Industrial Organization & Management Chapter 3 & 4 PDF
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This document is about Industrial Organization & Management, specifically Chapter 3 and 4. It covers human resource management (HRM) including recruitment, selection, training, development, performance management, compensation, and employee relations functions for an organization.
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IE 125 Industrial Organization & Management Chapter 3: Human Resource Management pportunities, helping reduce turnover and...
IE 125 Industrial Organization & Management Chapter 3: Human Resource Management pportunities, helping reduce turnover and o saving costs related to hiring and training A. O verview and Definition of HRM new employees. (Cabreros, Carillas) Creates a Positive Work Environment: HRM plays a major role in shaping a work culture that matches the company’s goals. uman Resource Management (HRM), also H By encouraging teamwork and recognizing referredtoaspersonnelmanagement,involvesthe employees' efforts, HRM creates a strategic activities of acquiring, developing, and workplace where people feel motivated to compensatingemployeestoensuretheyeffectively do their best. performtheirroleswithinanorganization.Itfocuses Ensures Compliance with Labor Laws on managing people to enhance productivity, and Company Policies: HRM makessure maintain high performance, and ensure employee thecompanyfollowslaborlawsanditsown satisfaction and retention. policies. This means creating fair work practices and minimizing legal risks, Purpose of HRM: ensuring a fair and safe workplace. RM makes sure the organization has the right H people in place to achieve its goals by managing talent efficiently. It focuses on aligning employee B. Fundamentals of HRM skills and roles with the company’s objectives, helping to create an engaged and productive Fundamentals: workforce, which is key to long-term success. . Recruitment and Selection:Identifying and 1 Functions: attracting the right talent for the organization. R ecruitment & Selection: This involves . Training and Development:Enhancing 2 attracting, evaluating, and hiring the right employees' skills and competencies to improve candidatesforavailablepositions.Itaimsto performance and career growth. find people who not onlyhavetherequired skills but also fit well with the company . Performance Management:Evaluating and 3 culture for long-term success. managing employee performance through Training & Development: HRM helps appraisals, feedback, and goal-setting. employees improve their skills and grow their careers,whichisessentialforkeeping . Compensation and Benefits:Designing fair 4 the workforce competitive. This includes and competitive salary structures and benefits creating training programs that help packages to motivate and retain employees. employeesperformwellintheircurrentjobs and prepare for future opportunities. . Employee Relations:Maintaining positive 5 Compensation & Benefits: HRM sets up relationships between employees and fair pay and benefits packages to attract management, addressing conflicts, and ensuring and keep talent. This includes competitive compliance with labor laws. salaries, bonuses,andotherincentivesthat motivate employees and show that the . Talent Management:Focusing on the 6 organization values their contributions. development and retention of high-potential Performance Management: This involves employees to meet organizational needs. assessing how well employees are doing theirjobsandhelpingthemimprovethrough . Workforce Planning:Analyzing current 7 feedback and evaluations. Effective workforce capabilities and forecasting future needs performance management setscleargoals, to ensure alignment with business goals. recognizes top performers, and supports employees in reaching their career . Diversity and Inclusion:Promoting a diverse 8 objectives. workforce and creating an inclusive environment Employee Relations: HRM helpsmaintain that values different perspectives. good relationships in the workplace and resolves conflicts to keep morale high. . Organizational Culture:Shaping and 9 Encouraging open communication and maintaining the company’s values, beliefs, and offeringsolutionsfordisputeshelpscreatea behaviors to align with its mission. positive and cooperative work environment. 