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This Document Contains Chapters 11 to 12 Instructor’s Manual to Accompany Organizational Behavior 7/e by Steven L. McShane and Mary Ann Von Glinow Chapter 11: Conflict and Negotiation in the Workplace Prepared by: Steven L. McShane, The University of Western Australia Conflict and Negotiation 11 in 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 the bargaining zone model and outline strategies skilled negotiators use to claim value and create value in negotiations. 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 – the process whereby two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence 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. win–lose orientation -- The belief that conflicting parties are drawing from a fixed pie, so the more one party receives, the less the other party will receive. win–win orientation -- The belief that conflicting parties will find a mutually beneficial solution to their disagreement. 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 the bargaining zone model and outline strategies skilled negotiators use to claim value and create value in negotiations. Negotiation occurs whenever two or more conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence. The bargaining zone model identifies three strategic positions for each party (initial, target, resistance) and shows how each party moves along a continuum in opposite directions with an area of potential overlap. All negotiations consist of two divergent objectives: claiming value (getting the best personal outcome) and creating value (discover ways to achieve mutually satisfactory outcomes for both parties). Skilled negotiators claim more value by preparing and setting goals, knowing their alternatives to the negotiation (BATNA), managing time to their advantage, and managing first offers and concessions. Skilled negotiators create more value by gathering information, using offers and concessions to discover issue priorities, and building relationships with the other party. The situation is also an important consideration in negotiations, including location, physical setting, and audience characteristics. LECTURE OUTLINE (WITH POWERPOINT® SLIDES) Conflict and Negotiation in the Workplace Slide 1 Managing Intergenerational Conflict at L’Oreal Canada L’Oreal Canada employees (from left) Ashley Bancroft, Christian Bouchard, and Wendy Stewart say the company’s Valorizing Intergenerational Differences training has helped them minimize Managing Intergenerational Conflict dysfunctional conflict and improve relations with coworkers. at L’Oreal Canada Slide 2 Is Conflict Good or Bad? Slide 3 • Higher stress, dissatisfaction, and turnover • Increases organizational politics • Wastes resources • Weakens team cohesion (conflict among team members) Positive consequences of conflict: • Better decisions (tests logic, questions assumptions) • Improves responsiveness to external environment • Increases team cohesion (when conflict is outside the team) Emerging View: Task Versus Relationship Conflict Task (constructive) conflict • Parties focus on the issue, respect people with other points of view • Try to understand the logic and assumptions of each position Emerging View: Task Versus Relationship Conflict Slide 4 Relationship conflict • Focuses on the characteristics of other individuals – rather than the issues, as the source of conflict i.e. personality clashes • Try to undermine each other’s worth/competence/credibility • Accompanied by strong negative emotions (drive to defend) Minimizing Relationship Conflict Goal – encourage task conflict; minimize relationship conflict Problem – relationship conflict often develops when engaging in task conflict (influenced by level of debate and the more the issue is tied to Minimizing Relationship Conflict our self-concept) Slide 5 Three conditions that minimize relationship conflict during task conflict episodes: 1. Emotional intelligence/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 humor which offsets negative feelings The Conflict Process Sources of conflict • Leads one or both parties to perceive that conflict exists • Become aware that another party’s statements and actions are The Conflict Process Slide 6 incompatible with their own goals Conflict perceptions and emotions • Perceptions usually interact with emotions experienced Manifest conflict • Conflict episodes – decisions and behaviors of one party toward the other • Ranges from subtle nonverbal behaviors to aggression; also conflict resolution style Conflict escalation cycle • Conflict process is 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 Structural Sources of Conflict 2. Differentiation Slide 7 • Divergent values/beliefs – may agree on a common goal but have different beliefs about how to achieve that goal • Explains cross-cultural, intergenerational, merger conflicts 3. Interdependence • Conflict increases with interdependence – greater chance that each side will disrupt or interfere with the other’s goals • Three levels (pooled is lowest) ➡ Pooled interdependence – work units rely on a common resource