Effective HR Leadership & Navigation PDF

Effective HR leadership combines several critical skills: the ability to see opportunities and problems, to envision a different future and design a path toward it, to rally necessary support within the organization, and to manage initiatives that create measurable and sustainable benefits. **Compe...

Effective HR leadership combines several critical skills: the ability to see opportunities and problems, to envision a different future and design a path toward it, to rally necessary support within the organization, and to manage initiatives that create measurable and sustainable benefits. **Competency Connection** Leadership - Communication - Relationship Management - Business Acumen - Analytical Aptitude The HR professional in this scenario helped her organization realign head count to optimize benefits costs and managerial efficiency. She used her Business Acumen and Analytical Aptitude competencies to understand the issue more fully and then used her Relationship Management and Communication skills to win support for and implement a solution. The HR professional is an HR director for a health and fitness business with multiple locations. The business typically has about 350 employees, although employment does predictably rise during vacation periods. The chief financial officer came to the HR director with an interesting and concerning observation: Head count had grown by 8% over the past year although no new department programs or specific positions had been added. Although the business was increasing its revenue, this situation might be depressing revenue growth. HR launched an investigation and discovered that hiring managers, across all departments, had allowed employees to reduce the number of hours they worked and then filled the open shifts with additional staff. The reasons for reduction in hours were varied, and sometimes they were understandable (for example, children's school activities, the demands of other jobs they were holding, university class schedules). Sometimes an employee simply did not want to work nights or weekends. Instead of insisting that staff maintain the minimum number of hours required for their position, managers allowed employees to work fewer hours. Many managers commented that these were "good employees" or they had "worked here a long time" and the managers felt bad about letting them go because they could no longer work specific hours. At HR's suggestion, the company implemented a temporary hiring freeze. To minimize panic, HR communicated with all employees through an e-mail. HR positioned the freeze as part of an efficiency study, not a tactic necessitated by poor revenue. The e-mail expressed pride in the workforce but described the unsustainable situation. Too many people were working too few hours. This put a strain on customer service since employees with low attendance were not available when a fitness center tried to change hours to meet customer needs. It strained company costs since all employees, without regard to the number of hours worked, enjoyed the benefits of fitness center membership for all family members. It also strained managers' efficiency since they had to supervise more employees. As a result, during the coming months, HR would be working with departments to establish minimal expectations of hours worked for current and future hires. HR and managers would work with individual employees to meet these expectations. The HR director was able to draw on her knowledge of business needs and her understanding of the frequent time pressures on the company's employees. The initiative also benefited from the culture that its leaders had created. The concept of sharing employees and working together across department lines was accepted enthusiastically. **The Role of the Leader** The term "human resource management" points immediately to the role of management skills for HR professionals. The 20th-century French management theorist Henri Fayol defined the functions of management as planning, organizing, staffing, directing, and controlling. These management skills are necessary for HR professionals to assist their organizations in implementing their strategies, but just as important as management skills is the ability to create an organizational environment that develops, releases, and includes team talents and perspectives. Daniel Goleman reported in the *Harvard Business Review* on research into the impact of different leadership styles on factors that help create motivation and engagement in a workplace. The research indicated that leadership style affects: - Employees' ability to make decisions that affect their work. - Employees' sense of responsibility to the organization or team. - The standards employees seek to meet or exceed. - Employees' belief that they will be rewarded for their work. - An understood mission and shared values. - A feeling of commitment to a shared goal. Because environments differ and situations change, HR professionals need to become more skillful at understanding their team needs and their organizations' cultures and more flexible and thoughtful in being the leader that the situation calls for. They can then help other leaders in their organization to fulfill their roles more effectively. **Approaches to Leading** Six approaches to leadership are summarized in Exhibit 1-1. There is no single effective approach to leadership. Different approaches may be more or less effective in achieving results under certain conditions. The different approaches also have different effects on the organization's environment. For example, coercive leadership may be effective at certain times but tends to weaken