This Document Contains Chapters 11 to 13 Chapter 11 Leadership and influence processes CHAPTER SUMMARY This chapter explores the nature of leadership and influence processes in organizations. After describing the nature of leadership, the chapter discusses leader traits and behaviors and then focuses on the situational approach to leadership. Related perspectives on leadership are discussed. The chapter concludes with a discussion of political behavior in organizations. LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Describe the nature of leadership and relate leadership to management. 2. Discuss and evaluate the two generic approaches to leadership. 3. Identify and describe the major situational approaches to leadership. 4. Identify and describe three related approaches to leadership. 5. Describe three emerging approaches to leadership. 6. Discuss political behavior in organizations and how it can be managed. The opening incident highlights the work habits of several highly successful leaders. While each has an unique way of approach his or her job, the case points out the keys: ability to function with minimal sleep, dedication to exercise to keep the energy level up, ability to take in vast amounts of information, and the ability to use many sources of information. Management Update: BusinessWeek Online (www.businessweek.com/magazine/content/04_40/b3902020.htm) presents an interesting interview with Carlos Ghosn. It describes Ghosn leadership style and also documents how he turned Nissan around. LECTURE OUTLINE I. The Nature of Leadership A. The Meaning of Leadership As a process, leadership is the use of noncoercive influence to shape the group’s or organization’s goals, motivate behavior toward the achievement of those goals, and help define group or organization culture. Leadership as a property is a set of characteristics attributed to individuals who are perceived to be leaders. Teaching Tip: Emphasize for your students that leadership occurs through the use of influence, not the use of force. Leaders are those who are accepted by other people—they cannot just declare themselves to be leaders. Therefore, leaders must have “followers.” B. Leadership and Management Leadership and management are related but different. For example, the management side of executing plans focuses on monitoring results, comparing them with goals, and correcting deviations. In contrast, the leadership side of the same activity focuses on energizing people to overcome bureaucratic hurdles to help reach goals. Teaching Tip: With your students, walk through Table 11.1 of the text to highlight for them the various distinctions that can be drawn between management and leadership. Organizations need both good managers and good leaders if they are to be effective. C. Leadership and Power Power is the ability to affect the behavior of others. Power arises from five bases. 1. Legitimate power is granted through the organizational hierarchy. 2. Reward power is the power to give or withhold rewards. 3. Coercive power forces compliance by means of psychological, emotional, or physical threats. 4. Referent power is based on identification, imitation, loyalty, or charisma. Followers react favorably to the leader because of who he or she is. Interesting Quote: “The more you have, the less you should use. You consolidate and build power by empowering others.” (Reuben Marks, CEO of Colgate-Palmolive, quoted in Fortune, November 6, 1989, p. 52) 5. Expert power is derived from information or expertise. Discussion Starter: Ask students to critique each use of power in terms of its probable effectiveness and acceptability. Group Exercise: Have small groups of students connect specific kinds of power with each of the potential uses of power. That is, each potential use of power relies on or assumes that the manager has one or more kinds of power. Discussion Starter: Have students recall examples of when they have used or seen used these various bases of power. II. Generic Approaches to Leadership Generic, or universal, approaches assumed that there was “one best way” to lead. The behavioral approaches are more realistic and accurate than the trait approaches, but both of these generic approaches are overly simplistic. A. Leadership Traits Research in leadership began by trying to generate “the” profile of a leader including traits such as intelligence and self-confidence. The list had as many exceptions as items and soon became too long to be useful. Extra Example: Other traits that have been suggested as determinants of leader effectiveness include astrological sign, birth order, body shape, and handwriting style. Teaching Tip: Point out to students the assumptions about leadership traits that sometimes play a role in political races. For example, in the 1992 presidential race some questioned H. Ross Perot’s political skills because of his short stature and others criticized Bill Clinton because he tended to have a weight problem. Still, Clinton defeated incumbent George Bush, due in part to what some people called Bush’s “wimp factor.” Perhaps “wimpiness” is also a trait! B. Leadership Behaviors 1. The Michigan studies (conducted by Likert) identified job-centered leader behavior as the behavior of leaders who pay close attention to the job and work procedures involved with that job and employee-centered leader behavior as the behavior of leaders who develop cohesive work groups and ensure employee satisfaction. These behaviors were thought to be at opposite ends of one continuum with employee-centered leaders being the more effective. 2. The Ohio State studies also found two basic leader styles: initiating-structure behavior and consideration behavior. A leader who initiates structure clearly defines the leader–subordinate role so that everyone knows what is expected. A leader who uses consideration behavior shows concern for subordinates and attempts to establish a friendly and supportive climate. Unlike the Michigan studies, these two styles were on separate continuums. Teaching Tip: It may help to sketch the distinction between the one-dimensional Michigan view and the two-dimensional Ohio State approach. Extra Example: The Ohio State studies involved one of the earliest known attempts to train managers to be more effective leaders. 