0. Compliance and Legal Issues:Ensuring 1 Impact of HRM: adherence to labor laws and regulations to mitigate legal risk. Influences Employee Productivity, Satisfaction, and Retention: HRM increases employee productivity by providing support and resources. It also boostsjobsatisfactionthroughdevelopment IE 125 Industrial Organization & Management C. Steps in Providing HR(Corpuz, Cazar) r ecruitment e fforts should target institutions most likely to h ave ppropriate human resources - Refers to the A candidates suited for the open individuals within the organization who make a position. valuable contribution to management system goal attainment. ★ Step 2:Selection Four Steps to Providing Human Resources for hoosing an individual to hire from all those who C an Organization have been recruited. Selection isdependentonthe first step, recruitment. ★ Step 1:Recruitment ➔ STAGES OF THE SELECTION PROCESS Is the initial attraction and screening ofthesupply - Preliminary screening from records, of prospective human resources available to fill a data sheets, etc. position. Its purpose is to narrow a large field of - Preliminary interview prospective employees to a relatively small group - Intelligence Tests/Aptitude Tests of individuals from which someone eventually will - Personality Tests be hired. - Performance Reference - Diagnostic Interview ecruitment activities must begin with a thorough R - Physical Examination understanding of the position to be filled. The - Personal Judgement. technique commonly used to gain that understandingisknownasJobAnalysis.Twokey Two tools often used in the selection process: components of Job Analysis are: ➔ T ESTING: evaluates human resources for ➔ J OBDESCRIPTION:Outlinestheactivities job-relevant qualities. Tests used in involved in the job. ex: job title, location, organizations typically fall into four main duties, working condition categories. ➔ JOB SPECIFICATION: Defines the 1. Aptitude tests - assess an characteristicsandqualificationsoftheideal individual's potential to perform candidate for the job. ex: education, tasks. Some measure general training, judgement, responsibilities intelligence, while others evaluate specific abilities like mechanical, ecruiters must be able to pinpoint sources of R clerical, or visual skills. human resources.Sources of human resources 2. Achievement tests - assess an available to fill a position can be generally individual’s skill or knowledge in a categorized in two ways: specific area, gained through training or experience. Examples ➔ S OURCES INSIDE THE ORGANIZATION: include typing and keyboarding The pool of employees within the tests. organization is one source of human 3. Vocational Interest Tests - The goal resources. Some individuals who already is to select candidates who are work for the organization may be well genuinelyinterestedintheposition's qualified for anopenposition.Mostinternal activities. movements arepromotions. 4. PersonalityTest-assessdimensions ➔ SOURCES OUTSIDE THE ORGANIZATION: suchasemotionalmaturity,honesty, If a position cannot be filled internally, and objectivity. They can be useful management can turn to various external for identifying candidates with human resource sources, including: specific traits needed for a job. 1. Competitors - Hiring from competing ➔ ASSESSMENT CENTERS: is a tool used organizations offers advantages: the in employee selection and also in human individual knows the business, the resource training and organizational competitor covers their training, the development. An assessment center is a competitor is weakened by the loss, program (not a place) where participants and the new hire offers insights for take part in exercises simulating key competition. organizational activities. Evaluators assess 2. Employment Agencies - They assist their performance based on job-related in matching job seekers with criteria like communication,leadership,and employers. Public agencies offer problem-solving skills. services for free, while private ones charge a fee, paid by either the ★ Step 3:Training employee or the hiring organization after a successful placement. Is the process of developing qualities in human 3. Educational Institutions - Recruiters resources that will enable them to be more often visit educational institutions to productive and thus contribute more to interview soon-to-graduate students. organizational goal attainment. Schools vary in their offerings, so IE 125 Industrial Organization & Management he trainingofindividualsisessentiallyafour-step T 3. T heyfurnishausefulbasisforthecoaching process: and counseling of superiors. EVERAL METHODS OF PERFORMANCE S APPRAISALS: ➔ Rating Scale - ex: 1 to 7. ➔ Employee Comparison - rank employees according their value to organization ➔ Free-Form Essay - simply write down their impressions of employees in paragraph form. ➔ Critical-form essay etermining Training Needs - are the skills or D - appraisers write down good or bad knowledge areas that require further development events involving employees to enhance productivity. Training must focus on these needs to be effective.Continuoustrainingis OTENTIAL WEAKNESS OF PERFORMANCE P essential, even for long-termemployees,tofurther APPRAISALS: improve their skills. 