CH-11-12 Conflict and Negotiation in the Workplace – Organisational Behaviour: Emerging Knowledge, Global Insights : Chapter Notes

This Document Contains Chapters 11 to 12 11 Conflict and Negotiationin the Workplace LEARNING OBJECTIVES After reading this chapter, students should be able to: 1. Define conflict and debate its positive and negative consequences in the workplace. 2. Distinguish task from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes. 3. Diagram the conflict process model and describe six structural sources of conflict in organizations. 4. Outline the five conflict handling styles and discuss the circumstances in which each would be most appropriate. 5. Apply the six structural approaches to conflict management and describe the three types of third-party dispute resolution. 6. Describe distributive and integrative negotiations and outline strategies skilled negotiators use to claim value and create value. CHAPTER GLOSSARY best alternative to a negotiated agreement (BATNA) -- The best outcome you might achieve through some other course of action if you abandon the current negotiation. conflict -- A process in which one party perceives that its interests are being opposed or negatively affected by another party. negotiation – decision making situations in which two or more interdependent parties attempt to reach agreement. relationship conflict - Type of conflict in which people focus on the characteristics of other individuals, rather than on the issues, as the source of conflict. superordinate goals -- Goals that the conflicting parties value and whose attainment requires the joint resources and effort of those parties. task conflict -- A type of conflict in which people focus their discussion on the issue while showing respect for people having other points of view. third-party conflict resolution -- any attempt by a relatively neutral person to help the parties resolve their differences. distributive situation – when the goals of two or more people are zero-sum so that one can gain only at the other’s expense. integrative situation – when parties’ goals are linked, but not zero-sum, so that one person’s goal achievement does not block the goal achievement of another. CHAPTER SUMMARY BY LEARNING OBJECTIVE 11-1 Define conflict and debate its positive and negative consequences in the workplace. Conflict is the process in which one party perceives that its interests are being opposed or negatively affected by another party. The earliest view of conflict was that it was dysfunctional for organizations. Even today, we recognize that conflict sometimes or to some degree consumes productive time, increases stress and job dissatisfaction, discourages coordination and resource sharing, undermines customer service, fuels organizational politics, and undermines team cohesion. But conflict can also be beneficial. It is known to motivate more active thinking about problems and possible solutions, encourage more active monitoring of the organization in its environment, and improve team cohesion (where the conflict source is external). 11-2 Distinguish task from relationship conflict and describe three strategies to minimize relationship conflict during task conflict episodes. Task conflict occurs when people focus their discussion around the issue while showing respect for people with other points of view. Relationship conflict exists when people view each other, rather than the issue, as the source of conflict. It is apparent when people attack each other’s credibility and display aggression toward the other party. It is difficult to separate task from relationship conflict. However, three strategies or conditions that minimize relationship conflict during constructive debate are: (1) emotional intelligence and emotional stability of the participants, (2) team cohesion, and (3) supportive team norms. 11-3 Diagram the conflict process model and describe six structural sources of conflict in organizations. The conflict process model begins with the five structural sources of conflict: incompatible goals, differentiation (different values and beliefs), interdependence, scarce resources, ambiguous rules, and communication problems. These sources lead one or more parties to perceive a conflict and to experience conflict emotions. This produces manifest conflict, such as behaviors toward the other side. The conflict process often escalates through a series of episodes. 11-4 Outline the five conflict handling styles and discuss the circumstances in which each would be most appropriate. There are five known conflict handling styles: problem solving, forcing, avoiding, yielding, and compromising. People who use problem solving have a win–win orientation. Others, particularly forcing, assume a win–lose orientation. In general, people gravitate toward one or two preferred conflict handling styles that match their personality, personal and cultural values, and past experience. The best style depends on the situation. Problem solving is best when interests are not perfectly opposing, the parties trust each other, and the issues are complex. Forcing works best when you strongly believe in your position, the dispute requires quick action, and the other party would take advantage of a cooperative style. Avoidance is preferred when the conflict has become emotional or the cost of resolution is higher than its benefits. Yielding works well when the other party has substantially more power, the issue is less important to you, and you are not confident in the logical soundness of your position. Compromising is preferred when the parties have equal power, they are under time pressure, and they lack trust. 11-5 Apply the six structural approaches to conflict management and describe the three types of third-party dispute resolution. Structural approaches to conflict management include emphasizing superordinate goals, reducing differentiation, improving communication and understanding, reducing interdependence, increasing resources, and clarifying rules and procedures. Third-party conflict resolution is any attempt by a relatively neutral person to help the parties resolve their differences. The three main forms of third-party dispute resolution are mediation, arbitration, and inquisition. Managers tend to use an inquisition approach, though mediation and arbitration often are more appropriate, depending on the situation. 