This Document Contains Chapters 13 to 14 Instructor’s Manual: Ch. 13: Leadership: Power & Negotiation CHAPTER OVERVIEW Leadership is the use of power and influence to direct the activities of followers toward goal achievement. This chapter discusses the major types of power, as well as the influence tactics most commonly used by leaders. It also covers organizational politics, as well as conflict resolution and negotiation techniques. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 13.1 What is leadership, and what role does power play in leadership? 13.2 What are the different types of power that leaders possess, and when can they use those types most effectively? 13.3 What behaviors do leaders exhibit when trying to influence others, and which of these is most effective? 13.4 What is organizational politics, and when is political behavior most likely to occur? 13.5 How do leaders use their power and influence to resolve conflicts in the workplace? 13.6 What are the ways in which leaders negotiate in the workplace? 13.7 How do power and influence affect job performance and organizational commitment? CHAPTER OUTLINE I. Leadership: Power and Negotiation A. Leadership is the use of power and influence to direct the activities of followers toward goal achievement Try This! Ask students to think of names that occur to them when you say “great leader”. The names can be business or nonbusiness, and the people can be living or historical. Write the list of names as they are said, encouraging diversity in the list. For example, one list might be Abraham Lincoln, Gandhi, Martin Luther King, Lebron James, Steve Jobs, Oprah Winfrey, Mother Theresa, and Warren Buffet. When you cover the types of power, circle the names that have the various kinds of power as you cover them, perhaps using different colors or shapes for organizational vs. personal power. For example, Lincoln, Jobs, Winfrey, and Buffet would be examples of legitimate power. Lincoln, Gandhi, King, James, Jobs, Winfrey would be examples of referent power. James, Jobs, and Buffet would be examples of expert power. II. Why Are Some Leaders More Powerful Than Others? A. Power is defined as the ability to influence the behavior of others and to resist unwanted influence in return 1. People must choose to influence others 2. Resistance is as important as influencing others when discussing power B. Acquiring Power 1. Organizational Power – derived from a person’s position in the organization a. Legitimate Power – derived from having a position of authority within the organization. Also known as “position power” b. Reward Power – exists when someone has control over the resources or rewards another person wants c. Coercive Power – exists when a person has control over the punishments in an organization i. Leads to negative feelings toward those who use it 2. Personal Power – comes from the person themselves a. Expert Power – derived from the person’s expertise, skill, or knowledge on which others depend b. Referent Power – exists when others have a desire to identify and be associated with a person OB at the Bookstore: Lean In. Lean In is a book that will certainly ignite some fierce conversations in class if you decide to have a conversation about it. Sandberg largely blames women themselves for the lack of female leadership at the top inside many major companies. Even though the chapter uses Ursula Burns at IBM as an example of a powerful leader the statistics are clear in that women don’t occupy nearly their fair share of top management posts within large companies. Ask students if they agree that women hold themselves back by not having aspirations that are high enough. Why do they believe this is or isn’t the case? You are likely to find that the women in class have much more to say on this topic than the men. As a result, the males will not talk as much. Push the male students to have an opinion on this topic as well. Do the students agree with Sandberg or do they agree with her detractors who argue that discrimination and other outside barriers play a larger role in the lack of women in top management positions. It’s obviously a bit of both more than likely, but a discussion of the book gives students an opportunity to work through their thoughts on the issue. 3. Guidelines for Using Power 4. Contingency Factors a. Substitutability – Leader power increases when there are no substitutes for the rewards or resources the leader controls b. Centrality – Leader power increases when the leader’s role is important and interdependent with others in the organization c. Discretion – Leader power increases when the leader has the freedom to make his or her own decisions without being restrained by organizational rules d. Visibility – Leader power increases when others know about the leader and the resources he or she can provide C. Using Influence 1. Influence is the use of an actual behavior that causes behavioral or attitudinal changes in others a. Influence is directional – it most frequently occurs downward, but can also be lateral or upward b. Influence is all relative – the absolute power of the influencer and influence isn’t relative, but the disparity between them is 2. Influence Tactics a. Most Effective i. Rational Persuasion – the use of logical arguments and hard facts to show the target that the request is a worthwhile one ii. Inspirational Appeal – a tactic designed to appeal to the target’s values and ideals iii. Consultation – asking the target to participate in deciding how to carry out a request iv. Collaboration – making it easier for the target to complete the request b. Moderately Effective i. Ingratiation – the use of favors, complements, or friendly behavior to make the target feel better about the influencer ii. Personal Appeals – when the requestor asks for something on the basis of friendship or loyalty OB Internationally. This box describes how Kai-Fu Lee, the president of Google Greater China, uses guanxi (relationships) to influence decisions. In China, guanxi refers to friendly feelings, but also a sense of obligation to the other person based on a common background. It is a much deeper relationship than the traditional American business relationship, and it is important for American managers working in China to be aware of the differences. iii. Exchange Tactic – used when the requestor offers a reward or resource in exchange for performing a request iv. Apprising – when the requestor clearly explains why performing the request will benefit the target personally c. Least Effective i. Pressure – the use of coercive power through threats and demands ii. Coalitions – enlisting other people to help influence the target d. Influence tactics tend to be most successful when used in combination e. “Softer” influence tactics tend to be more successful than “harder” ones 3. Responses to Influence Tactics a. Internalization – Target agrees with and becomes committed to request b. Compliance – Target is willing to perform request, but does so with indifference c. Resistance – Target is opposed to request and attempts to avoid doing it D. Power and Influence in Action 1. Organizational Politics – Actions by individuals that are directed toward the goal of furthering their own self-interests (note that self-interests can also be in the interests of the corporation) a. Political Skill – the ability to effectively understand others at work and to use that knowledge to influence others in ways that enhance personal and/or organizational objectives. Political skill includes: i. Networking abilities – adeptness at identifying and developing diverse contacts ii. Social astuteness – the tendency to observe others and accurately interpret their behavior OB Assessments: Political Skill. This brief assessment measures a student’s level of networking ability and social astuteness. When discussing this test, it is important to note that results are likely to be linked to a person’s level of introversion/extroversion, with extraverts being more likely to score highly on this test. It may also be useful to point out (again) the situational nature of behavior – just because one is an introvert, doesn’t mean that he or she cannot network, only that networking might be more difficult, and may occur in a more limited number of settings. Please see the Instructor PowerPoints for Bonus Assessments on Expert Power and Referent Power. Please see the Connect assignments for this chapter for assessments on Need for Power and Self Monitoring. Please email me at [email protected] if you have any questions about using these assessments in your teaching. b. Environments that are perceived as extremely political have been shown to cause lower job satisfaction, increased strain, and lower organizational commitment among employees c. Organizational Politics Process i. Factors that Foster Organizational Politics a. Personal Characteristics i. Need for power ii. High self monitors iii. Machiavellianism b. Organizational Characteristics i. Limited or changing resources ii. Ambiguity in roles iii. High performance pressure iv. Unclear performance evaluations 2. Conflict Resolution a. Five approaches to conflict resolution: i. Competing – one party attempts to get his or her goals met without regard for the other party’s goals ii. Avoiding – one party stays away from the conflict iii. Accommodating – one party gives in and acts unselfishly iv. Collaboration – both parties work together