of organizations. While the models presented throughout the book tend to be concerned with micro leadership (small groups and departments), upperechelon leadership is focused on macro levels. The differences between the two levels are presented and the processes of strategic leadership are outlined. An integrated view of upper-echelon leadership, which considers the leader to be both the creator and the implementer of culture and strategy is proposed, and the moderators that limit the impact of the leader on the organization are discussed and the individual characteristics of strategic leadership and the processes through which they impact their organization are outlined. The characteristics and challenges of leadership of nonprofit organization are also presented.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Differentiate between micro and upper-echelon leadership

✓

List the individual characteristics of strategic leaders and consider the role of culture

✓

Explain how top-level managers affect their organizations

✓

Analyze the unique challenges of leadership in nonprofit organizations

✓

THROUGH FEATURES, TABLES and FIGURES Table 7.1 Figure 7.1 Figure 7.2 Table 7.2

THROUGH EXERCISES Exercise 7.1 Exercise 7.2

Applying What You Learn: Managing in Times of Crisis Figure 7.3 Table 7.3 What do you do?

Leadership in Action: P&G Figure 7.4 Table 7.4 Leadership Challenge: The BOD and CEOs Leading Change: Public Allies Figure 7.5

Self-assessment 7.1

Exercise 7.3

Chapter Outline The Leadership Question Do you think there is a difference between leaders at different levels of the organization and in different organizations? Besides size and number of people who report to you, is leadership fundamentally different at top and lower levels or in different organizations?

1.

Defintion and role of upper-echelon leadership

The major differences between micro and upper-echelon leadership are presented (Table 7.1). These are scope, focus, effectiveness criteria, and level of decision-making. The new strategic focus for leaders at all levels is discussed. a.

Strategic forces

The six strategic forces of environment, technology, strategy, culture, structure, and leadership are proposed as the domain of strategic leaders (Figure 7.1). Leaders in the upper echelon of organizations juggle these six forces to help organizations reach their goals.

.

114

b.

The role of strategic leaders

An integrated view of the role of leadership in strategic management is presented whereby the leader is assumed to play a central role in the creation of the culture and strategy of an organization.

Additionally, when the organization is well established, the leader plays a role in the implementation of strategy (Figure 7.2). c.

Factors that moderate the power of leaders

The external and internal factors that moderate the power and influence of upper-echelon leaders on organizations are discussed (Table 7.2). These factors either limit the power and discretion of the leader or limit the impact of the leader’s actions and decisions.

External environmental factors include environmental uncertainty, type of industry, market growth, and legal constraints.

Internal factors include: Organizational stability, size and structure, culture, stage of organizational development, and the presence, power, and makeup of a Top Management Team (TMT).

Applying What You Learn: Managing in Times of Crisis Leaders increasingly have to manage in times of crisis. Some key guidelines are: Be realistic, face the situation directly, do research and gather facts, seek help and support, be a role model, tell the truth, remain calm, practice kindness, listen and have empathy, and take action.

2.

Characteristics of upper-echelon leaders

The research on the impact of upper-echelon’s individual characteristic on their leadership style and their organization is reviewed. Four strategic leadership types are proposed. a.

Demographic and personality traits

After a review of various individual characteristics of strategic leaders, two common themes that run through the research emerge. These are the degree of the leader’s challenge seeking and his or her need for control.

Challenge-seeking: The degree to which a leader seeks challenge, is a risk taker, and is open to change and innovation is one of the key characteristics of upper-echelon leaders. This characteristic has the most impact on the way a leader formulates the strategy of his/her organization. At one end are leaders who seek challenge and are innovative, at the other end are leaders who are risk averse and uncomfortable with change.

Need for control: Need for control is the second characteristic of upper-echelon leaders and includes degree of delegation, participative leadership, and encouragement of as well as tolerance for diversity of form and opinions. This characteristic has the most impact on the internal culture and structure of an organization. High-control leaders push for uniformity and control, whereas low-control leaders allow flexibility and openness. b.

Strategic leadership types

The combination of challenge-seeking and need for control yields four strategic leadership types (Figure 7.3). The type of leadership that is effective is contingent upon an organization’s environment, culture, strategy, and structure. Additionally, each type of leader is likely to create a different type of organization.

Strategic leadership types and their impact on organizations (Table 7.3) .

115

High-control innovator (HCI): HCIs are challenge-seekers who have a high need for control. They select high-risk, innovative strategies while creating centralized structures with strong cultures.

Status quo guardian (SQG): SQGs are challenge-averse and need high control. They select strategies that are tried and true and maintain high control over their organizations.

Participative innovators (PI): PIs seek challenge and innovation in their strategies while creating a loose, open, and participative culture and structure inside their organizations.

Process manager (PM): PMs allow for openness of culture and structure while avoiding risky and innovative strategies.

What do you do? The scenario provides an example of a leader whose strategic leadership type fits more in SQG or PM and moves to an organization whose leadership is innovative, either HCI or PI. While there may be an apparent lack of fit with other managers or the general style of the leadership, organizations need all types of leadership to run smoothly and be effective. The complementary styles allow the organization and its members to address different challenges they may face. Although the SQG manager may not be the most innovative one, you can still contribute by helping the organization run efficiently. It is important to be aware of strengths and weaknesses and work with them to contribute to the organization. c.

Culture and gender

The effect of culture: Culture may have an impact on strategic leadership type. Using Trompenaars’ dimensions, an analysis of the potential impact of culture using the example of French top executives is presented. Hierarchy, elitism, and focus on intellectual achievement are partly attributed to the French cultural value of high power distance.

The effect of gender: Although there is limited empirical research regarding the effect of gender, anecdotal and case studies of female executives are discussed pointing to many female executives using a more participative style.

3.

How do executives affect their organization?

The processes used by upper-echelon leaders to affect their organization are discussed (Figure 7.4) a.

Direct decisions

Direct decisions regarding all organizational factors including strategy, mission, culture, and structure is one of the most obvious ways in which upper-echelon leaders impact their organizations. b.

Allocation of resources and control over the reward system

Control over resources and rewards provide upper-echelon leaders with considerable opportunities to shape their organizations. c.

Setting the norms and modeling

Setting decision standards and behavioral norms and modeling of certain styles and actions are indirect but still powerful means for upper-echelon leaders to impact the organization. d.

Strategic leaders’ accountability

The responsibilities of upper-echelon leaders are discussed with a focus on the need to match the considerable power assigned to them with accountability for their own and their organizations’ actions (Table 7.4).

4.

Unique case of nonprofit organizations

.

116

Although they may “make money”, nonprofit organizations reinvest all their proceeds back into the organization. They are primarily focused on the public good and depend on various donations. a.

Characteristics of nonprofit organizations b.

Nonprofits operate without profit, have a public service mission, are governed by a voluntary board of directors, and are funded through contributions.

Leading Change Public Allies is a unique community-based nonprofit organization whose goal is to develop leadership capabilities within a community by educating and training young volunteers who return to their communities to lead and implement various projects. The organization runs on the basic belief that leadership is an action (a verb), not a position (a noun). Since its creation in 1992 Public Allies has established a considerable network of supporters, has won much praise, and has trained thousands of leaders. Sixty-seven percent of whom are people of color and 60 percent female. b.

Leadership challenges of nonprofits

Leadership in nonprofits is the intermediary between donors and recipients (Figure 7.5). Their focus is, more than other organizations, on integrity, trustworthiness, and collaboration. Because of their flat structure and limited resources, many nonprofits have trouble recruiting, training, and retaining the leadership they need. They therefore face a crisis in leadership with a significant shortfall in qualified leaders.

Leadership Question Revisited Although leading involves the same basic processes of taking care of task and taking care of people no matter what the level and the setting, leaders at different levels and in different sectors need different types of skills and strengths. Connecting with followers is always important, as are competence and knowledge of the task at hand. In all cases, leaders need to understand their leadership context.

5.

Summary and Conclusions

Review and Discussion Questions 1.

What are the differences between micro and macro leadership?

The differences between micro and macro leadership focus on who the leader is, what the scope of leadership is, what the primary focus is, and what the effectiveness criteria are.

Who is the leader?

What is the scope?

Where is the primary focus?

What are the effectiveness criteria?

2.

Micro (Group) One person heading a group, team, or department

Small group, team, or department Internal Productivity; quality; employee satisfaction and motivation; turnover; absenteeism

Strategic (Upper Echelon) A person heading a whole organization with a variety of titles (president, CEO, COO); Top Management Team (TMT); governance body such as board of directors Entire organization External Stock prices and other financial measures; stakeholder satisfaction

What are the strategic forces that affect strategic leadership in organizations?

There are six strategic forces that upper-echelon leaders must pay attention to. They are the external environment and the structure, strategy, technology, leadership, and culture of the organization. Various strategic forces become important at different times, but leaders must pay attention to all of them as they .

117

lead their organization. The leader must also strive toward creating a fit among the strategic forces so that the internal factors such as culture and leadership support the demands that come from outside the organization.

3.

What is the role of the upper echelon in managing the strategic forces in the formulation and implementation of strategy?

Upper-echelon leaders formulate the strategy of organizations in cooperation with other top level leaders and the top management team and they are then responsible for implementation of the strategy throughout the organization. There are several internal and external factors that moderate the power, discretion, and the impact of leaders on both formulation and implementation of strategy.

4.

Provide examples for each of the moderating factors on the impact of leadership in organizations.

External Environmental Factors

Environment uncertainty Type of industry Market growth Legal constraints

Internal organizational factors

Stability Size and structure Culture Stage of organizational development Presence, power, and makeup of TMT

5.

What are the major themes that are used to describe upper-echelon leaders?

The research on the characteristics of upper-echelon leadership falls into two categories: Challenge-seeking: The degree to which a leader seeks challenge, is a risk taker, and is open to change and innovation is one of the key characteristics of upper-echelon leaders. This characteristic has the most impact on the way a leader formulates the strategy of his/her organization. At one end are leaders who seek challenge and are innovative, at the other end are leaders who are risk averse and uncomfortable with change.

Need for control: Need for control is the second characteristic of upper-echelon leaders and includes degree of delegation, participative leadership, and encouragement of and tolerance for diversity of form and opinions. This characteristic has the most impact on the internal culture and structure of an organization. High-control leaders push for uniformity and control, whereas low-control leaders allow flexibility and openness.

6.

Describe each of the four strategic leadership types. Provide examples of each type.

The need for control and the degree of seeking challenge are combined to yield four distinct strategic leadership types. They are: High-control innovator (HCI): HCIs are challenge-seekers who have a high need for control. They select high-risk, innovative strategies while creating centralized structures with strong cultures.

Status quo guardian (SQG): SQGs are challenge-averse and need high control. They select strategies that are tried and true and maintain high control over their organizations.

Participative innovators (PI): PIs seek challenge and innovation in their strategies while creating a loose, open, and participative culture and structure inside their organizations.

Process manager (PM): PMs allow for openness of culture and structure while avoiding risky and innovative strategies.

7.

How do culture and gender affect strategic leadership?

.

118

There is limited research about the role of culture and gender in strategic leadership. However, there is some indication that culture may have an impact on strategic leadership type. Using Trompenaars’ dimensions, an analysis of the potential impact of culture using the example of French top executives is presented. Hierarchy, elitism, and focus on intellectual achievement are partly attributed to the French cultural value of high power distance. Similarly, in spite of limited empirical research regarding the effect of gender, anecdotal and case studies suggest that many female executives use a more participative style.

8.

Describe each of the processes used by leaders to influence strategic forces in their organizations. Which of the processes is most important? Why? Leaders use various processes to influence their organizations. These include: • Direct decisions regarding all organizational factors including strategy, mission, culture, and structure is one of the most obvious ways in which upper-echelon leaders impact their organizations.

• Control over resources and rewards provide upper-echelon leaders with considerable opportunities to shape their organizations.