1. Focus employees on short-term rewards Designing the Training Program - After rather than on issues that are important to identifying training needs, a program must be the long-run success of the organization. designed to address them.Thisinvolvesgathering 2. Individuals involved in performance relevant facts and activities tailored to meet the appraisals view them as a specific training requirements, which will vary reward-punishment situation. based on the identified needs. 3. The emphasis of performance appraisal is Administering the Training Program - The next on completing paperwork rather than on step is to administer the training program using critiquing individual performance. various techniques to convey information and 4. Individuals being evaluated view the develop skills. process as unfair or biased. 1. Lectures - A common method where an 5. Subordinates react negatively when instructor presents information to a group. evaluators offer unfavorable comments. While efficient for sharing knowledge, lectures limit interaction and practice, often D. Compensating Employees (Corpuz, Cazar) failing to promote behavioral change. 2. Programmed Learning - This method mployee Compensation r efers to the E provides instruction without an instructor, combination of salary and wages, benefits, allowing trainees to learnattheirownpace bonuses, and any additional peaks employees and check responses. It offers immediate receive for performing their job. feedbackbutlackssupportforlearnerswho have questions. TYPES OF EMPLOYEE COMPENSATION Evaluating the Training Program - Management 1. Direct Compensation - is the salary and should evaluate the effectiveness of the training wages that are paid directly to employees. program after completion. (any monetary payment). 2. Indirect Compensation - Compensation ★ Step 4:Performance Appraisal that has a monetary value but isn’t paid directly to employees. (non-cash benefits). he process of reviewingindividual’s past T 3. Non-Monetary Compensation - Refers to productiveactivitytoevaluatethecontribution they anyremainingemployeecompensationthat have made toward attaining management system doesn’t have a monetary value. objectives. Also called Performance Review and Performance Evaluation. mployers looking to craft an attractive and E competitive compensation package mightconsider hy Use Performance Appraisals? Douglas W the following benefits: health, vision, and dental McGregor has suggested the following three insurance, mental health insurance, retirement reasons for using performance appraisal: plans, flexible working hours. etc. Some specific typesofleavetoconsider: Maternityleave,annual 1. T hey provide Systematic judgements to leave, sick leave, unpaid leave etc. support salary increases, promotions, transfers, and sometimes demotions or Total Compensation Statement is an A terminations. employer-preparedstatementthatgivesemployees 2. Theyaremeansoftellingsubordinateshow an overviewofallcompensationtheyreceive.This they are doing and of suggesting needed is a prepared annual statement to provide changes in behavior, attitudes,skills,orjob employees a detailed look atallthecompensation knowledge; they let subordinates know they receive in a given year. where they stand with the boss. IE 125 Industrial Organization & Management E. M otivation and Motivational Theories nd performance. These theories can focus on a (Reyes, Saavedra) needs, goals, and fairness, guiding ways to boost motivation inareaslikework,school,andpersonal Definition life. otivation is the force that pushes us to take action M otivational theories are frameworks that explain M and pursue goals. It’s what gets us out of bed in the what drives individuals to take action and how morning and helps us stick with tasks, even when different factors influence their motivation levels. they get tough. Here’s a summary of some key motivational theories: Types of Motivation 1. Maslow's Hierarchy of Needs 1. Intrinsic Motivation: This comes from within. You do something because you C oncept: Proposed by Abraham Maslow, enjoy it or find it fulfilling. For example, a this theory suggests that human motivation person might paint because they love is driven by a hierarchy of needs, from basic creating art, not for any external reward. physiological needs (food, shelter) to 2. Extrinsic Motivation: This is driven by higher-level needs (self-actualization). external factors, like rewards or recognition. Levels: For example, someone might work hard to ○ Physiological Needs earn a bonus or praise from a boss. ○ Safety Needs ○ Love and Belonging Importance of Motivation ○ Esteem Needs ○ Self-Actualization G oal Achievement: Motivation is crucial for reaching personal and professional goals. It 2. Herzberg's Two-Factor Theory helps you stay focused and persistent. Performance: Higher motivation often leads C oncept: Frederick Herzberg identified two to better performance. When you’re categories of factors that influence motivated, you’re more likely to put in effort motivation: and overcome obstacles. ○ Hygiene Factors: Conditions that Well-being: Feeling motivated can enhance prevent dissatisfaction (e.g., salary, your overall happiness and satisfaction with job security). life. ○ Motivators: Factors that drive satisfaction and motivation (e.g., How to Enhance Motivation recognition, achievement). 