Human Resource Management (HRM) - Business PDF

Chapter 7: Managing Human Resources Why Human Resource Management (HRM) is Important & the HRM Process 1. It can be a significant source of competitive advantage. That’s true for organizations around the world, not just U.S. firms. Thestronger HRthebetteryouperform 2. Part of organizati...

Chapter 7: Managing Human Resources Why Human Resource Management (HRM) is Important & the HRM Process 1. It can be a significant source of competitive advantage. That’s true for organizations around the world, not just U.S. firms. Thestronger HRthebetteryouperform 2. Part of organizational strategies. employeesarekeytosuccess yr Achieving competitive success through people means managers must change how they think about their employees and how they view the work relationship. 3. The way organizations treat their people has been found to significantly impact organizational performance. BetterHRpractices increase a comarketvalue to30 up For instance, one study reported that improving work practices could increase market value by as much as 30 percent. Why is HRM important to organizational success? 1. It can be a significant source of competitive advantage. 2. An important part of organizational strategies. 3. The way organizations treat their people has been found to significantly impact organizational performance. High - Performance Work Practices Work practices that lead to both high individual and high organizational performance. Relate to employees - Improve knowledge providingregulartrainingprograms - Skills - Abilities of an organization’s employees - Increasing their motivation employeeofthemonthreward for PRODUCTIVITY wastetime - Reducing loafing on the job - Enhancing the retention of quality employees while encouraging low performers to leave. careergrowthplans performance improvement plan Type of practices - Self-managed teams without - Decentralized decision making 8h59am Eifert.IE ogEmeYah - Training programs to develop knowledge, skills, and abilities. trainingworkshop - Flexible job assignments rotatebtwndiff department diverseexperience 0- Open communication monthly Q Asession askleadershipabt companydecision - Performance based compensation commission based bonuses - Staffing based on person- job and person organization fit - Extensive employee involvement - Giving employees more control over decision making O - Increasing employee access to information, alphemertes to suggestprocess  1. 3 activities ensure that competent employees are identified and selected. 2. 2 involve providing employees with up-to-date knowledge and skills 3. Final 3 ensure that the organization retains competent and high-performing employees External Factors that Affect the HRM Process The economy - lasting impact of the Great Recession The entire HRM process is influenced by the external environment. Those factors most directly influencing it include the economy, employee labor unions, governmental laws and regulations, and demographic trends. The global economic downturn has leftimpact what many experts believe to be an enduring mark on HRM practices worldwide. In the United States, labor economists say that although jobs may be coming back slowly, they aren’t the same ones that employees were used to. Many of these jobs are temporary or contract positions, rather than full- time jobs with benefits. Labor Unions An organization that workers and seeks to protect their interests through collective bargaining. In unionized organizations, many HRM decisions are dictated by collective bargaining agreements, which usually define things such as recruitment sources; criteria for hiring, promotions, and layoffs; training eligibility; and disciplinary practices. Work stops, labor disputes, and negotiations between management and labor are just a few of the challenges organizations and managers face when their workforce is unionized. Law and Rulings Affirmative action - Organizational programs that enhance the status of members of protected groups. Global HRM Work councils link employees with management. They are groups of nominated or elected employees who must be consulted when management makes decisions  involving personnel. Board representatives are employees who sit on a company’s board of directors and represent the interests of the firm’s employees. Human Resource Planning Human resource planning: ensuring that the organization has the right number and kinds of capable people in the right places and at the right times Two steps: - Assessing current human resources - Meeting future HR needs Current Assessment Job analysis: an assessment that defines jobs and the behaviors necessary to perform them Job description (position description): a written statement that describes a job Job specifications: a written statement of the minimum qualifications a person must possess to perform a given job successfully needto Meeting Future HR Needs/ Increased Scrutiny in Selection Process mktg Future HR needs are determined by the organization’s mission, goals, and strategies. Companies that do not carefully scrutinize the qualifications or backgrounds of employees surely pose risks of increased liability, poor reputation, and lower performance. PoorHRhiring decisions Recruitment and Decruitment Recruitment - Locating, identifying, and attracting capable applicants. Findingsuitablecandidates Decruitment - reducing an organisation's workforce, Selection reducing workforce size Screening job applicants to determine who is best qualified for the job. Managers need to “select” carefully since hiring errors can have significant implications. preventcostlyhiringmistakes Validity and Reliability relatetojobsuccess A valid selection device is characterized by a proven relationship between the selection device and some relevant criterion. A reliable selection device indicates that it measures the same thing consistently. I Realistic Job Preview (RJP) produceconsistentresult To increase employee job satisfaction and reduce turnover, managers should consider RJP, a preview of a job that provides both Awhen Iand negative information about the positive job and the company. Orientation A person starting a new job needs the same type of introduction to his or her job and intergrateinto their roles company  the organization. 