• Setting decision standards and behavioral norms and modeling of certain styles and actions are indirect but still powerful means for upper-echelon leaders to impact the organization.

9.

What is the upper echelon’s responsibility in organizational actions and performance?

Upper-echelon leaders have considerable power and privilege to lead their organizations. With such power comes considerable responsibility for members of the organization and, some would argue, for external constituents as well. However, increasingly, upper-echelon leaders are not held accountable for their actions or for their organization’s performance. There are many instances of leaders being rewarded handsomely while their organization performs poorly. The examples of outright fraud and ethical violations also suggest that many leaders are not held accountable.

Although organizational performance should be one of the primary determinants of the compensation of upper-echelon leaders, there are many other factors that determine the compensation.

They include: firm size, industry competition, CEO power and discretion, the extent of internationalization, and high stress and instability.

For the benefit of organizational and social functioning and well-being, it is essential that the tremendous power, influence, and status of CEOs be accompanied by accountability and responsibility to their various constituents. Such accountability exists on paper but is hardly ever executed. The power and impact of upper-echelon leaders are undeniable. Their credibility and ability to further affect their organizations, however, can increase only with more accountability.

10.

What are the unique characteristics and challenges of nonprofit leadership?

Nonprofit organizations have the following characteristics: • They operate without profit. Although nonprofit organizations charge for services or membership and many generate and use considerable sums of money, all the funds are reinvested to support the operations of the organization. Many nonprofits are highly “profitable”; however, all excess funds are reinvested to achieve their mission.

• They have a public service mission. The primary mission of a nonprofit organization is to serve the public good, whether it is health care (hospitals), education (schools and universities), churches, community improvement, or foundations with a broad purpose.

• They are governed by voluntary board of directors. As opposed to business organizations that have paid board of directors, the governing boards of nonprofits are staffed by volunteers with a stake or interest in the mission of the organization.

• They are funded through contributions. Whereas charging fees is a source of revenue for many nonprofit organizations, their primary sources of funding are contributions, grants, and donations from individuals, government agencies, and other foundations.

.

119

Nonprofits also face unique challenges: • Leadership is often expected to lead in a collaborative and trust-based manner which may not always fit the situation.

• There is a heavy burden on the leadership to act with integrity and accomplish the public mission.

Leaders are expected to embody the self-sacrifice that their organizations often support.

• Leaders play a difficult role of intermediary between donors and recipients. The leader guides the organization to allocate the resources, such as donations or grants, to various receivers turning the resources that are trusted to the organization into social good.

• The recruitment, training, development, and retention of future leaders is a particular challenge.

Without the profit motive and with often limited resources, nonprofits are challenged in attracting and preparing the leaders they need in the numbers they need.

.

120

The Leadership Challenge: BOD and CEOs This brief challenge presents the highly complex issue of the relationship between the board of directors and company CEOs. The issue of corporate governance is one that students are likely to have or will encounter when they take a strategic management class. The focus is on CEO accountability. Many current business examples (e.g., Enron and Xerox) can be used to illustrate the complexity of these concepts. Issues students should consider include: • The importance of a cooperation and collaboration between the board and the CEO. This need for harmony and collaboration has prompted CEO involvement in the selection of the board.

• The need to balance the board with members nominated by different constituents including the upper management of the company.

• The fiduciary duty of the board and the CEO toward stockholders in the case of public corporation.

• The lack of ideal solution and the importance of reaching a workable balance and constant reevaluation and renegotiation.

.

121

Chapter 7 Experiential Exercises Exercise 7.1: Understanding the strategic forces This exercise is designed to help students understand the role of leaders in managing the six strategic forces of environment, strategy, culture, structure, technology, and leadership presented in the chapter.

The choices upper-echelon leaders make regarding which of the six to emphasize and how to manage each depend to a great extent on the leader’s personality and background. The leader’s choices, on the other hand, have a profound impact on organizations.

Total time: Minimum 30 minutes preparation; 5 minutes per group presentation.

Materials needed: Paper and pencil; use of board or flip chart.

After reading the scenario, assign students to groups of 3–5 to complete the worksheet and make a recommendation regarding their choice of new principal.

Worksheet Sample Strategic Forces Environment Strategy

Culture Structure Technology Leadership

J.B. Davison Defined primarily as school board and parents Focus on basics (reading, writing, math, and discipline) Tight controls, paternalistic Centralized, formalized Likely not major focus Authoritarian; control-oriented

Jerry Popovich Defined broadly to include community Focus on community partnerships including parents and businesses Open Fluid/organic Major focus Participative

Discussion items 1.

How are the two candidates different?

Davison’s orientation to education is traditional with an emphasis on the basics and on discipline. His education and background are also traditional. Popovich’s approach is more focused on community and is likely to be more creative. Her background with computers and industry is less typical of a school principal. They are both well qualified for the job.

2.

What explains the differences between them?

The factors that explain the differences are: • Their age: Davison is 15 years older than Popovich and almost from a different generation • Their educational background: Davison is more traditional • Their gender: Popovich seems to practice the interactive leadership often attributed to female leaders 3.

The choice

Both candidates are good choices for the job. It is important for students to understand that there is no right choice. Whom each group picks depends on how they view the situation at the school. Each candidate brings a unique and different set of skills. Their approaches are very different. Davison’s may have a quicker response whereas Popovich’s approach is likely to be more long term. The quick response from Davison’s approach may not provide long-term solutions, whereas Popovich’s approach may not have a chance to work without quick solutions.

Overall: The brief scenario provides a good mechanism for students to analyze the impact of upperechelon leaders. The major theme for this exercise is to realize that there is no right answer and to understand the consequences of the choice that is made.

.

122

 Course Assignment This exercise can be used as an assignment for the course. The mini-case can be analyzed and students can be asked to present their recommendations and justifications.

.

123

Exercise 7.2: Your organization This exercise is designed to draw students’ attention to the result of an upper-echelon leader’s influence.

When using the vignettes presented at the end of the chapter, it is most effective if students rate the organization prior to the discussion of strategic leadership types. The discussion and predictions regarding the leader’s strategic type should take place after coverage of the topic in class.

Option 1: Ask students to rate their own organization, department, or team. This option is most effective with students with work experience.

Option 2: Provide students with the cases at the end of this chapter and ask them to rate the organization and leaders described in the cases. This option is most effective with students with limited work experience, or as a practice for rating their own organization.

Total time: Minimum 15 minutes for Option 1 (5 minutes for rating, 10 minutes for discussion); minimum 25 minutes for Option 2 (15 minutes for rating, 10 minutes for discussion).

Materials needed: Paper and pencil In-Class Discussion: Option 1 If students have rated their own organization, their ratings and their predictions regarding the leader’s strategic type can be used as a basis of discussion of the chapter. Students can also be assigned to small groups of 2–3 to predict one another’s leader’s style based on the organization rating.

Case Solutions for Option 2 Culture Southern Loose and fluid; Many State University sub-cultures co-exist Chip Factory

Northern Lights

D.C. Medical

Tight controls; no tolerance for differences; one way of doing things Tight controls; no tolerance for differences; one way of doing things Loose and fluid; Many sub-cultures co-exist

Structure Decentralized

Centralized; formalized; high control

Centralized; formalized; high control

Decentralized

Leadership Process manager; Low need for control and challenge averse High-control innovator; High need for control and innovative Status quo guardians; High need for control and challenge averse Participative innovator; Low need for control and innovative

 Course Assignment This exercise can be used as an assignment for the course. Students can be asked to either provide a description of their own organization or use one or more of the cases at the end of the chapter to do a case analysis of the organization, its culture, structure, and leadership.

.

124

Exercise 7.3: Influence processes This exercise is designed to help students identify the processes that upper-echelon leaders use to impact their organization and most particularly its culture. The three vignettes provide simple case studies of the different processes used. The exercise should be used after discussion of the processes described in Chapter 10; it can be used as either a group or as an individual exercise.

Total time: Minimum 15 minutes per case Materials needed: Paper and pencil Case Solutions J.C. Green Selection of replacement

Direct decisions Allocation resources Reward system

Leslie Marks Work assignments and location her own office

of

Selection of other leaders Role modeling

Joseph Hadad Compensation system Based on performance

Reward for intelligence, wit, and analytical skills Choice of Stanley Wang Running

Focus on internal promotions Open door; office moved to first floor; informal dress

New compensation and benefit system Based on performance Focus factors

on

financial

 Course Assignment This exercise can be used as an assignment for the course. Students can be asked to analyze, compare, and contrast the influence processes used by the three leaders.

.

125

Self-Assessment 7.1: What is your strategic leadership type?

This exercise is a self-rating based on the four strategic leadership types presented in the chapter. Students can also use the scale to rate their organizational leaders. The quadrants are used to place students in one of the four categories.

High Challenge Seeking 15

High Control 15

0

Low Control

0 Low Challenge Seeking

.

126

Leadership in Action The Leadership at Procter & Gamble Case summary P&G is one of the top consumer good companies in the world. Under the leadership of A.G. Lafley from 2000 to 2009 the company transformed itself and maintained a strong market position. His carefully groomed successor Bob McDonald took over in 2009 when Lafley retired, but was not received well causing the board of directors to call Lafley out of retirement in 2013 to once again head the company. Lafley is known for quiet determination, decisiveness, a soft-spoken style, and focus on the customer and the product. Throughout, his messages have been simple and repetitive making sure everyone understood the importance of the customer. Although P&G has very well-designed succession plans, McDonald’s departure leaves the company without an obvious leader after Lafley leaves.

Additionally, Lafley is now working with one of the most powerful board of directors in the world, many of whom face considerable challenges in their own organizations.

1.

What strategic forces impact P&G?

All the strategic forces presented in Figure 7.1 impact P&G. Particularly, the changing environment and competition, and new technology have forced the company to look for new products and new markets.

Internally, the culture of the company played a significant negative role in preventing the necessary changes. Lafley was instrumental in changing the culture and focusing it on the customer. Changes in the structure, toward teams and decentralization, have further supported the new strategies. Leadership has played a key role. Lafley’s leadership brought stability and hope. McDonald had a particular focus on leadership, teaching it to others and practicing what he preaches. Lafley is now once again charged with reviving the company in an increasingly competitive environment and has the added challenge of grooming a successor, once again.

2.

What are the factors that affect the leaders’ discretion?

P&G is a huge global conglomerate that faces constant uncertainty and a need for market growth. While the culture is well set, it also is in need of continuous revitalization given the maturity of the organization. In addition to these internal and external factors that affect the leaders’ discretion, the presence of a very powerful BOD with many prominent members is a big challenge for the leaders.

3.

What are the key elements of Lafley’s style?

Laflely, like most of P&G’s leadership, is a long-time company insider. He is known to be understated and quiet with a passion for focusing on the customer. He is also highly decisive and strong but not flashy. Lafley encouraged the use of teams, decentralized decision making, and encouraged increased participation. His message was simple; he used dramatic symbols to make his point; he was a careful listener; and he provided a clear focus. He seeks innovation, but has a relatively low need for control, placing him in the PI category.

.

127

Your Organization: Cases Southern State University The College of Foreign Languages at Southern State University has 15 full-time faculty and 4 support staff. The College offers courses in French, Italian, Spanish, German, Japanese, and Mandarin Chinese.

Many of the faculty teach in more than one language program, and they are not divided into the typical departments. More than half the faculty are tenured. The rest are at various career stages. The atmosphere is generally collegial. The faculty associate with those who teach similar classes, and it appears that everyone is left alone to do their “own thing” as long as the students are taken care of and the quality of instructions stays high.

Most decisions are made by faculty committees, and the dean, Robert Hunt, is very supportive of shared governance. He has been dean for seven years and is well-liked. For the past three years, there has been much debate among the faculty regarding computerized language instruction. Several faculty members have been very vocal in asking the dean’s support to write grants to obtain the necessary equipment and training. Although the dean has not voiced his disagreement, he appears to be siding with several of the more senior faculty who are strong proponents of traditional language instruction and appear to be “computer phobic.” Several other issues regarding changes in tenure and promotion procedures and criteria and curricular changes have also been at the dean’s desk for more than a year after having been approved by faculty committees.

