CH-12 Leadership – Management: Leading and Collaborating in a Competitive World : Chapter Notes

Chapter 12 Leadership LEARNING OBJECTIVES 1 Discuss what it means to be a leader. 2 Summarize what people want and organizations need from their leaders. 3 Explain how a good vision helps you be a better leader. 4 Identify sources of power in organizations. 5 List personal characteristics that contribute to leader effectiveness. 6 Describe behaviors that will make you a better leader, and know when situations call for them. 7 Distinguish between charismatic and transformational leaders. 8 Describe types of opportunities to lead. 9 Discuss how to further your own leadership development. CHAPTER OUTLINE What Do We Want from Our Leaders? Vision Leading and Managing Leading and Following Power and Leadership Sources of Power Traditional Approaches to Understanding Leadership Leader Traits The Effects of Leader Behavior Situational Approaches to Leadership Contemporary Perspectives on Leadership Charismatic Leadership Transformational Leadership Authenticity Opportunities for Leaders A Note on Courage Developing Your Leadership Skills How Do I Start? What Are the Keys? CHAPTER RESOURCES Experiential Exercises 1. Using the Five Sources of Power at Work Cases Breitt, Starr & Diamond LLC Social Enterprise Elizabeth Hausler Engineers Disaster-Proof Homes Lecturettes 1. The Motivation to Manage 2. Leading Professionals KEY STUDENT QUESTIONS Students have an intrinsic interest in leadership—they come into class wanting to know: 1. “Do I have what it takes to be a leader?” 2. “Are the people I know who are in leadership positions doing the right things?” The problem is that when professors start talking about “leadership theories,” students start to go to sleep. Your approach to solving this problem depends on your preferences for applied vs. laboratory research, but whichever you prefer; brush up on your storytelling skills! •If your preference is applied research, emphasize leader traits and behaviors in your lecture. Get a copy of any of Kouzes’ and Posner’s books —they are crammed with examples and stories you can use to bring the criteria for being a leader in life. When discussing contingency theories of leadership, rather than talking about path-goal theory and the least-preferred coworker model, describe leaders such as Rudy Guiliani, who were seen as effective in certain circumstances, but not in others. Review research from the Center for Creative Leadership (www.ccl.org) for additional information on the successful leadership strategies of corporate executives. •If your preference is for laboratory research, the trick is to tell the students the story behind the research. For example, Fiedler’s work was influenced by a seminal review of the leadership literature published by Stogdill in 1948. In his work, Stogdill suggested that it was time to stop looking at the traits of leaders, and instead look at how they were affected by their situations. Some of Fiedler’s earliest work was with basketball teams—he asked basketball players to describe both the people on the team and those rejected from the team. The results of that study showed that when basketball players were able to describe the people rejected from the team in positive terms, the team was more effective overall. Teaching Tip A day or two before you are scheduled to teach the leadership chapter, ask your students to respond to Discussion Question 7 in writing. The question reads “Who are your heroes? What makes them heroes, and what can you learn from them?” By reviewing this input before class, you can create examples that will be more meaningful to the class. This is especially important if you have a very diverse class, as student responses can be very interesting and unusual! In one recent class, students chose Billy Graham and Hugh Hefner as leaders, as well as a prime minister from Thailand and Guan Zi Zai, the Chinese name for the Bodhisattva Avalokitesvara. CLASS ROADMAP POWERPOINTS Slide 1 Leadership Slide 2 Chapter Introduction Quote Slide 3- Learning Objectives MANAGEMENT IN ACTION Indra Nooyi Leads Pepsico to Performance with Purpose Indra Nooyi belongs to a very small and select group. As CEO of PepsiCo, she is one of only 29 female CEO’s of an S&P 500 company. Born in India and educated in Calcutta and at Yale, she joined the company in 1994 and had also served as president and chief financial officer. Nooyi devised a long-term strategy for growth, called Performance with Purpose. This strategy is designed to generate profit while finding sustainable ways to serve the communities in which PepsiCo products are sold. Nooyi is having a profound effect on PepsiCo’s management strategy and objectives, as well as on its performance. The company has been outperforming its rivals even as it tries to reshape the snack and beverage industries. INTRODUCTION LO 1: Discuss what it means to be a leader. 1. Leadership can be taught—it involves skills “possessed by a majority, but used by a minority.” 2. Leaders influence others to attain goals. 