IBF - Managing People PDF

IBF - Managing People 01 - What is Organizational Behavior  Chapter Outline  Why Is OB Important?  Gaining a Competitive Advantage Through OB  Where Does OB Come from?  Current OB Issues  How Do We Know What We Know?  Organization of the Course  Summary and Application Lea...

IBF - Managing People 01 - What is Organizational Behavior  Chapter Outline  Why Is OB Important?  Gaining a Competitive Advantage Through OB  Where Does OB Come from?  Current OB Issues  How Do We Know What We Know?  Organization of the Course  Summary and Application Learning Objectives ① What is “Organizational Behavior”? ② How can OB make you a more effective employee and manager? ③ How can OB improve a firm’s performance? ④ Why do OB concepts need to be applied flexibly to match a company’s diverse employee needs? ⑤ What role does OB play in organizational ethics? ⑥ From where does our knowledge about OB come? ⑦ Why is the “scientific process” relevant to OB? Introduction Organizational Behavior Explains and predicts how people and groups interpret events, react, and behave in organizations Organization Consists of people with formally assigned roles working together to achieve common goals Managers Organizational members who are responsible for the attainment of organizational goals  Because it explains how organizations work, knowing about OB is essential to being effective at all organizational levels. 1.5 Four essential Managerial Functions 1. Planning involves setting goals, establishing a strategy, and forecasting threats and opportunities 2. Organizing involves designing the organization’s or workgroup’s structure, identifying tasks, hiring, delegating, establishing a chain of command, and creating rules. 3. Leading involves directing and coordinating the work of others, influencing and motivating, maintaining morale, and resolving conflicts 4. Controlling involves monitoring performance and taking action to get on track if necessary.  Some Questions Organizational Behavior Can Help Answer How can diversity both help and hurt team performance? Why are emotions important at work? Are some personality characteristics related to higher job performance? Is there more than one way to “fit” in an organization? Is there one best way to lead? Is saying, “Do your best!” the best way to motivate high performance? What are some common decision making errors, and how can I avoid them? What is the role of politics at work?  Some Questions Organizational Behavior Can Help Answer What steps can I take to effectively manage my career? What are the positive and negative effects of stress at work? What is globalization, and how does it affect me? What is “organizational culture,” and why is it important? How can technology leverage what we know about organizational behavior to improve work performance? Why do some people behave unethically in organizations? Why are some teams more effective than others? Investing now in developing your OB skills will prepare you to be a more effective employee and manager and help you move up faster in any organization. 1.9 Why Is OB Important?  The core of Organizational Behavior is being effective at work.  OB helps you become a more effective employee and a better manager.  Organizations as a whole also benefit from OB.  OB also helps companies to perform well.  Why Is OB Important?  The effective management of people is key to the creation of a competitive advantage and business strategy execution  Competitive advantage: anything that gives a firm an edge over rivals in attracting customers and defending itself against competition To have a competitive advantage a company must ultimately be able to give customers superior value for their money (a combination of quality, service, and acceptable price) A better product that is worth a premium price or a good product at a lower price can both be a source of competitive advantage Effectively implementing OB concepts increases organizational performance. 1.12  Sources of Competitive Advantage Innovation: Developing new products, services, and markets and improving current ones Distribution: Dominating distribution channels to block competition Speed: Excelling at getting your product or service to consumers quickly Convenience: Being the easiest for customers to do business with First to market: Introducing products and services before competitors Cost: Being the lowest cost provider Service: Providing the best customer support before, during, or after the sale Quality: Providing the highest quality product or service Branding: Developing the most positive image  Gaining a Competitive Advantage Through OB Types of Business Strategies Cost Leadership Lowest cost producer for a particular level of product quality Differentiation Strategy Developing a product or service that has unique characteristics valued by customers Specialization Focus on a narrow market segment or niche and pursue either a differentiation or cost leadership strategy Growth Company expansion organically or through acquisitions Changing Business Strategy Requires Organizational Changes like organizational culture or employee behavior Depends on management efforts to coach, motivate and influence people Where Does OB Come From?  Scientific Management (1890s) The belief that productivity is maximized when organizations are rationalized with precise sets of instructions based on time-and-motion studies  Hawthorne Effect (1920s) When people improve some aspect of their behavior or performance simply because they are being assessed Search the internet about the Hawthorne Studies and reflect on the explanations (20 Minutes)  Human Relations Movement (since 1950s) Views organizations as cooperative systems and treats workers’ orientations, values, and feelings as important parts of organizational dynamics and performance  Don’t focus only on productivity—you must also meet worker needs to be an effective leader 1.16  Current OB Issues  Globalization The internationalization of business has become the norm for many organizations Viewing the world solely through one’s own eyes and perspective is not a valid solution, because not everyone in the world does share the same values, norms, and expectations about work  Global Mindset – Managing across cultures Set of individual attributes that enable you to influence individuals, groups, and organizations from diverse socio/cultural/institutional systems Effective management requires flexibility and an appreciation that people’s expectations and values differ  Being able to recognize, manage, and leverage cultural differences in an organization can enhance both personal and organizational success. 1.18 Exercise What is your Global Mindset? > Use the simple test for Global Mindset and calculate your scoring. > We will use the results later, so keep them for yourself. > Any questions? 19 Current OB Issues  Technology  Ethics Standards of behavior about how people ought to act in different situations Three types of errors: 1. Omission - a lack of written rules 2. Remission - pressure by a manager or others to make unethical choices 3. Commission - a failure to follow established operational and ethical practices.  