to maximize outcomes v. Compromise – each party’s losses are offset by gains Asset Gallery (Conflict & Power/Self Assessment): What is Your Preferred Conflict-Handling Style. This selfassessment gives students feedback on the degree to which they prefer the five styles of conflict resolution in Figure 13-5. Note that the terminology for three of the styles differs somewhat from the book to the assessment. The assessment refers to a competing style as “dominating”, a collaborating style as “integrating”, and an accommodating style as “obliging.” b. When to Use Conflict Resolution Styles OB on Screen: Skyfall. The clip referenced in the book begins around the 35:06 mark of the film, continuing until about the 36:54 mark. The clip depicts James Bond (Daniel Craig), M (Judi Densch), and Gareth Mallory (Ralph Fiennes) in a discussion about whether Bond should continue in his role as an agent for MI6. M informs the two men that Bond has passed his tests (which he actually did not) and that she is restoring him to active duty. Mallory, Chairman of the British Parliament’s Intelligence Committee, is in complete disagreement. The clip is an excellent example of someone taking a competitive stance in conflict resolution (M) and the other taking an accommodating style once he’s put to the test (Mallory). The clip provides an excellent opportunity to discuss amongst the class when each type of conflict resolution is most appropriate. Table 13-4 provides a great background. Ask students if they have a style they use most often. Do they think that people change their styles or do they have a tendency to remain the same (perhaps due to their personality) regardless of the situation. Have students name examples of when they used each of the styles (use Figure 13-5 as a guide). Many of the students will have a tendency to think that collaborating is the style that one should always strive towards because it is the “win-win” outcome. It is worth stressing that this is not always the case. Push students to think of personal examples of examples they can think of where collaborating is not the preferred method. Bonus OB on Screen (from 2nd and 3rd ed): There Will Be Blood. The clip referenced in the book begins around the 1:30:58 mark of the film, continuing until about the 1:35:27 mark. The clip depicts Daniel Plainview, the main character in the movie going in to a negotiation with two executives of Standard Oil Company who wish to purchase the land he has bought and the rights to the oil underneath it. It is clear that Daniel has a great deal of contempt for the two men and has no real intention of selling them his oil find. The scene provides a case study for the process of bargaining. One topic for class discussion is whether the students think Daniel ever had any intention of selling his oil production and his “hard work”. Which stages of negotiation does the scene show? The two sides make a deal very quickly for a small plot of land – but they never really enter into true “bargaining”. There is nothing the oilmen can say that will appease Daniel and he finds something to react to in order to walk away from the table. Daniel’s BATNA is essentially nothing – something the oilmen clearly don’t understand. An alternate scene in the movie runs in Chapter 5 (1:24:34 to 1:27:24) which might be worthwhile to show first and shows the type of man Daniel is and the fact that he hates people and wants “no one else to succeed”. A good question to ask the students after might be “Do you ever think you could negotiate a win-win outcome with this man?” What type of conflict resolution do you think he will always adopt? Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 1st ed): The Queen. The clip referenced in the book begins around the 00:42 mark of the film, continuing until about the 02:45 mark. The clip depicts Queen Elizabeth II having a conversation with a portrait artist. In this scene, the two discuss the power to vote (the Queen not having this power), how the Queen would like to do that just once, and the artist having little sympathy for her since it is “her government”. One topic for class discussion is what are the most effective bases of power. What happens when people overestimate the amount of power they have and/or underestimate the power of others based solely on positional (legitimate) power? What types of power to the students think they most respond to? Of the managers they have reported to, which were the most powerful? Why? E. Negotiation 1. Negotiation – A process in which two or more interdependent parties discuss and attempt to come to an agreement about their different preferences a. Distributive bargaining – involves win-lose negotiations over a “fixed pie” of resources b. Integrative bargaining – aimed at accomplishing a win-win scenario 2. Negotiation Stages a. Preparation - each party determines its goals for the negotiation, including its best alternative to a negotiated agreement (BATNA) b. Exchanging information - each party makes a case for its position and put all favorable information on the table c. Bargaining - each party uses distributive or integrated strategies to gain something of value Asset Gallery (Human Resource Management/Hot Seat): Negotiation: Thawing the Salary Freeze. This Hot Seat feature shows a manager negotiating with a union representative about salary issues. The union representative has been pushing for a salary increase but the manager maintains that all employees will work under a salary freeze. The discussion then turns to bonus issues, rather than salary issues. The feature provides a good example of the fine line between distributive bargaining and integrative bargaining. d. Closing and commitment - an agreement is formalized 3. Negotiator Biases a. Perceived Power b. Negotiator Emotions F. Summary: Why Are Some Leaders More Influential than Others? III. How Important Is Power and Influence? A. Power and influence have a moderate positive effect on job performance B. Power and influence can have a moderate positive effect on organizational commitment, however hard influence tactics decrease commitment IV. Application: Alternative Dispute Resolution A. Alternative Dispute Resolution - A process by which two parties resolve conflicts through the use of a specially trained, neutral third party 1. Mediation – requires a third party to facilitate the dispute resolution process, though he/she has no formal authority to dictate a solution 2. Arbitration – occurs when a third party has the authority to determine a binding settlement to the dispute DISCUSSION QUESTIONS 13.1 Can a leader influence others without power? How exactly would that influence take place? Answer: Leaders may not have legitimate, reward, or coercive power, but any time someone is influenced, power is exerted. The more subtle (and more effective) forms of power are referent power and expert power. 13.2 Which forms of power do you consider to be the strongest? Which types of power do you currently have? How could you go about obtaining higher levels of the forms that you’re lacking? Answer: Most students still believe that legitimate power is the strongest, and they often feel that they have little power themselves. When discussing the answer to this question, it may be useful to explain the following “power pyramid” to students. At the base of the pyramid, and fundamental to organizational power, is acquiring expertise in a given area. Next, people who want power must nurture critical organizational relationships, and then develop a network of resource people. Fourth, people who want power need to have good communication skills, and finally, the most direct way to gain power is to use all four of the pyramid levels to target and achieve key organizational goals. The strongest forms of power are expert and referent power because they rely on knowledge and relationships. I currently have legitimate power through my role. To gain higher levels of expert and referent power, I can focus on expanding my skills and building stronger connections. 13.3 Who is the most influential leader you have come in contact with personally? What forms of power did he or she have and which types of influence did he or she use to accomplish objectives? Answer: Typically, students will talk about people who have high levels of referent power when answering this question. This is a good question to ask in writing, because identifying powerful leaders can be personally revealing. My students have identified leaders as diverse as Billy Graham and Hugh Hefner, the prime minister of Thailand and Guan Zi Zai, the Chinese name for the Bodhisattva Avalokitesvara. The most influential leader I've personally encountered is [Name]. They had expert power due to their deep knowledge and referent power because of their strong relationships. They used inspirational appeal and rational persuasion to accomplish objectives effectively. 13.4 Think of a time when you resisted an influence attempt at work. What made you resist? Could the person attempting to influence have done anything differently to get you to behave the way he or she wanted? Answer: Most responses to this question will either refer to someone who used coercive power or someone who tried to influence others without having the legitimate power to do so. Students may need help in seeing that the same request could have been made participatively, or with an appeal to the student’s values, and it would have a much higher likelihood of being fulfilled. I resisted an influence attempt at work when a colleague tried to use coercive power to push a decision. I resisted because it felt manipulative and dismissive of my input. The person could have used a collaborative approach, involving me in the decision-making process, which might have made me more receptive. 