3. The Managerial Grid is also based on two forms of leader behavior: concern for people and concern for production. By combining these two forms of behavior, managers can analyze leader behavior in organizations. Extra Example: The Managerial Grid is also used as an organization development technique. Organizations can buy the grid program and use it to enhance various behavioral processes and dynamics. Extra Example: The reason that little scientific evidence exists regarding the grid is that users must sign a contract specifying that they will not allow outsiders to evaluate it. III. Situational Approaches to Leadership The goal of situational approaches to leadership is to identify key situational factors and to specify how they interact to determine appropriate leader behavior. A. LPC Theory The LPC theory, developed by Fred Fiedler, argues that a leader’s personality made him or her either task-oriented or relationship-oriented. To determine which a leader was, he developed the least-preferred coworker (LPC) scale. As the scale name suggests, the leader thinks of the worker he or she is least able to work with while completing the scale. The total score for the scale presumably reflects the leader’s personality type. Teaching Tip: The three scales presented in the text are, of course, only part of the LPC questionnaire. Obtain a copy of the entire instrument and have your students complete it. Use their results as part of the discussion of the LPC theory. 1. Favorableness of the situation is determined by leader–member relations (the nature of the relationship between the leader and the work group), task structure (the degree to which the group’s task is well defined), and position power (the power vested in the leader’s position). Discussion Starter: The LPC theory suggests that leader–member relations is the most important of the three determinants of situational favorableness, while position power is the least important of the three. Solicit student opinions on this importance ranking. Teaching Tip: Have students write hypothetical scenarios representing various levels of each aspect of favorableness. 2. When the situation is the most favorable (good relations, high structure, and strong power) or the least favorable (bad relations, low structure, and weak power), the best leadership style is task-oriented. Relationship-oriented leaders are best when the situation is only moderately favorable. 3. Fiedler argues that, because the leader’s style is fixed, the situation should be changed to match the leader in order to make him or her most effective. Discussion Starter: Fiedler asserts that leader behavior is inflexible and cannot be readily changed. Ask students if they agree or disagree with this assertion. Discussion Starter: If Fiedler’s theory is valid, what are the implications that might be drawn regarding leadership training programs? B. Path-Goal Theory The path-goal theory of leadership suggests that the primary functions of a leader are to make desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment and valued rewards. 1. Managers can adopt any of these behavioral leadership styles to fit the situation: directive (letting employees know what is expected of them), supportive (being friendly and approachable), participative (consulting subordinates), or achievement-oriented (setting goals). 2. Situational factors that must also be assessed include the personal characteristics of subordinates and the environmental characteristics of the workplace. For example workers with an internal locus of control may perform best under a participative leader. Teaching Tip: Point out for students the logic underlying this theory’s somewhat awkward name: the theory asserts that the leader’s primary function is to clarify for subordinates the path to their goals. That is, the leader can enhance subordinate performance by determining what subordinates want (their goals) and then making those goals clearly linked to performance (i.e., the path). Teaching Tip: The path-goal theory of leadership is a direct extension of the expectancy theory of motivation discussed in Chapter 10. Recall that expectancy theory suggests that motivation is a function of how much we want something and how likely we think we are to get it. The path-goal theory says that a leader should clarify the likelihood of getting desired outcomes, or goals. Discussion Starter: Note that in contrast to the LPC theory, path-goal theory suggests that leaders can alter their behavior with little difficulty. Poll your students to determine whether they agree. C. Vroom’s Decision Tree Approach Vroom’s decision tree approach predicts what kinds of situations call for what degrees of group participation. 1. In this approach, the manager uses one decision tree when the decision needs to be made quickly, and the other when time is less critical and the manager wants to help subordinates improve and develop their own decision-making skills. 2. To maximize effectiveness, one of five leadership styles should be adopted, depending on the situation. These include two autocratic styles (deciding and individual consulting), two consultative styles (group consulting and facilitating), and a group style (delegating). The model is very complex, which makes it difficult to use, but it is aided by expert system software. 3. The approach has been supported by research. Teaching Tip: Vroom’s decision tree model is very complex and may be difficult for students to grasp. Walk through several examples based on different scenarios, using the trees in Figures 11.4 and 11.5 of the text as a reference. Teaching Tip: When Vroom’s approach was first introduced, a consulting firm marketed a device similar to a pocket calculator for using the model. The user pushed yes/no buttons to answer the model’s questions, and the display indicated the appropriate style of decision making. Global Connection: Japanese managers are very interested in learning how to use the Vroom approach. D. The Leader-Member Exchange Approach The leader-member exchange (LMX) model stresses the fact that leaders have different kinds of relationships with different subordinates. Those close to the manager are the in-group members, who receive better treatment than the out-group members. Interesting Quote: One early practitioner of situational leadership was President Lyndon Johnson. This quote, published in The Atlantic Monthly, January 1976, p. 78, is his description of how he handled different reporters: “You learn that Mary McGrory likes dominant personalities and Doris Fleeson cares only about issues, so that when you’re with McGrory you come on strong and with Fleeson you make yourself sound like some impractical red-hot liberal.” Discussion Starter: Ask students if they have ever experienced in-group/out-group treatment. Also ask them if they have ever observed a leader treating subordinates in different ways. IV. Related Approaches to Leadership A. Substitutes for leadership specify in what situations leader behaviors are neutralized or replaced by characteristics of the subordinate, the task, and the organization. For example, substitutes include the ability or professionalism of the workers, the routine tasks, and the existence of formalized rules. Discussion Starter: Ask students to identify leadership substitutes that might work in a classroom setting when accomplishing structured assignments, group projects, and the like. B. Charismatic leadership assumes that charisma is an individual characteristic much like a trait. Charisma is a form of interpersonal attraction that inspires support and acceptance. 