The Chip Factory The Chip Factory is an entrepreneurial success story. The small company has become famous throughout its Northwestern home state for the high quality cookies and cakes and the growth in sales has been phenomenal. Since its creation four years ago, the one Chip Factory store has grown to 28 throughout the state, and there is much talk about franchising the operation to support the growth. The stores are very cheap to operate. Each needs three to five low-skill employees, and two supervisors who are trained for one week at the mother store by the owner and her husband. They are taught everything they need to know, from how to dress (they all wear uniforms), to how to clean the stores, how to talk to customers, how to arrange the display, and so on. The cookie and cake secret dough and ingredients are shipped three times a week to all stores and require simple mixing and baking.

Almost every month, the stores offer new flavors and new goodies ranging from special seasonal items to novelty containers and gourmet coffees. Most of the new items are very successful, and they are regularly replaced. All employees receive thorough training on how to prepare and present the new items, and very strict quality control is maintained through regular spot inspections, and a variety of awards are handed down by the owners. The employees are generally high-school students who are attracted to the flexible hours and the better than average pay.

Michelle Gerard and her husband, Alberto, are the sole owners of all the Chip Factory stores.

Michelle is responsible for all the recipes and the training. Alberto runs the other business aspects including managing the three quality-control inspectors.

Northern Lights Northern Lights utilities is one of two major utility companies in a three-state region in the Midwest. In spite of the changes in the industry and the increasing competition as a result of new deregulation, the publicly owned company continues to be successful as it has been for the past 35 years. The company is known for its performance-based incentive system that focuses entirely on monetary rewards for employees and managers. The system has been in place for almost the life of the company and has been very effective. The turnover rate is considerably below industry averages. As a result, the average tenure of employees and managers is more than 10 years. All of the managers are promoted from within, and most have come up through the ranks with company-supported education. Productivity is high, and profits have been good.

The organization has a strong family atmosphere. In spite of its size, most people know one another and family members by name. The president, Thomas Wysocki, has also come through the ranks. He is a “company man,” and both his sons also work for Northern Lights. Whereas many of the

.

128

company’s competitors have ventured into acquiring other companies and new industries, Northern Lights has stuck to its core business. Their growth has been due to the growth of their region.

D.C. Medical As a result of the major changes in the health-care industry, D.C. Medical was divested by a major hospital that owned this out-patient clinic. Instead of risking shut-down, the employees and managers of the clinic decided to buy their own organization. Three years after the buy-out, the employee-owned clinic is thriving. Its 20 physicians and 42 staff are known for quality, low-cost health care. Quality and concern for their patients are the common threads for all the employee-owners who are managing the clinic with the help of their administrator, Amy Hidalgo, one of the few people who is not an owner.

The employees have organized themselves into cross-functional teams that run the different departments and report to Hidalgo. The employees see Hidalgo as the “obstacle remover.” Her role is to obtain resources and facilitate providing quality health care. She has focused much of her attention on external relations and marketing, which are her strong points. She has developed a number of very successful P.R. campaigns and has established partnerships with several businesses. The various teams have been very successful in running the facility. Each department has come up with many new procedures to address their clients’ needs leading to considerable success for the clinic.

.

129

PART III

LEADING

Chapters 8, 9, and 10 focus on key aspects of leading people and organizations including leading teams and change and developing leaders.

.

130

CHAPTER 8 LEADING TEAMS __________________________________________________________________________________ Chapter Overview The chapter tracks the evolution of participation in leadership by presenting the situations that make participation desirable and outlining the benefits and disadvantages of employee participation.

Delegation is discussed as an application of participation concepts. The benefits and steps to proper delegation are presented. The chapter ends with a focus on the current use of teams in organizations and its effect on leadership roles. The concepts of self-managed teams and self-leadership are presented as current forms of formalized participation in organization. The chapter has a strong cross-cultural focus because the success of participative management depends to a great extent on cultural values of collectivism and power distance.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Understand when and why participation should be used to improve leadership effectiveness Explain the benefits and provide guidelines for delegation

✓

Apply the use of various types of teams and self-leadership

✓

Lead teams effectively and manage and avoid team dysfunctions

✓

✓

THROUGH FEATURES, TABLES, and FIGURES Figure 8.1 Table 8.1

THROUGH EXERCISES

Table 8.2 Table 8.3 Leadership Challenge: Who gets the project Table 8.4 Leading Change: Google Applying What You Learn: Using Sports Team In Management Leadership in Action Case: Whole Foods Figure 8.2 Figure 8.3 Table 8.5 Figure 8.4 Figure 8.5

Exercise 8.1 Self-assessment 8.1

Exercise 8.2 Self-assessment 8.2

Chapter Outline The Leadership Question What are the factors that make the implementation of teams so challenging for many leaders? What can be done to improve the situation?

1.

Participation and teams: Benefits and criteria for use

a.

Benefits of participation and teams

This section discusses how organizations and leaders can use participation (Figure 8.1) and the potential benefits it can have. b.

Criteria for participation

Table 8.1 outlines the criteria for using participation. Task complexity, employee commitment, organization readiness, and task characteristics are some of the relevant criteria.

.

131

c.

The role of culture

The key role of culture in the use and success of participative management is discussed while pointing out that high power distance and collectivism have a great impact on the leaders’ use of participation as a management tool.

2.

The issue of delegation

This section provides a detailed description of the advantages and disadvantages of delegation as a leadership tool. a.

Benefits of delegation

The benefits of delegation include: Freeing up the leader’s time, providing employees with growth opportunities, allowing them to be involved in tasks, providing the leader with opportunities to observe employees, and increasing employee motivation and satisfaction. b.

Guidelines for good delegation

The steps to proper delegation are presented in Table 8.2. c.

Why do leaders fail to delegate?

The factors that cause many leaders to fail to delegate tasks and responsibilities to their followers are presented in Table 8.3.

3.

Evolution of participative management: Teams and self-leadership

The use of teams as a formal structure to encourage participation in decision making is discussed.

Leading Change Google presents the case of Google which aims to be the happiest place to work, not just for the sake of employee satisfaction, but because the company has determined that keeping employees engaged and satisfied is essential to its effectiveness and performance. By providing a fun, pleasant, and highly engaging work environment that includes shops, terraces, play areas, and gourmet free food, and removing physical barrier for cooperation and teamwork, Google encourages its employees to work and play hard and cooperate. Extensive monitoring and measurement assures that the various changes and activities are effective. a.

Characteristics of teams

Table 8.4 summarizes the difference between groups and teams. Commitment to common goals and procedures, shared responsibility and leadership, and synergy are key elements of teams. b.

Self-managed teams

Elements of self-managed teams are presented. These include: the power to manage their own work, not having an outside manager, coordination and cooperation with other teams, and internal leadership based on facilitation.

Applying What You Learn: Using a Sports Team Model in Management The sports team model can be used to improve team management. Specifically, leaders should: encourage both cooperation and competition, provide early wins, break out through losing streaks with positive thinking, take time to practice, keep membership stable, and review performance. c.

Self-leadership

.

132

Super- and self-leadership are presented as one of the applications of participative management in organizations. In team environment, the need for leadership is reduced. Therefore all team members should be encouraged to become self-leaders. Self-leadership includes the following elements: developing positive and motivating thought patterns, personal goal setting, observation and selfevaluation, and self-reinforcement.

Strategies for the development of self-leaders include: listening, asking questions, sharing information, encouraging independence, encouraging creativity.

4.

Leading teams effectively

a.

Size of the team

Size is one the structural factors that can affect the effectiveness of a team. Leaders should strive to keep teams small enough to allow members to interact easily without creating dysfunctional subgroups. b.

Composition of the team

Selection of members is another key factor. The issue of group homogeneity or heterogeneity is key (Figure 8.2). c.

Role of leaders in a team environment

The new roles of leaders in a team environment are presented (Figure 8.3) and the stresses and obstacles associated with the new roles are discussed. A cultural analysis of teams is presented by focusing on the U.S. and Australian individualism cultural value as the basis for the new concept of collaborative individualism that is suggested to replace the eastern-based concept of cooperative and harmonious teams.

What do you do? presents the case of forming a team with only top performers to address a challenging task. Although it seems logical that the best and brightest are likely to perform well when all put together, it is not necessarily the case. Issues of size and composition, and creating diversity on a variety of dimensions including expertise, strength, and perspective are also essential. Additionally, teams can be effective only if members work well together. Simply putting together high performers does not guarantee that they can work well together. d.

Managing dysfunction in teams

Table 8.5 summarizes the four typical dysfunctions that teams face.

Groupthink is one of the most serious dysfunctions that teams can face. Cohesive teams strive for agreement at the expense of critical evaluation and creative discussions. The antecedents, symptoms, and consequences of groupthink are presented in Figure 8.4 and solutions are presented.

Free riders are members who benefit from the team without contributing. They can severely impact the team’s cohesion and effectiveness.

Negativity and bad apples can quickly sap a group’s motivation and reduce its performance.

Lack of cooperation and trust is a key factor in poorly performing teams. e.

Helping teams become effective

In order for teams to be effective they must be created with a real purpose in mind, be empowered to take action, and be supported by the organization. To make teams effective, leaders must continuously monitor them and act quickly when problems and dysfunctions occur. Leaders must help the group to develop trust (Figure 8.5). Additionally, teams require special training to become effective. The training should include: team building, cross training, coordination training, self-guided correction, and assertiveness. The importance of building trust and the elements that lead to trust in teams are presented.

.

133

Leadership Question Revisited Although teams and participation can be effective tools when used in the right context, they should not be overused. To succeed and be effective, teams must be managed well and supported through training and proper leadership.

5.

Summary and conclusion

Review and Discussion Questions 1.

What are the factors that determine the use of participation and what are the potential benefits and disadvantages of participation?

The factors that determine the use of participation are: task complexity, employee commitment, organization readiness, and task characteristics. Participation is not a cure-all and does not always constitute the best approach. Organizations vary in their use of participative management and the degree to which they use teams.

Participation in decision making can have positive impacts on employee morale, performance, and reduce turnover and absenteeism. However, participative management and teams can also provide some challenges that include needing more time and dysfunctional teams.

2.

How does culture affect an organization’s ability to implement employee participation?

Collectivism can have a strong impact on the use of participation by the leader and how well it is accepted. Cultures with a strong collectivistic value tend to find team structures easier to use while individualistic cultures may find them difficult. Additionally, power distance also affects how well participation is accepted. In high power distance cultures, participation and empowerment may not be easily implemented. In more egalitarian cultures, employees and leaders find participation more comfortable.

3.

What organizational strategies can be used to help leaders delegate more often and more effectively?

As with any skill, delegation can be taught and developed in leaders. The benefits of delegation include: • Freeing up the leader’s time for new tasks and strategic activities • Providing employees with opportunities to learn and develop • Allowing employees to be involved in tasks • Allowing observation and evaluation of employees in new tasks • Increasing employee motivation and satisfaction Organizations and leaders should follow these guidelines in implementing delegation: Delegate, do not dump Clarify goals and expectations Provide support and authority

Monitor and provide feedback Delegate to different followers

Create a safe environment Develop your own coaching skills

Delegate both pleasant and unpleasant tasks; provide followers with a variety of experiences.

Provide clear goals and guidelines regarding expectations and limitations.

As a task is delegated, provide necessary authority and resources such as time, training, and advice needed to complete the task.

Keep track of progress and provide feedback during and after task completion at regular intervals.

Delegate tasks to those who are most motivated to complete them as well as those who have potential but no clear track record of performance.

Encourage experimentation; tolerate honest mistakes and worthy efforts that may fail.