11-6 Describe distributive and integrative negotiations and outline strategies skilled negotiators use to claim value and create value. Negotiation refers to decision-making situations in which two or more interdependent parties attempt to reach agreement. When negotiator goals run in opposite directions they find themselves in a distributive situation, and when their goals are not fully incompatible they are in an integrative situation. Effective distributive strategies include making ambitious opening offers and managing the concession-making process. In an integrative situation, value can be created by gathering information, sharing information, asking questions to understand a counterpart’s perspective, and building the relationship.   ® Lecture Outline (with PowerPoint slides) Conflict and Negotiation in the Workplace Slide 1 Opening Vignette – Minimizing Dysfunctional Conflict at L’Oreal L’Oreal Canada employees say the company’s Valorizing Opening Vignette - Intergenerational Differences training has helped them to Minimizing Dysfunctional leverage the company’s creative potential by minimizing Conflict at L’Oreal dysfunctional conflict and improving relations with coworkers. Slide 2 “The Valorizing Intergenerational training really helped me to understand where people from each generation are coming from,” says key account manager Ashley Bancrofts, shown (left) in this photo. Is Conflict Good or Bad? Slide 3 Is Conflict Good or Bad? Conflict is a process in which one part perceives that its interests are being opposed or negatively affected by another party Negative consequences of conflict: • Uses otherwise productive time • Less information sharing • Higher stress, dissatisfaction, and turnover • Increases organizational politics • Wastes resources • Weakens team cohesion (conflict among team members) Positive consequences of conflict: • Better decision-making (tests logic, questions assumptions) • More responsive to changing environment • Stronger team cohesion (conflict between the team and outside opponents) Emerging View: Task and Relationship Conflict Task conflict (constructive conflict) • Occurs when people focus their discussion around the issue while showing respect for people having other points of view • Debates the merits and limitations of different positions— participants calmly re-examine their assumptions and beliefs Emerging View: Task without having hostile emotions triggered and Relationship Conflict Relationship conflict Slide 4 • Focuses on the characteristics of other individuals – rather than the issues, as the source of conflict i.e. personality clashes • Attempts (or is perceived to attempt) to undermine another person’s competence—usually trigger defense mechanisms and a competitive orientation • Escalates more easily than task conflict Minimizing Relationship Conflict Goal – encourage constructive conflict; minimize relationship conflict Minimizing Relationship Problem – relationship conflict often develops when engaging Conflict Slide 5 in constructive debate (influenced by level of debate and the more the issue is tied to our self-concept) Three strategies or conditions potentially minimize relationship conflict during task conflict episodes: 1. Emotional intelligence and emotional stability – allows individuals to regulate their emotions during debate which reduces escalation 2. Cohesive team – produces a stronger social identity with the group so team members are motivated to avoid escalating relationship conflict during emotional discussions 3. Supportive team norms – team norms may encourage diffusing relationship conflict when it first appears e.g. use humour which offsets negative feelings Conflict Process Model Sources of conflict – leads one or both parties to perceive that conflict exists • Become aware that another party’s statements and actions are incompatible with their own goals Conflict perceptions and emotions Conflict Process Model • Perceptions usually interact with emotions experienced Slide 6 Manifest conflict • Conflict episodes – decisions and behaviours of one party toward the other e.g. ranges from subtle nonverbal behaviours to aggression; also conflict resolution style Conflict escalation cycle • Conflict process is really a series of episodes that potentially cycle into conflict escalation Conflict outcomes – may be positive or negative Structural Sources of Conflict 1. Incompatible goals • Goals of one party perceived to interfere with other’s goals e.g. cost efficiency vs. customer service 2. Differentiation • Differences among people and work units regarding their Structural Sources of Conflict training, values, beliefs, and experiences – may agree on a Slide 7 common goal but have different beliefs about how to achieve that goal • Explains cross-cultural and intergenerational conflicts, tension during mergers 3. Interdependence • Conflict increases with task interdependence – greater chance that each side will disrupt or interfere with the other’s goals • Three levels (pooled is lowest) 1. Pooled interdependence – rely on a common resource or authority e.g. shared administrative support 2. Sequential interdependence – one person's output is next person's input e.g. assembly line 3. Reciprocal interdependence – high mutual dependence on each other Structural Sources of Conflict (cont’d) 4. Scarce resources Motivates competition for the resource – may undermine others who also need that resource to fulfill their goals 5. Ambiguous rules Structural Sources of Uncertainty increases the risk that one party intends to Conflict (cont’d) Slide 8 interfere with the other party’s goals Encourages political tactics 6. Communication problems Rely on stereotypes when parties lack opportunity to communicate Some people lack