Organizational Culture  Code of Conduct  Code of Ethics  Technology can help organizations implement OB concepts more effectively 1.21  Table 1-3 Why Employees Act Unethically 1.22 Although ethical dilemmas are not always easy to manage, ethics is essential to long-term organizational performance. 1.23  Figure 1-1 A Formula for Ethical Behavior 1.24  Benefits from managing ethics in the workplace: a. Attention to business ethics can substantially improve society. b. Ethics programs help maintain a moral course in times of change. c. Ethics programs cultivate teamwork and productivity. d. Ethics programs support employee growth. e. Ethics programs help ensure that policies are legal. f. Ethics programs help avoid criminal acts of omission and can result in lower fines. g. Ethics programs help manage values associated with quality management, strategic planning, and diversity management. h. Ethics programs promote a strong public image.  Ethics Case Team Task Search the internet for the Faurecia bribery scandal of 2006/2007 Make a short presentation of the course of events Your opinion: Why did employees at Faurecia acted unethically? Review the Faurecia Code of Ethics that was introduced after the case How do you see the Code of Ethics? What are the fields that this Code is adressing? Can a Code of Ethics prevent unethical behavior? (see Slide 22) Do you think that all companies should own a CoE? Current OB Issues  Social Responsibility Socially responsible programs and policies being implemented by corporations include: Workplace diversity Favorable working conditions Non-exploitation of workers, particularly in regards to discrimination and harassment Work-life balance initiatives Community volunteerism and charitable giving programs Environmental “Green” programs including recycling and resource conservation Reducing carbon emissions Partnering with environmentally friendly suppliers and companies Current OB Issues Social Responsibility Corporate Social Responsibility Businesses living and working together for the common good and valuing human dignity “Sustainability is not just for the short term; it’s building for the long haul.” ~Walter J. Cleaver, President and CEO of the Human Resource Planning Society Social responsibility initiatives can motivate employees and improve organizational performance. 1.29 Four obstacles to corporate responsibility programs: a. Focus on quarterly earnings or other short-term targets. b. Cost of implementation. c. Difficulty in measuring and quantifying return on investment. d. Nonsupportive corporate culture. How Do We Know What We Know?  Intuition vs.  The Scientific Method Method of knowledge generation that relies on systematic studies that identify and replicate a result using a variety of methods, samples, and settings Theory Hypotheses – Independent and Dependent Variables Correlation Meta-Analysis  Figure 1-2 The Scientific Method 1.32  Figure 1-3 Interpreting Correlations 1.33  Figure 1-3 Interpreting Correlations 1.34 Organization of the Course  Organizational behavior takes a systems approach to how individuals and groups act in organizations.  Employees relate to organizations in several ways.  Individual employees relate to each other as individuals. Individual employees also relate to workgroups and to the organization as a whole.  Organizations are social systems, and managing the resulting social dynamics is a critical part of effective job performance and effective management.  Figure 1-4 Model of this Course 1.36 Summary and Application This Course can help you better understand yourself, understand organizations, understand the role of organizational behavior in your personal career success, and improve your OB skills. Discussion Questions 1. What do you think are the most important things a manager does? Is how a manager does these things also important? Why or why not? 2. Why do you think some employees behave unethically? What can you, as a manager, do to promote ethical employee behavior? 3. Why do you think the Hawthorne effect exists? 4. Why will learning about OB help you to get a better job and a better career, and be a better manager? 5. Think of something that you believe leads to employee productivity based on your intuition that may not prove to be true if tested systematically. Now apply the scientific method and describe how you might test your theory. Personal Competitive Advantage Exercise: Your Global Mindset 1. Do you think that your score accurately reflects your global mindset? Why or why not? What is missing from the assessment, if anything? 2. How can having a global mindset help you to be better manager and leader? How can it help you in your career? 3. What might you do next year to increase your global mindset? Find and discuss three specific behaviors, activities or other things to increase your global mindset.  Organizational Competitive Advantage Exercise: The People Make the Place In small groups, you work individually to make a list of characteristics that describe someone whom you would most like to have as a coworker. Then they make a list of characteristics that describe someone you would least like to work with. Each group member shares ideas.  Organizational Competitive Advantage Exercise: The People Make the Place 1. Why do you think some people might act like what you described as a desirable coworker? 2. As a manager, what could you do to create a workgroup in which all employees behave like you described as your least preferred coworker and not like your least preferred coworker? 3. If all of a company’s managers behaved like your good example, what would the effect be on the organization? Prof. Dr. Michael Freiboth Funktion Fakultät für Wirtschaft Hochschule Augsburg An der Hochschule 1 86161 Augsburg T +49 821 5586-0 F +49 821 5586-3222 [email protected] www.hs-augsburg.de  17.10.2021 IBF - Managing People 02 - Diversity 1 Chapter Outline  What is Diversity?  Types of Diversity  Business Case for Diversity  Diversity Trends  Potential Downside of Diversity  How Does Diversity Influence Individual and Organizational Outcomes  Barriers to Inclusion  Managing Diversity  The Role of Societal Culture  Summary and Application 2 1  17.10.2021 Learning Objectives ① Describe the difference between surface-level and deep-level diversity. ② Describe how diversity can benefit organizations. ③ Describe how diversity can have negative effects in organizations. ④ Explain various barriers to creating inclusive organizations. ⑤ Give examples of several diversity assessment methods. ⑥ Explain how societal culture affects how people interpret others and how others interpret them. ⑦ Describe the role of cultural competence in organizations. 3 What is Diversity? Variety of observable and unobservable similarities and differences  Gender  Race  Age 4 2  17.10.2021 Types of Diversity  Surface-Level Diversity  Characteristics that you notice about people as soon as you see them  Race, age, physical abilities, physical characteristics, gender  Deep-Level Diversity  Characteristics that cannot be directly seen  Goals, values, personalities, knowledge These take a while to learn about someone! 