13.5 What would it take to have a “politically free” environment? Is that possible? Answer: Politics are always operating, but they may be less noticeable in an organization where everyone is truly focused on achieving the same organizational goal, above and beyond any of their personal goals. People being people, however, make this type of situation extremely rare. 13.6 Think about the last serious conflict you had with a coworker or group member. How was that conflict resolved? Which approach did you take to resolve it? Answer: Answers to this question will vary by student. Students may differ in their most commonly used approaches, and may also react to the same situation with different styles. The last serious conflict I had with a coworker was resolved through a compromise. We both acknowledged each other's concerns and met halfway by agreeing on a solution that addressed key points from both sides. I took a collaborative approach, focusing on finding common ground while maintaining a respectful dialogue. 13.7 Think of a situation in which you negotiated an agreement. Which approach did you take? Was it the appropriate one? How might have the negotiation process gone more smoothly? Answer: Again, answers will vary by student. The points to emphasize in discussion, however, are that most negotiations are more effective if both parties work together towards a solution that meets the needs of everyone. In a recent negotiation over project deadlines, I took an integrative approach, seeking a win-win solution by aligning both parties' goals. It was the appropriate approach, as it led to a mutually beneficial agreement. The process could have gone more smoothly with clearer communication upfront about each party's priorities and constraints. CASE: XEROX Questions: 13.1 What are the issues that arise when two people try to “share” leadership? What is likely to contribute to the success or failure of such a partnership? Answer: Part of leadership is power. Learning how to share or use different forms of power is difficult for most leaders. The huge risk of “shared leadership” is when the two people sharing have different opinions or desires for how an outcome should turn out. In addition, people need to know where the final decision is coming from. Communication is the huge key under these circumstances. The two leaders must be on the same page about what the final goals look like and what their vision of the future is. Burns and Mulcahy did just that and they did their best to split up responsibilities although who did what changed over time so that Burns could learn the ropes of all aspects of the new job. 13.2 What types of influence tactics are likely to be most important to a CEO during a time of transition such as when Burns took over the company? Do those differ from what is necessary during a merger? Answer: For the most part, the most successful influence tactics don’t change that much with the situation. However, one can imagine that during periods of transition – employees are looking for clues as to whether things are going to be changing substantially. During this time, inspirational appeals are likely to be very important although as with all high-stakes changes that involve large numbers of people, using all forms of influence is going to be important. However, as noted in the case – Burns feels strongly that a leader needs to be themselves and for her, that is much more influencing through rational persuasion. 13.3 Do you think women naturally use different forms of power or influence tactics? Does Burns show this? Answer: Certainly many people picture in their mind that women and men likely use different forms of influence tactics to achieve objectives with men being very aggressive and data-driven while women are more prone to use emotion and collaboration. However, there really isn’t any research evidence to support that and we can all think of many examples where that stereotype simply isn’t true. If anything, Burns is the “opposite” of how we tend to stereotype women leaders in that she is a very data driven / analytic decision-maker and if anything, she appears to come across as rough and intimidating. BONUS CASE (from 2nd ed): HARPO It might very well surprise you to see the face of Oprah Winfrey here in this chapter on leadership. After all, Winfrey is an actress and television talk show host—isn’t she? Why yes, she certainly is, but she’s a lot more than that as well. Winfrey is recognized as one of the leading businesspeople in the country and stands firmly in control at Harpo (“Oprah” spelled backward), an entertainment and media company with $345 million in sales in 2008 and 410 employees. Winfrey currently ranks eighth in Fortune magazine’s list of the most powerful women in business. She also is one of only four women to have remained on the list since its inception in 1998. She’s proven to be an extremely shrewd leader and negotiator as chairperson of the organization she founded, earning the respect of not only those who watch her shows, read her magazine, listen to her radio channel, and purchase products that she endorses, but the employees of Harpo as well. As you’ll find in reading this chapter, Winfrey’s power at Harpo doesn’t come solely because she sits at the top of the organizational chart. Part of her power is celebrity driven, but this celebrity persona has been carefully managed and controlled by Winfrey herself. Winfrey owns every piece of her company: the content, the name brand, the studio, and all production facilities. One of her most important negotiating victories came in 1988, when she acquired the rights to syndicate her own talk show (something that only Johnny Carson had done previously and few have done since). Since that time, everything that has earned the Oprah stamp of approval has gone through careful consideration, and most potential opportunities get turned down. Winfrey recognizes that her approach to business is somewhat unique: “I don’t care about money. It throws people off in business meetings. They start shuffling papers.” There are many examples of such behavior; she rejected a cosmetics company by asking, “Why would I do that?” and she declined invitations from AT&T, Ralph Lauren, and Intel to sit on their corporate boards by saying, “Guys, I don’t know what I’d be doing on your board.” This willingness to admit what she does and doesn’t know has helped her not only influence the masses but also lead her organization and its employees. Winfrey is the first to admit that she knows little about the numbers side of the business; instead, she hands the operational duties of running the organization over to others. As a privately owned company, Harpo, Inc., can think long-term rather than worry about short-term numbers for shareholders, which can be a real benefit when the entire company is built on a set of core values that employees hold dear. What Winfrey does know is how to entertain and influence through various forms of media, including a best-selling magazine (O, The Oprah Magazine), a satellite radio channel, and an award-winning Web site. Harpo is headquartered in several buildings in downtown Chicago, or “the campus” as Harpo employees like to call it. The campus has its own café, gym, and spa facilities. Harpo employees freely admit that Winfrey is incredibly demanding, but as Winfrey notes, “I don’t yell at people. I don’t mistreat people. I don’t talk down to people, so no one else in this building, in this vicinity, has the right to do it. Treating people with respect is the most important thing to me. It’s not just talk.” As OWN (the Oprah Winfrey Network) gets started in late 2009 or early 2010, Winfrey’s presence, already seemingly everywhere, will just increase. OWN is a 50–50 joint venture between Harpo and Discovery Communications and will replace the previous Discovery Health channel, broadcasting to approximately 70 million homes. It represents just one more form of influence that Winfrey will exert, and if history holds true, she’ll make good use of it too. Having Oprah Winfrey as the owner and a cornerstone of a company confers many advantages. However, it’s not without its drawbacks. As an organization whose entire existence relies on one person with extreme amounts of power and influence based on referent power, what if that power starts to fade? At the moment, Winfrey has the ability to influence presidential elections (some say she single-handedly pushed President Obama over the top in the race against Hillary Clinton) and boost the sales of books tenfold on The New York Times best-seller list. What happens though if something goes wrong and the public’s trust in her diminishes? One of the things for which Winfrey is well known is her generous charitable contributions, including a $40 million Leadership Academy for girls in South Africa. Yet Winfrey faced numerous criticisms about the way the school has been run, including a 2007 accusation that one of the teachers was sexually abusing students. Although the controversy was handled fairly deftly, it raises concerns for Harpo. One of Harpo’s jobs—to control the content it disseminates—remains a challenge as well, because Winfrey not only creates much of the content but is the content itself. Every copy of O Magazine has her on the cover. Every television show created by the company lists Winfrey as a producer. Oprah is the brand. The lingering question for Harpo: What happens if something happens to Winfrey? Her stated intentions for the new OWN network is that it must live on beyond her, but whether people would tune in without Oprah represents a real dilemma for the organization. Sources: Alleyne, S. “Oprah Means Business.” Black Enterprise 18 (June 2008), pp. 117–28; http://www.hoovers.com (accessed June 26, 2009);Schechner, S. “TV Veteran Named CEO at Winfrey’s Network.” The Wall Street Journal, January 30, 2009, p. B5; Russell, A. “Shaken Oprah ‘Cleans’ Her Girls Academy,” Financial Times, November 6, 2007, p. 8; Sellers, P. “The Power 50.” Fortune, October 15, 2007, p. 77; Sellers, P. “The Business of being Oprah.” Fortune, April 1, 2002, pp. 50–58; Shambora, J.; and B. Kowitt. “50 Most Powerful Women.” Fortune, October 13, 2008, pp. 165–73. 