1. S et Clear Goals: Having specific, 3. Self-Determination Theory (SDT) achievable goals gives you direction and something to work towards. C oncept: Developed by Edward Deci and 2. Find Personal Meaning: Connect tasks to Richard Ryan, this theory emphasizes your values or interests. If you care about intrinsic motivation and identifies three what you’re doing, you’re more likely to stay psychological needs: motivated. ○ Autonomy (control over actions) 3. Create a Supportive Environment: ○ Competence (mastery of tasks) Surround yourself with positive influences, ○ Relatedness (connection with whether that’s encouraging friends, others) mentors, or a comfortable workspace. ○ 4. Celebrate Progress: Acknowledge your achievements, no matter how small. This 4. Goal-Setting Theory reinforces your motivation and helps maintain momentum. C oncept: Proposed by Edwin Locke, this 5. Stay Flexible: Be open to adjusting your theory posits that specific and challenging goals lead to higher performance. Setting goals or methods. Sometimes changing clear, measurable goals enhances focus your approach can reignite motivation. and motivation. y understanding these aspects of motivation, you B 5. Expectancy Theory can find ways to tap into it more effectively in your own life. C oncept: Victor Vroom’s theory states that motivation is influenced by: otivational theories are ideas that explain what M ○ Expectancy: Belief that effort will drives people to take action. They help us lead to performance. understandhowdifferentfactorsinfluencebehavior IE 125 Industrial Organization & Management ○ Instrumentality: Belief that his software could send stream of data from one T performance will lead to a reward. computer to another, which was loaded into a box ○ Valence: Value placed on the containing a microprocessors specially designed for reward. routing. 6. Equity Theory In 1993, Cisco installed an internet-based system for large multinational corporate customers. C oncept: Developed by John Stacey Adams, this theory suggests that individuals y 1995, It introduced application for selling B are motivated by fairness. Employees products or services o its website. compare their input-output ratios (effort vs. rewards) with those of others, and INTRODUCTION TO THE CASE perceived inequities can lead to demotivation. In 1995, global networking major, Cisco found that despite hiring an average of 1000 people in every 7. Reinforcement Theory three months during the year, the company still had hundreds of openings. C oncept: Based on B.F. Skinner's work, this theory posits that behavior is shaped by its isco hired more than 1000 employees every C consequences. Positive reinforcement quarter - around 10% of the total jobs generated to (rewards) can encourage desired behaviors, through internet in the Silicon Valley. while punishment can deter undesired behaviors. The management realize that they had to adopt innovative recruitment measures to get the best 8. Drive Theory people and remain the leader in the Internet Era. Foremost among these was the first of its kind C oncept: This theory suggests that online recruitment called "Friends program" motivation arises from biological drives. When needs (like hunger) are unmet, they In 2001, the company recruited around 40-50% of create a drive that prompts action to fulfill its employees through "Make a friend @ cisco" those needs. online program and other such initiatives Conclusion s part if the strategy to attract the best talent, A cisco changed the way it used was advertisements nderstanding these motivational theories helps U in newspapers. Instead of listing specific job individuals, leaders, and organizations create openings, the company featured its internet environments that foster motivation and enhance address in its ads and invited prospective candidate performance. Each theory offers unique insights to apply. into what drives behavior and how to effectively motivate others. isco linked its website to the Dilbert web page, C which registered around 2.5 million hits per day, mainly from engineers and internet-savvy managers. o speed up the hiring process, cisco was hired T F. Case Study in-house headhunters to identify qualified ▪ Cisco Recruits the Best Minds candidates for managers. (Ref: Modern Management) E-RECRUITMENT CASE STUDY, RECRUITING - THE CISCO WAY NEW METHOD OF RECRUITMENT isco sources revealed company policy at C attracting top 10-15% people in networking industry USING OF NEW TECHNOLOGY ision