or authority e.g. shared administrative support ➡ Sequential interdependence – one person's output is next person's input e.g. assembly line ➡ Reciprocal interdependence – output is exchanged so employees are highly dependent on each other e.g. medical team Structural Sources of Conflict Slide 8 5. Ambiguous rules • Creates uncertainty, threatens goals • Encourages political behavior 6. Communication problems • Rely on stereotypes when parties lack opportunity to communicate • Less motivated to communicate because relationship conflict is uncomfortable • Arrogant communication heightens perceptions of conflict – escalates conflict when other party reciprocates Structural Sources of Conflict 4. Scarce resources • Motivates competition for the resource – may undermine others who also need that resource to fulfill their goals Conflict Handling at Xerox Xerox CEO Ursula Burns (left in this photo) warns that the company has too much avoidance conflict handling. “We are really, really, really nice,” she emphasizes. “I want us to stay civil and kind, but we have to be Conflict Handling at Xerox Slide 9 frank.” Five Conflict Handling Styles Vary in assertiveness (satisfying own interests) and cooperativeness (satisfying other party’s interests) 1. Problem-solving Five Conflict Handling Styles • Win-win orientation – tries to find a mutually beneficial solution Slide 10 • Both collaborate to identify common ground, solutions that satisfy all 2. Forcing • Win-lose orientation – tries to win the conflict at the other’s expense • Relies on “hard” influence tactics, e.g. assertiveness to get own way 3. Avoiding • Smooth over or avoid conflict situations • Usually (but not necessarily) low concern for both self and the other party 4. Yielding • Giving in completely to the other side’s wishes • Making unilateral concessions, offering help without reciprocity expected Conflict Handling Contingencies Slide 11 • Interests are not perfectly opposing • Parties have trust/openness • Issues are complex Problem – sharing information that the other party might use to their advantage; takes time 2. Forcing Best when: • You have a deep conviction about your position • Quick resolution required • Other party would take advantage of cooperation Problem – highest risk of relationship conflict; may damage long-term relations; reduce future problem solving Conflict Handling Contingencies (con’t) 3. Avoiding Best when: Conflict Handling • Conflict has become emotionally-charged (relationship conflict) Contingencies • Conflict resolution cost is higher than its benefits Slide 12 Problem – doesn’t usually resolve the conflict; may increase the other party’s frustration 4. Yielding Best when: • Other party has much more power • Issue is much less important to you than to the other party • Value/logic of your position is imperfect Problem – increases other party’s expectations for future Conflict Handling Contingencies Slide 13 Problem – sub-optimal solution where mutual gains are possible Structural Approaches to Conflict Management 1. Emphasizing superordinate goals Superordinate goal – a broad goal that all parties to a dispute value and Organizational agree is important Approaches to Conflict Resolution • Emphasize common strategic objective rather than objectives specific to Slide 14 the individual or work unit • Reduces goal incompatibility and differentiation 2. Reducing differentiation • Reduce differences that generate conflict • Create common experiences e.g. moving staff across merged companies 3. Improving communication and understanding Conflicting parties are given more opportunities to communicate and understand each other communication • Conflicting parties are given more opportunities to communicate and Organizational understand each other Approaches to Conflict Resolution (con’t) • Relates to contact hypothesis and the Johari Window Slide 15 • Warning – use only when differentiation is sufficiently low/after differentiation ha been reduced (or could escalate conflict); people in collectivist and high power distance cultures are less comfortable with using direct communication 4. Reducing interdependence • Create buffers – decoupling the relationship e.g. build up inventories in assembly line vs. just-in-time inventory system • Use integrators i.e. employees (human buffers) who coordinate the Organizational activities of differentiated work units toward completion of a common task Approaches to Conflict e.g. coordinate efforts of several departments to launch a new product Resolution • Combine jobs – reduces task interdependence and is a form of job Slide 16 enrichment e.g. each person assembles an entire product 5. Increasing resources • Increase the amount of resources available 6. Clarifying rules and procedures • Establish rules and procedures e.g. create a schedule • Clarifying roles and responsibilities Types of Third Party Intervention Slide 17 Third-Party Conflict Resolution Any attempt by a relatively neutral person to help conflicting parties resolve their differences Types of Third Party Interventions Can be classified by their level of control over the process and control