the necessary skills to communicate in a diplomatic, nonconfrontational manner Less motivated to communicate with others in a disagreement because relationship conflict is uncomfortable   Five Conflict Handling Styles How people approach a conflict situation depends on the relative importance they place on maximizing outcomes for themselves and maximizing outcomes for the other party 4. Problem-solving Five Conflict Handling Styles • Win-win orientation – tries to find a mutually beneficial Slide 9 solution i.e. both parties collaborate to identify common ground and potential solutions that satisfy everyone 5. Forcing • Win-lose orientation – tries to win the conflict at the other’s expense • Relies on “hard” influence tactics, particularly assertiveness to get one’s own way 6. Avoiding • Tries to smooth over or evade conflict situations • Common avoidance strategy is to minimize interaction with certain co-workers; steer clear of the sensitive topic 7. Yielding • Giving in completely to the other side’s wishes – making unilateral concessions and offering help with no expectation of reciprocal help 8. Compromising • Searching for a middle ground between the interests of the two parties Conflict Handling Style Contingencies Slide 10 Preferred when: • Interests are not perfectly opposing (i.e. not pure win-lose) • Parties have trust, openness, and time to share information • Issues are complex Conflict Handling Style Contingencies Best conflict handling style depends on the situation Problem solving Problem – sharing information that the other party might use to their advantage Forcing Preferred when: • You have a deep conviction about your position • Quick resolution required • Other party would take advantage of cooperation Conflict Handling Style Contingencies (cont’d) Slide 11 • Conflict has become too emotionally charged • Conflict resolution cost is higher than its benefits Problem – doesn’t usually resolve the conflict; may increase the other party’s frustration Problem – highest risk of relationship conflict; may damage long-term relations; reducing future problem solving 4. Yielding Preferred when: • Other party has substantially more power • Issue is much less important to you than to the other party • Value/logic of your position isn’t as clear Problem – increases other party’s expectations for future Conflict Handling Contingencies (cont’d) 5. Compromising Preferred when: • Parties have equal power Conflict Handling • Quick solution is required i.e. time pressures Contingencies (cont’d) • Parties lack trust/openness for problem solving Slide 12 Problem – sub-optimal solution where mutual gains are possible Cultural and Gender Differences in Conflict Handling Styles  Research suggests that people from collective cultures – Cultural and Gender where group goals are valued more than individual Differences in Conflict goals- are motivated to maintain harmonious relations. Handling Styles Slide 13  Cultural values and norms influence the conflict handling style used most often in a society but they also represent an important contingency when outsiders choose the preferred conflict handling approach.  Gender Compared to men, women pay more attention to the relationship between the two parties. Women tend to adopt a compromising or problem solving style and are more likely to use the avoiding style. Men tend to be more competitive and take a short-term orientation to the relationship. Structural Approaches to Conflict Management Emphasizing superordinate goals Superordinate goals – goals that the conflicting parties value and whose attainment requires the joint resources and effort of those Structural Approaches to Conflict Management Slide 14 parties • Emphasize common strategic objective rather than objectives specific to the individual or work unit • Potentially reduce the problem of differentiation because they establish feelings of a shared social identity Reducing differentiation • Reduce differences that generate conflict • Create common experiences e.g. moving staff across merged companies Structural Approaches to Conflict Management (cont’d) Improving communication and mutual understanding Conflicting parties are given more opportunities to communicate and understand each other Structural Approaches to Conflict Management (cont’d) Slide 15 • Johari Window process – individuals disclose more about themselves so others have a better understanding of the underlying causes of their behaviour • Meaningful interaction – potentially improves mutual understanding through the contact hypothesis • Warning – should be applied only when differentiation is sufficiently low or after differentiation ha been reduced (or could escalate conflict); people in collectivist and high power distance cultures are less comfortable with using direct and open communication Structural Approaches to Conflict Management (cont’d) Reducing interdependence • Create buffers – loosens the coupling between people or work units e.g. build up inventories in assembly line • Use integrators i.e. employees who coordinate the activities of Structural Approaches to differentiated work units toward completion of a common task Conflict Management e.g. coordinate efforts of several departments to launch a new (cont’d) product Slide 16 • Combine jobs – reduces task interdependence and is a form of job enrichment e.g. each person assembles an entire product Increasing resources • Increase the amount of resources available Clarifying rules and procedures • Establishing rules and procedures e.g. create a schedule Third-Party Conflict Resolution Any attempt by a relatively neutral person to help conflicting parties resolve their differences Third Party Conflict IMAGE Resolution Slide 17 Types of Third Party Interventions Can be classified by their level of control over the process and control over the decision • Arbitration • High control over final decision – low control over process • Final stage of grievances by unionized employees in many Types of Third Party countries – becoming more common in nonunion conflicts Intervention