statement "Attracting, growing, and retaining V LOW COST the great talent in critical in sustaining Cisco's competitive advantage. SPEED UP THE HIRING PROCESS BACKGROUND PROMOTES THE ORGANIZATION isco was founded in 1984 by a group of computer C BENEFITS scientist and Stanford who designed operating Job page hits 500,000 hits per month by late 1999 software called IOS (Internet Operating System) Generated stream of reports who visited websites IE 125 Industrial Organization & Management Management impressed with high fine-tuned strategy New recruitment initiatives stablish Approximately between 8000 people a hear was hiring by Cisco's ADVANTAGES LOW COST MORE FASTER TIMELINE QUALITY CANDIDATES NO BUDGET NEEDED A CONCLUSION The Cisco's recruitment technique is very beneficial, cost effective and innovative. It focus on attracting top networking talent, and Cisco had made the Recruitment process smooth and easy. This approach ensures that Cisco can effectively identify and hire the best candidates for their needs. IE 125 Industrial Organization & Management Chapter 4: Leading - eaders L help employees address challenges by providing direction and A. D efinition of Leading/Directing(Hilbero, support in problem-solving. Hipolito) B. Fundamentals of Leading eading or directing refers to the L (Hilbero, Hipolito) processofinfluencingindividualstoactina 1. Self-Awareness:Leadersestablishauthority specific way orfollowaparticularcourseof and credibility both within and outside of action to achieve organizational objectives. their organizations when their words and deeds align. a) Leading vs. Managing 2. E ffective Communication: In order to gain people's trustandmakesurethateveryone is aware of your vision and how to collaborate to achieve it. 3. Influence in Leadership: Building trust across the entire organization can be achieved by keeping your door open and being accessible to your staff most of the time. M anaging is more about overseeing tasks and processes 4. V isionary Thinking: Proficient leaders are Leading is about inspiring and guiding able to see beyond the details. These people toward a common goal. leaders develop an organizational vision thatmotivatesteammemberstocollaborate toward a shared objective. b) Example of Leading and Managing 5. A daptability: Given the speed at which technology is developing, as well as the EADING L volatilityofmarketsandconsumerdemand, Mentoring and Coaching: manyleadersmustbeabletoquicklyadjust to changes. A leader invests timeinmentoringand oaching employees, providing guidance c 6. L earning Agility: It guarantees that leaders and support for their professional willknowwhentosteertheorganizationina development, thus fostering their growth different direction or assist team members and building trust. in adopting new behaviors. ANAGING M ) Importance of Leading/Directing a Performance Monitoring: Promoting Employee Involvement - Effective leadership makes employees feel A manager conducts regular more engaged and connected to the erformance p reviews and ensures organization, resulting in increased employeesmeettheirindividualtargetsand satisfaction and productivity. company standards. N avigating Change ) P c urpose of Leading/Directing - Leaders play a crucial role in steering Guiding Behavior Toward Objectives organizations through changes, like - Leading e nsures that employees' activities innovation or shifts in the market, helping are directed toward achieving the employees adapt smoothly. organization’s objectives and desired outcomes. C ultivating Organizational Culture - Leaders play a key role in shaping the P roviding Motivation company's culture, promoting creativity, - Effective leadership inspires employees to teamwork, and shared values. go beyond routine tasks by fostering commitment and motivation. E nsuring Long-term Success - Leaders who manage well create an B uilding Positive Relationships atmosphere of ongoing learning and - Leading creates aharmoniousenvironment development, setting the stage for the through communication, trust, and organization’s enduring growth and relationship-building,essentialforteamwork achievement. and morale. F acilitating Decision-Making and Problem-Solving IE 125 Industrial Organization & Management C. Leadership Theories and Behaviors ne of the first and perhaps most often quoted o (Ramos) articles on the situational approach to leadership, because one of the most important tasks of a he trait approach to leadership is based on T leader is making sounddecisions,allpracticaland early leadership research that assumed a good legitimate leadership thinkingemphasizesdecision leader is born, not made. The mainstream of this making. This model is actually a continuum, or research attempted to describe successfulleaders range, of leadership behavior available to as precisely as possible. One of thesesummaries managers when they are making decisions. concludes that successful leaders tendtopossess the following characteristics: anagers displaying leadership behavior toward M therightofthemodelaremoredemocratic,andare 1. Intelligence, including judgment and verbal ability called subordinate-centered leaders. Those displayingleadershipbehaviortowardtheleftofthe 2. Past achievement in scholarship and athletics model are more autocratic, and are called boss-centered leaders. 