13.1 What are the potential dangers of having one super-powerful leader of an organization? Answer: The major danger would be that different ideas and perspectives are not brought in to be a check on that leader. In addition, it is possible that the political behavior and maneuverings in the organization become oriented around and toward impressing that one person. As successful as Oprah has been, she needs to be aware of the environment changing around her and not having people willing to step up and disagree with her. 13.2 How might Winfrey go about ensuring that Harpo, survives after her departure or due to a loss of faith among the public? Is it possible to have a true leadership succession plan in these circumstances? Answer: Winfrey should focus on having other employees around her that are prepared to take over the company if need be. Given that the company rests so much on her celebrity, finding a way to diversify would be of immense help to the future goals and prospects of the organization. It is possible to have a succession plan, but it needs to be a well-thought out one, where decisions start to be made by others around her even in areas where Winfrey is the clear expert. 13.3 As a holder of immense referent power, what types of concerns should Oprah Winfrey have in terms of influencing the employees around her? Answer: Winfrey should be aware that everything she says and does holds immense sway with the people around her. She needs to be cognizant of groupthink, organizational culture, and creating a willingness of the people around her to make all kinds of decisions without her approval. She will need to be aware that people will likely do what she wants even if the employee doesn’t feel it is in their or Winfrey’s best interest. INTERNET CASE: AN OUTSIDER IN THE FAMILY CASTLE by Shawn Tully http://money.cnn.com/2013/10/31/leadership/estee-lauder-freda.pr.fortune/index.html Questions: 13.1 What are the biggest challenges that Estee Lauder CEO Fabrizio Freda faces at Estee Lauder? How does he appear to be dealing with them? Answer: Freda’s issues as CEO certainly revolve around the power structure at the firm which, although publicly traded, is clearly familial from a culture standpoint. The Lauder family owns 86% of the voting stock in the company. Luckily, Freda is good at using rational persuasion with the members of the family that disagree with him or have different points of view. Even though he is known as a hard-nosed business leader, he is not a CEO who uses strong-arm influence tactics to get his way. 13.2 What were the benefits and downsides of bringing an outsider such as Freda in to take over the reins of the company? Answer: Bringing Freda in certainly had its risks. Coming from Proctor and Gamble and even being referred to as “the Pringles man” could not have been easy for Freda. The advantages to bringing him in was invoke a bit of a culture change and that he would be willing to make decisions about products that members of the Lauder family had grown emotionally attached to. The downsides were potentially that he completely didn’t fit the organization’s culture and he leadership qualities couldn’t overcome the initial stereotypes of where he came from. Given his new compensation package, it’s clear the Lauder family wants to keep him around for as long as they can. EXERCISE: LOBBYING FOR INFLUENCE Background: In this exercise, students use influence techniques to lobby other students for points. The student with the most points after several rounds of lobbying, wins a cash prize (typically around $10.) The competition can get fast and furious, as long as the prize is meaningful, and the rules of the game are followed. From a vote counting perspective, it is easier to run this exercise when you have fewer than 25 students, but with teaching assistants, you may be able to use it with more. Prior to class, create a list of the students who will be participating in the exercise. Each student should receive a different number of points - for example, give Student 1 ten points, Student 2 twenty points, etc. Be sure to also create a list of everyone's assigned points for the students - this can be done on an overhead or powerpoint as necessary. The total number of points should appear at the bottom of the list. You will also want to get stacks of index cards (or slips of scrap paper) that can serve as ballots during the exercise. I also distribute slips of paper for memos, but if students typically bring notebooks to class, that may not be necessary. When going over instructions with the students, tell them about all five voting periods. Also, tell them that you will insist on silence during the writing periods of the exercise, and that no memos can be distributed until the end of the writing period. When voting, tell the students to be sure to put the name of the person who is getting votes on the ballot, and then collect ballots by name. That will make counting up the points easier. Questions: Students may use a wide variety of social influence tactics as they write their memos, including rational persuasion, inspirational appeals, ingratiation, and personal appeals. The writing format will make some tactics more practical and appropriate than others. The success of the tactics will vary from student to student, as the same tactic can work for an effective communicator but not for a less effective communicator. The other relevant factors will also vary from student to student, but will typically revolve around past relationships, levels of personal power, and political skills. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. • Ethics – A natural byproduct of discussing power in organizations is the discussion of ethical decision making. This topic might also be spurred on by a discussion of this chapter’s OB at the Bookstore. Ethics is discussed in detail in our book in Chapter 7. • Sexual Harassment – A popular topic to cover when discussing power in organizations is that of sexual harassment. Our focus on power mainly in regards to leadership did not allow for a full discussion of the topic. While a list of the myriad of sexual harassment references is large, for a specific look at harassment by leaders, see: Offerman, L.R.; and A.B. Malamut. “When leaders harass: The impact of target perceptions of organizational leadership and climate on harassment reporting and outcomes”. Journal of Applied Psychology, 87, 2002, pp. 885-893. • Impression Management – The methods by which individuals attempt to control what is thought of them by others. Although some of the “tactics” of impression management are covered under influence tactics in this chapter, for a detailed discussion of the topic, see: Rosenfeld, P.R.; R.A. Giacalone; and C.A. Riordan. Impression Management in Organizations: Theory, Measurement, and Practice. New York, NY: Routledge, 1995. Zivnuska, S; K. M. Kacmar; L.A. Witt; D.S. Carlson and V.K. Bratton. “Interactive effects of impression management and organizational politics on job performance.” Journal of Organizational Behavior, August (2004), pp. 627-640. Instructor’s Manual: Ch. 14: Leadership: Styles & Behaviors CHAPTER OVERVIEW Effective leaders use power and influence to improve the performance and well-being of their overall units, while cultivating high-quality relationships with their followers. The effectiveness of a leader is a function of both traits and behavioral styles. This chapter summarizes research on decision making styles, the use of transactional and transformational leadership styles, and the difference between consideration vs. initiating structure behaviors. Students are asked to consider a central question throughout the chapter – “Is leadership innate, or can people be trained to be leaders?” LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 14.1 What is leadership? What does it mean for a leader to be “effective”? 14.2 What traits and characteristics are related to leader emergence? What traits and characteristics are related to leader effectiveness? 14.3 What four styles can leaders use to make decisions? According to the time-driven model of leadership, what factors combine to make some styles more effective in a given situation? 