Slide 18 • Inquisition • Control all discussion about the conflict • High decision control and high process control • Mediation • Mediators have high control over the intervention process, but little to no control over the conflict resolution decision – parties make the final decision • Mediation-Arbitration (“med-arb”) • Hybrid process which promotes an opportunity for the parties to first attempt mediation with the selected arbitrator Choosing the Best Third-Party Strategy Managers tend to rely on inquisition approach • Consistent with decision-oriented nature of managerial jobs – gives them control and tends to be efficient • Usually the least effective third-party conflict resolution method – conflicts with procedural justice practices Choosing the Best Third- Mediation potentially offers highest level of employee satisfaction Party Strategy with process and outcomes Slide 19 • Gives employees more responsibility for resolving disputes • When mediation fails – arbitration seems to work best due to procedural fairness i.e. applies predetermined rules of evidence. Arbitration is also preferred when the organization’s goals should take priority over individual goals Resolving Conflict Through Negotiation Negotiation – decision making situations in which two or more interdependent parties attempt to reach agreement • People negotiate all the time Resolving Conflict Through Negotiation Slide 20 • Negotiation skills are essential – help us meet our goals, reduce conflict, and build collaborative relationships Distributive versus Integrative Negotiations Distributive situation (zero-sum) • Negotiators are motivated to win, beat the other party, or to gain the largest piece of the fixed resource • Usually employ win-lose strategies and tactics – distributive bargaining • Purpose of the negotiation is to claim value Integrative situation (non-zero-sum) Mutual-gains – positive correlation between the goal attainments of both parties resistance point Bargaining Zone Model • Opening offer to the other party of Negotiations Slide 21 • Target point • Realistic goal or expectation for a final agreement • Resistance point – the least you will minimally accept Strategies for claiming value Regardless of the type of negotiation situation, all negotiators should: •Prepare and Set Goals – ask yourself what you hope to accomplish before beginning a negotiation i.e. overall interests, or reasons for underlying positions Strategies for claiming value •Know Your BATNA (best alternative to a negotiated agreement) – Slide 22 estimates your power in the negotiation because it represents the estimated cost of walking away from the relationship 3. Know Your Limits – consider the point at which you are indifferent to a negotiated outcomes i.e. resistance point Distributive Strategies That Work Strategies known to lead to more value claiming Manage First Offers and Concessions • Best to make the opening offer – first offer set “anchors” which are highly influential • Negotiators need to make concessions – enable the parties to move toward the area of potential agreement, symbolize each party’s motivation to bargain in good faith, tell the other party the relative importance of the negotiating items Manage Time • Negotiators make more concessions as the deadline gets closer Negotiators with more power in the relationship sometimes apply time pressure through an “exploding offer” – give their opponent a very short time to accept their offer Strategies for creating value Most situations that appear distributive can be turned into integrative Gather information • Listen closely to the other party and ask for details e.g. ask Strategies for creating probing questions and listen intently value • Observe nonverbal communication Slide 23 • Negotiate in teams Discover Priorities Through Offers and Concessions • Discover and signal which issues are more and less important to each side – make multi-issue offers rather than discussing one issue at a time Build the Relationship • Trust is critical – discover common backgrounds and interests; be sensitive to your nonverbal cues, appearance, and initial statements • Signal that we are trustworthy – be reliable, keep promises • Emotional intelligence – manage emotions displayed and manage the other party’s emotions Situational Influences on Negotiations  Location – easier to negotiate on your own turf  Physical setting –seating arrangements, etc. Situational Influences on  Audience – negotiators are more competitive, make Negotiations fewer concessions when audience is watching Slide 24 Expert versus Average Negotiators Expert negotiators • Spend more energy considering their goals, BATNA, resistance point • Use fewer irritators e.g. avoid describing proposal as a Expert versus Average Negotiators “generous offer” Slide 25 • Make fewer counterproposals—spend more time clarifying and understanding a proposal before making another offer • Less likely to get into a defend and attack spiral • Spend more face-to-face time ensuring they understand their counterpart’s perspective • Ask more questions • Were more likely to use communication patterns in which they give clues about alternatives • Tend to focus on only one or two counterarguments Conflict and Negotiation in the Workplace Slide 26 Leadership in 12 Organizational Settings LEARNING OBJECTIVES After reading this chapter, students should be able to: LO1. Define leadership and shared leadership. LO2. Describe the four elements of transformational leadership and explain why they are important for organizational change. LO3. Compare managerial leadership with transformational leadership, and describe the features of task-oriented, people- oriented, and servant leadership. LO4. Discuss the elements of path-goal theory, Fiedler’s contingency model, and leadership substitutes. LO5. Describe the two components of the implicit leadership perspective. LO6. Identify eight personal attributes associated with effective leaders and describe authentic leadership. LO7. Discuss cultural and gender similarities and differences in leadership. CHAPTER