2 types of Orientation - Work Unit Orientation the employee with the goals of the work unit, clarifies how his or her job contributes to the unit’s goals, and includes an introduction to his or her new coworkers. Team - Organization Orientation Iforms the new employee about the company’s goals, history, philosophy, procedures, and rules. It should also include relevant HR policies and maybe even a tour of the facilities. Employee Training - Types of Training Traditional Training Methods On-the-job Employees learn tasks by performing them after an initial introduction. Job rotation Employees work in different jobs within a specific area to gain exposure to various tasks. Mentoring and coaching E receiveguidancefromexperiencedworker Employees partner with experienced workers for information, support, and encouragement; similar to apprenticeships in some industries. Experiential exercises Employees engage in role-playing, simulations, or other interactive training methods. throughroleplay stimulation Workbooks/manuals Employees use training workbooks and manuals for reference and information. Classroom lectures Employees attend lectures aimed at conveying specific information. CD-ROM/DVD/videotapes/audiotapes/podcasts Employees listen to or watch selected media that convey information or demonstrate techniques. Videoconferencing/teleconferencing/satellite TV Employees listen to or participate as information is conveyed or techniques demonstrated. E-learning onlinetrainingusing I Internet-based learning where employees engage in multimedia simulations or interactive modules.  Mobile learning Learning delivered via mobile devices. Employee Performance Management Performance Management system - establishes performance standards used to evaluate employee performance for evaluation Performance Appraisal Methods Critical Incident Description: Evaluator focuses on critical behaviors that distinguish effective from ineffective performance. Advantages:Provides rich, behaviorally-based examples. Disadvantages:Time-consuming and lacks quantification. Graphic Rating Scale Description: A method that lists performance factors on an incremental scale; the evaluator rates the employee on each factor. Advantages:Provides quantitative data and is not time-consuming. Disadvantages:Does not offer in-depth information on job behavior. lackdetailed BARS (Behaviorally Anchored Rating Scale) Description: Combines elements from critical incident and graphic rating scale; uses a rating scale with examples of actual job behaviors. Advantages:Focuses on specific and measurable job behaviors. Disadvantages:Time-consuming to develop. Multiperson Comparison rankedagainsteachother Description: Employees are rated in comparison to others in the work group. Advantages:Allows for direct comparison among employees. Disadvantages:Difficult to manage with a large number of employees; potential legal concerns. MBO (Management by Objectives) goalachievement Description: Employees are evaluated based on how well they accomplish specific goals. Advantages:Focuses on goals and is results-oriented. Disadvantages:Time-consuming to implement. 360-Degree Appraisal Description: Utilizes feedback from supervisors, employees, and coworkers for a comprehensive evaluation. IPerfloyees  Advantages:Provides thorough feedback. Disadvantages:Time-consuming process. Compensation and Benefits Skill - based pay based on demonstrated skills - A pay system that rewards employees for the job skills they can demonstrate. Variable Pay based on performance - A pay system in which an individual’s compensation is contingent on performance. What Determines Pay and Benefits Truse 5 circled Managing Downsizing Downsizing (or layoffs) is the planned elimination of jobs in an organization. When an organization has too many employees—which can happen when it’s faced with an economic recession, declining market share, too aggressive growth, or poorly managed operations—one option for improving profits is to eliminate some of those excess workers. Managing Sexual Harassment ofa worksspace Sexual Harassment - any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment  Chapter 8 Creating and Managing Teams Group work tgt together to achieve Two or more interacting and interdependent individuals who come specific goals. cFormal groups are work groups defined by the organization’s structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. w assignedTasks Goals Command Groups - Groups determined by the organizational chart and composed of individuals who report directly to a given manager. report to same manager Task Group - Groups composed of individuals brought together to complete a specific job task; their existence is often temporary because when the task is completed, the group disbands. to complete specific tasks Cross- functional teams - Groups that bring together the knowledge and skills of individuals from various work areas or groups whose members have been trained to do each others’ jobs. AMskills EC group independent teamshandlingtask managerialduties Self-managed teams - Groups that are essentially independent and that, in addition to their own tasks, take on traditional managerial responsibilities such as hiring, planning and scheduling, and evaluating performance. Informal groups are social groups. These groups occur naturally in the workplace and tend to form around friendships and common interests. For example, five employees from different departments who regularly eat lunch together are an informal group. Stages of Group Development Forming stage has two phases. 