14.4 What two dimensions capture most of the day-to-day leadership behaviors that leaders engage in? 14.5 How does transformational leadership differ from transactional leadership? What kinds of behaviors underlie transformational leadership? 14.6 How does leadership affect job performance and organizational commitment? 14.7 Can leaders be trained to be more effective? CHAPTER OUTLINE I. Leadership Styles and Behaviors A. Leadership: The use of power and influence to direct the activities of followers toward goal achievement B. Leadership Effectiveness 1. Can be judged in a number of different ways a. By objective evaluations, including profit margins, market share, etc. b. By employee actions, including absenteeism, number of grievances filed, etc. c. By subjective evaluations, including employees surveys, perceived respect, etc. 2. Is a function of who is asked, since members of a group often disagree about the effectiveness of the group’s leader 3. Leader-member exchange theory describes how leader member relationships develop over time a. Role-taking phase – period in new leader-member relationships where manager describes role expectations to employee, and employee attempts to fulfill those expectations with behavior b. Role-making phase – period in which expectations of employees for leader-member dyad get mixed in with those of the leader c. Resulting relationships can be either “high quality” (in-group) dyads, characterized by frequent exchanges of information, influence, latitude, support, and attention, or “low quality” (out-group) dyads, characterized by limited exchanges of information, influence, latitude, support, and attention d. Suggests that leadership effectiveness should be judged by gauging how effective the most critical leader-member dyads appear to be Asset Gallery (Leadership/Self Assessment): Assessing Your Leader-Member Exchange. This self-assessment gives students feedback on the quality of their relationship with their leader. Ask them to focus on a current or past leader when answering the questions. The feedback will then provide ranges for low overall leader-member exchange, conveying outgroup status, or high overall leader member exchange, conveying ingroup status. Note that the questions are quite similar to the dyad-focused questions in Table 14-1, though they are different questions. Focus discussion on whether (or when) students care about being in a leader’s ingroup, and on what behaviors students could engage in to deepen their leader-member exchange quality. II. Why Are Some Leaders More Effective Than Others? A. Leader Effectiveness – the degree to which the leader’s actions result in the achievement of the unit’s goals, the continued commitment of the unit’s employees, and the development of mutual trust, respect, and obligation in leader-member dyads. B. Trait Theories 1. Leaders are effective because of who they are a. Traits studied include conscientiousness, agreeableness, neuroticism, openness to experience, extraversion, general cognitive ability, energy level, stress tolerance, and self confidence 2. Traits may be more related to leadership emergence (who is seen as a leader) than they are to leadership effectiveness C. Leader Decision-Making Styles 1. Decision-making style reflects the process used by the leader to generate and chose from a set of alternatives – it is how the leader decides, not what the leader decides 2. Four primarily styles with regard to follower involvement in decision-making process a. Autocratic – leader makes the decision alone b. Consultative – leader presents the problem to employees, gets their input, but then makes the final decision alone c. Facilitative – leader presents the problem to a group of employees and seeks consensus on the solution d. Delegative – leader gives employees the responsibility for making the decision 3. Although allowing employees to participate in decision-making increases employee satisfaction, it also takes up time 4. Time-Driven Model of Leadership a. Proposes that choice of decision-making style should be based on answers to questions in seven areas: i. decision significance ii. importance of commitment iii. leader expertise iv. likelihood of commitment v. shared objectives vi. employee expertise vii. teamwork skills b. In one study, managers who used the time driven model made successful decisions 68 percent of the time, while those who didn’t made successful decisions 22 percent of the time c. Managers tend to overuse the consultative style, and underutilize autocratic and facilitative styles Try This! Take a particular class decision, say, the decision to make more of the final grade dependent on a peer evaluation from the members of one’s student workgroup. Use the questions in the time-sensitive model to suggest whether you as the professor should make that decision autocratically, or whether some other style would be more appropriate. Depending upon how one responds to the likelihood of commitment question in Figure 14-3, the likely choice will be autocratic or consultative. D. Day-to-Day Leadership Behaviors Try This! Ask students to think about what leaders actually “do” on a day-to-day basis. Then list what’s said on the board. Try to write what’s said into two unlabeled columns, one reflecting initiating structure behaviors and one reflecting consideration behaviors. Students will typically begin listing more structure-focused behaviors before transitioning to consideration issues. If students say something that fits better into some other category (for example, “inspire” would fit better under transformational leadership), list that to the side and come back to it later. Once the columns have been created, ask students who have read the book to guess what the columns reflect. 1. Ohio State studies boiled leadership behaviors down into two categories: a. Initiating Structure – extent to which the leader defines and structures the work of employees leading to goal attainment. Includes initiation, organization, and production factors i. Strong positive relationship with employee motivation ii. Moderate positive relationship with overall unit performance b. Consideration – extent to which leaders create job relationships characterized by mutual trust, respect for employee ideas, and consideration of employee feelings i. Strong positive relationship with perceived leader effectiveness, employee motivation, and employee job satisfaction ii. Moderate positive relationship with overall unit performance OB Assessments: Initiating Structure and Consideration This assessment gives students some insight into whether their “natural” leadership style is to initiate structure or provide consideration. Ask students if they feel it would be possible for them to assume a style they scored low on. Under what conditions might they do so? What training might they need? Are there conditions which might make them slip back into their preferred style? These questions can start a discussion about whether leadership approaches are innate or learned behaviors, how training impacts the ability to lead, and how environmental conditions affect style use. Please see the Instructor PowerPoints for Bonus Assessments on LMX Quality and Transformational Leadership. Please see the Connect assignments for this chapter for assessments on Charisma and Readiness. Please email me at [email protected] if you have any questions about using these assessments in your teaching. 2. Life Cycle Theory of Leadership a. The optimal combination of initiating structure and consideration depends on the readiness (ability and willingness to work) of the employees in the work unit i. Low Readiness – Telling (high initiating structure, low consideration) ii. Low/Medium Readiness – Selling (high initiating structure, high consideration) iii. Medium/High Readiness – Participating (low initiating structure, high consideration) iv. High Readiness – Delegating (low initiating structure, low consideration) E. Transformational Leadership Behaviors 1. Transformational leaders inspire their followers to commit to a shared vision that provides meaning to their work while also serving as a role model who helps followers develop their own potential and view problems from new perspectives 2. Levels of Leadership Behaviors – arranged in order from most passive/ineffective to most active/effective a. Laissez-Faire – hands off leadership b. Transactional (Passive Management by Exception) – leader waits for mistakes, then corrects them c. Transactional (Active Management by Exception) – leader monitors for mistakes, then corrects them d. Transactional (Contingent Reward) – leader attains follower agreement on what needs to be done, and gives promised or actual rewards in return for adequate performance e. Transformational OB Internationally. This box describes “Project GLOBE” a collection of researchers from different countries who are trying to determine how cultural variables impact perceptions of effective leadership. The box shows that transformational leadership is the most universally accepted approach to leadership of any of the styles studied by the Project GLOBE team. 3. The “Four Is” of Transformational Leadership a. Idealized Influence – behaving in ways that earn the trust and respect of followers, causing followers to want to identify with and emulate the leader (synonymous with “charisma”) b. Inspirational Motivation – behaving in ways that foster an enthusiasm for and commitment to a shared vision of the