3. Outstanding leaders combine good strategic substance with effective interpersonal processes. Example 12.1 - Leadership: Use student examples from Discussion Questions 12, 13, and 14 assignment to illustrate leadership. CONNECT Click and Drag: Leadership Through a Contemporary Lens (Keyboard navigable alternate version available.) SUMMARY Leadership has been studied in a variety of ways. Three traditional approaches to studying leadership are the trait approach, the behavioral approach, and the situational approach. More contemporary approaches to leadership include transformational and transactional leadership, charismatic leadership, authentic leadership, and pseudo transformational leadership. Understanding the nuances between these five contemporary approaches can be difficult, and thus in this activity, students have a chance to identify each of these five types of contemporary approaches to leadership in action. ACTIVITY Students are instructed to match the statements made by five leaders to specific leadership approaches. CLASS DISCUSSION IDEAS To explore leadership approaches, ask if one approach is superior to the others, or in what context each approach may be best suited for use. I. WHAT DO WE WANT FROM OUR LEADERS? POWERPOINTS Slide 4 Leadership LO 2: Summarize what people want and organizations need from their leaders. A. People want help in achieving their goals. B. Organizations need help in creating and implementing strategic direction C. Kouzes and Posner say that the best leaders (Exhibit 12.1): 1. Challenge the process 2. Inspire a shared vision 3. Enable others to act 4. Model the way 5. Encourage the heart Multiple Generations at Work Leadership, Millennial Style Approximately two-thirds of Millennials want to be leaders in the workplace in the next five years. Millennials define a good leader as one who “mentors others to reach their personal achievements, achieves his/her goals, and affects change in the community.” This view of leadership is different from viewing a leader as someone who takes charge, issues orders, and gets the job done. As a generation, Millennials share some common leadership characteristics, including transparency, relevancy, autonomy, and flexibility. Example 12.2 – Leadership actions: In “The Leadership Challenge,” Kouzes and Posner tell the story of White’s, a car dealership in London. Faced with declining sales, Lindsey Levin had a vision—that every customer would have an amazing experience every time they interacted with the company. She inspired employees to share her vision by showing them videotaped focus groups with customers. As the employees recognized that customers weren’t satisfied, Levin asked them to talk about the changes they wanted to see and implement those changes in small teams. Once the teams had some success with small projects, Levin encouraged them to move on to bigger projects. She made a commitment to training—ensuring that 10% of every employee’s time was dedicated to learning new things. Knowing that communication was the glue that would hold everything together, Levin kept going back to employees—getting their opinions, listening to what they had to say, and opening her heart to them. And Levin “walks the talk”—she acts the way she expects others to act—for example, sitting down with a new employee and showing him the ropes, and taking time out to personally thank people at every opportunity. She has set up a recognition program called “Going the Extra Mile” that rewards employees for doing something that helps to serve customers better. And she is constantly writing notes to thank employees when they’ve done something that creates more satisfied customers. In short, Lindsay Levin is an excellent example of all five of the leadership actions noted above. II. VISION POWERPOINTS Slide 5 Vision Slide 6 Exhibit 12.2 Reasons Why Visions Fail LO 3: Explain how good vision helps you be a better leader. A. A vision is a mental image of a possible and desirable future state of the organization. B. Visions in action Visions can be small or large and exist throughout all organizational levels, as well as at the very top: 1. A vision is necessary for effective leadership. 2. A person or team can develop a vision for any job, work unit, or organization. 3. Many people, including managers who do not develop into strong leaders, do not develop a clear vision – they focus on performing or surviving on a day-to-day basis. Example 12.3 - Vision: On October 8, 2007, PRWeek published an article entitled, “When it comes to persuasion, leaders should follow Moses.” Now, this may seem odd for a modern business magazine, but as Fred Bratman points out, “But Moses successfully demonstrates the key skills of persuasion. His primary tools are words—though that staff he carries around is impressive—and he uses them to create a compelling vision of the future, especially when talking to the Israelites. He promises them "a land of milk and honey" to convince them that leaving Egypt is a big step up from their enslavement, through hardship lies ahead. He is extremely credible, as he not only returned to Egypt after winning his own freedom, but he also turned down a life of comfort offered to him by the Pharaoh. Finally, Moses was one of them, not some outsider telling them what was best for them. They never had to question his commitment.” III. LEADING AND MANAGING POWERPOINTS Slide 7 Leading and Managing Slide 8 Behaviors of Effective Follower A. Supervisory leadership is behavior that provides guidance, support, and corrective feedback for the day-to-day activities of work unit members. B. Strategic leadership is behavior that gives purpose and meaning to organizations. C. Leading and Following 1. Organizations succeed or fail not only because of how well they are led but also because of how well followers follow. 