the workplace environment. **Exhibit 1-1: Leadership Approaches** +-----------------------------------+-----------------------------------+ | **Approach** | **Suitability** | +===================================+===================================+ | **Coercive leadership:** The | - Effective during crises when | | leader imposes a vision or | immediate and clear action is | | solution on the team and demands | required. | | that the team follow this | | | directive. | - Ineffective at other times | | | when it can damage employees' | | | sense of ownership in their | | | work and motivation. | +-----------------------------------+-----------------------------------+ | **Authoritative leadership:** The | - Effective at times when there | | leader proposes a bold vision or | is no clear path forward and | | solution and invites the team to | when the proposal is | | join this challenge. | compelling and captures the | | | team's imagination. Team | | | members have a clear goal and | | | understand their roles in the | | | effort. They are encouraged | | | to contribute their own ideas | | | and take risks. | | | | | | - Ineffective when the leader | | | lacks real expertise. | +-----------------------------------+-----------------------------------+ | **Affiliative leadership:** The | - Effective at all times but | | leader creates strong | especially when a leader has | | relationships with and inside the | inherited a dysfunctional and | | team, encouraging feedback. The | dispirited team that needs to | | team members are motivated by | be transformed. Leader must | | loyalty. | have strong | | | relationship-building and | | | management skills. | | | | | | - Ineffective when used alone. | | | For example, opportunities to | | | correct or improve | | | performance may not be taken | | | because the affiliative | | | leader fears damaging a | | | relationship. | +-----------------------------------+-----------------------------------+ | **Democratic leadership:** The | - Effective when the leader | | leader invites followers to | does not have a clear vision | | collaborate and commits to acting | or anticipates strong | | by consensus. | resistance to a change. Team | | | members must be competent; | | | leaders must have strong | | | communication skills. | | | | | | - Ineffective when time is | | | short, since building | | | consensus takes time and | | | multiple meetings. | +-----------------------------------+-----------------------------------+ | **Pacesetting leadership:** The | - Effective when teams are | | leader sets a model for high | composed of highly competent | | performance standards and | and internally motivated | | challenges followers to meet | employees. | | these expectations. | | | | - Ineffective when expectations | | | and the pace of work become | | | excessive and employees | | | become tired and discouraged. | | | In the leader's attempt to | | | set high goals, he or she may | | | focus exclusively on the task | | | and not give enough time to | | | activities that motivate team | | | members, such as feedback, | | | relationship building, and | | | rewards. | +-----------------------------------+-----------------------------------+ | **Coaching leadership:** The | - Effective when leaders are | | leader focuses on developing team | highly skilled in strategic | | members' skills, believing that | management, communication, | | success comes from aligning the | and motivation and when they | | organization's goals with | can manage their time to | | employees' personal and | include coaching as a primary | | professional goals. | activity. Team members must | | | also be receptive to | | | coaching. | | | | | | - Ineffective when employees | | | resist changing their | | | performance. | +-----------------------------------+-----------------------------------+ It is important to recognize the difference between coaching and mentoring. Mentoring helps an employee navigate and understand the organization, which in turn can help them determine a career path. It is an approach to people management focused on both character and fostering skills. When a relationship is based on more than just a future promotion, the mentor can help the mentee invest in and develop their self-awareness, empathy, confidence, respect for others, and relationship-building skills. A mentoring relationship is most effective when the mentor has time to commit to the relationship and when the mentee is after more than just career advancement. **Universal Characteristics of Leaders** The importance of certain leadership characteristics will vary among cultures, but in general effective leaders draw their authority less from their hierarchical positions and titles and more from personal characteristics and skills. They achieve results through their teams and share recognition and opportunities for growth with team members. They are not "solo leaders" who must direct everything. Effective leaders tend to be trustworthy, ethical, motivational, efficient, collaborative, and focused on continuous improvement. Ineffective leaders are focused on their own needs and goals, poor at developing and sustaining relationships, and given more to ordering and demanding. Exhibit 1-2 lists characteristics associated with effective and ineffective leaders. **Exhibit 1-2: Universal Leadership Characteristics** +-----------------------------------+-----------------------------------+ | **Universal Characteristics That | **Universal Characteristics That | | Define Leadership** | Detract from Leadership** | +===================================+===================================+ | Trustworthy and dependable | Asocial (doesn't value | | | relationships) | | Just | | | | Poor at communicating (both | | Honest | sending and receiving messages) | | | | | Thinks and plans ahead | Noncooperative | | | | | Encouraging | Irritable | | | | | Positive | Egocentric | | | | | Dynamic | Ruthless | | | | | Motivational | Dictatorial | | | | | Confidence building | | | | | | Decisive | | | | | | Committed to excellence | | | | | | Intelligent and informed | | | | | | Effective, win-win bargainer | | | | | | Administratively skilled | | | | | | Communicative | | | | | | Organized | | +-----------------------------------+-----------------------------------+ Although leaders' personal styles may differ, management experts agree about the behaviors that distinguish effective and ineffective leadership in organizations and in the HR function. Effective HR leaders: - Develop and coach others. - Build positive relationships. - Model their values and fulfill their promises and commitments. - Have functional expertise. Ineffective HR leaders: - Focus internally rather than externally, failing to look outside the HR function to the organization's internal and external stakeholders. - Lack strategic perspective, focusing on short-term objectives and daily tasks. - Do not anticipate or react well to change. - Resist "stretch" goals and act as a drag on the organization's attempts to innovate. **Leadership Theories** Although approaches to leadership can change, individuals often develop a "default" style of leadership. Understanding theories of leadership can help HR professionals to identify these default styles---in themselves and in those they work with, both inside and outside the organization---and to plan ways to adapt their own styles or to work effectively with a colleague with a different style. Exhibit 1-3 summarizes key points of several leadership theories. **Exhibit 1-3: Leadership Theories** +-----------------------------------+-----------------------------------+ | **Theory** | **Description** | +===================================+===================================+ | **Trait Theory** | - Leaders possess certain | | | innate characteristics that | | | followers do not possess (and | | | probably cannot acquire), | | | such as physical | | | characteristics (for example, | | | strength, stamina) and | | | personality traits (for | | | example, decisiveness, | | | integrity). Sometimes | | | referred to as the "Great | | | Man" theory. | | | | | | - It equates these | | | characteristics and | | | leadership but without | | | evidence. | | | | | | - It may discourage leader | | | development by implying that | | | the ability to lead cannot be | | | acquired with study and | | | practice. | +-----------------------------------+-----------------------------------+ | **Behavioral Theories** | Leaders influence group members | | | through certain behaviors. | +-----------------------------------+-----------------------------------+ | *Blake-Mouton Theory* | - Leadership involves managing: | | | | | | - Tasks (work that must be | | | done to attain goals). | | | | | | - Employees (relationships | | | based on social and | | | emotional needs). | | | | | | - Five types of managers, only | | | one of which (team leader) is | | | considered a leader: | | | | | | - Country club managers | | | (low task, high | | | relationship) create a | | | secure atmosphere and | | | trust individuals to | | | accomplish goals, | | | avoiding punitive actions | | | so as not to jeopardize | | | relationships. | | | | | | - Impoverished managers | | | (low task, low | | | relationship) use a | | | "delegate-and-disappear" | | | management style. They | | | detach themselves, often | | | creating power struggles. | | | | | | - Authoritarian managers | | | (high task, low | | | relationship) expect | | | people to do what they | | | are told without question | | | and tend not to foster | | | collaboration. | | | | | | - Middle-of-the-road | | | managers (midpoint on | | | both task and | | | relationship) get the | | | work done but are not | | | considered leaders. | | | | | | - Team leaders (high task, | | | high relationship) lead | | | by positive example, | | | foster a team | | | environment, and | | | encourage individual and | | | team development. | +-----------------------------------+-----------------------------------+ | **Situational Theories** | Building on behavioral theories, | | | situational theories propose that | | | leaders can flex their behaviors | | | to meet the needs of unique | | | situations, employing both task | | | or directive behaviors and | | | relationship or supportive | | | behaviors with employees. | +-----------------------------------+-----------------------------------+ | *Hersey-Blanchard Situational | - Leaders adapt their behaviors | | Leadership* | to meet the evolving needs of | | | team members. Like | | | Blake-Mouton, the behaviors | | | involve tasks and | | | relationships. | | | | | | - As team members grow in skill | | | and experience, leaders | | | supply the appropriate | | | behavior: | | | | | | 1. **Telling** when the | | | employee is not yet | | | motivated or competent. | | | | | | 2. **Selling** when the | | | increasingly competent | | | employee still needs | | | focus and motivation | | | ("why are we doing | | | this"). | | | | | | 3. **Participating** when | | | competent workers can be | | | included in problem | | | solving and coached on | | | higher skills. | | | | | | 4. **Delegating** when very | | | competent team members | | | can benefit from greater | | | levels of autonomy and | | | self-direction. | +-----------------------------------+-----------------------------------+ | *Fiedler's Contingency