future c. Intellectual Stimulation – behaving in ways that challenge followers to be creative and innovative d. Individualized Consideration – behaving in ways that help followers achieve their potential through coaching, development, and mentoring OB on Screen: Lincoln. The clip referenced in the book begins around the 1:37:30 mark of the film, continuing until about the 1:40:22 mark.The clip depicts Lincoln giving a rousing speech to a group of his closest advisors. These advisors have been running into one roadblock after another in trying to acquire enough votes to pass the Thirteenth Amendment to the U.S. Constitution (the abolishment of slavery). Lincoln’s speech exemplifies both idealized influence and inspirational motivation although it is worth pushing students to identify these on their own. Play the clip and then encourage them to pick out the I’s that are exhibited by Lincoln in the clip. What specific things did he say? Was it “what” he said or “how” he said it that made it what it was? Although it will likely be easy for them to think of political figures who have exhibited these behaviors – push them to think of personal examples where they have witnessed a leader demonstrate one of the four I’s. How did those leaders make them feel? How do these behaviors create different kinds of motivation in followers than do transactional behaviors? Bonus OB on Screen (from 3rd ed): The King’s Speech. The clip referenced in the book begins around the 1:35:50 mark of the film, continuing until about the 1:38:35 mark. Please also note that the clip contains language that is generally considered profane. If you have seen the movie, you will realize that the profanity is an integral part of the story – the King does not stutter when he cusses or sings. That being said, an alternate clip which is equally as effective runs in Chapter 20 of the movie from 1:41:44 to 1:48:30 which is the King actually delivering his war time speech. The first clip is King George VI preparing to deliver his speech and growing increasingly frustrated as he can’t get the words out and questioning why he is in the position he is. The second clip is the King actually delivering his speech to all of England over the “wireless” which is still a relatively new technology at the time. Regardless of which clip you use, the discussion could revolve around why we place transformational outcomes on our political leaders in times of war or crisis and don’t necessarily do the same at other times. Encourage your students to differentiate those times and why different sets of expectations are called for. Bonus OB on Screen (from 2nd ed): Star Trek. The clip referenced in the book begins around the 19:50 mark of the film, continuing until about the 26:23 mark. The clip depicts James T. Kirk, a rebellious young man growing up in Iowa trying to pick up a female Starfleet cadet (Uhuru) in a bar. Shortly thereafter, a fight between Kirk and other cadets breaks out and is broken up by Captain Christopher Pike who recognizes Kirk and subsequently tries to convince him to enlist in Starfleet himself. The scene provides a case study of a leader using a transformational leadership style to influence someone he has no formal control over. The scene can lead to a very fruitful discussion of the effects of certain aspects of transformational leadership. Although the box gives them the answer that idealized influence and inspirational motivation are two main aspects of the model used, push the students to answer why that is the case and exactly which parts of Pike’s speech exhibit those types of leadership. Why do people respond so well to this style of leadership? How much of a role does emotion play in leadership? Are there any other styles of leadership that the students think could have been just as effective on a person like Kirk? Bonus OB on Screen (from 1st ed): Thirteen Days. The clip referenced in the book begins around the 13:18 mark of the film, continuing until about the 32:57 mark. The clip depicts the first few days of the Cuban Missile Crisis, as President Kennedy and his advisors learn of the existence of Soviet missiles on Cuban soil. The clips reveal the answers to many of the questions considered in the time-driven model of leadership. Once the clip ends, ask students to help navigate through the questions in Figure 14-3 (without reviewing the text in the OB on Screen box). Moving from left to right in the figure: (1) the decision is significant for obvious reasons, (2) commitment is important as the air force and army could undermine Kennedy’s vision if they are not committed to his course of action, (3) Kennedy’s expertise in these matters is low, (4) the likelihood of the group’s commitment is low because the military does not trust Kennedy, and (5) shared objectives is low because the military has its own agenda—they want to use the crisis as an excuse to invade Cuba and remove Fidel Castro once and for all. The pattern of answers (H-H-L-L-L) suggests a consultative strategy where Kennedy asks for input and opinions but ultimately makes the decision himself. As is clear from Chapter 10 of the DVD (beginning at 38:42), Kennedy does in fact use that style. He is presented with two primary options: a blockade or an air strike. After listening to the arguments, he thanks the group for its advice and tells them that he’ll announce the course of action in the morning. F. Summary: Why Are Some Leaders More Effective Than Others? (Figure 14-6) Asset Gallery (Conflict & Power/Mgmt Video DVD): Bad Bosses. This BusinessWeek Weekend clip interviews employees about their experiences with bad bosses, and interviews an author who wrote a book about the subject. Focus discussion on the specific styles and behaviors that the bosses seem to be at. What specific concepts are the employees really complaining about? Most of the complaints seem to revolve around low levels of consideration, low levels of delegation, and too much laissez-faire leadership. III. How Important Is Leadership? A. Units led by transformational leaders tend to be more financially successful and bring higher quality products and services to market at a faster rate B. Transformational leaders tend to foster leader-member exchange relationships that are of higher quality, marked by especially strong levels of mutual respect and obligation C. Employees with transformational leaders have higher levels of motivation than other employees, setting higher goals and standards for themselves, and trusting the leader more D. Employees with transformational leaders have higher levels of commitment and job satisfaction than other employees E. Substitutes for Leadership Model 1. Substitutes reduce the importance of a leader while simultaneously providing a direct benefit to employee performance (e.g. task feedback) 2. Neutralizers reduce the importance of the leader, but have no impact on performance (e.g. spatial distance) Try This! Ask students to share what their most boring summer job ever was. These jobs will often be very high on neutralizers, especially task stability. Then ask the students to consider whether their boss’s impacted their behavior very much (if they were even around on a regular basis). IV. Application: Leadership Training A. One of the most important things organizations can do to maximize the effectiveness of their leaders is to train them B. Transformational leadership behaviors can be learned, and managers who take the time to learn them demonstrate improved effectiveness OB at the Bookstore: The Charisma Myth. The notion that charisma can be learned is generally a foreign one to students. Ask students to think about leaders they have known personally who they would deem to be “charismatic”. Do they think these people have been charismatic their entire lives or did they learn to be some over time and through experience? Don’t be surprised when your students say that these individuals have probably been like that their entire lives. Have students talk about the three core charismatic qualities that Cabane puts forth (Presence, Power, Warmth). Could they picture themselves working on these qualities and getting better at them? Why or why not? DISCUSSION QUESTIONS 14.1 Before reading this chapter, which statement did you feel was more accurate: “Leaders are born” or “Leaders are made”? How do you feel now, and why do you feel that way? Answer: Hopefully, after reading the chapter, students will see that leaders can be “made” (trained), as well as “born”. Before reading this chapter, I believed "Leaders are made" because leadership skills can be developed over time. After reading, I still feel the same, reinforced by research showing that effective leadership combines inherent traits with learned behaviors, emphasizing the importance of growth and experience in becoming a strong leader. 14.2 The time-sensitive model of leadership argues that leaders aren’t just concerned about the accuracy of their decisions when deciding among autocratic, consultative, facilitative, and delegative styles; they’re also concerned about the efficient use of time. What other considerations could influence a leader’s use of the four decision making styles? Answer: Another thing that could influence which decision making style a leader uses is whether or not development of employees is a priority. The more leaders want employees to gain skills, the more likely they may be to choose participative or delegative decision making styles. 