2. The most effective followers are capable of: a. Independent thinking. b. Actively committed to organizational goals. 3. Effective followers are distinguished from ineffective ones by their enthusiasm and commitment to the organization and to a person or purpose – an idea, a product – other than themselves or their own interests. IV. POWER AND LEADERSHIP POWERPOINTS Slide 9 Power and Leadership LO 4: Identify sources of power in organizations. A. Power-the ability to influence others B. Sources of Power. (Exhibit 12.4) 1. Legitimate power is where the leader has the right, or authority to tell others what to do; employees are obligated to comply with legitimate orders. 2. Reward power is where the leader influences others because she or he controls valued rewards; people comply with the leader’s wishes in order to receive those rewards. 3. Coercive power is where the leader has control over punishments; people comply to avoid those punishments. 4. Referent power is where the leader has personal characteristics that appeal to others; people comply because of admiration, a desire for approval, personal liking, or a desire to be like the leader. 5. Expert power is where the leader has certain expertise or knowledge; people comply because they believe in, can learn from, or can otherwise gain from that expertise. Example 12.4 – Types of leadership power: Toronto Mayor, Rob Ford made media headlines throughout 2013 for allegations of drug and alcohol abuse and other bizarre behaviors. Ford’s popularity as a public figure, with a large talk radio following and scheduled reality show, suggest referent power. However, in November of 2013, Toronto’s City Council voted to strip Ford of his legitimate power to govern in case of an emergency as well as his reward and coercive powers pertaining to his ability to appoint and dismiss his senior staff V. TRADITIONAL APPROACHES TO UNDERSTANDING LEADERSHIP POWERPOINTS Slide 10 Traditional Approaches to Understanding Leadership Slide 11 Personality Characteristics That Increase Leader Effectiveness Slide 12 Leader Behaviors Slide13 Questions Assessing Task Performance and Group Maintenance Leadership (1 of 2) Slide 14 Questions Assessing Task Performance and Group Maintenance Leadership (2 of 2) Slide 15 Participation in Decision Making Slide 16 Exhibit 12.7 Leadership Grid Slide 17 Situational Approaches to Leadership Slide 18 The Vroom Model of Leadership Slide 19 Exhibit 12.8 Fiedler’s Analysis of Situations Slide 20 Hersey and Blanchard’s Situational Theory Slide 21 Exhibit 12.9 Path-Goal Theory Slide 22 Substitutes for Leadership LO 5: List the personal traits and skills of effective leaders. A. Leader traits – the trait approach is the oldest leadership perspective and was dominant for several decades. The perspective is that some personality characteristics – many of which a person need not be born with but can strive to acquire distinguish effective leaders from other people (Exhibit 12.5): 1. Drive, which refers to a set of characteristics that reflect a high level of effort. It includes the high need for achievement, constant striving for improvement, ambition, energy, tenacity (persistence in the face of obstacles), and initiative. 2. Leadership motivation – great leaders not only have the drive, but they also want to lead. 3. Integrity is the correspondence between actions and words. Honesty and credibility are especially important. 4. Self-confidence is important because the leadership role is challenging, and setbacks are inevitable. 5. Knowledge of the business, industry, company, and technical matters. 6. The most important personal skill is the ability to perceive the needs and goals of others and to adjust one’s personal leadership approaches accordingly. CONNECT Click and Drag: The Paths Leaders Take (Keyboard navigable alternate version available.) SUMMARY Developed by Robert House, path-goal theory gets its name from its concern with how leaders influence followers' perceptions of their work goals and the paths they follow toward goal attainment. The key situational factors in path-goal theory are (1) personal characteristics of followers and (2) environmental pressures and demands with which followers must cope to attain their work goals. These factors determine which leadership behaviors are most appropriate. The four pertinent leadership behaviors are (a) directive leadership, a form of task performance-oriented behavior; (b) supportive leadership, a form of group maintenance-oriented behavior; (c) participative leadership, or decision style; and (d) achievement-oriented leadership, or behaviors geared toward motivating people, such as setting challenging goals and rewarding good performance. ACTIVITY In this exercise, students are presented seven items to associate with the appropriate step in the path-goal model. CLASS DISCUSSION IDEAS The instructor may foster discussion by asking students to apply the path-goal model to the school context, i.e. can an instructor use the methodology? The instructor may also ask students what if any overlap is there