1. Occurs as people join the group. In a formal group, people join because of some work assignment. Once they’ve joined, 2. Begins: defining the group’s purpose, structure, and leadership. conflictstage Storming stage is appropriately named because of the intragroup conflict. There’s conflict over who will control the group and what the group needs to be doing. During this stage, a relatively clear hierarchy of leadership and agreement on the group’s direction emerge. leadershipHierarchy becomesclearer cohesion stage groupdirection Norming stage is one in which close relationships develop and the group becomes cohesive. There’s now a strong sense of group identity and camaraderie. This stage is complete when the group structure solidifies and the group has assimilated Typgonourepectation towards  a common set of expectations (or norms) regarding member behavior. taskexecution 4. Performing stage. The group structure is in place and accepted by group members. Their energies have moved from getting to know and understand each other to working on the group’s task. stable functioningeffectively This is the last stage of development for permanent work groups. 5. Adjourning. For temporary groups—project teams, task forces, or similar groups that have a limited task to do. In this stage, the group prepares to disband. The group focuses its attention on wrapping up activities instead of task performance. External Conditions Imposed on the Group Organization's strategy Authority relationships Formal rules and regulations Availability of resources Employee selection criteria Group Member Resources Knowledge Abilities Skills Personality Traits Group Structure Role Behavior patterns expected of someone occupying a given position in a social unit. In a group, individuals are expected to do certain things because of their position (role) in the group. These roles are generally oriented toward either getting work done or keeping group members happy. Norms it ni.ieianiiiEaEeia interactions standards or expectations that are accepted and shared by a group’s members. Norms dictate things such as work output levels, absenteeism, promptness, and the amount of socializing on the job. Because individuals want to be accepted by groups to which they belong, they’re susceptible to pressures to conform. Conformity tomaintainpositifgroupimage exertstresson the indi to align w group can go too far, especially when an individual’s opinion differs significantly from that of others in the group. In such a case, the group often exerts intense pressure on the individual to align his or her opinion to conform to others’ opinions, a phenomenon known as groupthink. Groupthink seems to occur when group members hold a positive group image they want to protect and when the group perceives a collective threat to this positive image. Group Processes: Decision - making Advantages Groups generate more complete information and knowledge. They bring a diversity of experience and perspectives to the decision process that an individual cannot. Groups generate more diverse alternatives because they have a greater amount and diversity of information. Next, groups increase acceptance of a solution. Group members are reluctant to fight or undermine a decision they helped develop. Groups increase legitimacy. Decisions made by groups may be perceived as more legitimate than decisions made by one person. Disadvantages Groups almost always take more time to reach a solution than it would take an individual. A dominant and vocal minority can heavily influence the final decision. In addition, groupthink can undermine critical thinking in the group and harm the quality of the final decision. dominant memberscaninfluence outcomes Group members share responsibility, but the responsibility of any single member is ambiguous. makeindividualaccountabilityunclear Group Process: Conflict Management Conflict: perceived incompatible differences that result in interference or opposition - Traditional view of conflict: the view that all conflict is bad and must be avoided - Human relations view of conflict: the view that conflict is a natural and inevitable outcome in any group 0 Interactionist View of Conflict Interactionist view of conflict: the view that some conflict is necessary for a group to perform effectively for improvement – Functional conflicts: conflicts that support a group’s goals and improve its performance – Dysfunctional conflicts: conflicts that prevent a group from achieving its goals Types of Conflict Task conflict relates to the content and goals of the work. Relationship conflict focuses on interpersonal relationships. Process conflict refers to how the work gets done. Research shows that relationship conflicts are almost always dysfunctional because the interpersonal hostilities increase personality clashes and decrease mutual understanding and the tasks don’t get done. On the other hand, low levels of process conflict and low-to-moderate levels of task conflict are functional. For process conflict to be productive, it must be minimal. Group Tasks It is the complexity