over the decision Choosing the Best 3rd Party Strategy Slide 18 1. Arbitration • High control over final decision – low control over process • Final stage of grievances by unionized employees in many countries – becoming more common in nonunion conflicts 2. Inquisition • Control all discussion about the conflict • High decision control and high process control 3. Mediation • Mediators have high control over the intervention process, but little to no control over the conflict resolution decision Choosing the Best 3rd Party Strategy Managers prefer inquisitional strategy • Consistent with decision-oriented nature of managerial jobs • Usually the least effective third-party conflict resolution method • Conflicts with procedural justice principles Mediation potentially offers highest satisfaction with process and outcomes • Gives employees more responsibility for resolving disputes Use arbitration when mediation fails -- has procedural justice due to predetermined rules and processes Bargaining Zone Model of Negotiations Bargaining zone – area of potential overlap with a continuum that parties move along in opposite directions 1. Initial offer point Bargaining Zone Model • Your opening offer – best expectation Slide 19 2. Target point • Your realistic goal or expectation for a final agreement 3. Resistance point • The point beyond which you will make no further concessions Strategies for Claiming Value Claiming value – aiming for the best possible outcomes for yourself and your constituents Four strategies to effectively claim value in negotiations: Strategies for Claiming Value 1. Prepare and set goals – think through all three positions in the Slide 20 bargaining zone model; research what other party wants 2. Know your BATNA (best alternative to a negotiated agreement) – estimates your power in the negotiation and represents the estimated cost of walking away from the relationship 3. Manage time – negotiators make more concessions as a deadline get closer 4. Manage first offers and concessions – first offer creates a position around which subsequent negotiations are anchored; negotiators need to make concessions – offer concessions in installments Strategies for Creating Value Slide 21 Strategies for Creating Value Creating value – cooperating to help both negotiators obtain the best possible outcomes i.e. applies problem-solving Three strategies to effectively create value in negotiations: 1. Gather information ➡ understand other’s party’s needs/expectations ➡ look beyond stated position; use probing questions 2. Discover priorities through offers and concessions ➡ use multi-issue offers (not one issue at a time) -- reveals relative importance of the issues to each party ➡ e.g. offer a client a specific price, delivery date etc. – the client’s counteroffer signals aspect is more or less important 3. Build the relationship (trustworthiness) ➡ discover common backgrounds and interests ➡ manage first impressions; be reliable ➡ emotional intelligence to maintain positive emotions Situational Influences on Negotiations Slide 22 Situational Influences on Negotiations 1. Location • Home turf: familiar with negotiation setting; easier access to resources • Consider a neutral territory • Good negotiators prefer face-to-face, not phone calls 2. Physical setting • Relationship affected by physical distance, setting formality • Convey win-win orientation by dispersing people around the table 3. Audience Characteristics • Audience – anyone with a vested interest in the negotiation outcomes • When audience observes ➡ negotiators tend to be more competitive, less willing to make concessions, more likely to engage in political tactics Conflict and Negotiation in the Workplace Conflict and Negotiation in the Workplace Slide 23 Instructor’s Manual to Accompany Organizational Behavior 7/e by Steven L. McShane and Mary Ann Von Glinow Chapter 12: Leadership in Organizational Settings Prepared by: Steven L. McShane, The University of Western Australia Leadership in 12 Organizational Settings LEARNING OBJECTIVES After reading this chapter, students should be able to: 1. Define leadership and shared leadership. 2. Describe the four elements of transformational leadership and explain why they are important for organizational change. 3. Compare managerial leadership with transformational leadership, and describe the features of task-oriented, people-oriented, and servant leadership. 4. Discuss the elements of path-goal theory, Fiedler’s contingency model, and leadership substitutes. 5. Describe the two components of the implicit leadership perspective. 6. Identify eight competencies associated with effective leaders and describe authentic leadership. 7. 