in this model to the others discussed in the chapter. Example 12.5 – Leadership traits Dell CEO Kevin Rollins says that most leadership biographies are either “How I Made Money” or “How I Became a Leader.” Rollins found that he wasn’t interested in such tomes, and instead, he got his education on how to be a leader from the Founding Fathers of the United States. According to Rollins, Aaron Burr was a genial man, whose style was to flatter people, while Alexander Hamilton was analytical but cold. It was George Washington who had the style Rollins hoped to mimic. "Washington would often tell people something about themselves they didn't know, and would inspire them to greatness in a very genuine way through his observations and through the respect they had for him as an individual," Rollins says. He earned that respect through dedication to a cause beyond his own benefit, even accepting a "demotion" to general of the nation's armies after two terms as president and commander-in-chief.” LO 6: Describe the behaviors that will make you a better leader, and identify when the situation calls for them. B. Leader behaviors 1. Leadership behaviors – the behavioral approach attempts to identify what good leaders do. Three general categories of leadership behavior are: a. Task performance behaviors are the leader’s efforts to ensure that the work unit or organization reaches its goals. i. This dimension is sometimes referred to as: (1) concern for production (2) directive leadership (3) initiating structure or closeness of supervision. ii. It includes a focus on: (1) work speed (2) quality and accuracy (3) quantity of output (4) following the rules. b. Group maintenance behaviors are where leaders take action to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group. i. This dimension is sometimes referred to as: (1) concern for people (2) supportive leadership (3) consideration. ii. Leader-Member Exchange (LMX) theory highlights the importance of leader behaviors not just toward the group as a whole but also toward individuals on a personal basis. 2. Participation in decision-making dimension of leadership behavior can range from autocratic to democratic. a. Autocratic leadership makes decisions and then announces them to the group. b. Democratic leadership solicits input from others. C. The effects of leader behavior 1. Decision styles a. Autocratic style resulted in somewhat higher performance. b. Democratic style resulted in the most positive attitudes. c. Laissez-faire style is a philosophy characterized by an absence of managerial decision-making. 2. Performance and maintenance behaviors a. Ohio State studies found supervisors who were high on maintenance behaviors (which the researchers termed consideration) had fewer grievances and less turnover in their work units than supervisors who were low on this dimension. b. Ohio State studies found the opposite for task performance behaviors (which the team called initiating structure). Supervisors high on this dimension had more grievances and higher turnover rates. c. An equally famous research program at the University of Michigan concluded that the most effective managers engaged in what they called task-oriented behavior; planning, scheduling, coordinating, providing resources, and setting performance goals. D. Situational Approaches to Leadership 1. Leadership perspective proposing that universally important traits and behaviors do not exist and that effective leadership behavior varies from situation to situation. a. The Vroom model follows in the tradition of Tannenbaum and Schmidt. It is a situational model of leadership that focuses on how leaders go about making decisions. (Exhibit 12.9) b. Fiedler’s contingency model of leadership effectiveness states that effectiveness depends on two factors: the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation. (Exhibit 12.11) i. Fiedler considered two leadership styles: (1) Task-motivated leadership, which places primary emphasis on completing the task and is more likely, exhibited by leaders with low LPC scores. (2) Relationship-motivated leadership emphasizes maintaining good interpersonal relationships and is more likely from high-LPC leaders. ii. Different situations call for different styles, and the leader’s attitude toward his/her least preferred coworker (LPC) affects scores. 1. Task-motivated leadership places more emphasis on the task and is more likely among leaders with low LPC scores. 2. Relationship-motivated leadership emphasizes maintaining good interpersonal relationships and is more likely among leaders with high LPC scores. c. Hersey and Blanchard’s Situational Theory i. Hersey and Blanchard’s Situational Theory highlights the maturity of the followers as the key situational factor. ii. Job maturity is the level of the follower’s skills and technical knowledge relative to the task being performed. iii. Psychological maturity is the follower’s self-confidence and self-respect. CONNECT ISeeIt! Animated Video: Hersey and Blanchard’s Theory of Leadership SUMMARY Being an effective leader is an integral part of your success as a manager. Hersey & Blanchard’s Situational Leadership (SLT) argues that the key determinant of how effective you are as a leader is matching the appropriate style with the maturity level of your employee(s). The animated