3. Emotional maturity and stability ach type of leadership behavior in this model is E . Dependability, persistence, and a drive for 4 explained in more detail in the following list: continuing achievement . The manager makes the decision and 1 . The skill to participate socially and adapt to 5 announces it—This behavior is characterized by various groups themanager(a)identifyingaproblem,(b)analyzing various alternatives available to solve it, (c) 6. A desire for status and socioeconomic position choosingthealternativethatwillbeusedtosolveit, and(d)requiringfollowerstoimplementthechosen Behavioral Theory alternative. The manager may or may not use coercion, but the followers have no opportunity to ocus is on action/behavior rather than F participate directly in the decision-making process. qualities/traits. Involves analyzing a leader’s actions to a specific situation. Proponents of this . The manager “sells” the decision—The 2 theory believe that leaders are made, anyone can manager identifies the problem and independently become a successful leader by learning and arrives at a decision. Rather than announce the adopting certain behaviors. decision to subordinates for implementation, however, the manager tries to persuade Leadership Styles subordinates to accept the decision. ombination of task and relationship behaviors C . The manager presents ideas and invites 3 employed to influence others to accomplish goals. questions—?9 Autocratic (Authoritarian) . The manager presents a tentative decision 4 that is subject to change—The manager allows · Uses directive behaviors subordinates to have some part in the decision-making process but retains the · Exercises strong control over the group responsibility for identifying and diagnosing the problem. The manager then arrives at a tentative · Decision-makingliesontheleaderMotivationis decision that is subject to change on the basis of y coercion b subordinateinput.Thefinaldecisionismadebythe manager. Democratic (Participative) . The manager presents the problem, gets 5 · Espouses shared leadership suggestions, and then makes the decision—This leadership activity is the first of · Moderate control is maintained those described thus far that allows subordinates theopportunitytoofferproblemsolutionsbeforethe · Plans,policiesanddecisionsaremadewiththe manager does. The manager, however, is still the team one who identifies the problem. Laissez-faire (Permissive) . The manager definesthelimitsandasksthe 6 · Minimal leader participation or interference group to make a decision—In this type of leadership behavior, the manager first defines the · Minimal to no control or direction problem and sets the boundaries within which a decision must be made. The managerthenenters · Motivates by support, as requested into partnership with subordinates to arrive at an appropriatedecision.Thedangerhereisthatifthe Leadership Situation and Decision group of subordinates does not perceive that the manager genuinely desires a serious group he Tannenbaum and Schmidt Leadership T decision-making effort, it will tend to arrive at Continuum-TannenbaumandSchmidt,whowrote conclusions that reflect what itthinksthemanager IE 125 Industrial Organization & Management ants rather than what the group actually wants w enerally speaking, however, managers can G and believes is feasible. increase their leadership success by allowing subordinates more freedom in making decisions . The manager permits the group to make 7 when: decisions within prescribed limits— Here, the manager becomes an equal member of a problem-solving group. The entire group identifies and assesses the problem, develops possible · Theyareinterestedintheproblemandbelieve solutions, and chooses an alternative to be it is important to solve it. implemented. Everyone within the group understands the group’s decision will be · They understand and identify with the implemented. organization’s goals. Determining how to make decisions as a Leader · They have the necessary knowledge and experience to deal with the problem. he true value of the model developed by T Tannenbaum and Schmidtliesinitsuseofmaking orces in theSituation—Thelastgroupofforces F practical and desirable decisions. According to thatinfluenceamanager’sdeterminationofhowto these authors, the threeprimaryfactors,orforces, make decisions as a leader are forces in the that influence a manager’s determination