1. Charismatic leaders must envision the future, set high expectations, and model the behaviors needed to reach those expectations. 2. Charismatic leaders must energize workers through personal confidence and excitement. 3. Charismatic leaders enable others with support, empathy, and confidence. Discussion Starter: Ask students to identify popular charismatic leaders today. Discussion Starter: As referenced in the text, ask students to debate the ethics of charismatic leadership. C. Transformational leadership goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking. Teaching Tip: Some experts have noted that while transformational leaders may be perceived as highly effective during actual organizational transformation, they are often perceived as less effective when leading the organization after transformation is completed. V. Emerging Approaches to Leadership A. Strategic Leadership Strategic leadership is the capability to understand the complexities of both the organization and its environment and to lead change in the organization so as to achieve and maintain a superior alignment between the organization and its environment. Strategic leadership is effective when leaders understand the capabilities of their firm, the firm’s environment, and the direction of important trends. Cross-Reference: Note that strategic leadership is closely related to the discussion of strategy and strategic management that is found in Chapter 3. B. Cross-Cultural Leadership Effective cross-cultural leaders understand cultural and national differences and also the diversity that exists within a national culture. As organizations become more global and more diverse, cross-cultural leadership will become more important. C. Ethical Leadership In the wake of recent corporate scandals, managers are being called upon to demonstrate sound ethical principles and serve as ethical role models. VI. Political Behavior in Organizations Political behavior consists of activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. Political behavior can be undertaken by workers at many different levels and directed upward, downward, or laterally. Discussion Starter: Ask students if they think an organization can function without some form of political behavior. Also ask them if they think political behavior is more likely to have positive or negative effects on an organization. A. Common Political Behaviors 1. Inducement means giving something in return for support. 2. Persuasion relies on manipulation of logic and emotions. 3. When a manager does a favor in hopes of receiving one in return, that is called creating an obligation. 4. Coercion, or the use of force, may be effective in the short term, but is often ineffective in the long term. B. Another common form of political behavior is impression management, a direct and intentional effort by someone to enhance his or her image in the eyes of others. Impression management often centers on superficial traits, such as appearance. C. Managing Political Behavior There are some guidelines for effective management of political behavior. 1. Be aware that others may assume your motives are political even if they are not. 2. Give subordinates autonomy, responsibility, challenges, and feedback to reduce political behavior. 3. Avoid using power if possible. 4. Get disagreements out in the open, reducing the effectiveness of politics. 5. Avoid covert activities, to steer clear of even the perception of political behavior. Discussion Starter: Ask students to recall instances of positive and negative political behavior they may have observed. Chapter 12 Communication In Organizations CHAPTER SUMMARY This chapter explores communication in organizations. It relates communication to the manager’s job. Interpersonal and organizational forms of communication are then introduced. Electronic communication is discussed. The chapter concludes with a discussion of informal communication and how communication can be managed. LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Describe the role and importance of communication in the manager’s job. 2. Identify the basic forms of communication in organizations. 3. Describe the role of digital communication in organizations. 4. Discuss informal communication, including its various forms and types. 5. Describe how the communication process can be managed to recognize and overcome barriers. Advertising to the growing Hispanic population in the United States means taking the commercial prepared for the mainstream and adapting it for this market. The opening case gives many examples of how companies such as Verizon, Energizer, and Southwest Airlines have been successful in communicating to the Hispanic market. LECTURE OUTLINE I. Communication and the Manager’s Job A. A Definition of Communication Communication is the process of transmitting information from one person to another. Effective communication is the process of sending a message in such a way that the message received is as close in meaning as possible to the message intended. Interesting Quote: “Real communication takes countless hours of eyeball to eyeball, back and forth. It means more listening than talking.” (Jack Welch, former CEO of General Electric, Harvard Business Review, September–October 1989, p. 113) Teaching Tip: Emphasize the critical differences between simple communication and effective communication. The differences in the two are subtle, but important. A key element in effective communication is the distinction between data and information. Data are raw figures and facts reflecting a single aspect of reality. Information is data presented in a way or form that has meaning. Teaching Tip: Using data from The Wall Street Journal or Yahoo.com, list two or three stock prices as examples of data. Then describe how these prices reflect gains or losses from the previous day to illustrate information. B. Characteristics of Useful Information 1. Accurate information provides a valid and reliable reflection of reality. 2. Timely information must be available in time for appropriate managerial action. 3. Complete information gives the manager all the facts and details he or she needs. 