video provides a brief lecture type review of Hersey & Blanchard’s model. ACTIVITY After watching the animated four-minute video students then answer a series of multiple-choice questions on the SLT model. CLASS DISCUSSION IDEAS The instructor may wish to further explore the match between readiness level and matching leader style by asking students to develop specific examples of each. While the logic of SLT is relatively straight forward, is it actually easy to use? d. Path-goal theory is a theory that concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals. (Exhibit 12.12) i. Key situational factors in path-goal theory are: (1) personal characteristics of followers (2) environmental pressures and demands with which followers must cope to attain there work goals. ii. Four pertinent leadership behaviors are: (1) directive leadership, a form of maintenance-oriented behavior (2) supportive leadership, a form of group maintenance-oriented behavior (3) participative leadership, or decision style (4) achievement-oriented leadership or behaviors geared toward motivating people, such a setting challenging goals and rewarding good performance e. Substitutes for leadership – factors in the workplace that can exert the same influence on employees that leaders would provide. CONNECT Video Case: Leadership at Pike Place Fish Market SUMMARY Outstanding leaders combine good strategic substance and effective interpersonal processes to formulate and implement strategies that produce results and sustainable competitive advantage. In this exercise, students watch a video that demonstrates the power of effective leadership. Pike Place Fish Market will provide the class the opportunity to think about the chapter concepts and how they relate to true leadership in action. ACTIVITY Students are to watch a 15-minute video and then answer a series of multiple-choice questions that focus on the leadership John Yokoyama, owner of Pike Place Fish Market. CLASS DISCUSSION IDEAS The instructor may wish to ask the class what stood out the most in John’s approach to leadership, and if they can apply the lessons from the Pike Place Fish Market in other contexts. Does John appear to follow a particular leadership or a combination of approaches? CONNECT Manager’s Hot Seat: Leadership and Credibility SUMMARY The Hot Seat video depicts a meeting in which the designated leader is struggling to implement a mandated change. The leader, Malcolm Price has recently transitioned from an IT coordinator with low-level managerial responsibility to his current role heading up the technical side at Schumacher’s Company Formations. Unfortunately, no one is willing or comfortable following his lead. ACTIVITY Students watch the nine-minute Manager Hot Seat video and answer a series of questions probing how leadership theory applies to the case. CLASS DISCUSSION IDEAS The instructor may ask the class if they feel Malcolm achieved commitment to the initiative from the team. How might students have played the role of Malcolm differentially in the meeting? Does Malcolm need additional training, is so what? Management in Action – Progress Report Pepsico Shifts to Healthier Products In line with Nooyi’s Performance with Purpose strategy, the company will “increase positive nutrition,” specifically by promoting its “Everyday Nutrition” products, which include whole grains, fruits, vegetables, and dairy, and by deploying the PepsiCo Foundation to increase access to these foods and beverages among underserved and food-insecure customers. The company will seek to relieve the problem of chronic hunger and rely on locally sourced and sustainably produced ingredients while also fighting obesity, which Nooyi sees as “one of the world’s biggest public health challenges, a challenge fundamentally linked to our industry.” Other goals Nooyi hopes to achieve by 2025 are reducing waste in food production by half and achieving 100% recoverable or recyclable packaging. In addition, she wants the company to improve the efficiency of its use of water around the world and promote respect for water access as a human right. Working with the PepsiCo Foundation, she wants to provide 25 million at-risk people with access to a safe water supply by 2025. Described as a perfectionist who believes in “pushing the boundaries to get to flawless execution, and is a lifelong learner. •What leadership traits and behaviors describe Indra Nooyi? How might they be effective (or not)? Noovi has exhibited determination, a clear vision for the future. She has reduced waste and aligning resources toward producing healthier products. •Responsible Leadership” is a label sometimes used to describe leaders who care about and act on behalf of social issues. You learned in Ch. 5 about ethics, CSR, and sustainability; how does Indra Nooyi exhibit responsible leadership? Nooyi’s strategy for PepsiCo includes reducing, waste, promoting the use of recyclable packaging, increasing the healthfulness of its products and reaching out to underserved communities domestically and internationally. VI. CONTEMPORARY PERSPECTIVES ON LEADERSHIP POWERPOINTS Slide 23 Contemporary Perspectives on Leadership Slide 24 Transformational vs. Transactional Slide 25 Level 5 Leadership Slide 26 Opportunities for Leaders Slide 27 Social Enterprise LO 7: Distinguish between charismatic and transformational leaders. A. Charismatic leadership – a person who is dominant, exceptionally self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in subordinates. B. Transformational leadership – leaders who motivate people to transcend their personal interests for the good of the group 1. Transactional leaders –view management as a series of transactions in which they use their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered. 2. Generating excitement by a. being charismatic b. giving individual attention a. being intellectually stimulating. 