Theory* | - Leaders change the situation | | | to make it more "favorable," | | | more likely to produce good | | | outcomes. | | | | | | - "Situation favorableness" | | | occurs when: | | | | | | - Leader-member | | | relationships are strong. | | | | | | - Task structure and | | | requirements are clear. | | | | | | - The leader can exert the | | | necessary power to reach | | | the group's goal. | | | | | | - Unfavorable situations must | | | be changed to improve group | | | (and leader) effectiveness. | | | This can include: | | | | | | - Improving relations | | | between the leader and | | | the team (for example, by | | | building trust). | | | | | | - Changing aspects of the | | | task (for example, | | | breaking a project down | | | into more manageable | | | pieces, providing more | | | resources for the team). | | | | | | - Increasing or decreasing | | | the leader's exercise of | | | power (for example, to | | | increase team involvement | | | in and ownership of | | | ideas, to decrease | | | harmful conflict or | | | resistance to change). | +-----------------------------------+-----------------------------------+ | *Path-Goal Theory* | This theory emphasizes the | | | leader's role in coaching and | | | developing followers' | | | competencies. The leader performs | | | the behavior needed to help | | | employees stay on track toward | | | their goals. This involves | | | addressing different types of | | | employee needs: | | | | | | - Directive---Help the employee | | | understand the task and its | | | goal. | | | | | | - Supportive---Try to fulfill | | | employee's relationship | | | needs. | | | | | | - Achievement---Motivate by | | | setting challenging goals. | | | | | | - Participative---Provide more | | | control over work and | | | leverage group expertise | | | through participative | | | decision making. | +-----------------------------------+-----------------------------------+ | **Emergent Theory** | Leaders are not appointed but | | | emerge from the group, which | | | chooses the leader based on | | | interactions. | +-----------------------------------+-----------------------------------+ | **Transactional Leadership** | This theory emphasizes a leader's | | | preference for order and | | | structure. It focuses on control | | | and short-term planning. | | | | | | - Employees and subordinates | | | are expected to follow orders | | | from above. | | | | | | - Employees and subordinates | | | are motivated by rewards and | | | consequences. | | | | | | - Employees and subordinates | | | are closely monitored to | | | ensure that work is done | | | properly and on time. | | | | | | - Creativity and inventiveness | | | are not typically encouraged | | | or nurtured. | | | | | | Transactional leadership is more | | | commonly found in the military | | | and large and multinational | | | organizations. | +-----------------------------------+-----------------------------------+ | **Transformational Leadership** | This theory emphasizes a leader's | | | ability to inspire employees to | | | embrace change. Transformational | | | leaders are able to encourage and | | | motivate their employees to | | | innovate in their work, to seek | | | out changes that can add value | | | and growth to the organization. | | | | | | Transformational leaders do not | | | micromanage. They give their | | | employees greater autonomy to | | | make decisions and come up with | | | creative solutions. A leader will | | | also lead by example, | | | exemplifying moral and ethical | | | standards and values, and | | | encourage the same from others. | | | | | | This leadership approach also | | | encourages communication, | | | cooperation, and collaboration | | | with others and can use | | | mentorship to help raise up | | | future transformational leaders. | +-----------------------------------+-----------------------------------+ | **Leader-Member Exchange Theory** | This theory focuses on a two-way | | | relationship between leaders and | | | chosen employees. The leader | | | mentors a selected team member | | | (or members) and gives them | | | access to more information and | | | resources in order to strengthen | | | levels of trust and support. This | | | mentorship is intended to | | | maintain the leader's position | | | through the development of | | | different two-way relationships. | | | | | | This type of relationship can | | | contribute to growth and | | | productivity but can also create | | | in- and out-groups within the | | | team. The in-group may tend to | | | strengthen and support the | | | leader's decisions and position | | | due to their closer relationship. | | | Members of the out-group may lag | | | in development and productivity | | | if they perceive that they are | | | excluded or neglected. | +-----------------------------------+-----------------------------------+ | **Servant Leadership** | The leaders' goal is to serve the | | | needs of their employees. This | | | theory emphasizes the sharing of | | | power. Leaders should work to | | | help their employees develop and | | | perform to the highest possible | | | level, and this will generate | | | benefits within and without the | | | organization. It is a way of | | | inverting the | | | organizational/leadership norm of | | | bottom-up service. | | | | | | Servant leaders tend to be more | | | empathetic and more trusted by | | | employees. This can lead to | | | greater innovation, | | | collaboration, performance, and | | | participation. This approach to | | | leadership can be more | | | resource-intensive and can take | | | longer to produce results. | +-----------------------------------+-----------------------------------+