GLOSSARY authentic leadership -- The view that effective leaders need to be aware of, feel comfortable with, and act consistently with their values, personality, and selfconcept. Fiedler’s contingency model -- A leadership model stating that leader effectiveness depends on whether the person’s natural leadership style is appropriately matched to the situation (the level of situational control). implicit leadership theory -- A theory stating that people evaluate a leader’s effectiveness in terms of how well that person fits preconceived beliefs about the features and behaviours of effective leaders (leadership prototypes) and that people tend to inflate the influence of leaders on organizational events. leadership -- Influencing, motivating, and enabling others to contribute toward the effectiveness and success of the organizations of which they are members leadership substitutes -- A theory identifying conditions that either limit a leader’s ability to influence subordinates or make a particular leadership style unnecessary. managerial leadership -- A leadership perspective stating that effective leaders help employees improve their performance and well-being toward current objectives and practices. path-goal leadership theory -- A leadership theory stating that effective leaders choose the most appropriate leadership style(s), depending on the employee and situation, to influence employee expectations about desired results and their positive outcomes. servant leadership -- The view that leaders serve followers, rather than vice versa; leaders help employees fulfill their needs and are coaches, stewards, and facilitators of employee development. shared leadership -- The view that leadership is a role, not a position assigned to one person; consequently, people within the team and organization lead each other. situational leadership theory -- A commercially popular but poorly supported leadership model stating that effective leaders vary their style (telling, selling, participating, delegating) according to the motivation and ability of followers. transformational leadership -- A leadership perspective that explains how leaders change teams or organizations by creating, communicating, and modelling a vision for the organization or work unit and inspiring employees to strive for that vision. CHAPTER SUMMARY BY LEARNING OBJECTIVE 12-1 Define leadership and shared leadership. Leadership is defined as the ability to influence, motivate, and enable others to contribute towards the effectiveness and success of the organizations of which they are members. Leaders use influence to motivate followers and arrange the work environment so they do the job more effectively. Shared leadership views leadership as a role rather than a formal position, so employees throughout the organization act informally as leaders as the occasion arises. These situations include serving as champions for specific ideas or changes as well as filling leadership roles where it is needed. 12-2 Describe the four elements of transformational leadership and explain why they are important for organizational change. Transformational leadership begins with a strategic vision, which is a positive representation of a future state that energizes and unifies employees. A vision is values-based, a distant goal, abstract, and meaningful to employees. Transformational leaders effectively communicate the vision by framing it around values, showing sincerity and passion towards the vision, and using symbols, metaphors, and other vehicles that create richer meaning to the vision. Transformational leaders model the vision (walk the talk) and encourage employees to experiment with new behaviours and practices that are potentially more consistent with the visionary future state. They also build employee commitment to the vision through the above activities as well as by celebrating milestones to the vision. Some transformational leadership theories view charismatic leadership as an essential ingredient of transformational leadership. However, this view is inconsistent with the meaning of charisma and at odds with research on the dynamics and outcomes of charisma in leader-follower relationships. 12-3 Compare managerial leadership with transformational leadership, and describe the features of task-oriented, people-oriented, and servant leadership. Managerial leadership includes the daily activities that support and guide the performance and well-being of individual employees and the work unit towards current objectives and practices. Transformational and managerial leadership are dependent on each other, but differ in their assumptions of stability versus change and their micro versus macro focus. Task-oriented behaviours include assigning employees to specific tasks, clarifying their work duties and procedures, ensuring they follow company rules, and pushing them to reach their performance capacity. Peopleoriented behaviours include showing mutual trust and respect for subordinates, demonstrating a genuine concern for their needs, and having a desire to look out for their welfare. Servant leadership defines leadership as serving others towards their need fulfillment and personal development and growth. Servant leaders have a natural desire or “calling” to serve others. They maintain a relationship with others that is humble, egalitarian, and accepting. Servant leaders also anchor their decisions and actions in ethical principles and practices. 12-4 Discuss the elements of path-goal theory, Fiedler’s contingency model, and leadership substitutes. Path-goal theory of leadership takes the view that effective managerial leadership involves diagnosing the situation and using the most appropriate style for the situation. The core model identifies four leadership styles— directive, supportive, participative, and achievement-oriented—and several contingencies relating to the characteristics of the employee and of the situation. Two other managerial leadership theories include the situational leadership theory and Fiedler’s contingency theory. Research support is quite weak for both theories. However, a lasting element of Fiedler’s theory is the idea that leaders have natural styles and, consequently, companies need to change the leaders’ environments to suit their style. Leadership substitutes theory identifies contingencies that either limit the leader’s ability to influence sub- ordinates or make a particular leadership style unnecessary. 