3. Additional strategies that contribute to transformational leadership are: a. leaders have a vision b. leaders communicate their vision through words, manner, or symbolism c. leaders build trust by being consistent, dependable, and persistent d. leaders have a positive self-regard. 4. Transforming leaders a. Level 5 leadership—a combination of strong professional will (determination) and personal humility that builds enduring greatness. b. Level 5 leaders exhibit both transformational and transactional skills C. Authenticity 1. Authentic leadership is a style in which the leader is true to himself or herself while leading 2. Psuedotransformational are leaders that talk a good game, but they ignore the followers’ real needs as their own self-interests (power, prestige, control, wealth, fame) take precedence. Example 12.6 – Authentic leaders (Answer to Student Discussion Question 13): The April 2012, issue of Forbes Magazine lists the best and worst CEOs in terms of a pay/performance comparison. The best performing bosses (authentic leaders) include Jeff Bezos of Amazon.com, Marc Benioff of Salesforce.com, Bob Sasser of Dollar Tree, Neal Patterson of Cerner, and Leanora Bell of Alexion Pharma. The worst performing bosses (inauthentic leaders) include Mel Karmazin of Sirius XM Radio, Michael D. Fraizer of Genworth Financial, William R. Klesse of Valero Energy, Gregory Boyce of Peabody Energy, and Wendell Weeks of Corning. D. Opportunities for Leaders 1. Leaders must spread leadership throughout the organization. 2. Make heroes of other people—help them to unleash their intellectual capital. LO 8: Describe types of opportunities to be a leader in an organization. 3. Servant leaders—serve the needs of others while strengthening the organization. 4. Intergroup leaders lead collaborative performance between different groups or organizations. 5. Shared leadership occurs when leadership rotates to the person with the key knowledge, skills, and abilities for the issue facing the team at a particular time 6. Lateral leadership is a style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving Example 12.7 – Servant leaders (Answer to Student Discussion Question 14 above): Nelson Mandela and Mother Teresa are two examples of servant leaders. Both are people who were willing to give up their own self-interests for the good of others—in the case of Nelson Mandela, he fought to end apartheid for the people of South Africa, and in the case of Mother Teresa, she gave up everything to help the impoverished street people of India. A more business-oriented example of a servant leader is Jim Sinegal, the CEO of Costco. Sinegal’s philosophy is that by treating employees and customers right, he increases both customer and employee loyalty, making the business more stable in the long run. As Sinegal says, “This is not altruistic—this is good business.” E. A Note on Courage 1. Good leaders show courage by: a. seeing things as they are and facing them head-on b. saying what needs to be said to those who need to hear it c. persisting despite resistance, criticism, abuse, and setbacks VII. DEVELOPING YOUR LEADERSHIP SKILLS POWERPOINTS Slide 28 Effective Developmental Experiences Slide 29 Management in Action Slide 30 In Review LO 9: Discuss how to further your own leadership development. A. How Do I Start? 1. Assignments 2. Other people 3. Hardships 4. Other events B. What Are the Keys? 1. Assessments 2. Challenge 3. Support Teaching Tip Discussion questions 8 and 9 are excellent short writing assignments, especially in large lecture sections. For added enrichment, have the students write their responses, then discuss their responses in small groups. Management in Action – Onward Nooyi Has the Right Stuff to Help Pepsico Evolve and Prosper PepsiCo is a global food and beverage giant, with operations in 200 countries and more than a quarter million employees around the world. An aggressive competitor, it leads its industry in sales growth even as it continually innovates, introducing new products and revamping customer favorites to make them healthier and their production more sustainable. The person who manages such a company might not be expected to have much time for the personal touch. But Indra Nooyi, PepsiCo’s CEO since 2006, has not forgotten how much people appreciate others’ respect for their family ties. Every year she writes to the parents of her senior executives to thank them for the contributions their children are making to the company. Nooyi enjoys a 75% approval rating among employees. What evidence, if any, do you see that she is a charismatic leader? A transformational leader? An authentic leader? A servant–leader? Student answers will vary, but many will point to the recent and planned changes for