14.3 The time-sensitive and life cycle models of leadership both potentially suggest that leaders should use different styles and behaviors for different followers. Can you think of any negative consequences of that advice? How could those negative consequences be managed? Answer: The problem with using different styles and behaviors for different followers is that followers might perceive the leader as being unfair. It would be important that the leader be open about what he or she was doing, and employees understand that they will be rewarded equally for doing equal work. 14.4 Consider the four dimensions of transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Which of those dimensions would you respond to most favorably? Why? Answer: Students will have different responses to this question, but it may be useful to remind them of what they learned earlier about leadership-member dyads, and in-groups and out groups. If an employee responds particularly well to a specific behavior favored by a transformational leader, that employee may very well be in the leader’s “in-group”. I would respond most favorably to intellectual stimulation because it encourages creativity, critical thinking, and challenges me to grow and develop new ideas. This dimension aligns with my desire for continuous learning and innovation, making it particularly motivating for me. 14.5 Can you think of any potential “dark sides” to transformational leadership? What would they be? Answer: The “dark sides” to transformational leadership are that transformational leaders can sometimes get so wrapped up in their vision that they forget to listen to their followers – if the vision is wrong, that can be problematic. In addition, followers may be swayed by a powerful vision, and not take the time to analyze whether or not it is the best strategy for the company. Charismatic leaders can also be likeable, but unable to accomplish anything, and resentful . CASE: CHOBANI Questions: 14.1 Is it possible for Ulukaya to maintain the same type of leadership style that made Chobani successful now that it has grown so big so quickly? What kinds of things might he do to ensure he doesn’t lose it? Answer: This is a good question. Leaders generally have a difficult time changing their style, but Ulukaya has a lot going for him including the transformation leadership behaviors that many leaders struggle to come by. He has loads of idealized influence and clearly exhibits a lot of inspirational motivation and individualized consideration. These are extremely important for a fast-growing company like Chobani. As his duties (and company locations) increase in scope, will these naturally go away? Probably not, but Ulukaya can’t be everywhere at once. Having a leadership team willing to tell him when they feel he has been losing something or that his behavior is changing is a good first step. 14.2 Is there a danger to having such a strong, charismatic leader as the head of a company? If Chobani went public, would you have reservations investing in its stock as a result of that? Answer: As long as that company’s success isn’t built into that leader being there, there probably aren’t a lot of reasons to argue against wanting those characteristics in a leader. In other words, if people were buying Chobani yogurt because of Ulukaya, that might be a concern. However, people buy Chobani because of the strength of its product. Ulukaya’s presence simply pushes the company to grow more quickly and results in engaged employees. 14.3 As the company changes through growth, is it possible that the founder’s leadership style might not be the appropriate style for the future? How would you tell? Answer: That’s certainly possible. The behaviors a leader needs to exhibit during periods of strong growth and not necessarily the behaviors that are needed during a company’s more mature life-cycle. Some leaders are able to make this transition and some aren’t. The key is really whether the leader recognizes that the environment around them is changing and how that calls for a change in their outlook. Although its easier said than done sometimes, one could tell this is happening when a leader’s behaviors don’t change even though their environment does. When does their behavior not result in the same response from people or when does the company start to flounder in the market. BONUS CASE (from 2nd ed): FORD Allan Mulally is a leader in a unique, enviable, and somewhat daunting position. As the CEO of Ford Motor Company, he has the opportunity to turn around and save (his second) American and global corporate icon. The first opportunity (and success) was at Boeing, where he spent almost 40 years, mainly as an aeronautical engineer, before moving up in the ranks because of his unique ability to lead large groups of people toward a common goal. As CEO, Mulally led numerous aircraft programs, including the development of Boeing’s 777 aircraft—widely considered the first airline success story of the twenty-first century—through extremely troubling times for the industry. When he was chosen by then-Chairman and CEO William Ford to lead Ford in 2006, the decision was met with immense skepticism from every corner of the automotive industry. Even Mulally’s mother said, “But Alan, you’re an airplane guy.” The transition, three years later, is still ongoing; in a recent meeting with Wall Street analysts, Mulally referred to the “Paris Air Show” when he meant to say “Paris Motor Show.” Fortunately for Ford, good leadership has turned out to transcend industry. Part of the reason is that Mulally didn’t charge into Ford like a bull in a china shop, imposing his will on everyone around. Instead, he came in with a much more subdued style, building consensus and using the team that was already in place.6 Mulally is known for being incredibly optimistic, and Ford’s head of manufacturing, Joe Hinrichs, says, “Alan brings infectious energy. This is a person people want to follow.” In a relatively short time, Mulally has transformed what had become known as one of the staunchest “me-first” corporate cultures in the world to a company focused on a singular vision of success as “One Ford.” To focus completely on Ford (and in contrast with most executives in Detroit), Mulally lives less than three minutes from his office so that, as he likes to say, “all the way home and all the way back here I can always see the blue oval on the side of buildings.” That focus also led Mulally to cut his own salary by 30 percent for 2009 and 2010 to show that upper management shares in the sacrifices that it has demanded of rank-and-file employees. Fortune magazine dubs his leadership style the “Mulally Method,” defined as a “good-natured but relentless insistence on following what he has determined to be the correct course of action.” Mulally’s style focuses on creating transparency; everyone knows everything so that management can react to issues proactively as a group. “Communicate, communicate, communicate. Everyone has to know the plan, its status, and areas that need special attention” says Mulally, summarizing the efforts to get Ford to think and work as a global brand as opposed to a set of regional fiefdoms, as had been the case for decades. “Information should never be used as a weapon on a team,” adds Mulally. Aside from his focus on communication, Mulally is known for wearing off-the-rack suits, expressing humility, and having a good-natured demeanor. He’s also very confident, however, always willing to make the difficult decision while being incredibly driven to win. This Mulally Method leadership style may be different from what Ford has been used to, but it also seems to be exactly what Ford has needed. In 2009, Ford was the lone member of the Big 3 U.S. automakers not to take a handout from the U.S. government to sustain its operations during the financial crisis. There were a number of reasons for this choice, but one of the main ones was Alan Mulally’s great desire to differentiate Ford from the other two big carmakers: General Motors and Chrysler. The strategy seems to be paying off, as consumers have shied away from purchasing cars from the two automakers that declared bankruptcy. It also has put Ford in a good position for the future. John Casesa, an automotive industry analyst, argues, “The speed with which Mulally has transformed Ford into a more nimble and healthy operation has been one of the more impressive jobs I’ve seen. It probably would have been game over for Ford already but for the changes he has brought.” When Mulally took over, Ford was a huge conglomeration of automobiles and designs. Mulally was adamant about getting rid of non-Ford brands and thus sold off Jaguar, Land Rover, and Aston Martin just at the right time, before the market collapsed. However, this decision was a particularly difficult one, because the culture at Ford previously had designated working on the “Ford” brand as a career killer. It was not where the best and brightest wanted to spend their time. Mulally’s vision for the company has been to revitalize the Ford brand, because he believed brand loyalty could not be replaced. When he first arrived at Ford, he asked for a product lineup and was surprised to discover the Taurus line had been canceled and renamed the Five Hundred. Mulally responded, “Well, you’ve got until tomorrow to find a vehicle to put the Taurus name on because that’s