5 What people look like is much less important to individual and group performance than their deeper characteristics like knowledge, abilities, and attitudes. 2.6 6 3  17.10.2021 Types of Diversity  Relational Demography – refers to a single group member’s similarities to and differences from other group members.  Token – refers to being in the numerical minority in a group based on some unique characteristic and being assumed to fully represent that minority group  Within Group Diversity Separation - differences in position or opinion among group members Variety - differences in a certain expertise, knowledge, or functional background. Disparity - dissimilarity in rank, pay, decision-making authority, or status. 7 Table 2-1 Five Types of Diversity 1. Surface-level diversity: observable differences in people 2. Deep-level diversity: individual differences that cannot be seen directly 3. Separation: differences in position or opinion among group members 4. Variety: differences in a certain type or category 5. Disparity: differences in the concentration of valuable social assets or resources 2.8 8 4  17.10.2021 When building a workgroup or team, it is important to attend to many different types of diversity to ensure the team has what it needs to succeed. 2.9 9 Business Case for Diversity  Performance Benefits  Source of Competitive Advantage  Legal Issues 10 5  17.10.2021 Diversity Trends in the US  By 2020, the U.S. workforce will consist of 62.3% White non- Hispanics, 18.6% Hispanics, 12% Blacks and 5.7% Asians  The population is projected to become older; by 2030, about 1 in 5 people will be 65 or over  By 2050, the total population is forecasted to grow from 282.1 million in 2000 to 419.9 million, a 49% increase  Non-Hispanic Whites are expected to decrease from the current 69.4% of the total population to 50.1% by 2050 11 Diversity Trends in the US (cont.)  People of Hispanic origin are projected to increase from 35.6 million in 2002 to 102.6 million in 2050  The Black population is projected to rise from 35.8 million in 2000 to 61.4 million in 2050  The Asian population is forecasted to grow 213% Firms have also to pay more attention to how workers of different ages work together. By 2040, Europe will have a shortfall of 24 Million workers age 15-65 12 6  17.10.2021 Table 2-2 Projected Change in the U.S. Working Population by Background between 2008 and 2050 Year Hispanic Black Asian (any race) 2008 15% 15% 5.1% 2050 30% 15% 9.2% 2.13 13 Figure 2-1 Projected Percentage Change in the U.S. Labor Force by Age from 2006 to 2016 2.14 14 7  17.10.2021 Increasing diversity can improve organizational performance and manage talent shortages, but only if it is properly managed. 2.15 15 Potential Downside of Diversity  Misunderstanding, suspicion, and conflict  Absenteeism, poor quality, low morale, and loss of competitiveness  Lowered workgroup cohesiveness  Less integration and communication and more conflict  Faultlines- Separation based on the existence and strength of subgroups due to the composition and alignments of different group member characteristics  Groups may fall into multiple subgroups 16 8  17.10.2021 How Does Diversity Influence Individual and Organizational Outcomes?  Social Integration—When members feel they are a core part of the group  Task Conflict—Conflict over task issues  Relationship Conflict—Interpersonal conflict  Inclusion—A sense of being safe and valued regardless of similarities or differences  Information Processing -- A change in the way groups integrate information and reconcile different perspectives 17 Conflict is not always bad and can enhance performance if it helps groups generate better ideas or find better ways of doing things. 2.18 18 9  17.10.2021 Don’t rush to judge other people—over time, surface-level characteristics become less important and deep-level diversity becomes more important to conflict, cooperation, and performance. 2.19 19 Figure 2-2 Curvilinear Relationship Between Task Conflict and Team Performance 2.20 20 10  17.10.2021 To capitalize on the potential advantages of diversity, take the time to enhance the inclusion of all group members. 2.21 21 Barriers to Inclusion  The “Like Me” Bias  People prefer to associate with others they perceive to be like themselves  Stereotype  A belief about an individual or a group based on the idea that everyone in a particular group will behave the same way or have the same characteristics  Prejudice  Outright bigotry or intolerance for other groups 22 11  17.10.2021 Barriers to Inclusion  Perceived Threat of Loss  If some employees perceive a direct threat to their own career opportunities, they may feel that they need to protect their own prospects by impeding diversity efforts  Ethnocentrism  The belief that one’s own language, native country, and cultural rules and norms are superior to all others  Unequal Access to Organizational Networks  Women and minorities are often excluded from organizational networks, which can be important to job performance, mentoring opportunities, and being seen as a candidate for promotion 23 Table 2-3 Mechanisms Through Which Diversity Affects Outcomes Social integration -- Feeling like part of a group socially as well as in a task performance capacity increases commitment to the group. Differences in status and power -- Lower-status group members are less likely to share their ideas or challenge the ideas of the higher-status members. Task conflict -- Conflict over task issues, such as goals, deadlines, or work processes, has the potential to improve group performance if it is not too low or too high. Relationship conflict -- Interpersonal conflict, including personality clashes, detracts from group performance and group member satisfaction. Inclusion -- The sense of being safe, valued, and engaged in a group results in more information sharing and commitment. Information processing -- A change in the way groups integrate information and reconcile different perspectives results in more creative thinking and prevention of premature consensus. 2.24 24 12  17.10.2021 Cultural Etiquette Quiz 25 Managing Diversity  Tools  Reciprocal Mentoring  Assessment Strategies  Diversity Metrics 26 13  17.10.2021 Involve everyone in diversity initiatives, not just minorities, to maximize participation and commitment. 2.27 27 The Role of Societal Culture  Hofstede’s Cultural Values  Power Distance  Individualism  Masculinity  Uncertainty Avoidance  Long-term Orientation Societal culture is important because it influences the diverse values, customs, language, and expectations we bring with us to work, which affect our reactions, preferences, and feelings. 28 14  17.10.2021 The Role of Societal Culture  The GLOBE Project  Assertiveness  Uncertainty avoidance  In-group collectivism  Institutional collectivism  Performance orientation  Future orientation  Power distance  Humane orientation  Gender egalitarianism 29 The Role of Societal Culture  Cultural Competence  The ability to interact effectively with people of different cultures 1. Awareness of our own cultural worldview, and of our reactions to people who are different 2. Our attitude toward cultural differences 3. Knowledge of different worldviews and cultural practices 4. Cross-cultural skills 30 15  17.10.2021 Table 2-5 Cultural Effects on Perceptions of Leaders’ Attributes Universal Positive Universal Negative Culturally Contingent Leader Attributes Leader Attributes Leader Attributes Intelligent Asocial Cunning Dependable Dictatorial Orderly Excellence Oriented Non-cooperative Subdued Honest Irritable Individualistic Encouraging Egocentric Ruler 2.31 31 People from different cultures often have different interpretations of the same event—don’t assume that everyone shares your views. 