PepsiCo under her leadership, implying a transformational leadership approach. Her broad support and inspirational connection with employees may be used to argue for a charismatic form. Students may also point to aspects of her humility to argue for a servant-leadership approach. Look up recent business news to learn how well PepsiCo is performing today and whether Nooyi remains CEO. Has she been a successful leader of the company? Why or why not? Timing will influence answers; however, it is likely that PepsiCo will continue to be successful and students will be able to provide specific financial, product and community examples. CONNECT Self-Assessment: Do You Have What It Takes to Be a Leader? SUMMARY Leadership research has produced mountains of literature on what it takes to be a good leader. One overriding theme that runs throughout recent leadership literature is that today's leaders who seek a competitive advantage for their organizations must focus on the growth and development of their people. Many benefits can be derived from this growth and development focus, not the least of which is to have employees who can effectively respond to change because change is a common characteristic of nearly all leadership situations. ACTIVITY After a brief concept review, students are presented a self-assessment of leadership skills. CLASS DISCUSSION IDEAS A class discussion could be on the notion that “leaders” and “managers” are not one in the same. And ask if one is more appropriate in particular contexts. BOTTOM LINE Do you have to be a top-level executive to have a vision? No. Although news reports and the examples in this chapter emphasize stories about top executives, managers at any level can identify and communicate a vision for their group. The challenge is to express a vision that is consistent with the organization’s overall mission. What is your vision for a better future? Students answers will vary, but in addition to clean air, clean water, and ample food, some students might mention equality, poverty, or some of the specific organizational initiatives pertaining to corporate social responsibility discussed in Chapter 5. What shows you that a manager cares about task performance? The text suggests answers such as focusing on work speed, quality, and accuracy and expressing concern for following rules. Drawing on their own work experience, students may identify activities such as setting high-performance standards, measuring performance, ensuring that workers are well trained, giving out rewards for achievement of goals, and carefully supervising what workers are doing. Why might improving employees’ personal development be good for a company? As employees learn new skills, whether task-related skills or people skills, they can provide greater value to their company by applying those skills on the job. SOCIAL ENTERPRISES Elizabeth Hausler Engineers Disaster-Proof Homes 1. What makes Elizabeth Hausler such an effective leader? Hauser was able to take a vision and turn it into a reality. She mentored local organizations and people in order to multiply her impact. 2. To what degree is Hausler a servant leader? A Level-­‐5 leader? Level 5 leadership is a combination of strong professional will (determination) and personal humility that builds enduring greatness. Hauser had a strong determination to limit the devastating impact of earthquakes in the developing world. These ideas then turned into a reality when Hauser partnered with local individuals, organizations and other international organizations . Her organization is succeeding in many ways, not only saving lives and homes but also nurturing new talent. LECTURETTES LECTURETTE 12.1: The Motivation to Manage THE SHORTAGE OF MANAGERIAL TALENT 1. The nation is undergoing a management crunch—a shortage of managerial talent. 2. The management crunch results from a number of factors: The low birth rate of the 1930’s. The unprecedented expansion in the size of the modern organization. The growing complexity of the managerial process. The burgeoning demand for management skills outside the fields of business and industry. The dissatisfaction among managers, causing them to seek alternate career opportunities. The attitudinal shift among college students that are leading them away from managerial careers. THE SHIFT IN STUDENT VALUES 1. The attitudinal shift that is diverting college students away from managerial careers is part of a larger cultural shift in the American society, especially with respect to individual attitudes toward the nature of work. 2. The old “Protestant Ethic,” which promoted the values of hard work, competition, and thrift, is being replaced by an emerging “Social Ethic,” which advocates “belongingness” and group affiliation as the ultimate ingredients to a higher quality of work life. 3. Students at the Harvard Business School were found to have significantly stronger preferences for working within smaller groups, emphasizing interpersonal relations while de-emphasizing matters of procedural control and profit. 4. University of Connecticut students expressed significantly strong concerns that they were less and less in control of their own destinies and more and more at the mercy of external forces. 5. Students at the University of Toronto exhibited strong shifts away from authoritarianism and managerial careers. 