4. Relevant information is directly applicable to the particular needs and circumstances of the manager. Teaching Tip: Using grades, registration information, or degree requirements, illustrate for students how and why they need information that is accurate, timely, complete, and relevant. Teaching Tip: Point out to students, however, that it is possible to become too concerned with the characteristics of useful information. That is, it is important that information be accurate; but if accuracy to two decimal places is sufficient, it may be inefficient to continue to pursue accuracy to four decimal places. Teaching Tip: Stress the fact that communication is a major ingredient in all management functions—planning, organizing, leading, and controlling. Teaching Tip: Recent estimates suggest that top managers spend at least 40 percent of their time talking to people. C. The Communication Process Teaching Tip: Select a hypothetical piece of information that you could conceivably want to impart to your students and use it as a reference as you walk through the communication process. 1. The communication process begins when one person (the sender) wants to transmit a fact, idea, opinion, or other information to someone else (the receiver). 2. The sender encodes the message into an appropriate form. 3. The message is transmitted to the receiver through a channel (for example, an e-mail or a phone call). 4. The message is received by the receiver and decoded. 5. The receiver may then initiate a message of his or her own, and the cycle continues. 6. Noise, which includes anything that disrupts the process, can occur anywhere along the communication path. Discussion Starter: Ask students to identify examples of noise that they may have encountered. Extra Example: Contemporary examples of noise include erasing a telephone message tape before a message is heard and losing an e-mail message before it can be delivered. Group Exercise: Have small groups of students diagram a series of communication exchanges between various people to ensure that they understand how the process occurs. II. Forms of Communication in Organizations A. Interpersonal Communication 1. Oral communication takes place in face-to-face conversations, group discussions, telephone calls, and other circumstances in which the spoken word is used to express meaning. Though oral communication provides prompt feedback and does not require a great deal of preparation and skill, it suffers from inaccuracy and lack of a permanent record. 2. Written communication occurs through memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning. This method of communication inhibits feedback and interchange and requires a great deal of preparation. However, written communication is usually quite accurate, and the receiver can take time reviewing it. Discussion Starter: Ask students whether they prefer to use oral or written communication. Extra Example: Note that this book is a form of written communication through which a professor of management at Texas A&M University is communicating with your students. Extra Example: At Greyhound, copies of all written reports describing why a reservation system failed to work effectively have been destroyed. As a result, top managers report that they are not able to recall earlier discussions regarding the system’s weaknesses. 3. Choosing the right form Oral communication is better when the message is personal, nonroutine, and brief. Written communication is better when the message is more impersonal, routine, and longer. Discussion Starter: Ask students to recall the last five times they needed to communicate information to someone else. Then ask them what method they used and why. B. Communication in Networks and Teams A communication network is the pattern through which the members of a group communicate. Research on communication networks has identified five basic networks for groups. These vary in terms of information flow, position of the leader, and effectiveness for different types of tasks. Managers might strive to create centralized networks when group tasks are simple and routine. Alternatively, managers can foster decentralized groups when group tasks are complex and nonroutine. C. Organizational Communication 1. Vertical communication is communication that flows both up and down the organization, usually along formal reporting lines; takes place between managers and their subordinates; and may involve several different levels of the organization. a) Upward communication consists of messages from subordinates to superiors. b) Downward communication occurs when information flows down the hierarchy from superiors to subordinates. 2. Horizontal communication flows laterally within the organization, involves colleagues and peers at the same level of the organization, and may involve individuals from several different organizational units. Horizontal communication facilitates coordination and helps in problem solving. Global Connection: Language barriers are often a complication in horizontal communication within multinational organizations. III. Digital Communication Teaching Tip: Many colleges and universities today have complex information technology systems. If yours does, use it as an example to illustrate the various forms of information technology. Extra Example: A significant milestone in U.S. business occurred in 1991. For the first time in history, U.S. businesses that year spent more money on new information technology than they did on capital equipment and other forms of technology. Information technology, or IT, refers to the resources used by an organization to manage information that it needs in order to carry out its mission. IT consists of hardware (the various machines and devices that form the physical structure of the system) and software (the instructions with which the users guide the hardware). Teaching Tip: Many people seem surprised when they realize that an information system need not be computerized. Indeed, paper-based systems can work very effectively in some settings. Discussion Starter: Ask students for personal or business examples of situations in which electronic information systems have aided or hindered the communications process. Extra Example: Some top executives are still reluctant to rely on computers because of one or more of the factors identified in Chapter 7 as reasons for resistance to change. Extra Example: In contrast to the resistance of older top executives, younger managers are much more comfortable with computers and are more likely to make extensive use of them in their organizations. A. Information Systems 1. A transaction-processing system, or TPS, is an application of information processing for basic day-to-day business transactions, handling routine and recurring transactions within the business. Extra Example: The Limited makes extensive use of transaction-processing systems. For example, every purchase made in a Limited store is electronically transmitted to the firm’s central computer system for inventory monitoring. 