12-5 Describe the two components of the implicit leadership perspective. According to the implicit leadership perspective, people have leadership prototypes, which they use to evaluate the leader’s effectiveness. Furthermore, people form a romance of leadership; they want to believe that leaders make a difference, so they engage in fundamental attribution error and other perceptual distortions to support this belief in the leader’s impact. 12-6 Identify eight personal attributes associated with effective leaders and describe authentic leadership. The attribute perspective identifies the characteristics of effective leaders. Recent writing suggests that leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence, and emotional intelligence. Authentic leadership refers to how well leaders are aware of, feel comfortable with, and act consistently with their self-concept. This concept consists mainly of two parts: self-awareness and engaging in behaviour that is consistent with one’s self-concept. 12-7 Discuss cultural and gender similarities and differences in leadership. Cultural values also influence the leader’s personal values, which in turn influence his or her leadership practices. Women generally do not differ from men in the degree of people-oriented or task-oriented leadership. However, female leaders more often adopt a participative style. Research also suggests that people evaluate female leaders on the basis of gender stereo- types, which may result in higher or lower ratings. LECTURE OUTLINE (WITH POWERPOINT® SLIDES) Leadership in Organizational Settings Slide 1 Norsat CEO, Amiee Chan Slide 2 Leadership Defined Slide 3 Shared Leadership Slide 4 Norsat CEO, Amiee Chan Norsat CEO, Amiee Chan has revived and transformed the Vancouverbased technology company through her customer-centric vision and engaging stories about the company’s success Norsat was in financial difficulty in 2006 when Chan was appointed CEO, however, Chan’s strong customer-focused vision and leadership “to communicate the vision to staff and get them excited about the changes” has guided Norsat’s recovery and transformation Leadership Defined Influencing, motivating, and enabling others to contribute toward the effectiveness of the organizations of which they are members Shared Leadership The view that leadership is a role, not a position assigned to one person, such that people within the team and organization lead each other • Employees lead each other as the occasion arises. • e.g., champion new ideas and technologies Shared leadership flourishes where: • Formal leaders willing to delegate power • Collaborative culture – employees support each other, not competitive • Employees develop skills to influence each other Perspectives of Leadership Chapter is organized around four main perspectives of leadership: 1. Transformational – views effective leaders as agents of change 2. Managerial – helping employees improve performance and wellbeing toward current objectives/practices 3. Implicit leadership – perceptual perspective of leadership Transformational Leadership Model Slide 5 • Encourage experimentation • Build a commitment to the vision 4. Personal attributes – effective leaders have specific personalcharacteristics Features of a Strategic Vision Vision is an idealized future state with a higher purpose. Features of an effective vision • Linked to personal values Features of a Strategic Vision ➡ energizes employees so they are motivated even though the objective is Slide 6 abstract, distant, and challenging • Fulfills multiple stakeholder needs • A challenging objective -- requires substantial transformation (e.g. newwork practices, beliefs) • An abstract future state: ➡ (a) future hasn’t yet been experienced, so can’t detail what it looks like ➡ (b) enables vision to remain stable over time, yet sufficiently flexible for external environment changes • A unifying ideal ➡ vision is shared -- bonds employees by collectively define themselves by it ➡ a superordinate objective ➡ aligned with personal and organization’s values -- supports organizational identification Transformational Leadership Elements 1. Develop/Communicate the vision • Frame the vision-- use words/phrases that evoke desired images of an appealing future Transformational Leadership Elements Slide 7 • Communicate the vision with sincerity and passion -- shows personalbelief and optimism • Use symbols, metaphors, symbols ➡ borrows images of other experiences ➡ generates strong emotions about the vision 2. Model the vision • Enact the vision -- “walking the talk”, leading by example • Symbolize and demonstrate the vision through their own behaviour • Words-action consistency builds employee trust in the leader Transformational Leadership Elements Slide 8 Transformational Leadership Elements 3. Encourage experimentation -- necessary for change • Encourage questioning current practices • Encourage discovering/trying out new practices (learning orientation) 4. Build commitment to the vision • Strengthened through communicating and modelling the vision – buildsenthusiasm • Increased through experimentation -- employee involvement in change • Higher commitment also through rewards, recognition, celebrations Transformational Leadership and Charisma Some leadership models say charismatic leadership is essential for transformational leadership – even suggesting that charismatic leadership is the highest degree of transformational leadership Emerging view – charisma is distinct from transformational leadership Charisma is a personal trait that provides referent power over followers – doesn’t necessarily change the organization (may even result in greater focus on