and interdependence of tasks that influence a group’s effectiveness. As the group performance/satisfaction model shows, the impact that group processes  have on group performance and member satisfaction is modified by the task the group is doing. More specifically, it’s the complexity and interdependence of tasks that influence a group’s effectiveness. Tasks are either simple or complex. Simple tasks are routine and standardized. Complex tasks tend to be novel or nonroutine. It appears that the more complex the task, the more a group benefits from group discussion about alternative work methods. A high degree of interdependence among the tasks that group members must perform means they’ll need to interact more. Thus, effective communication and controlled conflict are most relevant to group performance when tasks are complex and interdependent. Difference between Work Teams and Work Groups Work Teams Work Groups That Twi Leadership role is shared One leader clearly in charge Accountable to self and team Accountable only to self Team creates specific purpose Purpose is same as broader organizational purpose Work is done collectively Work is done individually Meetings characterized by open-ended Meetings characterized by efficiency; no discussion and collaborative problem- collaboration or open-ended discussion solving Performance is measured directly by Performance is measured indirectly evaluating collective work output according to its influence on others Work is decided upon and done together Work is decided upon by group leader and delegated to individual group members Can be quickly assembled, deployed, blank refocused, and disbanded Types of Work Teams Problem-solving teams - Teams from the same department or functional area involved in efforts to improve work activities or to solve specific problems. - Members share ideas or offer suggestions on how work processes and methods can be improved. - However, these teams are rarely given the authority to implement any of their suggested actions. Although problem-solving teams were helpful, they didn’t go far enough in getting employees involved in work-related decisions and processes. Self-managed work team - A formal group of employees who operate without a manager and are responsible for a complete work process or segment. - A self-managed team is responsible for getting the work done and for managing themselves, which usually includes planning and scheduling of work, assigning tasks to members, collective control over the pace of work, making operating decisions, and taking action on problems. Cross-functional team - which is a work team composed of individuals from various functional specialties. - Many organizations use cross-functional teams. Virtual team - A team that uses technology to link physically dispersed members to achieve a common goal. - Members collaborate online with tools such as wide-area networks, videoconferencing, fax, e-mail, or Web sites where the team can hold online conferences. - Virtual teams can do all the things that other teams can—share information, make decisions, and complete tasks - However, they lack the normal give-and-take of face-to-face discussions. Creating Effective Work Teams 1. Clearer Goals - a clear understanding of the goal to be achieved. Members are committed to the team’s goals, know what they’re expected to accomplish, and understand how they will work together to achieve these goals. 2. Relevant Skills - Effective teams are composed of competent individuals who have the necessary technical and interpersonal skills to achieve the desired goals while working well together. This last point is important because not everyone who is technically competent has the interpersonal skills to work well as a team member. 3. Mutual Trust - Effective teams are characterized by high mutual trust among members. That is, members believe in each other’s ability, character, and integrity. But as you probably know from personal relationships, trust is fragile. Maintaining this  trust requires careful attention by managers. 4. Unified Commitment - Unified commitment is characterized by dedication to the team’s goals and a willingness to expend extraordinary amounts of energy to achieve them. Members of an effective team exhibit intense loyalty and dedication to the team and are willing to do whatever it takes to help their team succeed. 5. Good Communication - Effective teams are characterized by good communication. Members convey messages, verbally and nonverbally, between each other in ways that are readily and clearly understood. Also, feedback helps guide team members and correct misunderstandings. 6. Negotiating Skills abilityto adaptroles resolve conflicts - Effective teams are continually making adjustments to whom does what. This flexibility requires team members to possess negotiating skills. Because problems and relationships regularly change within teams, members need to be able to confront and reconcile differences. 7. Appropriate Leadership leaders Guide motivate support theteam 8. Internal and External Support leadership resources fosterteamsuccess - Effective leaders are important. They can motivate a team to follow them through the most difficult situations. - How? By clarifying goals, demonstrating that change is possible by overcoming inertia, increasing the self-confidence of team members, and helping members to more fully realize their potential. Increasingly, effective team leaders act as coaches and facilitators. - They help guide and support the team, but don’t control it. Studies have shown that when a team leader’s emotional displays—positive and negative—are used at appropriate times, the team’s functioning and performance can be enhanced. Managing Global Teams 1. Group member resources in global teams In global organizations, understanding the relationship between group performance and group member resources is more challenging because of the unique cultural characteristics represented by members of a global team. complicatesperformanceevaluation In addition to recognizing team members’ abilities, skills, knowledge, and personality, managers need to be familiar with and clearly understand the cultural characteristics of the groups and the group members they manage. 