2.32 32 16  17.10.2021 Summary and Application  Diversity is much more than Demographics  Diversity affects individual and organizational outcomes  Societal culture reflects language, politics, religion and values among other things  Societal culture can differ on a variety of characteristics, including collectivism, power distance, future orientation, and gender egalitarianism Diversity has the potential to enhance organizational performance, particularly for firms serving a diverse customer base or an innovation strategy, but it must be effectively managed. 33 Discussion Questions 1. Which do you think is more important to team performance, surface-level or deep-level diversity? Why? 2. How can diversity create a competitive advantage for a firm? 3. How can managers help teams to overcome the potential negative effects of diversity? 4. If a subordinate came to you and said that they felt that the company’s new diversity hiring initiative was unfair and would compromise their well-deserved opportunities for advancement, how would you respond? 5. How can White males be effectively included in the diversity initiatives? 6. What can leaders do to be effective when team members are from different cultures and have different expectations about how the leaders should behave? 34 17  17.10.2021 Organizational Competitive Advantage Exercise: What Does Culture Mean to You? Discuss in your group! 1. How might multiculturalism create a competitive advantage for an organization? 2. What categories of societal culture are the most important to teams working in organizations? 3. What categories of societal culture are the least important to teams working in organizations? 4. What does your list suggest that managers wanting to promote a multicultural workplace might do? 35 Exercise: Diversity at Microsoft Go to https://www.microsoft.com/en-us/diversity/default.aspx 1. In what ways does Microsoft seem to define diversity? 2. Which of Microsoft’s diversity programs and initiatives do you feel are most important to the company’s future success? Why? 3. After exploring Microsoft’s website, how do you evaluate it as a potential employer? Why? 36 18  17.10.2021 Prof. Dr. Michael Freiboth Funktion Fakultät für Wirtschaft Hochschule Augsburg An der Hochschule 1 86161 Augsburg T +49 821 5586-0 F +49 821 5586-3222 [email protected] www.hs-augsburg.de 37 19 IBF - Managing People 03 - Personality Learning Objectives ① Explain why demographic characteristics should not be used to make organizational decisions. ② Describe two different personality traits and discuss how they influence work behaviors. ③ List the “Big Five” personality traits and discuss how they are important to organizations. ④ Describe how personality can help us better understand bullying at work. ⑤ List and describe Gardner’s seven different types of intelligence. ⑥ Describe emotional intelligence and discuss how it can help managers be more effective. Chapter Outline v Demographic Characteristics v Personality v Intelligence v Summary and Application Demographic Characteristics v Demographic Characteristics Physical and observable characteristics of individuals, including gender, ethnicity, and age vRace, Nationality and Ethnicity vAge Seniors Baby Boomers Generation X Millennial Generation vGender vUnderlying Factors Traditionalists Baby Boomers Gen X Gen Y/Z  You will need to work effectively with coworkers from several different generations who have different values, skills, and expectations. 3.8 1.8 Personality v Personality The dynamic mental attributes and processes that determine individuals’ emotional and behavioral adjustments to their environments Trait Achievement Motivation Fear of Failure Tolerance for Ambiguity Locus of Control Fearing failure can reduce job performance. 3.10 1.10  Table 3-1 Reducing Ambiguity for Your Employees v Take the time to plan projects and give employees clear goals and objectives. v Recognize that there is usually more than one way to accomplish a task and be open to employees’ suggestions and ideas. v Be available and encourage follow-up questions if employees need clarification on goals or instructions. v Be willing to make decisions and take action. v Coach employees with a lower tolerance for ambiguity to be more confident and comfortable making decisions. 2.11  Table 3-1 Reducing Ambiguity for Your Employees v Train employees to deal quickly with ambiguity in ways consistent with company policy and the organization’s values. v Establish metrics around key goals to help employees get the feedback they need to know how they are doing and where adjustments may be needed. v Recognize that people from different cultures can have different tolerances for ambiguity. v Identify the importance for ambiguity tolerance in different jobs and include this as an evaluation criterion when staffing. 2.12  Table 3-2 Assessing Ambiguity Tolerance in an Interview 1. Tell me about a time at work when the line of control was confusing? What did you do? 2. Describe a time when the expectations for a project were unclear? What did you do? 3. Tell me about a time when you had conflicting goals given to you at work. How did you stay effective? 4. Describe a time when you were in a workgroup and it wasn’t clear what you were supposed to do. Go together as teams of two and interview your partner. Give feedback about the perceived ambiguity tolerance. 2.13 Personality Locus of Control The degree to which a person generally perceives events to be under his or her control or under the control of others Personality Type A and Type B Type A: impatient, competitive, ambitious and uptight Type B: relaxed and easy going  Table 3-3 Effects of Locus of Control on Organizational Outcomes Organizational Internal Versus External Locus of Control Outcome Internals are generally more satisfied with their job, Job satisfaction pay, supervisor, and coworkers. Internals are more committed and have lower Commitment absenteeism. Internals have greater task motivation, job Job motivation involvement, and self-confidence than do externals. Internals tend to have higher job performance than Job performance externals. Internals tend to earn a higher salary than do Career success externals. Conflict and Internals report lower role conflict, work-family stress conflict, burnout, and stress than do externals. Internals tend to be more socially integrated at Social integration work and report more favorable relationships with their supervisors. 2.15  Although having a Type A personality can be good for job performance, if it is not managed properly, the Type A personality can contribute to poor health. 