self-interest) Transformational leadership is a set of behaviours that engage followers to bring about change – builds follower empowerment Evaluating Transformational Leadership Transformational leaders make a difference • Employees perform jobs better, engage in more org citizenship behaviours, higher satisfaction with leader, better and more creative decisions Evaluating Transformational Leadership Slide 9 Transformational leadership limitations: 1. Circular logic • Shouldn’t define and measure transformational leadership by its effectson employees 2. Mixed models of transformational leadership • Some models mix leader behaviours with personal characteristics -- Problem: cause (characteristics) and effect (behaviours) in same concept 3. Universal theory • Most models assume all elements apply to all situations • Problem: transformational leadership not always necessary or beneficial • Need to recognize differences across cultures e.g. specific elements maybe more appropriate in North America Managerial Leadership Slide 10 Managerial Leadership Perspective Managerial leadership defined • Daily activities that support and guide the performance and well-being ofindividual employees and the work unit to support current objectives and practices How managerial leadership differs from transformational leadership • Assumes stable environment (transformational assumes dynamic) ➡ “Doing things right” vs “Doing the right things” • Micro-focused (transformational is more macro-focused) ➡ focuses on specific performance and well-being; transformational focuses more on unit/collective shift to a new situation Transformational and managerial leadership are interdependent • Depend on each other to create effective workplace • Transformational needs managerial to translate the abstract vision intomore specific operational behaviours and practices • Managerial depends on transformational to set the right direction Task vs People Leadership Styles Earliest investigations of managerial leadership identified two distinct styles (clusters of behaviour) Task-oriented behaviours: Task vs People Leadership Styles • Assign employees to specific tasks, clarify responsibilities Slide 11 • Set goals and deadlines, provide feedback Kevin Junor: Servant Leader Kevin Junor demonstrated exceptional leadership as a Canadian Forces officer and more recently as deputy superintendent of the Maplehurst Correctional Complex in Milton, Ontario. Junor's leadership philosophy Kevin Junor: Servant Leader Slide 12 is to serve others, rather than to have them serve him. “My role is to be a ‘servant leader,” says Junor, referring to leading inmates as well as his management team. Servant Leadership Slide 13 Servant Leadership Serving followers toward their need fulfillment, personal development, and growth – leaders serve followers, rather than vice versa • Selfless, egalitarian, humble, nurturing, empathetic, ethical coaches Three main features of servant leaders: 1. A natural desire or “calling” to serve others 2. Humble, egalitarian, accepting relations with followers 3. Anchor decisions/actions in ethical principles and practices • Establish work procedures, plan future workPeople-oriented behaviours: • Concern for employee needs • Make workplace pleasant • Recognize employee contributions • Listen to employees’ opinions and ideas Both styles necessary, but different effects • Task-oriented: higher job performance • People-oriented: higher satisfaction with leader, lower turnover  Path-Goal Leadership Main contingency model of managerial leadership Effective leaders choose styles that best influence employee Path-Goal Leadership Slide 14 expectations about achieving desired performance and perceived satisfaction with outcomes of that performance Based on expectancy theory of motivation (Chap. 5) and subjective expected utility (Chap. 7) Path-Goal Leadership Model Slide 15 Path-Goal Leadership Model Leadership effectiveness: • Employee motivation and satisfaction • Acceptance of the leader Four managerial leadership styles -- their effectiveness depends on employee and environmental contingencies 1. Directive – same as task-oriented leadership • Clarify performance goals, means to reach goals, performance standards 2. Supportive – same as people-oriented leadership • Friendly, approachable, makes work pleasant, shows respect/concern 3. Participative – employee involvement in decisions • Leader consults with employees, asks for suggestions, applies ideas 4. Achievement-oriented – encourage peak performance • Sets challenging goals, continuous improvement, shows high confidence • Applies goal setting, positive self-fulfilling prophecy Path-Goal Contingencies 1. Skill and experience • Low skills and experience – use directive and supportive • Skilled/experienced – avoid directive leadership Path-Goal Contingencies Slide 16 2. Locus of control • Internal – prefer participative and achievement-oriented leadership • External – more satisfied with directive and supportive leadership 3. Task structure • Nonroutine – directive style to minimize ambiguity; participative style toallow more discretion • Routine – avoid directive style; supportive leadership if work is tediousand has lack of control 4. Team dynamics • Low cohesion – use supportive style • Dysfunctional norms – use directive style to counteract • High cohesion with performance-oriented norms substitute for mostleader interventions Evaluating Path-Goal Leadership Model • Received more research support that other contingency leadership models • Some contingencies e.g. task structure have limited research support • The model may become too complex for practical use Other Managerial Leadership Theories Slide 17 Other Managerial Leadership Theories Situational Leadership Model (SLT) • Four styles: Telling, Selling, Participating, Delegating – distinguished by theamount of directive and supportive behaviour provided • Best style depends on follower ability and motivation (readiness) • Developed by Hersey and Blanchard – popular theory among practitioners,however the model lacks empirical support Fiedler’s