Take workshops and training classes to assure that you have the skills to delegate.

.

134

4.

Compare and contrast groups and teams. Provide an example of an effective team. What are the elements that contribute to its success?

The following differentiates between groups and teams: Groups Members work on a common goal.

Members are accountable to manager.

Members do not have clear stable culture and conflict is frequent.

Leadership is assigned to single person.

Groups may accomplish their goals.

Teams Members are fully committed to common goals and a mission they developed.

Members are mutually accountable to one another.

Members trust one another and team enjoys a collaborative culture.

Members all share in leadership.

Teams achieve synergy: 2 + 2 = 5

Having a common goal and developing trust are key to the success of teams, as are the right types of training and being empowered to work on meaningful tasks.

5.

What is the difference between delegation and implementation of self-managed teams?

Delegation is an age-old management tool that allows for the development of followers and reduction of the leader’s workload. Team-based organizations and self-managed teams are relatively new and go hand-in-hand with the implementation of participative decision making and empowerment.

In delegation, leaders and managers retain responsibility and authority for all activities. While followers are assigned tasks, the manager continues to have full responsibility for the outcome.

Additionally, the manager provides goals, guidelines, monitors activities and results, and so forth. In self-management teams, the responsibility and authority rests with the team itself as does the goalsetting and monitoring. Self-managed teams do not need a manager to oversee their activities. They manage their own work, coordinate with other groups and lead themselves often through facilitative and shared leadership.

6.

What are the steps to self-leadership?

Self-leaders are those who: • Develop positive and motivating thought patterns. Individuals and teams seek and develop environments that provide positive cues and a supportive and motivating environment.

• Set personal goals. Individuals and teams set their own performance goals and performance expectations.

• Observe their behavior and self-evaluate. Team members observe their own and other team members’ behaviors and provide feedback and critique and evaluate one another’s performance.

• Self-reinforce. Team members provide rewards and support to one another.

Some of the steps leaders can take to become self-leaders and encourage self-leadership in others are to: listen more; talk less; ask questions rather than provide answers; share information rather than hoard it; encourage independent thinking rather than compliant followership; and encourage creativity rather than conformity.

7.

What are some typical dysfunctions that teams may face? What is the role of the leader in managing them?

Teams face many challenges. Primary ones include: developing groupthink, presence of free-riders, negativity, and lack of trust.

.

135

Groupthink develops when team members’ desire for cohesion overrides their ability to think and evaluate issues critically. Team members strive to get along, reduce conflict, and keep their membership in the group. When cohesive groups face a complex situation, they insulate themselves from outsiders and fail to consider alternatives instead reaching for quick agreement that protects the group sense of cohesion. A key antecedent of Groupthink is directive leadership that further encourages quick agreement. Once these conditions are in place, groups that fall prey to Groupthink show a number of symptoms including the illusion of invulnerability and unanimity, collective rationalization, selfcensorship and pressure on dissenters. As a result, alternatives are not evaluated, the group strives toward quick agreement and fails to develop contingency plans, all leading to poor decision making.

Free Riders are people who are group members and benefit from their membership but do not contribute to the group. Free-riders appear to be more common in individualistic cultures. In collectivistic cultures, the sense of group and the need to be part of the group often prevents people from free-riding. In individualistic cultures, the focus on individual contribution reinforces the need to have equal and similar contributions from all team members, causing them to feel a sense of unfair advantage when facing potential free-riders.

Negativity and Bad Apples can quickly spread and damage the cohesion, effectiveness, or even ethical behavior of a team. One unhappy and unmotivated team member can have a disproportionate negative effect on her team. The “bad apples” are often focused on their own goals, uncooperative or domineering, and unwilling to contribute. Their constant complaining and lack of motivation draw the group down and prevent other team members for achieving the group’s goals.

Lack of Cooperation and Trust can be highly detrimental to teams. An effective team is one where members trust one another to work toward a common goal. Trust allows group members to safely experiment, learn, and make mistakes without fear of ridicule and retribution. Lack of trust greatly hampers the effectiveness of a team and prevents it from reaping benefits from having a team.

Team leaders and in some cases, outside leaders, have a great responsibility in monitoring teams to assure that dysfunctions do not occur and in addressing them when they do. In the case of groupthink, the presence of a strong leader can be a contributing factor, so leaders must keep their distance from the team to help prevent groupthink. In other cases, quick action from the leader is essential to address the problems.

8.

How has the role of leaders changed in team environments? What functions remain?

Self-managed teams rely on their leader for things other than the traditional goal setting, monitoring, and providing rewards. Those functions are achieved by the team members themselves. However, team leaders continue to play a key role in the success of the team. Specifically, they must provide various training including: • Team building to clarify team goals and member roles and set patterns for acceptable interaction • Cross training to assure that team members understand one another’s tasks • Coordination training to allow the team to work together by improving communication and coordination • Self-guided correction to teach team members to monitor, assess, and correct their behavior in the team • Assertiveness training to help team members express themselves appropriately when making requests, providing feedback, and other interactions among themselves.

The Leadership Challenge: Who Gets the Project?

Students are asked to make a delegation decision while considering the issue of in- and out-group.

Factors that they must consider include: • How was the original in-group formed and how can followers become part of the leader’s in-group.

.

136

• •

Reviewing the rules of delegation and objectively identifying candidates without the issue of ingroup. In the United States and many other Western cultures, the expectation is that the best person for the project should be selected based on objective criteria.

The information regarding a potential complaint should not interfere with the current decision.

However, the information is useful feedback for the leader to review his/her action and consider the potential for bias. The potential complaint provides an opportunity for review and self-analysis.

.

137

Chapter 8 Experiential Exercises Exercise 8.1: To delegate or not to delegate?

This exercise is a role play that demonstrates the elements of good delegation by providing students with various delegation options and requiring them to make a decision regarding which one of the subordinates should be delegated a task. The role play situation requires no prior preparation from the instructor or the students. Having students read the basic scenario prior to coming to class can help save some in-class time. The role play works best after class discussion of delegation in order to allow students to apply the knowledge they acquire through the text and the class.

Total time: Minimum 45 minutes in class (10–15 minutes preparation; 25 minutes role play; 10 minutes debriefing) Materials needed: Enough room for several groups to role play Role Play (35 minutes minimum; includes preparation) Instructions for each role and manager and observer worksheets are included at the end of this chapter.

The class should be divided in groups of five students each (one manager and four subordinates). All the names used in the role play are androgynous allowing for roles to be assigned to either male or female students. Students assigned to role play managers can use their own names.

Review the general scenario with the whole class reminding them of the role-play rules (used in Narian Bridges): • Stay in the general guidelines provided by your role • Improvise as needed while keeping goal in mind • Practice role for a few minutes alone or with your team • Provide rich role play so that others can respond to you • Be as creative as you feel comfortable; some of you will play your role more intensely than others; differences are normal The instructor then needs to review each role with students playing that role (i.e., all managers, all Frans, all Gerrys, etc.).

The role play takes place in two stages.

Stage 1: In the first stage the manager meets with the four subordinates to describe the new client and ask for ideas and input from the group. This provides an opportunity for team members to reveal as much or as little as they want about their role and their motivation and for the manager to have more information to make a decision on who gets the new account. This stage should last no longer than 10 minutes.

Stage 2: In the second stage the manager makes a selection alone, and prepares for the meeting with the selected employee using the manager’s worksheet in the textbook (5–10 minutes). He/she then meets with the selected employee to hand-off the account (5–10 minutes).

The other three employees will serve as observers in the meeting between the manager and the selected employee using the observer worksheet to evaluate the process. The selected employee should also complete the worksheet at the end of the meeting. Remind students that they will have to share their comments with the manager and the employee and that therefore they need to: • Focus on specific behavior • Be critical but constructive • Be professional (stay away from personal comments) Debriefing (10 minutes) The debriefing can be done either within the groups only or both in the groups and with the whole class.

Students are often interested in other managers’ choices and their reasons. The instructor may want to put the choices and the justifications on the board. Although the choices are often similar, depending on

.

138

how each student has played a role, there may be interesting differences. The evaluation of the delegation should be done in each group with the instructor’s help.

Overall: I have a used this role play a number of times in my classes. It works well and provides students with an experience with the nuts and bolts of delegation. As with many other role plays, students with some work experience handle the task better, although the setting provides a nice opportunity for practice for more traditional and younger students with limited or no managerial experience. The only drawback of the exercise is its length.

.

139

Exercise 8.2: Strategies for becoming a self-leader?

This exercise is based on the steps to self-leadership described in the chapter. It is designed as a developmental tool for students. It is most effective if students have a good understanding of selfleadership concept, so it should be completed after the class presentation on the topic.

 Course Assignment The exercise works very well as a homework/journal-type assignment requiring students to track their own behaviors and to perform basic goal-setting in regard to areas that they would like to change.

.

140

Self-Assessment 8.1: Delegation scale This self-assessment is based on the typical myths about delegation and allows students to evaluate their level of comfort and inclination toward delegation. It should be assigned as a homework assignment prior to class discussion on delegation and used as a tool to encourage student participation in such discussion.

Self-Assessment 8.2: Are you a team leader?

This self-assessment is based on the team leader roles presented in the chapter. It allows students to evaluate their general ability and level of comfort with the team leadership roles. It can be completed either before or after the discussion of team leadership.

.

141

Leadership in Action Whole Foods Case summary The case describes John Mackey, the CEO of Whole Foods and the company he has created. Whole Foods is changing the grocery business with its focus on nature foods, bright, well-decorated facilities, and outstanding customer service. Mackey founded the company in 1980 and has created a culture that reflects his own values of democracy and equality. A vegan, he emphasizes healthy foods, stays involved in his business, and practices a frugal lifestyle in spite of the considerable success of his company. Teams are the basis of all decision making at Whole Foods; they decided whom to hire, what products to carry, and even how to allocate raises. The company prides itself on its “Declaration of Interdependence” which affirms the importance of employees, customers, community, and all other stakeholders. Whole Foods implements John Mackey’s democratic ideals by sharing decision making, sharing profits with employees, making employee fun and happiness a priority, continuously training employees, and promoting from within to encourage and develop talent. The team-based, employeefocused culture and structure have allowed the company to thrive and grow.

1.

What are the elements of John Mackey’s leadership?

John Mackey has stayed true to his roots as, what one person describes, an anarchist. His focus on democracy, healthy foods, and the building of community permeates his company. Even with considerable financial success, he remains accessible and involved in his business. His deep-seated beliefs in equality and democracy have been translated into team-based approach to management. While he remains involved in the company, the decisions are made by teams at all levels. With a focus on employee empowerment and development, John Mackey appears to have instituted a sense of selfleadership at Whole Foods.

2.

What makes the teams at Whole Foods effective?

The teams at Whole Foods are an integral part of the culture and structure of the company. They are not an afterthought; they are the company. The complete involvement at all levels of decision making makes them central to the organization and allows them to be effective. The focus on interdependence among employees, customers, and other stakeholders further emphasizes the importance of cooperation and working together, further reinforcing the role of the teams. Overall, the teams at Whole Foods work well because their task is complex, the employees are committed and highly competent, and the leader and the organization are ready for empowerment.

.

142

To Delegate or Not to Delegate Instructions for the Team Manager You come to Sunshine with an MBA from a major state institution. Your undergraduate background is also in general business. After your BS, you started working for a major hotel firm and, as a result of several mergers they experienced, you have worked in different aspects of the hospitality industry for the past nine years. You managed to quit to go back for your MBA which you finished just over a year ago. Sunshine offered you a great opportunity just before you finished, and you joined the organization 18 months ago. You have really enjoyed your job, although it is the first time you are actually managing people. You are responsible for their growth and development, a responsibility you take very seriously.

Your boss is only interested in results. Like many others in the industry, Sunshine has been slow at adopting new management techniques. Many of its employees move up through the ranks without major formal training. You are actually one of the few outside managers but your career track is very attractive and you know that the only way to move up is to deliver results without problems. Your boss leaves you alone and expects no requests for help.