why I’m here. Then you have two years to make the coolest vehicle that you can possibly make.” He is betting the proverbial farm on the 2010 Taurus, and thus far, it has garnered extremely positive reviews, despite a price tag over $30,000. His push during the past three years—to build cars that will sell globally— represents a new method for Ford and goes completely against the grain of the company’s previous market segmentation strategies. Europeandeveloped small cars, such as the Fiesta and the Focus, are on their way to the U.S. market, which Mulally believes is the future of the company. At 63 years of age, Mulally does not appear to be slowing down; more than ever, he seems excited about coming in to work every day. Sources: Kelly, K. M. “A Leader When Detroit Needs One.” Automotive Design & Production, May 2009, p. 40; Kiley, D. “Ford’s Saviour?” BusinessWeek, March 16, 2009, pp. 30–34; Mecham, M; and A.L. Velocci Jr. “Find a Way.” Aviation Week & Space Technology, January 1, 2007, p. 50; Reed, J.; and B. Simon. “The Drive to Transform.” Financial Times, October 25, 2008, p. 9; Simon, B.; and A. Ward. “Ford Chiefs Take 30% Salary Cut this Year.” Financial Times, February 25, 2009, p. 27; Taylor, A., III. “Fixing up Ford.” Fortune, May 25, 2009, pp. 44–51. Questions: BUSINESSWEEK INTERNET CASE: FROM XBOX TO ZYNGA 14.1 What do you think makes Alan Mulally an effective leader at this point in Ford’s history? Answer: Ford probably needed a relatively no-nonsense kind of leader as it had to cut back and focus on what it was good at more than any other time in the history of the company. Mulally’s leadership style provided focus on the “Ford” brand as opposed to many of the other diversified brands that had been accumulated. 14.2 Would you consider Mulally a transformational leader? Why or why not? Answer: Absolutely. Mulally clearly exhibited inspirational motivation by envisioning a future again and getting others to buy into that same vision. He exhibited intellectual stimulation by getting his employees to think about making the Taurus “cool” again. He stepped in during a time of great need for the company and got its employees to buy in again. 14.3 If Ford had been forced to take money from the federal government to sustain its operations, would your opinion of his leadership change? Answer: This is really an opinion based answer. If Ford had accepted buyout money, odds are good they wouldn’t be sitting the same place they are at the end of the case. The fact is, our opinion – right or wrong – is based on success. This is a great opportunity to discuss with students the differences between leadership behaviors and leadership results. Can one be a transformational leader if the group one leads fails? If Ford had been forced to take money from the federal government, my opinion of Alan Mulally's leadership might slightly shift, but it wouldn't diminish my overall respect for him. Taking government assistance could have been seen as a pragmatic decision in extreme circumstances, reflecting his commitment to saving the company. However, his ability to steer Ford without needing a bailout showcases his strategic foresight and strong leadership, which makes his accomplishments even more impressive. by Nicole LaPorte http://www.fastcompany.com/3015666/from-xbox-to-zynga-don-mattrick 14.1 What is the risk for Zynga of having it’s ex-CEO and founder Mark Pincus stick around after appointing Don Mattrick to the helm? Answer: Although Pincus says publicly that Mattrick is clearly in charge and that he’s being brought in because Pincus lacks some skills that he needs to carry the company further, one does have to wonder whether the two will be “sharing” leadership responsibilities to some degree. Unlike many of the examples throughout the book where CEO’s are trained under the wing of the prior CEO for the job – in almost every case that CEO leaves which creates a bit of a clean slate for the new leader. If Mattrick flounders at all in his new role, Zynga might revolt trying bring Pincus back into the fold (who will happen to have a front row seat to what is going on). 14.2 What does Mattrick bring to the table in terms of leadership that" Pincus does not? Answer: It’s clear that Pincus believes that Mattrick possesses leadership and management skills that he himself does not. One of those appears to be a vision for the future and the ability to communicate it. In many other ways though, the two seem to be very similar with both being relatively autocratic in their leadership styles. Mattrick brings expertise (Microsoft, etc.) and symbolizes Zynga’s commitment to being a gaming company to outsiders. EXERCISE: TAKE ME TO YOUR LEADER Instructions: Emphasize that each member should choose a leader that is personally interesting to them, but that they should also make their choices as diverse as possible within the group. If you want, you could also allow some group members to choose “write-in leaders” that are not represented in the table. Sample Individual Output: Fitness Trainer: • Does a lot of leading by example (showing clients how to do exercises) • Does a lot of cheering on clients to bang out a few more reps in each set • Only sees clients a few hours a week, so lacks day-to-day input into diet, nutrition, etc. • Often knows a lot more than clients about relevant things (like how to do exercises, how to avoid injury, how to eat well) • Can only gauge his/her effectiveness over a long time period (because changes in outward physical appearance occur slowly, as may improvements on specific exercises) Sample Group Output: Leadership Universals: • Serve as example • Use persuasion to influence • Help followers through struggles • Share expertise Situational Challenges: • Limited time spent with follower • Limited control over key facets of task • Limited ability to gauge effectiveness • Difficulties dealing with outside “shocks” Questions: It will almost certainly be the case that the universals will represent some combination of proper decision-making styles, initiating structure, consideration, or transformational leadership. If the “universal” listed does not seem relevant to one of those concepts, consider whether the listed concept would indeed be universal. The situational challenges will likely be represented, in some form, in the time-sensitive model, the life-cycle model, or the substitutes for leadership model. It may well be though, given the sheer spectrum of situational challenges, that the items listed in this section will not be found in one of those models. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. • Blake and Mouton’s Managerial Grid – Complements the Ohio State and Michigan Studies by more fully describing various combinations of initiating structure (labeled concern for production) and consideration (labeled concern for people). For example, low levels of initiating structure and high levels of consideration is termed “country club management.” For more on this, see: Blake, R. R.; and J. S. Mouton. “A Comparative Analysis of Situationalism and 9,9 Management by Principle.” Organizational Dynamics 10 (1982), pp. 20-43. • Path-Goal Theory of Leadership – Like the time-driven and life cycle models, this theory argues that the effectiveness of four leader behaviors (directive behaviors, akin to initiating structure, supportive behaviors, akin to consideration, participative behaviors, and achievement-oriented behaviors) on leader effectiveness depends on follower characteristics (skills, experiences, locus of control) and environmental characteristics (task structure, team dynamics). For more on this, see: House, R. J. “A Path-Goal Theory of Leader Effectiveness.” Administrative Science Quarterly 16 (1971), pp. 321-38. • Fielder’s Contingency Model – This model also focuses on how the effectiveness of leader behaviors varies across situations. More specifically, the model suggests that the effectiveness of task oriented behaviors (akin to initiating structure) and relationship oriented behaviors (akin to consideration) varies according to leader-member relations, task structure, and position power. The theory is best known for its unique measurement of the leader’s preference for task vs. relationship-oriented behaviors. That preference is assessed by asking leaders how much they like their “least preferred coworker” (LPC). If leaders like even their least preferred coworker, they purportedly lean toward relationship oriented behaviors. If leaders describe that least preferred coworker in very unfavorable terms, they purportedly lean toward task oriented behaviors. For more on this, see: Fiedler, F. E. A Theory of Leadership Effectiveness. New York: McGraw-Hill, 1977. • Authentic Leadership – This concept integrates the study of leadership with the study of trust and ethics (see Ch. 7). The authentic leadership perspective argues that leaders need to know their own ethical principles and act on those principles when in a leadership role. Avolio, B. J.; W. L. Gardner; F. O. Walumbwa; F. Luthans; and D. R. May. “Unlocking the mask: A look at the process by which authentic leaders impact follower attitudes and behaviors.” Leadership Quarterly 15 (2004), pp. 801-23. Instructor Manual for Organizational Behavior: Improving Performance and Commitment in the Workplace Jason Colquitt, Jeffery LePine, Michael Wesson 9780077862565, 9781260261554
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