3.16 1.16 Personality v “Big Five” Personality Framework – Extroversion – Emotional stability – Agreeableness – Conscientiousness – Openness to experience v Machiavellianism v The Bullying Personality  Table 3-4 How Machiavellian Are You? ___1. The best way to handle people is to tell them what they want to hear. ___2. When you ask someone to do something for you, it is best to give the real reason for wanting it rather than giving reasons that might give more weight. ___3. Anyone who completely trusts anyone else is asking for trouble. ___4. It is hard to get ahead without cutting corners here and there. ___5. It is safest to assume that all people have a vicious streak, and it will come out when they are given a chance. ___6. One should take action only when it is morally right. ___7. Most people are basically good and kind. ___8. There is no excuse for lying to someone else. ___9. Generally speaking, people won’t work hard unless they’re forced to do so. 2.18  Highly Machiavellian personalities should be identified during the hiring process and selected out. 3.19 1.19  Although costly to many organizations, bullying is often ineffectively managed. 3.20 1.20 Personality v Where Does Personality Come From? v The Myers-Briggs Type Indicator Extraversion (E) / Introversion (I) Sensing (S) / Intuition (N) Thinking (T) / Feeling (F) Judging (J) / Perceiving (P) v The Role of the Situation  The Myers-Briggs instrument can be useful for teambuilding, but should not be used in making organizational decisions. 3.22 1.22 Intelligence v General mental ability v Information processing v Mental ability tests v Multiple Intelligences v Linguistic v Logical-Mathematical v Musical v Bodily-Kinesthetic v Spatial-Visual v Interpersonal v Intrapersonal  Table 3-5 Mental Ability Test Items 1. Assume the first two statements are true. Is the final one (1) true (2) false or (3) not certain? The girl plays soccer. All soccer players wear cleats. The girl wears cleats. 2. Paper sells for $0.36 per pad. What will three pads cost? 3. How many of the five pairs of items listed below are exact duplicates? Pullman, K. M. Puilman, K. M. Jeffrey, C. K. Jeffrey, C. K. Schoeft, J. P. Shoeft, J. P. Lima, L. R. Lima, L. R. Woerner, K. E. Woerner, K. C. 4. PRESENT PRESERVE—Do these words 1. Have similar meanings? 2. Have contradictory meanings? 3. Mean neither the same nor the opposite? 2.24 Few people are good at everything—try to maximize the fit between employees’ strengths and the requirements of their jobs. 3.25 1.25 Case Study: Strengths-Based Development 1. Do you think it is better to focus on assessing and developing employees’ weaknesses, or to focus on their strengths? Why? 2. Why would strengths-based development increase employee engagement? 3. If you were a manager, how might you interact with employees differently if you were using strengths-based development rather than deficit-based development?  Table 3-6 Matching Intelligence Types with Career Choices Type of Intelligence Related Careers Preferred Learning Style Bodily-Kinesthetic: physical Athletes, firefighters, Touch and feel, agility and balance; body chefs, actors, gardeners physical experience control; hand-eye coordination Interpersonal: ability to relate Psychologists, doctors, Human contact, to others and perceive their educators, salespeople, teamwork feelings; interprets behaviors politicians of others; relates to emotional intelligence Intrapersonal: self- Related to success in Self-reflection, self- awareness; understands almost all careers discovery oneself and one’s relationship to others and to the world; relates to emotional intelligence 2.27  Table 3-6 Matching Intelligence Types with Career Choices Type of Intelligence Related Careers Preferred Learning Style Linguistic: verbal and Authors, speakers, Verbal and written written language; lawyers, TV and radio words and language explaining and interpreting hosts, translators ideas and information Logical-Mathematical: Engineers, directors, Logic and numbers logic and pattern scientists, researchers, detection; analytical; accountants, statisticians problem solving; excels at math Musical: recognition of Musicians, DJs, music Music, sounds, rhythm rhythm and tonal patterns; teachers, acoustic musical ability; high engineers, music awareness and use of producers, composers sound Spatial-Visual: creation Artists, engineers, Pictures, shapes, and interpretation of visual photographers, inventors, visually images; visual and special beauty consultants perception 2.28  Understanding that there are multiple ways to be intelligent helps you to achieve your potential and helps you to bring out the excellence in each of your subordinates as well. 3.29 1.29 Intelligence v Emotional intelligence Self-awareness Self-motivation Self-management Empathy Social skills v Seven Universal Emotions joy, sadness, fear, surprise, anger, contempt, and disgust. Summary and Application v Everyone is different. v We each have different personalities, demographics, and intelligences. v By understanding the characteristics of your coworkers and subordinates, you will be best able to choose the OB tool or management style that will be most effective. v Remember, flexibility is the key to effective management. Discussion Questions 1. What individual differences do you feel are most important to organizations? Why? 2. If you were denied a job because of your score on a personality test, what would be your reaction? 3. If your supervisor exhibited bullying behaviors, what would you do? 4. Which of Gardner’s multiple intelligences do you feel are most important for managers? 5. Do you think emotional intelligence is important to managers? How would you assess emotional intelligence in deciding who to promote to a managerial position? 6. If you were a manager, what individual differences would be important to you in hiring an assistant? Why? Prof. Dr. Michael Freiboth Funktion Fakultät für Wirtschaft Hochschule Augsburg An der Hochschule 1 86161 Augsburg T +49 821 5586-0 F +49 821 5586-3222 [email protected] www.hs-augsburg.de  Hochschule Augsburg University of Applied Sciences The Nature of Leadership WHAT IS LEADERSHIP ? Seite 1 What is Leadership? Hochschule Augsburg University of Applied Sciences POWER TRAITS CHANGE INTERACTION INFLUENCE STRATEGY FOLLOWING VISION BEHAVIOUR SKILLS VALUES CHARISMA COMPETENCE INSPIRATION Seite 2  What is Leadership? Hochschule Because Augsburg University of Applied Sciences Leadership is not clearly defined Clear, Single Definition Missing and has so many different Common Key Terms - Leadership is a meanings in theory and Behaviour / Trait - e.g of an individual, directing other individuals practice some towards a shared goal. theorists question its use as a Ability / Skill - e.g. to influence people, to articulate visions, to scientific step outside the culture and start a change process. construct. Process - e.g. of influencing individuals to increase their performance. 