Your employees Fran Smith has been with Sunshine for 8 years and has been a strong performer. S/he is one of your trusted employees.

Gerry Narden has been with Sunshine for 5 years moving up through the ranks. S/he is very eager but makes mistakes.

Terry Chan has a 9-year tenure at Sunshine. S/he is a high performer and seems to like to do her/his own thing with personal contacts.

J.P. Ricci is the youngest member of the team with barely one year at Sunshine. S/he is very bright but not always very motivated.

.

143

To Delegate or not to Delegate For Managers: Decision and Meeting Worksheet

Who are you selecting? What are your reasons?

Plan the meeting during which you will delegate the task. What do you need to say? What areas do you need to cover? How are you addressing your employees’ needs?

.

144

To Delegate or not to Delegate Instructions for Fran Smith You have enjoyed working at Sunshine for 8 years now, but you are getting bored with the job. You have plans to go graduate school, but except for your current boss, not too many managers of the organization have higher-level degrees, so you are not sure that the organization would value it. You also have recently taken on several projects in your community that you are enjoying, and you have, as a result, started to reduce your involvement with Sunshine. You would like to talk to your boss about your loss of interest, but are afraid that it may affect your relationship.

-----------------------------------------------------------------------------------------------------Instructions for Gerry Narden You consider yourself one of Sunshine’s most dedicated employees. The organization has been very good to you since you joined 5 years ago, and you love your job. The career progression has been great, and you have dreams of some day running this place! You are eager to learn and not afraid to make mistakes. You have made some mistakes in your new job but are now getting the hang of it, and you are feeling very good about your performance and looking for new challenges.

-----------------------------------------------------------------------------------------------------Instructions for Terry Chan You have been a loyal Sunshine employee and a successful performer for 9 years. You were looking forward to becoming the manager of the team before they brought in the new boss, and you have had trouble getting over the resentment. By all accounts, you should have had the job! You have your own sources and your own clients, and you particularly are plugged into several major corporations that just bring you their business. You are not planning to help the new boss look good yet, but you are taking a wait-and-see position for now.

-----------------------------------------------------------------------------------------------------Instructions for J.P. Ricci You are still looking for something that would really turn you on, career-wise. You know you can do the job at Sunshine with your hands tied behind your back, and you have for the past year, but you have not found the right challenge yet. Things just have not been interesting enough. You really like the job and your colleagues, but you are just not sure that this is the right thing.

.

145

For Employees Observer Worksheet

What does the selected employee need to do a good job?

Evaluate the manager based on: 1.

Clarity of information about the task:

2.

Clarity of expectations regarding the task:

3.

What are the manager’s strengths?

4.

What could have been done better?

.

146

CHAPTER 9 LEADING CHANGE _________________________________________________________________________________ Chapter Overview The leadership factors in leading change in organizations are considered. Internal and external forces for change are presented, followed by a description of the types of change organizations and their leaders face. Lewin’s model for change and the process of planned changed is discussed. The reasons for resistance to change along with possible methods for overcoming it are explored. The key to leading change is providing a clear vision and developing an organizational culture based on flexibility, openness, and learning.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Identify forces for change and the role of culture in change Describe the types of change and apply Lewin’s change model and explain the change process

✓

Summarize the reasons for resistance to change and apply possible solutions

✓

Present the practices necessary to lead change including: • Creativity and innovation, • Changing the organizational culture • The role of vision and exemplary leadership • Creating learning organizations

✓

✓

THROUGH FEATURES, TABLES, and FIGURES Figure 9.1 Leadership in Action case: Best Buy’s almost transformation Table 9.1 Figure 9.2 Figure 9.3 Figure 9.4 Leadership in Action case: Best Buy (p. 306) What do you do?

Table 9.2 Table 9.3 Leadership challenge: Implementing unpopular change Leadership in action: Best Buy’s almost transformation Figure 9.5 Leading change: Mulally takes on Ford Table 9.4 Figure 9.6 Applying What You Learn: Change Agents and Peer Pressure (p. 298)

THROUGH EXERCISES

Exercise 9.1

Exercise 9.2 Selfassessment 9.1 Selfassessment 9.2

Chapter Outline The Leadership Question Change is hard and most people will resist it. Given this, should leaders simply push change through (get it over with) or should they take time, introduce things slowly, and give followers time to adjust?

1.

Forces for change

a.

Internal and external forces

.

147

Internal and external forces push organizations to change (Figure 9.1). External forces include economic, political, social, and demographic factors as well as other organizations and technological advances. Internal factors include the performance gap, which is the gap between expected and actual performance, new leadership, low satisfaction, new mission, and conflict within the organizations. The case of the FBI is introduced. b.

Culture and change

Culture at the national and organizational levels can affect how people and organizations manage change. Tolerance for ambiguity and perceptions of times are two cultural values that impact how people manage change.

2.

Types and process of change

a.

Types of change

Types of change include planned, unplanned, evolutionary, and revolutionary change (Table 9.1). Each type requires different types of actions from leaders. b.

Lewin’s model for change

Lewin’s force field model for change is presented (Figure 9.2) and a three stage process is described.

The three phases of unfreezing, changing, and refreezing are presented (Figure 9.3). Each stage is described with examples from 3M and Avon. The importance of the often-ignored unfreezing and refreezing phases is highlighted. c.

Process of planned change

Planned change typically follows a six-step process that includes recognition of the need for change, development of ideas, adoption of an idea, implementation, allocation of resources, and evaluation (Figure 9.4). The case of the FBI and a GM plant are presented as examples. d.

Dealing with unplanned change

Steps for managing sudden change are presented including creating a flexible organization, being proactive, rotating leaders, and experimentation.

3.

Resistance to change and solutions

Change, no matter how positive, leads to some degree of resistance and stress. a.

Causes of resistance

Causes of resistance to change fall into the three categories of organizational, group, and individual factors (Table 9.2). The example of Ford Motor Company is used to illustrate them.

What do you do? presents an example of a leader having to push through change that is not supported unanimously but needs to be implemented quickly. Even when there is little time and not much opportunity to prepare the team and establish the need for change (unfreezing), leaders can still seek to involve their followers in other stages. For example it would help to get input into how to do what is required to do, how to divide the task, how to minimize the negative impact, and so on. Any input helps in reducing resistance. In addition, the leader has to communicate extensively and as openly as possible with followers. b.

Solutions

.

148

The solutions for resistance to change need to match the various causes. Possible solutions include: education, participation, facilitation, negotiation, manipulation, and coercion (Table 9.3).

4.

Leading change: Creativity, vision, organizational learning, and organizational culture

Leaders have a variety of tools and methods available to them to implement change. a.

Creativity

Creativity, also called divergent or lateral thinking, is the ability to link or combine ideas in new ways.

It is a key factor in generating and implementing meaningful change. Leaders can put in place several processes to encourage creativity in their team or organization including: avoiding autocratic styles, an open organizational culture, encouraging a questioning attitude, and tolerating mistakes and experimentation. b.

Improvisation

Another related leadership factor in successful change is the leader’s ability to improvise, a process that involves creation of something spontaneously without specific preparation, but with considerable overall expertise and experience.

Leading Change: Mulally Takes on Ford presents the CEO of Ford who has changed the culture of the car manufacturer and has helped it remain profitable. He faced a classic case of inertia and complacent culture when he took over in 2006. Through communication, setting a new shared mission, structural changes, and a personal approachable style, Mulally changed the culture of the company and encouraged employees to be innovative. c.

Visionary and inspiration

The concept of visionary leadership focuses on providing a clear vision and inspiring followers as a key to successful change. In addition, followers must be empowered, given flexibility, and encouraged to cooperate.

A motivating vision is part of exemplary leadership that supports change (Figure 9.4). Such a leader sets clear standards, expects the best from employees, encourages the heart, provides personalized recognition, celebrates success, and role models desired behaviors. d.

Learning organizations

Organizations where people expand their capacity to create, where innovation and cooperation are nurtured, and where knowledge is transferred are learning organizations that are likely to handle change well (Table 9.4).

Several blocks to being a learning organization are presented (Figure 9.6). Organizations can avoid such blocks by remaining open to new ideas, developing local solutions, providing time for learning, and putting in place appropriate leadership. The example of 3M is presented. e.

Positive approach

The concept of positive leadership discussed in Chapter 6 is presented as an effective approach for leading change. Knowledge alone does not change behavior; rather having examples and role models that show a positive outcome can be used as a powerful tool to create and encourage change. f.

Changing organizational culture

Leaders have considerable influence on their organization. They can encourage change by communicating priorities clearly, being a role model, and allocating resources and rewards to support change. .

149

Leadership Question Revisited Although imposing change from the top and implementing it quickly is tempting and may provide short term and rapid results, it often creates backlash and resistance.

Investing time and resources to prepare and involve followers is more likely to be effective on a longterm basis.

Applying What You Learn: Guidelines for Change presents practical tips for changing organizations including clear communication, relying on change agents, involving people in the change process, being supportive, managing higher levels of the organization, and role modeling.

5.

Summary and conclusions

Review and Discussion Questions 1.

Describe the internal and external forces for change.

Organizations face pressure for change from both inside and outside. Internal factors include: low performance, new leadership, low satisfaction, new mission, and conflict. Low performance, also referred to as the performance gap, is the difference between expected and actual performance. Various changes are implemented to address the gap. New leadership from either inside or outside the organization is another factor that leads to pressure for change. Additionally, low satisfaction is likely to push organizations to make changes, as are a new mission or on-going conflict inside the organization.

External forces for change include economic and political changes. Additionally, as cultures evolve and social changes occur, organizations are often forced to change to address them. Demographic changes such as an aging population or a more diverse workforce further pressure organizations to make internal changes. Finally, technology and changes in an industry can force changes in organizations.

2.

What role does culture play in how people perceive change?

Culture can impact how leaders view change, either as an opportunity or a threat. Tolerance for ambiguity and the perception of time are two cultural values that impact how we view change. Not tolerating ambiguity and being risk averse, which are values in cultures such as Greece, Portugal, and Japan, can lead leaders to view change as a threat and look for ways to neutralize its impact. In other cultures such as the United States and Canada, the short-term orientation and tolerance for ambiguity leads leaders to manage change more easily and make adjustments as the need arises.

3.

Describe the different types of changes organizations face.

Type of Change Planned Unplanned Evolutionary Revolutionary or framebreaking 4.

Description Change that occurs when leaders or followers make a conscious effort to change in response to specific pressure or problem.

Change that occurs randomly and suddenly without the specific intention of addressing a problem.

Gradual or incremental change.

Change that is rapid and dramatic.

Explain Lewin’s model for change and its implications.

Lewin proposed that organizations face pressure for status quo and for change. When forces for change are stronger than those opposing them, the organization will move toward making changes. When forces for status quo are stronger, people will resist change. To implement change, leaders must either increase the strength of the forces for change or decrease those that resist it. Additionally, Lewin proposed that change occurs in three stages of unfreezing, change, and freezing. In the first stage, organizations prepare for change and understand the need for change. After change is introduced in the second stage, there must be a period during which change is allowed to freeze and settle down. Organizations often

.

150

focus on the second stage and ignore the first and third, not taking enough time to prepare for change or to support it once it has taken place. Successful change requires careful attention to all three stages.

5. step.

Present the six steps in the process of planned change and describe the role of leaders in each

The six steps are: recognition of the need for change, development of ideas, adoption of one or more ideas, implementation, allocation of resources, and evaluation. In the first three stages, leaders must prepare the organization for change (similar to Lewin’s unfreezing stage) and provide opportunities for as much input as possible to develop the best alternatives and get as much buy-in as possible. Once an idea is selected and implemented, leaders must support the change through allocation of resources such as training, time to learn, and financial rewards. Finally, the leader must support evaluation of whether the change has been effective and be ready to start the process over if the desired state is not achieved.