2. Systems for knowledge workers and office applications include programming and data processing systems, as well as systems for clerical support and communication. 3. Systems for operations and data workers perform maintenance and monitoring of computer systems and also data entry in some firms. 4. Management information systems, or MIS, support an organization’s managers by providing daily reports, schedules, plans, and budgets. MIS provides functional managers with the information that they need to do their work and answer fundamental questions about the organization. Teaching Tip: Management information systems are still the most common form of information technology in organizations today. Global Connection: International businesses have been especially committed to developing management information systems as a way to link their myriad global operations. 5. A decision support system, or DSS, is an interactive system that locates and presents information needed to support the decision making process. These elaborate and quite powerful systems can automatically search for, manipulate, and summarize information needed by managers for specific decisions. Extra Example: The Limited uses decision support systems. For example, whenever sales figures in the TPS reach a certain level, the DSS takes over and sends replacement orders to the factory. 6. Executive support systems, or ESS, are a quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers. They use internal and external data, and often are flexible and very simple to use. Extra Example: Leslie Wexner, the former CEO of The Limited, relied heavily on an executive support system to keep abreast of what was going on in his company. Extra Example: The CEO of Duracell (now a part of Procter and Gamble) discovered a way to save his company several thousand dollars through enhanced productivity. He made the discovery while he was “browsing” through the firm’s ESS. 7. Artificial intelligence, or AI, is the construction of computer systems, both hardware and software, to imitate human behavior; that is, to perform physical tasks, use thought processes, and learn. An expert system is one special form of AI; it imitates the thought processes of human experts in a particular field. Global Connection: The cargo harbor at Singapore uses an elaborate expert system to guide container ships into and out of the harbor. Once they are docked, another expert system coordinates their loading and unloading. 8. Intranets are communication networks similar to the Internet but operating within the boundaries of a single organization. These private networks operate on the Internet but are accessible only to a company’s employees. Extranets are communication networks that allow selected outsiders limited access to an organization’s internal information system or intranet. B. Personal Digital Technology Discussion Starter: Poll your students to see how many of them regularly use e-mail, instant messaging, or other forms of personal electronic technology. Most students today will use many or most of these forms. Personal digital technology includes the use of teleconferencing, smartphones, and tablet computers, all enabled by WiFi connections. While these technologies facilitate communication, they also detract from face-to-face communication, which may impair organization culture and working relationships, and even create avenues for dysfunctional employee behavior. Extra Example: A 2012 Pew Research study found that teens strongly prefer texting over phone calls and voice mail. Teaching Tip: Point out to students that the use of these electronic devices has led to an increase in telecommuting, or working from one’s home. In effect, our society is returning to cottage industries, which were the dominant form of work before the Industrial Revolution! Extra Example: Another advantage of electronic communication is the increased efficiency of workers. Too much access to electronic communication can, however, add to stress because workers are never unavailable for work demands. Extra Example: A recent visitor to DisneyWorld in Florida noted that most of the visitors using a free Internet café were on the machines to catch up with office work. It seems that technology has even invaded our family vacations! IV. Informal Communication in Organizations A. The Grapevine The grapevine is an informal communication network that can permeate an entire organization. The two most common forms of the grapevine are the gossip chain, where one person spreads the message to many other people, and the cluster chain, where one person spreads the information to a select few. Extra Example: Students use grapevines to transmit information about specific classes and instructors (e.g., who is easy, which course is interesting, who gives pop quizzes, etc.). Discussion Starter: Solicit student examples of when the aforementioned types of information transmitted through the grapevine have been accurate or inaccurate. Discussion Starter: Ask students to recount some of their own experiences with grapevines. B. Management by Wandering Around Another form of informal communication is management by wandering around, where managers keep in touch with what’s going on by literally wandering around and having spontaneous conversations with others. Extra Example: Nolan Archibald, former CEO of Black & Decker, and Robert Crandall, former head of American Airlines, were both advocates of management by wandering around. A related aspect of informal communication is the informal interchanges among employees that take place outside the workplace. C. Nonverbal Communication Discussion Starter: Ask students for examples of nonverbal communication they have observed or experienced. Nonverbal communication is a communication exchange that does not use words or that uses words to carry more meaning than their strictest definition. There are three basic types of nonverbal communication. 1. Images are created by the kinds of words people elect to use. 2. Settings are the areas where the communication takes place. 