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 behaviors 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, such that 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 modeling 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 to 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 toward the vision, and using symbols, metaphors, and other vehicles that create richer meaning for the vision. Transformational leaders model the vision (walk the talk) and encourage employees to experiment with new behaviors and practices that are potentially more consistent with the visionary future state. They also build employee commitment to the vision through the preceding 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 to achieve current objectives and practices. Transformational and managerial leadership are dependent on each other, but they differ in their assumptions of stability versus change and their micro versus macro focus. Task-oriented behaviors 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. People-oriented behaviors 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 to support 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. The path-goal theory of leadership takes the view that effective managerial leadership involves diagnosing the situation and using the most appropriate style for it. The core model identifies four leadership styles—directive, supportive, participative, and achievement-oriented—and several contingencies related 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, that 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 subordinates 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 competencies associated with effective leaders and describe authentic leadership. The competency 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 comfort- able with, and act consistently with their self-concept. This concept consists mainly of two parts: self-awareness and engaging in behavior that is consistent with one’s self-concept. 12-7 Discuss cultural and gender similarities and differences in leadership. Cultural values 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 stereotypes, which may result in higher or lower ratings. LECTURE OUTLINE (WITH POWERPOINT® SLIDES) Leadership in Organizational Settings Slide 1 Telstra CEO, David Thodey David Thodey has transformed Telstra, the Australian telecommunications giant, through effective leadership practices. In particular, he re-engaged staff through a customer-centric vision and Telstra CEO, David Thodey personally symbolized the vision through his own behaviors. Slide 2 Leadership Defined Slide 3 Leadership Defined The ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members Shared Leadership Slide 4 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 4. Competency – effective leaders have specific personal characteristics Transformational Leadership Model Slide 5 Transformational Leadership Model Four elements: • Develop and communicate a strategic vision • Model the vision • Encourage experimentation • Build a commitment to the vision Features of a Strategic Vision Slide 6 Features of a Strategic Vision Vision is an idealized future state with a higher purpose. Features of an effective vision • Linked to personal values ➡ energizes employees so they are motivated even though the objective is abstract, distant, and challenging • Fulfills multiple stakeholder needs • A challenging objective -- requires substantial transformation (e.g. new work 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 Slide 7 Transformational Leadership Elements 1. Develop/Communicate the vision • Framing the vision-- use words/phrases that evoke desired images of an appealing future • Communicate the vision with sincerity and passion -- shows personal belief and optimism • Use symbols, metaphors, symbols ➡ borrows images of other experiences ➡ generates strong emotions about the vision 2. Model the vision • Enacting the vision -- “walking the talk”, leading by example • Symbolize and demonstrate the vision through their own behavior • 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 modeling the vision – builds enthusiasm • Increased through experimentation -- employee involvement in change • Higher commitment also through rewards, recognition, celebrations Transformational versus Charismatic Leaders 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 behaviors that engage followers to bring about change – builds follower empowerment Evaluating Transformational Leadership Slide 9 Evaluating Transformational Leadership Transformational leaders make a difference • Employees perform their jobs better, engage in more organizational citizenship behaviors, make better or more creative decisions Transformational leadership limitations: 1. Circular logic • Shouldn’t define and measure transformational leadership by its effects on employees 2. Mixed models of transformational leadership • Some models mix leader behaviors with personal characteristics -- Problem: cause (characteristics) and effect (behaviors) 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 may be more appropriate in North America Managerial Leadership Slide 10 Managerial Leadership Managerial leadership defined • Daily activities that support and guide the performance and wellbeing of individual 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 into more specific operational behaviors and practices • Managerial depends on transformational to set the right direction Task vs People Leadership Styles Slide 11 Task vs People Leadership Styles Earliest investigations of managerial leadership identified two distinct styles (clusters of behavior) Task-oriented behaviors: • Assign employees to specific tasks, clarify responsibilities • Set goals and deadlines, provide feedback • Establish work procedures, plan future work People-oriented behaviors: • 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 Military Ethos of Servant Leadership Slide 12 Military Ethos of Servant Leadership “The idea of servant leadership is you put others before yourself,” says Lt. Gen. Daniel Allyn of the XVIIIth Airborne Corps. “That implies that we’re going to do all we can to ensure that we’re always looking after the needs of our Soldiers.” 