6.

What can leaders do to prepare their organizations to deal with unplanned change?

Actions that leaders can take to prepare for unplanned change also support change in general. They include: • Avoid becoming too formal, hierarchical, rigid, and inflexible.

• Infuse moderate amounts of uncertainty, unpredictability, and spontaneity into decisions to help prevent complacency.

• Stay on the offensive and be proactive with introducing new strategies, products, services, or processes.

• Replace and rotate leaders to bring in fresh ideas, methods, and visions • Experiment often with new methods, products, processes, structures, and so forth, to help 7.

Present the organizational, group, and individual causes of resistance to change.

Organizational Causes Inertia Culture Structure Lack of rewards Poor timing

Group Causes Group norms Group cohesion Leadership

Individual Causes Fear of the unknown Fear of failure Job security Individual characteristics Previous experiences

8.

Describe ways in which resistance to change can be reduced and explain when each methods can be used.

Method Education and communication: Provide information

Participation and involvement: Engage employees

When to Use When there is lack of information and fear of the unknown; in all phases of the change process When people do not have all the information or when they have power to block implementation; in all phases of the change process

Advantages Provide facts and once persuaded, people are less likely to resist

Disadvantages Time-consuming when a large number of people are involved

Lead to commitment and can provide richer alternatives and ideas

Timeconsuming; risk of inappropriate change being implemented

.

151

Facilitation and support: Understanding and various support

Negotiation and agreements: Engage parties who can block change

Manipulation and cooptation: Bypass resistance through promises

Explicit or implicit coercion: Impose change through authority and fear

9.

When people are resisting because of factors such as fear; during the change and refreezing phases When there can be winners and losers and groups and individuals have power; during the change and refreezing phases When nothing else works or other options are too expensive; during the change phase When there is no time and nothing else works; when others have power; use occasionally; during unfreezing and change

The only option when adjustment is the cause of resistance

Time-consuming and high-risk of failure

Relatively easy to implement; only option to balance power

Can be expensive, time consuming and lead to continued and further negotiation

Relatively quick and inexpensive

Can lead to mistrust and resentment

Can be fast and effective in short term to end resistance

Can lead to resentment and morale problems; only effective in the short run

Compare and contrast creativity and improvisation and explain their role in leading change.

Creativity is the ability to link or combine ideas in novel ways. Improvisation is creating something spontaneously without specific preparation. Both are essential in leading change. To encourage creativity, leaders must be open to participation, create flexible structures, have an open culture, encourage a questioning attitude, and tolerate mistakes. Improvisation can only happen with a combination of planned and unplanned activities and requires expertise and perspective on the situation.

Leaders and followers must understand a situation before they can improvise and be creative.

10.

What is visionary leadership and how does it relate to change?

Visionary leadership focuses on providing a vision to guide and inspire change. In addition to providing a vision, visionary leaders empower followers and express confidence that they can achieve high results.

They encourage flexibility and are open to change. Finally, they encourage teamwork and cooperation to implement change. Visionary leaders are those who challenge the process, create a shared vision, role model the change they want, enable followers to implement change, encourage and motivate followers, and celebrate successes at every stage.

11.

How can positive leadership support implementation of change?

.

152

Being positive is not going to prevent all resistance to change, but the leader’s optimism and passion can be infectious and encourage followers to weather the challenges of implementing change.

Additionally, leaders’ role modeling of desired behavior is also powerful.

12.

What are the elements of an organizational culture that support change, and what role do leaders play in developing that culture?

An effective way to implement successful change is to develop a culture that accepts change and is ready to learn. Such a culture is called a learning organization where people continually expand their capacity to create, where innovation and cooperation are nurtured, and where knowledge is shared and transferred throughout the organization. The elements of learning organizations are: Element Shared vision System thinking Mental models

Personal mastery Team learning

Description Using cooperation and openness to build a shared vision through a common identity and a common goal of the future that leads to commitment.

Understanding inter-relations and the invisible and visible bonds that connect people inside and outside the organization.

Being aware of stated and unstated assumptions and mental models that guide behaviors and decisions and developing new ones based on openness and cooperation.

Continually clarifying and developing personal visions and goals, and expanding skills sets and levels of proficiency.

Developing synergy and the ability to think and work together to question assumptions and build new processes.

Leaders play a key role in creating and supporting learning organizations by building an open and supportive culture that supports transformation and change. Being open to new ideas, encouraging followers to develop local solutions and providing time for learning and experimentation are part of the leader’s role in learning organization.

Additional leaders can take a positive approach that is optimistic and supportive. Rather than pushing change by providing more information and knowledge, a positive approach focuses on providing examples of successful change and its positive impact that encourages followers to adopt change.

The Leadership Challenge: Implementing Unpopular Change The challenge for this chapter presents a case of a manager who must implement several unpopular changes that he/she does not agree with and that come on the heels of other recent changes. There has been no input into the change and it is implemented top-down. None of the recommended processes for successful change in this chapter have been implemented. There has not been a period of unfreezing, although some of the changes may be appropriate, and there was little freezing last time change was announced.

The case is relatively typical of what mid-level leaders face in many organizations. They are charged with putting in places changes without much warning or input.

1.

How to approach the team?

The best strategy is presenting the facts clearly; give it to them straight. The plan required from upper management must be presented as it is. The team leader should not either defend or oppose the plan. It is important to retain “authenticity” without criticizing upper level decision making. The change is a “fait-accompli.” There is not much discussion besides venting, which should be allowed, but controlled.

The challenge now is how to move to implementation. This is an area where the team can have input.

Within the limits set by upper level leadership and by the situation, what can the team do to make this work? What are some strategies and processes they can implement? How can they reduce the negative impact? All these are areas of participation than can help reduce resistance and provide support within a cohesive team. .

153

2.

How much of your personal feeling should you share?

Authenticity and honesty are important factors; however, it is important to keep the information sharing to statements such as “I don’t like this much myself either” or “I know how you feel”. However, the team leader’s behaviors and reactions are role models for the followers. Therefore, she/he must present an optimistic and positive front to encourage the followers to accept and manage the change well.

Negativity from the leader is likely to feed into the team’s anger and be unproductive.

3.

What are some key actions?

• • • • • • •

Provide as much information as possible; ask your supervisor for information and share it with the group in a timely basis Seek training and resources for the group Allow some venting, but keep it focused and limited Empathize and encourage the group to focus on what it can do rather than what it does not like Provide as many opportunities for participation and input into the implementation as is possible Seek support for the group from HR if available Help the two members who are let go through team support, recommendations, emotional support, and through organizational support if available

.

154

Chapter 9 Experiential Exercises Exercise 9.1: Analyzing and Planning for Change The exercise encourages students to consider the steps in planned change in a systematic way. It is designed to familiarize them with those steps and teach them how they can be implemented to plan for change.

Time needed: 30 to 40 minutes for preparation; 2–5 minutes per group for presentation if used as an inclass assignment Materials needed: Paper and pencil; room for teams to meet Part I: Form teams and select a problem Students form teams of 4 to 6 members either as assigned by instructor or based on previously existing teams in class. Each team considers various problems that need change in their organization or other settings they are familiar with. They then select one of the team members’ “problem” as the issue for which they will plan a change process.

Part II: Define the problem The second step involves a careful definition of the problem. In this step, team members should consider all the different issues that may be involved with the problem and make sure that they have a common understanding of what the problem really is.

For example, if the problem is that two departments do not cooperate well, they should consider personal and organizational factors that may contribute to the lack of cooperation, the various internal and external people who are affected, the impact on performance, the physical setting, and so forth.

Another example would be poor performance of a sales team in a retail environment.

Considering the various employees, the context (e.g., time of year), the sales managers, the retail space, the products they sell, the types of customers they serve, and so on, can all be important in understanding the problem.

Careful problem definition will help the teams narrow their focus when planning for the change and assure that their plans provide a possible solution to the problem.

Part III: Plan for Change This section focuses on the actual implementation of the change and requires students to consider how to manage the unfreezing, change, and refreezing phases. This is a brainstorming process where they should be encouraged to consider as many issues and perspectives as possible rather than jump into quick decision and action plan. This part should take them the longest to complete as it involves multiple steps and consideration of many diverse factors.

Part IV: Presentation Each group provides a 2 to 5 minute presentation of the issue they chose to address and their team’s plan to implement a change to address the problem.

 Course Assignment This exercise can be used as a team assignment for the course by asking teams to identify a problem and present a plan for change to address the problem. The assignment can be as simple or as complex as an instructor chooses to make it. It has the potential to be a highly involved assignment, even requiring students to seek help and involvement from the organization, or it can be a simple hypothetical exercise to make them familiar with the steps in the process of planned change. Because of the potential complexity and the need to brainstorm, this is a team rather than an individual exercise.

.

155

Exercise 9.2: Creativity and Parallel Thinking—The Six Hats Methods This exercise is a highly engaging activity based on the work of Edward deBono. It teaches students a method for encouraging creativity that uses parallel thinking and exploring “what can be” rather than arguing. All of the group’s energy is focused on the same goal at any one time. It is time consuming, but well worth the investment in class time.

Time needed: 60 to 75 minutes; 10 minutes for preparation, 45 minutes for the group process, 15 minutes for discussion and debriefing.

Materials needed: Time keeping tool; paper hats of different colors can useful and fun.

1.

2.

Instruct the students to follow the directions in the exercise and select a topic Explain the meaning of each of the color hats and provide examples to assure that students understand each:

White Hat: Neutral and objective: Focus on objectivity, facts and figures. Ask questions such as: What information do we have? What do we know? Are there any data available on this? Are we sure this is a fact, not just an opinion?

Red Hat: Anger (seeing red), rage, and emotions: Focus on the emotional view. Ask questions such as: How does this make people feel? Why do people get so angry or happy?

Black Hat: Somber, serious, and cautious: Focus on pointing out weaknesses and problems. Ask questions such as: What are the shortcomings? What are the problems? What is the negative impact?

Yellow Hat: Sunny and positive: Focus on hope and positive thinking; look at the best possible outcome. Ask questions such as: What is the up side? What are the benefits and advantages? How can this benefit us?

Green Hat: Abundance: Focus on creativity and new ideas. Ask questions such as: What are the different ways of looking at this? What are some crazy approaches to this? What could we do if there were not limits or restrictions?

Blue Hat: Sky view: Focus on control, integration, and putting together of ideas from a broad perspective. Ask questions such as: What’s the view from 10,000 feet? How does it impact the overall system or organization? What’s the big picture?

3.

• • • • •

•

Review the rules with the students and insist that they follow them closely: Designate a facilitator who will keep track of time, direct the group to switch hats, reiterate their function, and remind everyone of the rules. The facilitator will use language such as “now let’s all put on our red hats” to transition from one hat to the other.

Always refer to the hat colors, not the function. For example, you can say “Let’s put on our white hats” not “Let’s look at the facts.”

Begin and end with the Blue Hat. At the beginning, it allows you to address general issues and what you are doing (i.e., reviewing the rules and deciding the order of the hats). At the end, it allows you to review and sum up.

You may put the other hats on in any order your group wants.

Keep your “hat on” when you are in a color mode. For example, if the group is wearing the green hat and focusing on creativity, members cannot decide in the middle of the green period to put on their black hats and discuss the weaknesses of the ideas being proposed. You can only switch hats when time is up and the whole group wears a different hat.

You can also give each person a minute or two to think when you start and when you switch hats. With the hats “on,” each member has about one minute to express his/her views under each color. The total amount of time will depend on the number of people in your group. For example, four people will take about 24 minutes to discuss an issue (6 x 4 = 24) + an extra 4

.

156

• 4.

minutes for the blue hat at the end + 6 minutes for reflection, for a total of 34 minutes (approximately).

Have fun!