3. Body language includes how we use our arms, hands, legs, and eyes; where we choose to stand; how we dress; or where we pause when speaking. Teaching Tip: Use images from current publications to illustrate and discuss different forms of nonverbal communication. Teaching Tip: If you don’t mind the invasion of privacy, ask students to comment on how your office or classroom arrangement influences communication that occurs within it. V. Managing Organizational Communication A. Barriers to Communication 1. Individual barriers to communication are those that are associated with the individual. They include conflicting or inconsistent signals, lack of credibility about the subject, reluctance to communicate, poor listening skills, and predispositions about the subject. Global Connection: When a Japanese car dealer asked his boss if he could start importing Fords to sell in Japan, the boss said yes. However, the dealer also felt that his boss’s eyes “contradicted his words.” That is, his boss really did not want him to sell Fords even though he gave his verbal approval. (For details, see USA Today, May 9, 1995, p. B1.) Discussion Starter: Ask students to recall people with whom they have trouble communicating. Then ask them to explain the factors that led to their difficulties. Discussion Starter: Ask students to recall instances in which they have encountered one or more of the individual barriers to effective communication. 2. Organizational barriers are those barriers associated with the organization itself. They include semantics, status or power differences, different perceptions, environmental factors such as noise or overload, and in multinational or multicultural firms, different languages. Extra Example: In an interesting example of noise in communication, a military general, replying to a subordinate’s inquiry about making an attack, intended to write the message: “No. Cost too great.” However, the message received was: “No cost too great.” The subordinate interpreted the general’s message as an order to attack and the results were disastrous. B. Improving Communication Effectiveness Interesting Quote: “When he gets bored in meetings, he’ll set a clock for two minutes and say, ‘Finish up.’ Or he’ll lean over and tell someone to call him when something happens. Then he leaves. That frightens a lot of people.” (Former employee at Lotus describing the firm’s CEO, Jim Manzi; quoted in Fortune, February 27, 1989, p. 46) Discussion Starter: Share the previous quote with students. Ask them to critique Manzi’s techniques. Are there situations where Manzi’s techniques might be more effective than the ideas given below? Situations where Manzi might be less effective? 1. Individual skills for enhancing communication effectiveness include good listening, encouraging two-way communication, being aware of language and meaning, maintaining credibility, and being sensitive to the receiver’s and sender’s perspectives. Discussion Starter: Ask students to recall situations in which they used one or more of the suggested individual methods for improving communication effectiveness. Teaching Tip: Stress the importance of listening as the single most important contributor to communication effectiveness. 2. Organizations can also use various techniques to enhance communication effectiveness, including following up to ensure the message was received and understood, regulating information flows to avoid overload, and understanding the richness of different media in order to choose the most appropriate media for each situation. Chapter 13 Managing work groups and teams CHAPTER SUMMARY This chapter is about groups and teams in organizations. It opens with a discussion of the foundation of groups and teams, including the types of groups, why people join groups, and the stages of team development. It identifies and discusses several essential characteristics of teams. Interpersonal and intergroup conflict are described, along with a discussion of ways to manage conflict. LEARNING OUTCOMES After studying this chapter, students should be able to: 1. Define and identify types of groups and teams in organizations, discuss reasons people join groups and teams, and list the stages of group and team development. 2. Identify and discuss four essential characteristics of groups and teams. 3. Discuss interpersonal and intergroup conflict in organizations. 4. Describe how organizations manage conflict. 5. Describe the negotiation process. The opening case describes how Guy Laliberté, a Canadian high school dropout, founded the billion-dollar Cirque du Soleil. Collaborative creativity is a hallmark of the organization that made $250 million in profits in 2012. Management Update: In the website http://www.cirquedusoleil.com/en/home/about-us/at-a-glance.aspx , Cirque du Soleil talks more about its distinctive creative approach that is a critical piece of its astounding success. LECTURE OUTLINE I. Groups and Teams in Organizations A group is two or more people who interact regularly to accomplish a common purpose or goal. Teaching Tip: Stress to your students that most of the work in an organization results from people working together—in groups, teams, or other social units. A. Types of Groups and Teams 1. Functional groups are permanent groups created by the organization to accomplish a number of organizational purposes with an unspecified time horizon. Extra Example: The local reservations staff of a United Air Lines ticket office represents a functional group. The organization created the group, and it generally meets the other criteria specified in the definition. 2. Informal or interest groups are created by members of the groups themselves for purposes that may or may not be relevant to those of the organization. These groups can be a powerful force, either positive or negative, and have unspecified time horizons. Extra Example: A group of United Air Lines employees who socialize together on the weekends represents an informal or interest group. 3. Task groups are created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon. Extra Example: The flight crew of a specific United Air Lines flight is a task group. Its composition changes regularly, and it remains intact for only a single flight. Extra Example: The passengers on a given United Air Lines flight would not ordinarily be thought of as a group. However, in the event of an emergency, the passengers might work together for their mutual benefit and bond into an interest group. a) Many organizations today are using a special form of task group called a team. A team is a group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities. Virtual teams are composed of people from remote work sites who work together online. b) Organizations create teams to give more responsibility to workers, to empower workers, to allow the organization to capitalize on the workers’ knowledge and motivation, and to shed bureaucracy and promote flexibility. Teaching Tip: Note the various types of work teams identified and described in Table 13.1. Extra Example: Ford used teams to develop its new Mustang car. Teams seem to be especially effective in developing specific products like a car model. Ford used teams to develop the Taurus and the new model of the Escort and it currently has several teams developing cars to be introduced over the next few years. B. Why People Join Groups and Teams 1. Interpersonal attraction draws people to groups, They are attracted to the members of the group. 