2. Group Structure Some of the structural areas where we see differences in managing global teams include conformity, status, social loafing, and cohesiveness. Are conformity findings generalizable across cultures? Research suggests that Asch’s findings are culture-bound. For instance, as might be expected, conformity to social norms tends to be higher in collectivistic cultures than in individualistic cultures. Toe GROUPTHINK Despite this tendency, however, groupthink tends to be less of a problem  in global teams because members are less likely to feel pressured to conform to the ideas, conclusions, and decisions of the group. 3. Group Processes The processes global teams use to do their work can be particularly challenging for managers. cause misunderstandings For one thing, communication issues often arise because not all team members may be fluent in the team’s working language. This can lead to inaccuracies, misunderstandings, and inefficiencies. However, research also has shown that a multicultural global team is better able to capitalize on the diversity of ideas represented if a wide range of information is used. 4. Manager’s Role Despite the challenges associated with managing global teams, managers can provide the group with an environment in which efficiency and effectiveness are enhanced. Global Teams Drawbacks - Dislike of team members - Mistrust of team members - Stereotyping - Communication Problems coz leader - Stress and Tension Benefits - Greater diversity of ideas - Limited groupthink - Increased attention on understanding others’ ideas, perspectives, etc. Building Team Skills In building team skills, managers must view their role as more of being a coach and developing team members in order to create more committed, collaborative, and inclusive teams. Understanding Social Networks Social Network Structure - The patterns of informal connections among individuals within a group. Chapter 9: Managing Communication What is Communication? Communication is the transfer and understanding of meaning. - Note the emphasis on the transfer of meaning: If information or ideas have not been conveyed, communication hasn’t taken place. The speaker who isn’t heard or the writer whose materials aren’t read hasn’t communicated. More importantly, however, communication involves the understanding of meaning. Interpersonal communication—communication between two or more people Organizational communication, which is all the patterns, networks, and systems of communication within an organization. Functions of Communication 1. Control Controlling employee behavior in several ways. 2. Motivation 19 formance improvements By clarifying to employees what is to be done, how well they’re doing and what can be done to improve performance if it’s not up to par. By setting specific goals, work towards those goals & receive feedback on progress towards goals, communication is required. 3. Emotional Expression Communication is to release emotion/ feelings Fulfillment of social needs. 4. Information providenecessarydata functioneffectively Individual & groups need information to get things done in organizations. Methods - Communication Process - 7 elements The 7 elements involved in transferring meaning from one person to another. Noise A storing Process - if this is an effective communication. Any Disturbances that interfere with the transmission, receipt or feedback of a message. 7 methods a. Sender b. Receiver c. Message d. Medium  e. Encoding thoughts communication f. Decoding interpreting understandingthemessage g. Feedback Nonverbal Communication Communication transmitted without words. - Body language refers to gestures, facial expressions, and other body movements that convey meaning. A person frowning “says” something different from one who’s smiling. Hand motions, facial expressions, and other gestures can communicate emotions or temperaments such as aggression, fear, shyness, arrogance, joy, and anger. - Verbal intonation refers to the emphasis someone gives to words or phrases in Tone order toemphasis affectingmessage convey meaning. meaning To illustrate how intonations can change the meaning of a message, consider the student who asks the instructor a question. The instructor replies, “What do you mean by that?” The student’s reaction will vary, depending on the tone of the instructor’s response. A soft, smooth vocal tone conveys interest and creates a different meaning from one that is abrasive and puts a strong emphasis on saying the last word. Barriers Information Overload - When information exceeds our processing capacity Filtering - The deliberate manipulation of information to make it appear more favorable to the receiver. Jargon - specialized terminology or technical language that members of a group use to communicate among themselves outsiders Overcoming the Barriers maybe unclear to Use Feedback Simplify Language Listen Actively - Active Listening: Listening for full meaning without making premature judgments or interpretations. Constrain Emotions Watch Nonverbal Cues Active Listening