Review and debrief

Review the process focusing on benefits and difficulties (what was easy, what was hard), what could have been done differently and on applications to real life.

Overall: This can be an engaging exercise. The biggest challenge students have is keeping to the theme of the hat and not arguing. If you have large groups, designating one facilitator who does not participate can be helpful.

.

157

Self-Assessment 9.1: Building Credibility Having credibility is suggested to be one of the central factors in effective change-oriented leadership.

This self-assessment is designed to allow students to evaluate their credibility and identify areas where their actions may be jeopardizing their credibility.

The first part includes a questionnaire based on elements of credibility identified by Kouzes and Posner. The second part requires students to identify areas where they may be weak and develop an action plan to enhance their credibility. Students should be encouraged to develop their action plan following the principles of good goal setting. The goals should be: behavioral, specific, measurable, achievable and reasonable, and have a clear timeline.

This is a very effective developmental exercise particularly for students who have some work experience.

 Course Assignment This exercise can be used as an assignment for the course by asking students to analyze the elements of their credibility and present an action plan to improve it.

.

158

Self-Assessment 9.2: Creativity Creativity is an important part of the ability to manage change. Creative people are open to change and new experiences and seek out moderate amounts of risk and challenge. Another component of successful creative people is discipline and organization. Many students are under the impression that creativity requires chaos and therefore see their own disorganization as a positive step toward being creative. However, research about creative people shows that they often maintain considerable order in aspects of their life that are not related to the creative expression. For example, writers will keep their office fully organized, maintain a strict routine and discipline, and keep order around them so that they are free from stress and can be creative in their writing.

This self-assessment should be assigned to be completed prior to class. Students having their score on each of the scales allows for a much richer learning environment.

It is important to stress that the self-assessment is meant to develop a student’s self-awareness.

This scale has not been scientifically tested and validated. It provides students with a general description of their behaviors and preferences.

 Course Assignment Students can be asked to describe and analyze their scores on creativity with a focus on identifying resulting strengths and weaknesses. Students should be reminded that the changing personality is not the goal, rather understanding should be their focus. They can also identify behaviors they may want to change, or actions they could take to become more creative. By developing increasing self-awareness, they can build on their strengths and compensate for their weaknesses.

.

159

Leadership in Action Best Buy’s Almost Transformation Case summary For several years, the electronic store Best Buy instituted a flexible work schedule for its headquarter staff and employees called ROWE (Results Only Work Environment). The program removed the time clock and the traditional necessity to be in the office from the workplace. Employees were evaluated based on their performance, the results they showed, and how well they met their goals rather than based on the time they sat at their desk or spent in meetings. Considerable improvement in productivity and morale indicated that the program was effective. The program was started by two mid-level HR employees and for several years implemented in various parts of the organization before top-level management was informed of it. However, Best Buy’s overall performance and sales lagged. Although there was no evidence that ROWE was to blame, the new CEO Hubert Joly revoked the program in 2013 citing the need to have a discussion about flexibility. With or without ROWE, Best Buy continues to struggle.

1.

What are the internal and external forces for change at Best Buy?

ROWE was started because of considerable employee dissatisfaction with lack of work–life balance which was the primary force for change. The availability of technology such as wireless access also made the change possible allowing employees to stay connected to their office and their work almost anywhere. Best Buy has been under pressure to improve productivity to stay competitive and respond to the changing needs of its market which includes many more women making the technology purchase decisions. The company had already implemented many other changes and therefore was used to change. Joly revoked ROWE at the heels of poor overall performance, although there was no evidence that the flexible schedule impact productivity negatively.

2.

How were the two changes (ROWE and its removal) implemented?

ROWE started in middle levels of the organization, implemented by employees and managers who had considerable input to customize it for their own needs. After several years of success and positive results, upper management was finally brought in to assure their support. After they approved of the program, it was then introduced to the whole company while still providing choices for various managers to either adopt the program or stay with the old systems. The productivity data and the testimony of the employees and managers who are on ROWE have been the main tool used to convince others of the need to implement the new system and to complete the unfreezing phase. Education is the primary tool used to overcome resistance to change.

The revocation of ROWE was a simple edict from the CEO with apparent support from the leadership team. No discussions, no employee input.

3.

What role did leaders play in the change?

When ROWE was implemented, the middle-managers were the ones who initiated and drove the change process. Upper management was only involved when the program showed results. Their support is of course essential to the success of the program. Many middle-level leaders, however, were still resisting the change process whereas employees have been much more receptive. However, the program and its implementation involved people at many different levels of the organization, leading to its eventual success.

In the case of the revocation, the leaders took on all the responsibilities and simply imposed a top-down change.

.

160

CHAPTER 10 DEVELOPING LEADERS _________________________________________________________________________________ Chapter Overview The elements of leader and leadership development are presented along with the factors involved in learning and the criteria for effective leader development programs. The methods used in developing leaders are discussed, compared, and evaluated. The role culture can play in leader development is explored and the overall effectiveness of development programs reviewed.

Chapter Objectives OBJECTIVES

THROUGH BASIC TEXT

Define the elements of leader development

✓

Explain the factors involved in learning Review areas that are addressed in leader development Discuss the methods used in leader development and the benefits and disadvantages of each

✓ ✓

Consider the role of culture in leader development Summarize the role of the person and the organization in effective leader development

✓

THROUGH FEATURES, TABLES, and FIGURES Figure 10.1 Leadership in action case: Developing leaders at SW Airlines Figure 10.2

THROUGH EXERCISES Selfassessment 10.1

Table 10.1 Figure 10.3

✓

Table 10.2 Table 10.3 Figure 10.4 Table 10.4 What do you do?

Leading Change: Howard Schultz Table 10.5

✓

Exercise 10.1

Figure 10.5 Applying What You Learn: Personal Development Leadership Challenge: Finding the right fit

Chapter Outline The Leadership Question How successful is leader development? What can we teach and can people really learn?

1.

Basic elements of leader development

Leader development focuses on ongoing, dynamic, and long-term change or evolution that occurs as a result of experience and on expanding a person’s capacity to be effective as a leader. Leadership development considers the overall organization’s capacity to be effective through its leadership. The levels of development are presented (Figure 10.1). a.

Factors in learning

Learning is defined as a relatively permanent change in behavior, knowledge, or skills that results from experience. Learning requires awareness and willingness to learn, capacity to learn, the right organizational climate, and exposure to the right experiences (Figure 10.2). It also requires persistence and practice.

.

161

b.

What is developed: The content

Leader development addresses various areas including: basic knowledge, personal growth, skills, creativity, and strategic issues (Table 10.1).

2.

Required elements of effective development programs

Factors that should be used to determine the effectiveness of a development program include: assessment, awareness, rich experiences, opportunity to practice, feedback and follow-up, support from the organization, and fit with the organization (Figure 10.3). In addition, an effective program should have clear goals, use a combination of methods, and conduct assessment and follow-up.

What do you do? presents the challenge of training a person to learn “soft” people skills. The first step is to clearly and directly discuss the issue with the employee and explain how this weakness in people skills can be an obstacle to his success and performance. The least costly method for training is having the person work with a mentor who is a successful senior inside in the company. The person’s success and tenure should provide the credibility needed. The shadowing and observation would provide the basic information needed. Once the employee understands the methods that he needs to learn and employ, coaching, again from an insider, would help practice and learn those behaviors. Classroom instruction (such as seminars) can further reinforce the learning. Using inside mentors and coaches is less costly than hiring external consultants, although having outside people could be more effective.

3.

Methods of leader development

The various methods of leader development are presented and evaluated. a.

Self-awareness

Self-awareness is the first step in and the cornerstone of any development program. It involves clarifying values and priorities, seeking new experiences, and seeking feedback through formal and informal channels. Although it is an essential step in development, by itself it has limited effectiveness (Table 10.2). b.

Experience

Experience is the core of any development program. On the job experience or experience through various training provides opportunities to challenge the leader and stretch his/her abilities. It provides one of the richest and most effective methods of leader development (Table 10.2). c.

Developmental relationships: Coaching and mentoring

Coaching and mentoring are powerful methods of leader development to help leaders grow both personally and professionally. Coaching is individualized feedback on behavior and performance with focus on future improvement. It is a highly effective method of leader development particularly when combined with other methods (Table 10.2). Elements of effective coaching are presented (Table 10.3).

Mentoring is a supportive long-term formal or informal professional relationship. It is less focused and specific than coaching, but can be helpful as part of a program (Table 10.2). d.

Feedback intensive programs

Providing comprehensive and extensive feedback from various sources to leaders about their behaviors and performance can be key to their development (Figure 10.4). Such programs are highly popular and can be effective if certain criteria are considered (Table 10.4). e.

Outdoor challenges

.

162

Although popular and entertaining, the effectiveness of outdoor challenges as a leader development tool is not well established (Table 10.2).

Leading Change: Howard Schultz presents the CEO of Starbucks and his focus on employees and on their well-being and development. Such attention to employees is at the heart of the success of the company.

4.

Development and culture

The appropriateness and effectiveness of leader development programs depends on the cultural context in which they take place. The communication context and cultural values of individualism, actionorientation, tolerance of ambiguity, perception of time, and power distance can all impact what program is effective (Table 10.5).

Gender and diversity are both factors to consider in leader development. Lack of opportunity to develop leadership skills is often cited as the cause of poor representation of women and minorities in leadership roles. Providing varied development opportunities, encouraging developmental relationship, and developing networks are some of the solutions.

5.

Effectiveness of development

The Leadership Question Revisited Reviews the importance of desire or motivation to learn and opportunity to practice in development, along with the need for organizational support. There is a need to carefully evaluate the effectiveness of various leader development programs. Several factors play a key role in their effectiveness (Figure 10.4). a.

Organizational and personal factors in development

Personal commitment, organizational commitment, and the fit between the person and the organization are key factors in making development succeed.

Applying What You Learn: Personal Development provides guidelines for individuals to develop their own leadership skills. Openness to new experience, seeking volunteer work and feedback, focusing on understanding one’s strengths, and persistence and practice are key.

6.

Summary and conclusions

Review and Discussion Questions 1.

What is the difference between leader and leadership development? Why is the distinction important?

Development is an ongoing dynamic, long-term change or evaluation that occurs because of various learning experience. Leader development focuses on the individual leader and providing him or her with the tools to improve. Leadership development focuses on an overall organizations capacity to get the work done through its many leaders. While the methods are sometimes similar, it is important for organizations to be clear on which level they are focusing on and provide the appropriate program.

2.

What are the five factors in learning? What role do they play in leader development?

Learning involves a relatively permanent increase or change in behavior, knowledge, or skill that comes as a result of experience. There are five factors involved in learning. First, the person must be willing to learn which requires an awareness of where they are and what they know. They must be both ready and motivated. Second, the person must be able to learn through the right combination of intelligence and personality traits. Third, the person must have access to the right opportunities to be able to learn.

Fourth, is providing experience with success so that the person can achieve a sense of self-efficacy.

Finally, the formal and informal culture of the organization must support and encourage learning. .

163

3.

Describe the areas that are typically addressed in developing leaders.

Area Basic knowledge

Personal growth

Skills development: supervisory, managerial, and interpersonal skills

Creativity Strategic issues

Description Information about content of leadership; definitions; basic concepts such as communication, feedback, contingent rewards; typically through classroom education Self-awareness and understanding strengths and weaknesses; getting in touch with personal values, dreams, and aspirations How to apply knowledge; includes supervisor and managerial skills such as planning, goal setting, and monitoring, as well as conceptual skills such as problem solving and decision making, and skills related to managing interpersonal relations Expanding ability to think in novel and innovative ways and to think “outside the box” Developing mission; strategic planning

4.

Explain the criteria for effective development programs. Which ones do you think are most important? Why? There are eight criteria that can be used to determine the effectiveness of a development program. First a development program must provide leaders with assessment about their current abilities, strengths, weaknesses, and so forth. The information leads to the second criteria which is self-awareness and motivation. The third factor is availability of and exposure to rich experience that encourage learning.