2. Group activities may appeal to some people enough to get them to join. Extra Example: People join other groups because of their activities: aerobics classes, rafting clubs, and softball leagues, for example. 3. Group goals may motivate people to join if they hold similar goals. Extra Example: People join both right-to-life and pro-choice organizations because of the group goals each endorses. 4. Need satisfaction may be achieved by joining a group. 5. Instrumental benefits are benefits provided by joining a group that can motivate an individual to join. Discussion Starter: Ask students to identify various groups to which they belong. Ask them to discuss why they chose to join various groups. Discussion Starter: Ask students if they are likely to join one or more extra groups or clubs as they approach graduation in order to improve their job market opportunities. C. Stages of Group and Team Development 1. In the forming stage, the group members get acquainted and begin to test the limits of acceptable behavior. Extra Example: Describe a hypothetical study group formed by some of your students to prepare for a test. Discuss how they spend their initial time—the forming stage—getting acquainted, exchanging telephone numbers, and so forth. 2. The storming stage shows an initial lack of unity and uneven interaction patterns and there may be some conflict as well. Extra Example: The hypothetical study group may have some initial difficulties in agreeing on a time and place to study as well as on the study process they want to use. Some members of the group may drop out and new members may join. This would be representative of the storming stage. 3. During the norming stage, the group members determine their roles in the group as well as how the group should interact and begin working toward goal accomplishment. Extra Example: The study group is likely to work out its differences and set to work. People take the task seriously and start getting ready for the test. 4. The performing stage occurs as group members enact their roles and assess their performance. Extra Example: In the hypothetical study group, the members finish up and then take their test. If they perform well and feel that working together helped their grades, they are likely to continue to study together. On the other hand, if they feel that studying together did not help, they will be less likely to do so again. II. Characteristics of Groups and Teams A. Role Structures Each member in the group has a part—or role—to play in helping the group reach its goals. The group’s role structure is the set of defined roles and the interrelationships among these roles. Discussion Starter: Ask students if they can describe different roles they have in different groups. 1. Role ambiguity arises when the sent role is unclear. Extra Example: Note that students are likely to experience role ambiguity if their instructor does not provide them with a course outline, is vague and ambiguous about class assignments, and so forth. Teaching Tip: Note that many new employees experience role ambiguity when they first join an organization. 2. Role conflict occurs when the message and cues composing the sent role are clear but contradictory. Managers can and should take steps to avoid causing their subordinates role conflict or role overload. Group Exercise: Have small groups of students identify personal examples of the various forms of role conflict they have experienced. a) Interrole conflict occurs when a person has two roles that are in conflict with each other. b) Intrarole conflict occurs when a person gets conflicting information about one role that he or she enacts. c) Intrasender conflict occurs when a single source sends contradictory messages. d) Person-role conflict occurs when the requirements of the role conflict with the values the enactor holds. 3. Role overload occurs when expectations for the role exceed the individual’s capabilities to perform. Extra Example: Students often experience role overload in college. They take heavy class loads, work, join various on-campus groups, and maintain relationships with friends and family. B. Behavioral Norms Norms are standards of behavior that the group accepts for and expects of its members. Teaching Tip: Provide some examples to your students about norms you have witnessed or experienced. For example, in some business schools, faculty members routinely wear professional attire and/or work normal “business” hours. In other business schools, however, faculty dress more casually and/or have more variability in their working hours. 1. Norms do not always generalize (transfer) from one group to the next. What is accepted in one group may be frowned on in another. Extra Example: Professional athletes sometimes note that when they get traded to a different team, they are surprised at the differences in work habits, dedication to winning, and similar norms. 2. Norm variation may be allowed within a group, as long as it is not taken to an extreme. Extra Example: Some professional sports teams make exceptions for their star athletes. For example, they may be allowed to skip certain team meetings or functions, start practice a little late, and so forth. The Chicago Bulls routinely did this for Dennis Rodman. 3. Individual group members can either adapt to the norm (that is, exhibit norm conformity) or ignore the norm. Those who accept and conform are welcomed into the group, while those who ignore the norm may be ostracized. a) Group factors, such as pressure from group members, affect norm conformity. b) The initial stimulus that affects behavior affects norm conformity. For example, more ambiguous stimuli produce more conformity. c) Individual traits, including intelligence, affect propensity to conform. d) Situational factors, such as team size, also affect conformity. 4. The generalized norm conformity that occurs as a person makes the transition from being an outsider to being an insider is called socialization. Extra Example: Socialization processes vary widely across groups. A woman’s social club might socialize new members by inviting them to a luncheon to demonstrate appropriate attire and manners, while rookie members of the U.S. Coast Guard are typically thrown overboard on their first voyage. Street gangs might require a drive-by shooting as an initiation process. Extra Example: The stronger and clearer the organization’s culture, the easier it is to socialize newcomers. The culture makes it easier for them to learn about the organization and what is and is not acceptable to it. C. Cohesiveness Cohesiveness is the extent to which members are loyal and committed to the group and the degree of attractiveness within the group. 