6. Students at the University of Washington did not perceive business management to be a viable vehicle for gratifying major career aspirations. 7. A study at Cleveland State University reflected a steady decline in the motivation to manage on the part of business students over a 20-year period. THE MOTIVATION TO MANAGE 1. One of the most successful instruments for correlating a specifically desired behavior with its corresponding organization of central beliefs, values, and attitudes is the Miner Sentence Completion Scale (MSCS), which measures those motivational factors that are correlated with successful managerial performance. 2. The Miner methodology specifies six motivational factors that lead to a desire to manage, namely: a favorable attitude toward: Authority and authority figures. Competitiveness. One’s self-worth and corresponding assertiveness. Imposing wishes on others and using socialized power. Assuming a position of distinction and standing out from the ordinary. Routine administrative functions and responsibilities. 3. Miner’s instrument has been validated by numerous research projects involving managers from all levels of the hierarchy of a variety of business, educational, and government organizations. LEARNING THE MOTIVATION TO MANAGE 1. Anyone who aspires to be a successful manager must learn the motivation to manage—and it can be learned. Motivation training has been used successfully by many organizations in programs in which employees first learn that they can change their situation. Then they learn new values and new higher order needs, and finally, they learn and are allowed to practice new behaviors capable of gratifying those higher order needs. 2. In similar experiments, undergraduate business students were found to possess the higher motivation to manage than non-business students were, while graduate business students possessed even higher motivation to manage than their undergraduate counterparts. 3. Still another research, using Miner methodology, successfully increased the motivation to manage for undergraduate business students during one semester in the introductory management course. LECTURETTE 12.2: Leading Professionals UNDERSTANDING THE PROFESSIONAL EMPLOYEE 1. More and more, institutions of all types are being required to hire professional personnel. 2. Professionals tend to be uniquely different from other employees and, therefore, require a different sort of leadership and/or management. 3. Professionals, as a rule, tend to be more difficult to manage or to administer to and more difficult to motivate than the traditional employee. 4. Professionals are concerned with high-order job factors such as self-actualization, status, autonomy, achievement, and opportunities for growth and development. 5. Professionals tend to be task-oriented, achievement-oriented, intellectual, and highly mobile. 6. Professionals tend to become dissatisfied with employers that place too much importance on lower-level job factors such as seniority. 7. Although professionals may well receive more rewards from their employment than traditional workers may, they also tend to expect more because of the investment they have already made in themselves and their career and, therefore, often experience significantly strong dissatisfaction with employment. 8. Professional dissatisfaction also results from such job factors as poor recognition, low visibility, management practices, and administrative trivia. 9. Being a cosmopolitan, the professional often fails to perceive a close relationship with the employing institution, being significantly more loyal to the profession than to the employer. 10. Because of these rather limiting job factors, professional employees experience significantly high levels of role conflict, role ambiguity, job tension, stress, and burn-out that leads to: Anxiety Fear Hostility Reality distortion Poor superior-subordinate relations Lack of confidence Poor productivity Poor decision-making Poor overall performance Propensity to leave employment THE PROFESSIONAL TURNED MANAGER OR ADMINISTRATOR 1. Given the above unique work-related problems of the professional employee performing the professional assignment for which she or he was trained to do, one might expect even more drastic problems when this same professional is moved into a managerial position for which she or he was not trained to do. 2. Research has supported the above assumption, finding that professionals-turned-administrators are significantly dissatisfied with their managerial position and their employer. 3. Professionals, even those who have taken on managerial jobs simply do not possess the required motivation to manage that is a necessity for managerial success. 4. In summary, research finds that professionals don’t really want to be managers and do not possess the basic qualifications to be managers. Perhaps that is why they trained for a profession. 5. Thus, employers that wish to promote professionals into managerial positions without dysfunctional consequences would do well to place those people through available training programs to attain the motivation to manage. Instructor Manual for Management: Leading and Collaborating in a Competitive World Thomas S. Bateman, Scott A. Snell, Robert Konopaske 9781259927645, 9781259546945