Fourth, leaders must have opportunities to practice the behavior and skills they learn in the development process. Fifth, there must be feedback about the progress and follow-up about what needs to be adjusted. The other two factors that support effective development are presence of role models and support from the organization. Finally, development cannot be effective if what is taught does not fit well with the organization.

The self-awareness and fit can be argued to be the most important two factors. Without selfawareness, there is not interest and motivation to learn. Without a good fit with the organization, any learning will go to waste.

5.

Compare and contrast the methods of leader development described in this chapter. What advantages and disadvantages do they each provide? When should they be used?

Criteria

Assessment

Selfawareness Experience Coaching Mentoring Feedbackintensive programs Classroom education Outdoor challenges

✓

✓

? ✓ ✓ ✓

6.

Individual Rich Awareness Developmental Experience

Feedback on New Learning and Follow-up ?

Support from Organization __

Fit and Integration

__

Opport unity for Practice __

✓ ✓ ✓ ✓

✓ __ __ __

✓ ✓ __ ?

✓ ✓ ? __

✓ ✓ ✓ ?

✓ ✓ ✓ ?

?

✓

__

?

?

?

?

__

?

__

__

__

?

?

__

What are the core and cornerstone of development? How are they related?

Self-awareness is the cornerstone of any development program. Leaders must be aware of their own strengths and weaknesses, leadership style, skills, and behaviors before they undertake any .

164

development. The core of development is being exposed to a variety of developmental experiences that challenge leaders and help them learn and practice new behaviors. Self-awareness and experiences are closely related in that without one or the other, learning and development cannot take place.

7.

How are coaching and mentoring similar and different?

Coaching and mentoring are both developmental relationships. Coaching involves providing individualized and constructive feedback about current behavior to improve the future. It is specific and task-related. Mentoring is a supportive long-term, formal or informal relationships that also provides feedback about behavior and performance but tends to be more generic and not as focused on specific behaviors or skills. Both coaching and mentoring depend on establishing trust.

8.

Describe the characteristics and benefits of feedback intensive programs.

Feedback intensive programs provide leaders with feedback about their style and behaviors from many sources including followers, superiors and, in some cases, outsiders to the organization. The leader’s self-assessment is also included. The feedback is provided objectively and sources remain anonymous.

Such programs are ideal for increasing awareness and can be highly effective when combined with coaching and mentoring to address needed areas. Handling the information professionally is key to their success. Specific factors that contribute to their success include the following: Factor Organizational buy-in and readiness

Confidentiality administration

and

careful

Well-trained facilitator

Focus on behaviors

Clear explanation of purpose and goals

Separate feedback from groups Follow-up Combine with programs

9.

other

developmental

Description All levels of the organization must be well informed and prepared regarding process, content, and goals of program.

Top management support is particularly essential.

Maintaining anonymity of the raters and confidentiality in the process assure continued trust in the results and goals.

Careful administration of surveys and handling of data are also essential.

Program success requires the skills of a well-trained, professional, internal or external facilitator to help interpret the information and deal with sensitive data and discomfort.

The feedback should focus on specific behaviors that are related to job performance rather than general evaluative statements.

Those providing feedback and the leader receiving the feedback should be very clear on the goal of the program and how data will be used.

Present the leader with separate feedback from each group or source to help clarity, interpretation, and understanding.

The initial step of increasing leaders’ self-awareness must be followed up with action plans.

The feedback increases awareness but without other developmental tools, does not provide the leader with the means of changing behaviors.

What role can classroom education play in leader development?

Classroom education is a highly popular method of leader development. It tends to be efficient and allows organizations to convey knowledge to large groups of people in a consistent manner. It is used extensively at the supervisory and mid-level manager levels. It can be a good method of increasing selfawareness and may provide some, but probably limited, opportunities for practice through cases and exercises. To be effective, classroom education must be followed with other opportunities to practice.

.

165

10.

What is the role of culture in leader development? What cultural factors must be taken into account when implementing a program?

Cultural values affect how the learning process is implemented, how feedback is provided, and the setting in which learning and development can be optimized. Leader development therefore must be considered within the cultural context. Below are the cultural values and how they impact development.

Cultural Value The communication context (highlow); directness Individualism–collectivism Action-orientation

Tolerance for ambiguity Perception of time Power distance and equality

Potential Impact on Leader Development How information is communicated; how feedback is given; who provides feedback; directness of message in case of assessment and self-development Focus of development on the individual leader or on the group; setting for development and training Content of development and training focused on practical matters and hands-on training or on theoretical understanding and conceptual development Degree of exposure to new and challenging situations Focus on quick and short-term results or on long-term development Development provided to all or only individuals identified as high potential; implementation of 360 degree feedback

11.

What are specific issues to consider when developing women and members of minority groups?

Women and minorities have specific development needs that cannot always be addressed through a generic development program. Women and minorities have differential opportunities for growth and limited exposure to development opportunities in many organizations. They are often evaluated based on norms that are developed for white males and that may not be as relevant for them. A development program that supports the growth of women and minorities must consider the following: • Opportunity to participate in single-identity development programs that reinforce validation, provide role models and networking, and can make available relevant content to address specific concerns • Encouraging developmental relationships through formal and informal organizational programs to assure that women and minorities have access to powerful coaches and mentors who are both similar to and different from them • Developing networks that can help women and minorities in their career development process 12.

What are the organizational and personal factors in development?

The key to successful development is a good fit between the person and the organization. Personal factors include personal commitment on the part of the leader. Leaders must be committed to their own development. The organization must also show commitment and resources by providing the right amount of support and opportunities. The development program must reflect organizational vision, mission, and strategic goals and fit the leaders’ personal goals to a reasonable extent.

The Leadership Challenge: Finding the Right Fit The challenge presents a dilemma of whether one should commit more time and energy to an organization that may not be a good fit in order to be promoted within that organization. It is designed to help students understand their priorities and values and consider the benefits and disadvantages of continuing to work in an organization that does not fit them well, but provides a stable income.

Such a situation is relatively common for both undergraduate and graduate students who often work at jobs that pay the bills, but do not necessarily fit their values and passion. While the idealist view is to .

166

follow one’s passion and bliss all the time, the practical aspects of daily life do not make that always possible. Additionally, while an organization may not be a great fit, many young students do not yet fully know what their passion is, making it harder to pursue.

1.

• • • • • • 2.

Factors to consider are: Immediate needs against long-term goals Clarity of long-term goals and values (do you really know what you want?). It is important for the individual to carefully assess what his/her priorities are.

Potential long-term benefits of the training program. Are the skills transferable to other organizations? Can they help in other jobs or in searching for other jobs?

What are some other options? Is there a way to move within the company? What else can be done to create a better fit between the person and the current organization?

What are the costs of looking for another job? Consider both financial loss and emotional challenges.

Some people are more comfortable with risk-taking than others.

What is the best decision for you?

Students should be encouraged to explore the various issues. There is no right or wrong answer. It is important to clarify values and priorities both in the short term and the long term. Any decision that is based on careful thinking and awareness of the challenges that will be present regardless of the decision made, will be the right one. For the purpose of this exercise, the process of thinking about fit and priorities is what matters.

.

167

Chapter 10 Experiential Exercises Exercise 10.1: Identifying your mentoring needs and potential mentors Mentoring can be a powerful tool in organizational and personal success. Almost all successful leaders credit their interactions with a mentor at least as part of the reason for their success. This exercise is designed to encourage students to identify potential mentors and to start to mentoring process.

Total time: 30 minutes for steps I and II; more time needed for reflection and making contacts with mentors, Materials needed: Paper and pencil Step 1: What do you need?

In this step, students identify particular areas where they may need development and mentoring. They should be encouraged to spend some time reflecting on those needs (for example using the book’s selfassessment or their performance rating at their job), seek feedback from trusted others, review their performance records, and so forth. Once that process is completed, students write down specific areas where they could seek the help of a mentor.

Some examples of areas may be: • They have consistently had trouble working in teams.

• They have held several jobs that have all proven a poor fit for them.

• They have trouble speaking in public.

• They cannot seem to decide on a major or area of specialization.

• They do not handle conflict well.

• They cannot negotiate effectively.

The list is dynamic and changes as students develop new competencies and face new challenges. They should be encouraged to review the list every few months to identify potential gaps.

Step 2: Who do you know?

In this step students make a list of their contacts and people in their networks who may have some expertise and competence in their areas where they do not. They start with a long and inclusive list and then use trust and comfort to pare their list down to people who may be good mentors. It is important to identify several people as potential mentors rather than only one person. Different people not only have different expertise, but they also provide different perspectives.

Step 3: Creating a mentoring relationship The final step is to identify potential mentors and approach them for help. Guidelines for how to approach and manage the mentoring relationship are provided.

 Course Assignment This exercise can be used as an assignment for the course. Steps 1 and 2 can be assigned at the end of the semester as a developmental exercise. Or, these steps can be assigned earlier in the semester and a follow-up to see how the process of establishing a mentoring relationship (Step 3) can be done at the end of the semester.

Grading this assignment cannot be based on the content of the mission statement, rather students should be evaluated on how thoroughly they complete the process. Preferably, a pass/fail grade should be assigned.

.

168

Self-Assessment 10.1: My Personal Mission Statement This exercise provides students with the opportunity of self-reflection and a start at developing a personal mission statement that can guide their career and their development as a leader. This is an individual exercise that can be used as a concluding exercise or even as an on-going exercise throughout the semester. The various self-assessments throughout the book, especially Self-Assessment 4.1, can be used as supporting information to allow students to understand themselves, and their values.

Total time: Minimum 30 minutes and up to 2 hours depending on level of student involvement Materials needed: Paper and pencil Step 1: What I want to be when I grow up This step is a self-exploration. Encourage students to answer the questions honestly and to take their time doing so. Remind them that there are no right or wrong answers and that this is a personal discovery.

Step 2: My personal mission statement Using the answers that students have developed in the first step, they should write their own mission statement.

An excellent step-by-step process is presented in the Web site www.franklincovey.com/mission builder/ (computer must allow pop-ups).

 Course Assignment This exercise can be used as an assignment for the course. It can be used either as a concluding exercise or as a staged exercise that students revise several times during the semester. Grading this assignment cannot be based on the content of the mission statement, rather students should be evaluated on how thoroughly they complete the process. Preferably, a pass/fail grade should be assigned.

.

169

Leadership in Action Case Developing Leaders at Southwest Airlines Case summary SW Airlines is one of the most successful airlines in the United States. Much of its success is related to its special culture that focuses on the individual and on both leader and leadership development. Current and past executives are all highly committed to maintaining the unique culture and they pay particular attention to development. The company is highly disciplined about hiring the right people who have a chance to fit, is not shy about allowing them to flourish, and firing those who do not fit. Additionally, SW has extensive formal and informal training, coaching, and mentoring to develop its employees.

Employees are exposed to many role models who take their responsibility for developing others seriously.

1.

How does Southwest develop its leaders?

The development process starts at the time of interviews where people are carefully screened and selected to fit the culture of the company. All employees are mentored and coached particularly to assure that they develop the right attitude. Southwest further offers formal leadership training programs available to all employees. Internal leaders not only participate and present in those training sessions, but they also consciously role model the right leader behaviors in their regular interactions with employees.

Southwest is particularly focused on having a good fit between the person and the organization as the primary source of success for employees. Barrett personally volunteers to mentor anyone who wants to learn and to succeed.

2.

What is the role of culture and fit in the success of the company?

The fit between employees and the organizational culture is the source of success of the organization.

Through careful selection and training, the organization assures a match between who people are and their values and the values of the company. Those who don’t fit either do not get hired or do not survive long. Constant reminders of the culture and training about the culture assure continuity of the fit. This carefully managed and monitored fit continues to be a source of competitive advantage for Southwest.

.

170