Formal v Informal Formal communication refers to communication that takes place within prescribed organizational work arrangements. - For example, when a manager assigning asks an tasktop employee to complete a task, that’s formal communication. Informal communication is organizational communication not defined by the organization’s structural hierarchy. - When employees talk with each other in the lunch room, as they pass in hallways, or as they’re working out at the company wellness facility, they engage in informal communication. naturally in socialinteractions - Employees form friendships and communicate with each other. The informal communication system fulfills two purposes in organizations: - (1) it permits employees to satisfy their need for social interaction and - (2) it can improve an organization’s performance by creating alternative, and frequently faster and more efficient, channels of communication. Direction of Flow 1. Town hall meeting - to communicate with employees - Informal public meetings where top executives relay information, discuss issues, or bring employees together to celebrate. Downward communication - which the flow from manager to employees It used to inform, direct, coordinate, and evaluate employees. 2. Upward Communication Communication that flows upward from employees to managers. It keeps managers aware of how employees feel about their jobs, their coworkers, and the organization in general. Managers also rely on upward communication for ideas on how things can be improved. Some examples of upward communication include performance reports prepared by employees, suggestion boxes, employee attitude surveys, grievance procedures, manager–employee discussions, and informal group sessions in which employees have the opportunity to discuss problems with their manager or representatives of top-level management. 3. Lateral communication Communication that takes place among any employees on the same organizational level.  horizontal communications are frequently needed to save time and facilitate coordination. Cross-functional teams, for instance, rely heavily on this form of communication interaction. 4. Diagonal Communication Communication that cuts across work areas and organizational levels. A credit analyst who communicates directly with a regional marketing manager C about a customer’s problem—note the different department and different organizational level—uses diagonal communication. Networks 1. Communication Network The vertical and horizontal flows of organizational communication can be combined into a variety of patterns. In the chain network, communication flows according to the formal chain of command, both downward and upward. The wheel network represents communication flowing between a clearly identifiable and strong leader and others in a work group or team. The leader serves as the hub through whom all communication passes. Finally, in the all-channel network, communication flows freely among all members of a work team. 2. Grapevine The informal organizational communication network. The grapevine is active in almost every organization. canspread usefulinfo rumours Workplace Design and Communication Open Workplaces - Workplaces with few physical barriers and enclosures The 24/7 Work Environment IT has made it possible to stay connected around the clock, seven days per week. - IT has significantly improved a manager’s ability to monitor individual and team performance, has allowed employees to have more complete information to make faster decisions, and has provided employees more opportunities to collaborate and share information. IT has made it possible for people in organizations to be fully accessible, at any time, regardless of where they are. - Employees don’t have to be at their desk with their computers running to communicate with others in the organization. Working from anywhere Wireless communication technology has the ability to improve work for managers and employees. Social Media Devoting a channel for information exchange about a specific topic can help compartmentalize the conversation. It can also start a useful conversation in which employees can share their experiences and make suggestions for creating competitive advantage. Balancing the Pluses and Minuses  Communication and the exchange of information among organizational members are no longer constrained by geography or time. improve communicatio Constantly staying connected has its downsides, such as impeding creativity. hindertactivity Choosing the Right Media It is important for managers to understand the situations in which one or more media facilitates effective communication. reliance misunderstanding inefficiencies overCommunication in a Digitally Connected World - managers are learning, the hard Managing way sometimes, that all this new technology has created special communication challenges. Legal and Security Issues increases risk ofdatabreaches Personal Interaction remainsvital for buildingrelationship EZE Managing the Organization’s Knowledge Resources Managers need to enable employees to communicate and share knowledge so they can learn from each other. The Role of Communication in Customer Service 3 components 1. Customer receiptofservice 2. Service organization service company providing 3. Individual service provider deliveringservice rep Getting Employee Input arise Letting employees know that their opinions matter is an essential first step in building effective suggestions systems. Communicating Ethically Ethical Communication - communication that includes all relevant information, is true in every sense, and is not deceptive in any way. Unethical