3  Hochschule Key elements defining Leadership Augsburg University of Applied Sciences 4  Working Definition of Leadership Hochschule Augsburg University of Applied Sciences Leadership is the process of influencing people or/and organisations to make them understand and agree about what needs to be done, how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives. 5 Leaders–Followers: Discussion Questions Hochschule Augsburg University of Applied Sciences Should leadership be the manager’s job, or should leadership be a shared process? Are you interested in sharing leadership, or do you prefer to be a follower? And is there a difference? Watch this https://www.ted.com/talks/derek_sivers_how_to_start_a_movement#t-159804 Seite 6  Hochschule Augsburg University of Applied Sciences What Influences a Leader’s Effectiveness? v Leader-Member Exchange Theory v Leaders develop different relationships with different subordinates v Substitutes for Leadership v Factors that make leadership unnecessary v Followership v Effective followers are important to leadership v Leadership Effectiveness in Different Cultures v Different cultures have different norms and expectations about leader behavior Seite 7  Figure 3-4 Leader-Member Exchange (LMX) 13.8 1.8  The Key Question in Leadership Practice Hochschule Augsburg University of If you want to Applied Sciences silence a room of executives, ask them this question: Why should anyone follow you? or What should the leader do to make individuals and organisations follow him? 9 Functions Performed by Managers Hochschule Augsburg University of Applied Sciences All managers perform four major functions: – Planning – Organizing – Leading – Controlling – Thus, leadership is a part of every manager’s job Seite 10  What is Leadership? Hochschule There is a Augsburg University of Applied Sciences continuing controversity Leadership vs. Management about the difference Leadership is a facet of management between Leadership is just one important component of the directing function leadership and Managers think incrementally, whilst leaders think radically management. Managers do things by the book and follow company policy, while leaders follow their own intuition, which may in turn be of more benefit to the But it is agreed company that there is a When a natural leader emerges in a group containing a manager, conflict difference even if may arise the degree of Groups are often more loyal to a leader than a manager overlap is a point The Leader Is Followed. The Manager Rules of sharp A manager knows how each layer of the system works disagreement. Managing and leading are two different ways of organising people. The manager uses a formal, rational method whilst the leader uses passion and stirs emotions 11  Leadership vs. Management Hochschule It is obvious that Augsburg University of Applied Sciences a person can be a leader without being a manager LEADERSHIP MANAGEMENT (e.g. informal leader) an vice Coaching § Planing / Budgeting versa. Inspiring Selecting § Doing / Facilitating Name some great Building trust § Checking / Evaluating Leaders that you Motivating § Acting know: Providing orientiation Political Business 12 Discussion Question Hochschule Augsburg University of Applied Sciences It has been said by some that the hard skills such as finance and quantitative analysis are more important for managers than soft skills such as developing relationships and leadership, while others say the opposite is true—what do you think? Seite 13  What is Effective Leadership? Hochschule Only little Augsburg University of Applied Sciences evidence in practice for Personal qualities of the leader are undoubtedly important but effective are unlikely to be sufficient in themselves for the emergence leadership and exercise of leadership. models, theory, concepts. Furthermore, the manner in which these qualities translate into behaviour and group interaction is likely to be culturally specific and thus depend on a whole host of factors, such as the nature of the leader, followers, task, organisational structure, national and corporate cultures, etc. 14  Practices of Participative Leadership in Different Cultures Hochschule Augsburg University of Applied Sciences How generic tasks of Country Leadership Style Leadership participative Scandinavia Common / collective decision between Manager – vary across Empl. Netherlands, Sweden Decision- and Management authorities are Countries and USA hindered to misuse their power by formal regulations Great Britain regions. Employees with low want for security Leadership Style Belgium, France Leadership oriented on opinion and advice of employee Norway, Denmark, Medium level of delegation Japan, Australia Subordinates do not expect high grade of autonomy for decision Spain, Germany, Italy Greece, Turkey, South America, Malaysia, Very low level of delegation, centralistic decision Indonesia, Thailand making China Status symbols and privileges for leaders visible and legitimate Arabic Countries Authority of leader is not questioned but accepted authoritative Mexico Few information between hierachical levels India, Russia Source: Keller, 1987: Sp. 1288 Seite 15 Practices of Leadership in Different Situations Hochschule Augsburg University of Applied Sciences How Leadership Situational Leadership Model varies across Followers Readiness. Seite 16  Hochschule Augsburg University of Applied Sciences The Nature of Leadership OVERVIEW OF MAJOR LEADERSHIP THEORIES AND RESEARCH APPROACHES Seite 17 Exercise: Review of Leadership Theory Hochschule Augsburg University of Applied Sciences Split into working groups: according to chapters of the text : „A REVIEW OF LEADERSHIP THEORY AND COMPETENCY FRAMEWORKS“ by Bolden et al. Group 1: 4.1 THE TRAIT APPROACH TO LEADERSHIP Group 2: 4.2.1 McGregor’s Theory X & Theory Y Managers Group 3: 4.2.2 Blake and Mouton's Managerial Grid Group 4: 4.3.1 Fiedler's Contingency Model Group 5: 4.3.2 The Hersey-Blanchard Model of Leadership Group 6: 4.3.3 Tannenbaum & Schmidt’s Leadership Continuum Group 7: 4.3.4 Adair’s Action-Centred Leadership Model Group 8: 4.4.1 Servant Leadership Group 9: 4.4.3 Team Leadership Group 10: 4.4.4 Transactional and Transformational Leadership Seite 18 Exercise: Review of Leadership Theory Hochschule Augsburg University of Applied Sciences Your tasks: 1. Read the text 2. Prepare a short (5min) presentation: 1. Who has developed the theory? 2. When (if possible to see)? 3. What are the key terms of the theory? 4. What is the main focus? E.g focus on traits or behaviour. Seite 19  Hochschule Augsburg University of Applied Sciences Summary and Application v Effective leaders balance their own traits and skills and their leadership styles or behaviors in a way that best fits the followers and is most appropriate for the situation at hand. v Effective leaders are flexible, and adapt their style to the follower and to the situation. Seite 20  Hochschule Augsburg University of Applied Sciences Discussion Questions 1. Describe an effective leader with whom you are familiar. Now describe an ineffective leader with whom you are familiar. How do they differ? What could the ineffective leader do to be more effective? 2. Should all managers be leaders? Why or why not? 3. When would transactional leadership be preferred to transformational leadership? 4. What are some common barriers preventing leaders from behaving ethically? How can these barriers be overcome? 