Contingency Model of Leadership • Earliest contingency-oriented managerial leadership theory • Leader effectiveness depends on whether the person’s natural leadershipstyle is appropriately matched to the situation • Best leadership style depends on the level of situational control i.e. degreeof power and influence the leader has in a particular position • Limited empirical support but uniquely points out that leaders have apreferred style; leaders not very flexible Leadership Substitutes Slide 18 • Training and experience replaces task-oriented leadership • Cohesive team replaces supportive leadership • Self-leadership replaces task-oriented and achievement-oriented leadership Research evidence: • A few substitutes replace the need for task or people-oriented leadership,but others do not • Leadership substitutes do not completely replace leaders in these situations Implicit Leadership Perspective Leadership also involves followers’ perceptions of the characteristics and attributions of people in formal leadership positions 1. Leadership prototypes Implicit Leadership • Prototypes: preconceived beliefs about characteristics of effective leaders Perspective • Positive evaluation to leaders with features and behaviours close to the Slide 19 prototypes of effective leaders • Reason: leader effectiveness emerges over long time, but people need toquickly trust person’s qualities as a leader 2. Romance of leadership effect • Followers tend to distort perception of leader’s influence • Reason 1: Simpler explanation -- leader ability vs many complex reasons • Reason 2: Need for situational control – employees feel better believingthat leaders make a difference so they look for this evidence Personal Attributes Perspective of Leadership Specific skills, knowledge, aptitudes, and other personal characteristics that contribute to person’s effectiveness or potential as a leader Personal Attributes of Eight Personal Attributes of Effective Leaders Leadership 1. Personality Slide 20 • All Big Five predict effective leadership, but strongest are: • High extroversion – comfortable having an influential role • Conscientiousness – set higher goals for themselves (and others) and aremore motivated to pursue those goals 2. Self-concept • Complex, internally consistent, clear self-view as a leader, positive self-evaluation: • High self-esteem • Self-efficacy • Internal locus of control 3. Leadership motivation • Motivated to lead others • Strong need for socialized power – they want power as a means toaccomplish organizational objectives 4. Drive • Related to high conscientiousness and positive self-concept • Inner motivation, high need for achievement • Inquisitiveness, action-oriented, boldness Eight Personal Attributes of Effective Leaders (con’t) 5. Integrity • Truthfulness and consistency of words and actions • Judge dilemmas using sound values Personal Attributes of Leadership (con’t) Slide 21 • Related to honesty and ethical conduct 6. Knowledge of the business • Possess tacit and explicit knowledge of the organization’s environment inwhich they operate 7. Cognitive and Practical Intelligence • Above average cognitive ability • Superior ability to analyze complex alternatives and opportunities • Able to use business knowledge to solve real-world problems 8. Emotional Intelligence • Able to recognize and regulate emotions in themselves and in otherpeople Authentic Leadership Slide 22 Authentic Leadership Effective leaders are aware of, feel comfortable with, and act consistently with their values, personality, and self-concept • Know yourself (self-awareness) ➡ engage in self-reflection ➡ receive feedback from trusted sources ➡ understand inner purpose that emerges from a life story (critical life event) • Be yourself (don’t pretend to be someone else) ➡ great leaders develop their own style ➡ self-discipline by applying and remaining anchored to their values ➡ maintain a strong, positive core self-evaluation Limitations of the Leader Attributes Perspective Slide 23 Limitations of the Leader Attributes Perspective 1. Universal approach • Assumes all effective leaders have the same personal characteristics andare equally important in all situations • Leadership too complex for a universal list • Different combinations might be equally good 2. Views leadership as within the person • But leadership is relational -- people are effective leaders because of theirfavourable relationships with followers 3. Attributes indicate leadership potential, not leadership performance Cultural Issues in Leadership Societal cultural values and practices: • Shape leader’s values/norms – also shapes expectations of followers • Influence decisions and actions – an executive who acts inconsistently with Cultural Issues in Leadership Slide 24 cultural expectations is more likely to be perceived as ineffective • Shape follower prototype of effective leaders Some leadership styles are universal, others differ across cultures: • “Charismatic visionary” is universally recognized • Participative leadership is perceived as characteristic of effective leadershipin low power distance cultures but less so in high power distance cultures Gender Issues in Leadership Slide 25 Gender Issues in Leadership Male and female leaders have similar task- and people-oriented leadership • Explanation is that real-world jobs require similar behaviour from maleand female job incumbents Women adopt a participative leadership more readily than male leaders Evaluating Female Leaders • Women are evaluated negatively when they try to apply the full range ofleadership styles e.g. directive and autocratic ➡ face limitations of leadership through gender stereotypes and prototypes of leaders that are held by followers • Women rated more favourably than men on emerging leadership qualitiesof coaching and teamwork Leadership in Organizational Settings Slide 26 Leadership in Organizational Settings Instructor Manual for Organisational Behaviour: Emerging Knowledge, Global Insights Steven McShane, Mara Olekalns, Alex Newman, Angela Martin 9781760421649, 9780071016261