Communication - often distorts the truth or manipulates audiences. Sharpening Your Persuasion Skills Persuasion Skills - Skills that enable a person to influence others to change their minds or behavior. Speaking Skills - Skills that refer to the ability to communicate information and ideas in talking so others will understand. Writing Skills - skills that entail communicating effectively in text as appropriate for the needs of the audience Reading skills - skills that entail an understanding of written sentences and paragraphs in work-related documents. Chapter 10: Being an Effective Leader Who are Leaders & What is Leadership? Leader - someone who can influence others and who has managerial authority Leadership - a process of influencing a group to achieve goals. Leadership Behaviors Behavioral theories - leadership theories that identify behaviors that differentiate effective leaders from ineffective leaders. University of Iowa Studies Lt Autocratic style - Described a leader who dictated work methods, made unilateral decisions, and limited employee participation. Democratic style - Described a leader who involved employees in decision-making, delegated authority, and used feedback as an opportunity for coaching employees. Laissez-faire style - leader let the group make decisions and complete the work in whatever way it saw fit. fullfreedom The researchers’ results seemed to indicate that the democratic style contributed to both good quantity and quality of work. Ohio State Studies Initiating structure, which referred to the extent to which a leader defined his or her role and the roles of group members in attaining goals. - It included behaviors that involved attempts to organize work, work relationships, and goals. Consideration, which was defined as the extent to which a leader had work relationships characterized by mutual trust and respect for group members’ ideas and feelings. - A leader who was high in consideration helped group members with personal problems, was friendly and approachable, and treated all group members as equals. - He or she showed concern for (was considerate of) his or her followers’ comfort, well-being, status, and satisfaction. Research found that a leader who was high in both initiating structure and consideration (a high–high leader) sometimes achieved high group task performance and high group member satisfaction, but not always. University of Michigan Studies - 2 dimensions of leadership Employee oriented - emphasizing interpersonal relationships. moreeffective employeewellbeing Production oriented - emphasize the task aspects of the job. Managerial Grid  concernfor people A two-dimensional grid for appraising leadership styles concernforproduction The Fiedler Model Fiedler contingency model: a leadership theory proposing that effective group performance depends on the proper match between a leader’s style and the degree to which the situation allows the leader to control and influence. Least-preferred coworker (LPC) questionnaire: a questionnaire that measures whether a leader is task or relationship oriented. Fiddler’s Situational Contingencies Leader–member relations: describes the degree of confidence, trust, and respect employees have for their leader Task structure: describes the degree to which job assignments are formalized and structured Howdear Position power: describes the degree of influence a leader has over activities such as hiring,firing, discipline, promotions, and salary increases Hersey and Blanchard’s Situational Leadership Style Situational leadership theory (SLT): a leadership contingency theory that focuses on followers’ readiness Readiness: the extent to which people have the ability and willingness to accomplish a specific task SLT Leadership Styles 1. Telling (high task- low relationship) - The leader defines roles and tells people what, how, when, and where to do various tasks. leadercontroleverything 2. Selling (high task - high relationship) - The leader provides both directive and supportive behavior. leaderprovideguidance emotional support 3. Participating (low task - high relationship) - the leader and followers share in decision making; the main role of the leader is facilitating and communicating shareDM Leaderfacilitates 4. Delegating (low task - low relationship) - the leader provides little direction or support. leadergiveminimal guidance employee take resp Four Stages of Follower Readiness R1: People are both unable and unwilling to take responsibility for doing something. Followers aren’t competent or confident. R2: People are unable but willing to do the necessary job tasks. Followers are motivated but lack the appropriate skills. R3: People are able but unwilling to do what the leader wants. Followers are competent, but don’t want to do something. R4: People are both able and willing to do what is asked of them. Path - Goal Model Path- Goal Theory - Leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the goals of the group or organization. - Developed by Robert House, path-goal theory takes key elements from the expectancy theory of motivation. - The term path-goal is derived from the belief that effective leaders remove the roadblocks and pitfalls so that followers have a clearer path to help them get from where they are to the achievement of their work goals. Four Leadership Behaviors Directive leader: Lets subordinates know what’s expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. Supportive leader: Shows concern for the needs of followers and is friendly. Participative leader: Consults with group members and uses their suggestions before making a decision. Achievement oriented leader: Sets