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 Path-Goal Leadership Slide 14 Path-Goal Leadership Main contingency model of managerial leadership Effective leaders choose styles that best influence employee 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 Styles 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 Leadership Model Slide 15 Path-Goal Leadership Model Effectiveness of the four styles depends on employee and environmental contingencies Leadership effectiveness: • Employee motivation and satisfaction • Acceptance of the leader Path-Goal Contingencies Slide 16 Path-Goal Contingencies 1. Skill and experience • Low skills and experience – use directive and supportive • Skilled/experienced – avoid directive leadership 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 to allow more discretion • Routine – avoid directive style; supportive leadership if work is tedious and 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 most leader 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 the amount of directive and supportive behavior 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 leadership style is appropriately matched to the situation • Best leadership style depends on the level of situational control i.e. degree of power and influence the leader has in a particular position • Limited empirical support but uniquely points out that leaders have a preferred style; leaders not very flexible Leadership Substitutes Slide 18 Leadership Substitutes Contingencies that limit a leader’s influence or make a particular leadership style unnecessary Examples: • 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 Slide 19 Implicit Leadership Perspective Leadership also involves followers’ perceptions of the characteristics and attributions of people in formal leadership positions 1. Leadership prototypes • Prototypes: preconceived beliefs about characteristics of effective leaders • Positive evaluation to leaders with features and behaviors close to the prototypes of effective leaders • Reason: leader effectiveness emerges over long time, but people need to quickly 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 believing that leaders make a difference so they look for this evidence Eight Leadership Competencies Slide 20 Competency Perspective of Leadership Specific skills, knowledge, aptitudes, and other personal characteristics that contribute to person’s effectiveness or potential as a leader Eight Leadership Competencies 1. Personality • 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 are more motivated to pursue those goals 2. Self-concept • Complex, internally consistent, clear self-view as a leader, positive selfevaluation: • 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 to accomplish organizational objectives 4. Drive • Related to high conscientiousness and positive self-concept • Inner motivation, high need for achievement • Inquisitiveness, action-oriented, boldness Eight Leadership Competencies (con’t) Slide 21 Eight Leadership Competencies (con’t) 5. Integrity • Truthfulness and consistency of words and actions • Judge dilemmas using sound values • Related to honesty and ethical conduct 6. Knowledge of the business • Possess tacit and explicit knowledge of the organization’s environment in which 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 other people 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 Competency Perspective Limitations Slide 23 Competency Perspective Limitations 1. Universal approach • Assumes all effective leaders have the same personal characteristics and are 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 their favorable relationships with followers 3. Competencies indicate only leadership potential, not leadership performance Cultural Issues in Leadership Slide 24 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 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 leadership in 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 behavior from male and 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 of leadership 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 favorably than men on emerging leadership qualities of coaching and teamwork Leadership in Organizational Settings Slide 26 Leadership in Organizational Settings Instructor Manual for Organizational Behavior: Emerging Knowledge, Global Reality Steven McShane, Mary Von Glinow 9780077862589, 9781259280634, 9781259562792, 9780071077989