5. When should leaders focus on the task and not on the people doing the task? 6. Do you feel that it is possible for leadership substitutes to be effective? Why or why not? 7. What advice would you give a leader on managing people from multiple cultures? Seite 21 Leadership Skills: Discussion Questions Hochschule Augsburg University of Applied Sciences Are leaders born or are they made? Do all people have potential leadership skills ? Organizations spend millions every year to develop leadership skills of their employees, Is the money well spent? Is leadership ability universal, so is a good leader in one environment also effective in another? For example, can or should a leader in one industry (e.g., a hospital) be successful in another industry (e.g., a bank)? Seite 22  01.12.2021 Leadership WiSe 21/22 04 Managing People - Leadership Power and Influence Seite 1 1 Leadership POWER & INFLUENCE Seite 2 2 1  01.12.2021 Learning Objectives 1. Understand how position and personal attributes can be a source of power for leaders. 2. Understand the process by which power is acquired or lost in organizations. 3. Understand the different types of influence tactics used in organizations. 3 3 Power and Influence CONCEPTIONS OF POWER AND INFLUENCE Seite 4 4 2  01.12.2021 The concept of power is useful for What is Power? understanding how people are able to influence each other in Power is the absolute capacity of one party (the - organizations. individual - agent) to influencing the behavior and/or (Mintzberg, 1983) attitudes of one or more designated persons (the target/s) at a given point of time. To describe the power of an agent it is necessary to specify the target person(s), the influence objectives, and the time period. Power is a dynamic variable that changes as conditions change. How power is used and the outcomes of influence attempts can increase or undermine the agent´s subsequent power. Source: Yukl, G.(2010): Leadership in Organizations. P. 5 199 5 Notes: What is Authority? Authority involves the rights, prerogatives, obligations, and duties associated with particular positions in an organization or social system. A leader´s authority usually includes the right – to make particular types of decisions for the organization. – to make requests, and the target person has the duty to obey, such as work rules. – to give work assignments to subordinates. – to exercise control over things, such as money, equipment, and materials. The scope of authority depends in large part on the influence needed to accomplish recognized role requirements and organizational objectives. Source: Yukl, G.(2010): Leadership in Organizations. P. 6 199 6 3  01.12.2021 To be effective as What is Influence? a leader, it is necessary to influence people carry out requests, support Influence is the essence of leadership ! proposals, and KELMAN (1958) proposed three different types of influence processes: implement decisions. 1. Instrumental Compliance In large Purely instrumental motivation to carry out a request. organizations, the Only reason for compliance is to gain tangible benefit from the agent. effectiveness of leaders depends 2. Internalization on influence over superiors and Commitment of the target person to support and implement proposals peers as well as espoused by the agent. the influence over subordinates. Link between agent´s proposal (objective, etc.) and target´s values and beliefs. 3. Personal Identification Imitation of the agent´s behavior or adoption of the same attitudes to please the agent and to be liked by the agent. Motivation: needs for acceptance and esteem Source: Yukl, G.(2010): Leadership in Organizations. P. 200f 7 7 The success of an How to Measure the Effect of influence attempt Power? can be distinguished among qualitatively distinct outcomes: Potential Reactions commitment, compliance, and This is a result in which the resistance. Commitment target agrees with a request or decision from the agent In general, and strives to carry out the influence is request or implement the understood as the decision effectively. effect of one party (the agent) on another (the This is an outcome in which target). Power Compliance the target is willing to do what the agent asks, but is apathetic rather than enthusiastic about it. The target is opposed to Resistance carrying out the agent´s requests and decisions. Source: Yukl, G.(2010): Leadership in Organizations. P. 8 200 8 4  01.12.2021 Power and Influence POWER AND TYPES OF SOURCES Seite 9 9 Notes: Power Types and Sources FRENCH and RAVEN Power Taxonomy (1959) 1. Legitimate power: From holding a formal position. Others comply because they accept the legitimacy of the position of the power holder. 2. Reward power: Target complies in order to obtain rewards controlled by the agent. 3. Coercive Power: Compliance is to avoid punishments controlled by the agent. 4. Expert Power: Based on a person´s expertise, competence, and information in a certain area. 5. Referent Power: The target person comply because they respect and like the power holder (agent). 10 10 5  01.12.2021 Notes: Power Types and Sources Legitimative Power Reward Power Coercive Power Information Power Referent Power Expert Power 11 11 Power and Influence INFLUENCE TACTICS Seite 12 12 6  01.12.2021 General Types of Influence Tactics Impression Management Tactics - these tactics are intended to influence people to like the agent or to have a favorable evaluation of the agent. Example: providing praise or offering unconditional help. Political Tactics - these tactics are used to influence organizational decisions or to gain benefits for an in individual or group. Example: influencing the meeting agenda or use favourable criterias for decsision making. Proactive Influence Tactics - these tactics have an immediate task objective. Appropriate when target resistance is likely, e.g. rational persouasion. Example: getting the target person to carry out a new task, change the procedures used for a current task provide assistance on a project, or support a proposed change. Source: Yukl, G.(2010): Leadership in Organizations. P. 217 f 13 13 Proactive Influence Tactics Proactive influence tactics can be distinct into core an supplementary Rational persuasion tactics. Inspirational appeals With core tactics Core Tactics Consultation leaders can reach higher influence Collaboration on target´s behavior. Apprising Exchange Supplementary Ingratiation Tactics Personal appeal Coalition building Legitimate tactics Pressure Source: Yukl, G.(2010): Leadership in Organizations. P. 218 ff 14 14 7  01.12.2021 Core Proactive Influence Tactics The success of rational persuasion also depends in part Rational Persuasion on whether the target person perceives the Definition: agent to be a credible and – Agent uses logical arguments and factual evidence to show a trustworthy source proposal or request is feasible and relevant for attaining of information, inferences, and important task objectives. predictions. Key Terms: – Use of explanations, logical arguments, and factual evidence; – Most appropriate whe the target person shares the same objectives as the manager but does not recognize the proposal is the best way to attain the objectives. Application: – Explain in detail why a request or proposal is important. – Use facts and logic to make a clear case in support of a request or proposal. – Provide evidence that a request or proposal is feasible. – Explain why a proposal is better than the alternatives. Source: Yukl, G.