challenging goals and expects followers to perform at their highest level. In contrast to Fiedler’s view that a leader couldn’t change his or her behavior, House assumed that leaders are flexible and can display any or all of these leadership styles depending on the situation. Path- Goal Model Charismatic - Visionary Leadership Charismatic leader is an enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways. - Several authors have attempted to identify personal characteristics of the charismatic leader. - The most comprehensive analysis identified five such characteristics: a. they have a vision b. the ability to articulate that vision c. a willingness to take risks to achieve that vision d. a sensitivity to both environmental constraints and follower needs e. extraordinary behaviors that are out of the ordinary. Visionary leadership is different; it’s the ability to create and articulate a realistic, credible, and attractive vision of the future that improves on the present situation. - This vision, if properly selected and implemented, is so energizing that it “in effect jump-starts the future by calling forth the skills, talents, and resources to make it happen.” Authentic Leadership Leaders who know who they are, know what they believe in, and act on those values and beliefs openly and candidly. Ethical Leadership An ethical leader puts public safety ahead of profits, holds culpable employees accountable, and creates a culture in which employees feel that they could and should do a better job. - Mary Barra is an example of an ethical leader because she is placing public safety ahead of profits. She is holding culpable employees accountable, and she stands behind her employees by creating a culture in which they feel that they could and should do a better job. Team Leadership Many leaders are not equipped to handle the change to employee teams. - As one consultant noted, “Even the most capable managers have trouble making the transition because all the command-and-control type things they were encouraged to do before are no longer appropriate.” Two priorities: Managing team’s external boundary handle interactionsoutsidethe team Facilitating team process ensure smoothteamwork communication Team Leadership Roles Managing Power Legitimate power - The power a leader has as a result of his or her position in the organization. - Although people in positions of authority are also likely to have reward and coercive power, legitimate power is broader than the power to coerce and reward. Coercive power - The power a leader has to punish or control - Followers react to this power out of fear of the negative results that might occur if they don’t comply. - Managers typically have some coercive power, such as being able to suspend or demote employees or to assign them work they find unpleasant or undesirable. Reward power - the power a leader has to give positive rewards - A reward can be anything a person values such as money, favorable performance appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories. Expert power - power based on expertise, special skills, or knowledge. - If an employee has skills, knowledge, or expertise that’s critical to a work group, that person’s expert power is enhanced. incitence Referent power - Power that arises because of a person’s desirable resources or personal traits. - If I admire you and want to be associated with you, you can exercise power over me because I want to please you. - Referent power develops out of admiration of another and a desire to be like that person. Developing Trust Credibility: the degree to which followers perceive someone as honest, competent, and able to inspire Trust: the belief in the integrity, character, and ability of a leader Five Dimensions of Trust Integrity: honesty and truthfulness Competence: technical and interpersonal knowledge and skills Consistency: reliability, predictability, and good judgment in handling situations Loyalty: willingness to protect a person, physically and emotionally Openness: willingness to share ideas and information freely Empowering Employees Empowerment involves increasing the decision-making discretion of workers. Millions of individual employees and employee teams are making the key operating decisions that directly affect their work. Leading Across Cultures Effective leaders do not use a single style. They adjust their style to the situation. National culture is certainly an important situational variable in determining which leadership style will be most effective. Becoming an Effective Leader Leadership training is more likely to be successful with individuals who are high self- monitors than with low self-monitors. Such individuals have the flexibility to change their behavior as different situations may require. In addition, organizations may find that individuals with higher levels of a trait called motivation to lead are more receptive to leadership development opportunities. Certain individual, job, and organizational variables can act as “substitutes for leadership,” negating the influence of the leader. For instance, follower characteristics such as experience, training, professional orientation, or need for independence can neutralize the effect of leadership. These characteristics can replace the employee’s need for a leader’s support or ability to create structure and reduce task ambiguity. Similarly, jobs that are inherently unambiguous and routine or intrinsically satisfying may place fewer demands on leaders. Finally, such organizational characteristics as explicit formalized goals, rigid rules and procedures, or cohesive work groups can substitute for formal leadership.