of which leadership situation. leadershipbehaviortouseinmakingdecisionsare as follows: · The first such situational forceisthetypeof rganization in which the leader works. o orces in the Manager—Managers should be F Organizational factors, including the size of aware of four forces within themselves that working groups and their geographic influence their determination of how to make distribution, are especially important influences decisions as a leader. on leadership style. Extremely large work groups or wide geographic. · Thefirstforceisthemanager’svalues,suchas the relative importance to the manager of · he second situational force is the T organizational efficiency, personal growth, the effectiveness of a group. To gauge this force, growth of subordinates, and company profits. managers should evaluate such issues as the experience of group members in working · The second influencing force is level of together and the degree of confidence they onfidence in subordinates. In general, the c have in their ability to solve problems as a more confidence a manager has in his or her group. As a general rule, managers should subordinates, the more likely it is that the assign decision-making responsibilities only to manager’s decision-making style will be effective work groups. democratic, or subordinate centered. The reverse is also true: The less confidence a · Thethirdsituationalforceistheproblemtobe manager hasinsubordinates,themorelikelyit olved. Before deciding to act as a s is the manager’s decision-making style will be subordinate-centeredleader,amanagershould autocratic, or boss-centered. be sure the grouphastheexpertisenecessary to make a decision about the problem in · Thethirdinfluencingforcewithinthemanager question. If it does not, the manager should is personal leadership strengths. Some move toward more boss-centered leadership. managers are more effective issuing orders thanleadinggroupdiscussions,andviceversa. · Thefourthsituationalforceisthetimeavailable Managers must be able torecognizetheirown tomakeadecision.Asageneralguideline,the leadership strengths and capitalize on them. less timeavailable,themoreimpracticalitisto assign decision making to a group because a · Thefourthinfluencingforcewithinthemanager group typically takes more time than an is tolerance for ambiguity. The move from a individual to reach a decision. boss-centered style to a subordinate-centered style means some loss of certainty about how INTERACTIONAL THEORIES (1970-present) problems should be solved. A managerwhois disturbed by this loss of certainty will find it InteractionalTheories(MarquisandHuston(2015), extremely difficult to be successful as a –based on the premise thatleadershipbehavioris subordinate-centered leader. generally determined by the relationship between the leader’s personality and the specific situation. orces in Subordinates—A manageralsoshould F be aware of forces within subordinates that influence the manager’s determination of how to o beasuccessfulleader–abletodiagnosethe T make decisions as a leader. To lead successfully, situation and select the appropriate strategies. the manager needs to keep in mind that subordinates are both somewhat different and urns (2003), maintained that there are two B somewhatalikeandthatanycookbookapproachto primary types of leaders in management: leading all subordinates is therefore impossible. IE 125 Industrial Organization & Management ransactional – focuses on results, conforms to T Examples of Effective Leadership Behaviors: the existing structure of an organization and measures success accordingtothatorganization’s Compassion -havingsympathyandconcernfor system of rewards and penalties. Transactional others as these build trust and promote leaders have formal authority and positions of collaboration among team members responsibilityinanorganization.Thistypeofleader is responsible for maintainingroutinebymanaging Adaptability – ability to be always prepared to individual performance and facilitating group shift priorities and processes to adapt tochanging performance. A transactional manager – is a conditions. traditional manager that is concerned with the Coaching mindset - wanting to helpemployees day-to-day operations. improve their skill set for them to grow both ransformational – a leadership approach that T personally andprofessionally.Aleadershouldalso causeschangeinindividualsandsocialsystems.In act as mentor. its ideal form, it creates valuable and positive Active listening – according to 2021 global change in the followers with the end goal of survey by the Workforce Institute at UKG (USA), developing followers into leaders. 