(2010): Leadership in Organizations. P. 15 220 15 The success of Core Proactive Influence Tactics inspirational appeals also depends on the Inspirational Appeals communication Definition: skills, such as the use of vivid – The agent makes an appeal to values and ideals or seeks to arouse the target person´s imagery and emotions to gain commitment for a request or proposal. metaphors, manipulate Key Terms: symbols and – Emotional or value-based appeal; create a link to a person´s needs, values, desires, employ voice and hopes and ideals. E.g.: a person´s desire to be important, feel useful, to develop and gestures to generate use their skills, to be a member of a team, to accomplish something worthwhile. enthusiasm and – Ideals by example: liberty, freedom, self-fulfillment, justice, fairness, equality, patriotism, excitement. loyality. Application: – Describe a proposed change as an exciting and worthwhile opportunity. – Link a proposed activity or change to the person´s ideals and values. – Describe a clear, appealing vision of what can be accomplished. – Use a dramatic, expressive style of speaking and positive, optimistic language. „Yes we can!“ Source: Yukl, G.(2010): Leadership in Organizations. P. 16 221 16 8  01.12.2021 Core Proactive Influence Tactics The success of consultation also depends on the target person´s ability of problem Consultation solving and negotiation skills as well as on the Definition: openess of the agent to let people – The agent encourages the target to suggest improvements in a proposal or to help participate in plan an activity or change for which the target person´s assistance is desired. decision making. Key Terms: – Participation, discussion, negotiation, joint problem solving. – Partly open process. Application: – State your objective and ask what the person can do to help attain it. – Ask for suggestions on how to improve a tentative proposal. – Involve the person in planning action steps to attain an objective. – Respond in a positive way to any concerns expressed by the person. Source: Yukl, G.(2010): Leadership in Organizations. P. 17 221 17 The success of Core Proactive Influence Tactics consultation also depends on the target person´s ability of problem Collaboration solving and negotiation skills as well as on the Definition: openess of the – The agent encourages the target to suggest improvements in a proposal or to help plan agent to let people participate in an activity or change for which the target person´s assistance is desired. decision making. Key Terms: – Participation, discussion, negotiation, joint problem solving. – Partly open process. Application: – Offer to provide assistance or resources the person will need to carry out a request. – Offer to help solve problems caused for the person by a request. – Offer to help implement a proposed change if the person will support it. – Offer to show the person how to do the task involved in a request. Source: Yukl, G.(2010): Leadership in Organizations. P. 18 221 18 9  01.12.2021 Supplementary Influence Tactics Supplementary influence tactics are likely less effective to influence targets Apprising - explain why a request is likely benefit the target person as an commitment. individual. E.g. carreer. Targets benefits are by products. Exchange - Quid pro Quo (Reward Power / manipulative) Ingratiation - make the target feel better about you by giving compliments, doing favors, etc. (Reward Power / manipulative) Personal appeal - ask someone to do a favour out of friendship or loyality to the agent. (Referent or Reward Power) Coalition building - Get someone else to persuade the target person to comply. (Coercive Power) Legitimate tactics - Claims to have the authority to get you to do something. Verifying it in the policy manual, rules or practices and traditions. (Legitimate Power) Pressure - Use demands threats or persistent reminders (Coercive Power) Source: Yukl, G.(2010): Leadership in Organizations. P. 19 221 19 Power and Influence POWER AND INFLUENCE BEHAVIOR Seite 20 20 10  01.12.2021 Power and Power and Influence Behavior influence behavior are distinct constructs. Effects of Agent Power and Influence Behavior on Influence Outcomes Relationship among specific forms of power, specific influence behavior and Leader Power influence outcomes is complex and not well understood. 1 moderator variable 3 2 Influence Outcomes Leader Influence Commitment Behavior Compliance Resistance 21 21 Power and Influence Behavior Agent power may directly influence the agent´s choice of Effects of Agent Power and Influence Behavior on Influence Outcomes influence tactics. E.g.: Exchange tactics require reward Leader Power power. Strong pressure is more likely used with coercive power. 1 moderator variable 3 2 Influence Outcomes Leader Influence Commitment Behavior Compliance Resistance 22 22 11  01.12.2021 In the majority of Power and Influence Behavior influence tactics it is likely that power acts as a Effects of Agent Power and Influence Behavior on Influence Outcomes moderator variable to enhance or diminish the effectiveness of tactics. Leader Power E.g.: High / low expert power moderates the effect of 1 moderator variable 3 rational persuasion. High / low reward 2 power moderates Influence Outcomes the effect of Leader Influence Commitment exchange tactics. Behavior Compliance Resistance 23 23 Another possibility Power and Influence Behavior is that the agent power can influence the Effects of Agent Power and Influence Behavior on Influence Outcomes target person regardless of whether the agent makes any overt influence attempt. Leader Power E.g: Target cooperates more with an agent who has 1 moderator variable 3 substantial reward power in the hopes of getting some rewards in 2 the future. Influence Outcomes Leader Influence Commitment (rich uncle effect) Behavior Compliance Resistance 24 24 12  01.12.2021 Traits and Choice of Influence Why do managers employ certain Tactics tactics when they try to influence others? A study proposes High on extraversion = more likely to use inspirational appeal and and tests ingratiation theoretical linkages between the five-factor model of High on emotional stability = more likely to use rational persuasion personality and and less likely to use inspirational appeal leaders influence tactic strategies. High on agreeableness = less likely to use legitimization or pressure High on conscientiousness = more likely to use rational appeal. Source: Cable & Judge, 2003: Managers upward influence tactic strategies: the role of manager personality and supervisor leadership style. Journal of Organizational Behavior J. Organiz. Behav. 24, 197-214 (2003) 25 25 Next sessions will Summary focus on: Follower, dyadic relations Transformational Leadership Style Leader Follower Desired Behavior Responses Result Commitment Group Effectiveness Power and Influence Compliance Follower Performance Tactics Resistance Follower Satisfaction Leader Leader Situation Attributes Style & Task 26 26