1. Several factors increase cohesiveness. a) Intergroup competition b) Personal attraction to the group c) Favorable evaluations of the group as a whole d) Group members agreeing on group goals e) Frequent interaction between group members Interesting Quote: “We have a great team spirit. Our people want to be the Marines. They want to be the finest. We hire eagles and teach them to fly in formation.” (D. Wayne Calloway, CEO of PepsiCo, Fortune, January 30, 1989, p. 70) Extra Example: Athletic teams often go through a period of heightened cohesiveness after winning a championship or big game. Select a team of local interest that has done this and use it here to illustrate how success enhances cohesiveness. 2. Several factors reduce cohesiveness. a) Large group size b) Disagreement on group goals c) Intragroup competition d) Domination by one or two group members e) Unpleasant experiences that the group shared Extra Example: Similarly, athletic teams that lose a big game or that have a disappointing season often become less cohesive as a result. If applicable, also use a local team to illustrate how this works. Extra Example: An organization undergoing a period of layoffs and downsizing may experience a loss of cohesiveness among those employees who retain their jobs. 3. There are several consequences of cohesiveness. a) More group interaction b) More norm conformity c) Increased group performance Teaching Tip: A popular movie, Remember the Titans, starring Denzel Washington, provides a good illustration of the development and consequences of group cohesiveness. 4. High cohesiveness combined with high performance norms is the best situation, from the manager’s and organization’s point of view. High cohesiveness combined with low performance norms is the worst situation. Managers can work to improve both group cohesiveness and raise performance norms in order to improve outcomes. Global Connection: Japanese work groups have traditionally been characterized by both high performance norms and high levels of cohesiveness. This characteristic may help explain why Japanese businesses are so competitive. D. Formal and Informal Leadership An informal leader is a person who engages in leadership activities but whose right to do so has not been formally recognized by the organization or group. Extra Example: Before he founded Walmart, Sam Walton was a strong informal leader. Many of his former classmates at the University of Missouri recall that he was frequently looked to for leadership and that they knew he would eventually be a big success. Discussion Starter: Ask students to identify recent and/or personal examples of informal leaders. III. Interpersonal and Intergroup Conflict Conflict is an inevitable outcome of interpersonal relationships in organizations. A. The Nature of Conflict Conflict is a disagreement among two or more individuals or groups. 1. Organizational conflict results from disagreements between individual employees, work groups, or departments. 2. Organizational conflict is not always something to be avoided. A moderate level of conflict, constructively managed, can serve useful purposes. Conflict can require a more thorough decision-making process, leading to higher quality decisions. Conflict can stimulate individuals to be innovative and to show initiative. Teaching Tip: Ask students to recall any recent instances of conflict that affected them. Ask them to identify any potentially beneficial aspects of that conflict. B. Causes of Conflict 1. Interpersonal conflict occurs among two or more people. It can be caused by differences in personality, beliefs, and perceptions, or by excessive competitiveness. Extra Example: Robert Allen, former CEO of Delta Airlines, left the firm because of a conflict he had with its board of directors. 2. Intergroup conflict is conflict between two or more groups within an organization. It can be caused by interdependence, differences in goals, and resource competition. 3. Conflict between the organization and another organization in its environment is called interorganizational conflict. It may be the result of competition or disagreements between the two organizations. Extra Example: The recent spate of negative advertising between Comcast Cable and Verizon DSL represents an extreme form of organization–environment conflict for both firms. IV. Managing Conflict in Organizations A. Stimulating Conflict Managers may find it necessary to stimulate a certain degree of conflict if groups are not motivated or if a change is needed. There are three common methods for doing this. 1. Increase competition between individuals and teams. 2. Hire outsiders to shake things up. 3. Change established procedures. Discussion Starter: Ask students their thoughts on the wisdom of intentionally stimulating conflict. Extra Example: Whenever a college or university hires a new president from the outside, he or she usually reassigns some key administrators and often ends up creating at least a small amount of conflict. B. Controlling Conflict Sometimes managers want to control conflict to keep it from becoming excessive. To control conflict, managers can use four techniques. 1. Expand the resource base. 2. Enhance coordination of interdependence. 3. Set superordinate goals. 4. Match personalities and work habits of employees. Discussion Starter: Ask students if they can think of other methods for controlling conflict. C. Resolving and Eliminating Conflict Managers often need to resolve and eliminate conflict as well. Common methods for resolving and eliminating conflict include three actions. 1. Avoid conflict to begin with. 2. Convince the conflicting parties to compromise. 3. Bring the conflicting parties together to confront and negotiate the issues. This approach is called interpersonal problem solving. A more formal solution may include arbitration and is known as alternative dispute resolution. Global Connection: Conflict among coworkers is much less acceptable in Japan than it is in the United States. IV. Negotiation Negotiation is the process in which two or more parties reach agreement in spite of having different preferences regarding the issue. Four primary approaches to negotiation are individual differences, situational characteristics, game theory, and cognitive approaches. Instructor Manual for Fundamentals of Management Ricky W. Griffin 9781285849041, 9780357039168
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