74% of employees say they are more effective at their job when they feel heard; 88%ofemployees whose companies financially outperform others in Transformational Leadership (Four I’s) their industry feel heard compared to 62% of employees at financially underperforming · Individualizedconsideration–thedegreeto companies. which the leader attends to each follower's needs: mentor or coach demonstrating Motivation-Leadersshouldsetthetonefortheir empathy, respect and support, maintaining team’s morale. A motivational open communication, and provides intrinsic motivation to their tasks. leader means showing enthusiasm for the company’s future. · IntellectualStimulation–thedegreetowhich the leader challenges assumptions,takesrisks Accountability – a leader need to take and solicits followers' ideas. Leaders stimulate accountability and taking responsibility of your and encourage creativity, nurture and develop shortcomings. Being honest to your mistakes will followerswhothinkindependently.Learningisa motivate your subordinates to be accountable as value and unexpected situations are seen as well. opportunities to learn. Dependability - a dependable leader can be · InspirationalMotivation–thedegreetowhich trusted to do what they say they’ll do, when they the leader articulates a vision and inspiring to say they’ll do it, and the way it needstobedone. followers.Leaderschallengefollowerswithhigh This instillsconfidenceintheteamandcaninspire standards, communicate optimism aboutfuture them to do the same. goals, and provide meaning for the task at Proactiveness– a proactive leadertakestimeto hand. Leaders guides followers to have a plan, identify areas of risks, improve the team’s strong sense of purpose as purpose and processes, and put initiatives in place to prevent meaningprovidetheenergythatdrivesagroup problems before they occur. forward. Planning–thekeytobeingproactiveistoplanin · IdealizedInfluence–Aleaderprovidesarole order to meet set goals. model for high ethical behavior, instills pride, gains respect and trust. Problem solving – the ability to find solutions to difficult or unpredictable problems, and in an ever-changing situations. Qualities/Behaviors of an Effective Leader Responsibility-aresponsibleleadersrecognize eadership behaviors are actions and conduct L thefactthattheyhaveanobligationtomaketough that leaders incorporate into their management decisions, lead, and are in control of their team. styles in order to effectively lead their teams, Goal-oriented–theabilityofaleadertosetclear motivate them, and achieve their goals (Santiago, andrealisticgoalsforthewholeteamtobeequally 2022). driven to achieve them. IE 125 Industrial Organization & Management Purpose - Purpose goes hand-in-hand with . It is not controlled by top executives, who 2 goal-setting. As a leader, you must have a clear may not even be able to influence it. future envisioned for your team that drives .Itexistslargelytoservetheself-interestsof 3 everyone forward the people within it. GRAPEVINES he four most commongrapevinepatternsas T D. Communication(Q uibang) outlined by Davis. Interpersonal Communication-a type of . The single-strand grapevine-A tells B, 1 communication that takes place between two or who tells C, who tells D, and so on. more individuals, typically used within an organization. . Thegossipgrapevine-Ainformseveryone 2 else on the grapevine. ommunication Skills-the ability to share C information with other individuals . 3 The probability grapevine- A communicatesrandomlyforexample,toFand Interpersonal Communication in Organizations D. F and D then continue to inform other grapevine members in the same way. o be effective communicators, managers must T understand not only general interpersonal . The cluster grapevine-A selects and tells 4 communication concepts, but also the C, D, and EFselectsandtellsIandB,andB characteristics of interpersonal communication selects and tells J. Information in this within organizations, or organizational grapevine travels only to selected individuals. communication. ncouraging E Formal Organizational rganizational communication directly relates to O Communication the goals, functions, and structure of human organizations. To a major extent, organizational ecausetheorganizationactsonlyintheway B success is determined by the effectiveness of its organizational communication directs it to organizational communication. act, organizational communication is often called the nervous system of the ormal Organizational Communication Formal F organization. organizational communication refers to the structured exchange of information within an ormal organizational communication is F organization, following established channels, generally the more important type of protocols, and hierarchies. It typically includes communication within an organization, so emails, reports, meetings, and memos. managers should encourage its free flow. Types of Formal Organizational Communication ne O strategy for promoting formal - The three basic types of formal organizational communication is to listen org
