Leadership Theories & Models (PDF)

Lesson 1 Short Background on General Motors ▶ In the 1950’s General Motors began the Sunbelt Strategy, building plants in the southern and western USA (non-union: « right to work states ». ▶ This strategy was viewed by the unions as an attempt to move away from union controlled st...

Lesson 1 Short Background on General Motors ▶ In the 1950’s General Motors began the Sunbelt Strategy, building plants in the southern and western USA (non-union: « right to work states ». ▶ This strategy was viewed by the unions as an attempt to move away from union controlled states. ▶ Because of this, the new plants became among the most hostile, conflict ridden plants at GM. The GM Leadership Story 1982 GM Fremont Plant Employees 5000 Absentiesm 20% Unresoved Grievances 2000 Total Annual Grievances 5000 Wildcat Strikes 3-4 Product Chevrolet Nova  Lesson 1 Assembly Costs per Car 30% over Japan Productivity Worst in GM Quality Worst in GM THE NUMMI LEADERSHIP STORY 1986 GM NUMMI Plant Employees 2000 Absentiesm 2% Unresoved Grievances 0 Total Annual Grievances 2 Wildcat Strikes 0 Product Chevrolet Nova + Geo Prism Assembly Costs per Car Same as the Japonese Productivity Double GM average Quality Best in GM How Culture Changes — and Doesn’t The lessons from NUMMI are consistent with organizational development leader Edgar Schein’s model of corporate culture. Schein proposed that the way to change culture is to change cultural artifacts — the observable data of an organization, which include what people do and how they behave. Anyone wanting to change a culture needs to define the actions and behaviors they desire, then design the work processes that are necessary to reinforce those behaviors. Levels of Leadership  Lesson 1 ▶ Leadership is about affecting human behavior, which can be thought of as occurring at three levels: 1. Visible behavior 2. Conscious thought 3. VABE’s : Values, Assumptions, Beliefs, Expectations (semi-conscious, pre- conscious) Knowing the Heart means understanding NEEDS ▶ At NUMMI workers needed? ▶ In general, how do we motivate people at work? What do people want? ▶ Tourists want you to help them find something… ▶ What about difficult people at work? How do we lead, motivate or meet their needs?  LECTURE 2 Short Background on General Motors ▶ In the 1950’s General Motors began the Sunbelt Strategy, building plants in the southern and western USA (non-union: « right to work states ». ▶ This strategy was viewed by the unions as an attempt to move away from union controlled states. ▶ Because of this, the new plants became among the most hostile, conflict ridden plants at GM. Paradigm Shifts in Management  LECTURE 2 What are the main Leadership theories? ▶ Great Man : Have you ever heard someone described as "born to lead?" According to this point of view, great leaders are simply born with the necessary internal characteristics such as charisma, confidence, intelligence, and social skills that make them natural-born leaders. Great man theories assume that the capacity for leadership is inherent – that great leaders are born, not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership. Such theories suggest that people cannot really learn how to become strong leaders. It's either something you are born with or born without. It is very much a nature (as opposed to nurture) approach to explaining leadership. ▶ Trait : Similar in some ways to Great Man theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify a particular personality or behavioral characteristics shared by leaders. For example, traits like extroversion, self-confidence, and courage are all traits that could potentially be linked to great leaders. If particular traits are key features of leadership, then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership. There are plenty of people who possess the personality traits associated with leadership, yet many of these people never seek out positions of leadership. There are also people who lack some of the key traits often associated with effective leadership yet still excel at leading groups. ▶ Contingency Theories : Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Leadership researchers White and Hodgson suggest that truly effective leadership is not just about the qualities of the leader, it is about striking the right balance between behaviors, needs, and context. Good leaders are able to assess the needs of their followers, take stock of the situation, and then adjust their behaviors accordingly. Success depends on a number of variables including the leadership style, qualities of the followers and aspects of the situation. ▶ Situational Theories : Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decision-making. For example, in a situation where the leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most appropriate. In other instances where group members are skilled experts, a democratic style would be more effective. ▶ Behavioral theories: are based upon the belief that great leaders are made, not born. Consider it the flip-side of the Great Man theories. Rooted in behaviorism, this  LECTURE 2 leadership theory focuses on the actions of leaders, not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. ▶ Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decision-making process. In participative theories, however, the leader retains the right to allow the input of others. ▶ Management theories, also known as transactional theories, focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished. ▶ Relationship theories: known as transformational theories, focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards.  LECTURE 2 The KIABI Vicenza Short Case You are the manager of the KIABI men and women’s departments in Vincenza, Italy. Top Management has announced that there will be a competition between all of the Women’s Departments in the Italian KIABI stores. The competition is: The store that has the highest progression in sales from October 1st to December 31st (compared to the previous year) will win the competition. The results for each store will be sent to you each day of the competition. The winners will receive free dinner together at a fancy restaurant. There is an additional side competition to see which store can take the most interesting photos of employees in the store. For this, the only reward is having your pictures published on the internet site for the store and the announcement of the three winners. You have only been managing the women’s and men’s departments for about six months. You have 5 employees under your responsibilities, all young ladies between 20 and 30 years of age. You would like to win the competition to show that you know how to motivate employees and increase profits. You will have a first meeting tomorrow in the employee room (about 15 m2, with table, chairs, and a coffee machine) to discuss this competition with the employees. ou are the manager of the KIABI men and women’s departments in Vincenza, Italy. Top Management has announced that there will be a competition between all of the Women’s Departments in the Italian KIABI stores. The competition is: The store that has the highest progression in sales from October 1st to December 31st (compared to the previous year) will win the competition. The results for each store will be sent to you each day of the  LECTURE 2 competition. The winners will receive free dinner together at a fancy restaurant. There is an additional side competition to see which store can take the most interesting photos of employees in the store. For this, the only reward is having your pictures published on the internet site for the store and the announcement of the three winners. You have only been managing the women’s and men’s departments for about six months. You have 5 employees under your responsibilities, all young ladies between 20 and 30 years of age. You would like to win the competition to show that you know how to motivate employees and increase profits. You will have a first meeting tomorrow in the employee room (about 15 m2, with table, chairs, and a coffee machine) to discuss this competition with the employees. In your group put together a plan of how you will communicate and motivate employees to win the competition. Brainstorm about when,how and what you will motivate and communicate. Then, all groups will come to the board and put their main points and we will have some groups share with us what they have written.  LECTURE 3 The Global Business Leader Case: An American in Paris Cultures and VABES Characteristics of Effective Global Leaders Overseas Experience Deep Self-Awareness Humility - From Good to Great Group Case Analysis What is culture? ▶ Explaining a culture to someone is like trying to explain a song without singing it. ▶ Culture has many Geography Identity Levels: Human, Global Region, Nation, National region, City, Neighborhood, Family, Individual  LECTURE 3 ▶ Culture is a group of people who share a set of significant VABEs (Values, Assumptions, Beliefs, and Expectations) ▶ What is the single most important important element of a global leader? The book from good to great says: Humility ▶ Global Business Leaders must work across all of the categories of geographic identity, and to do so effectively requires (humility): the ability to respect the identities and affiliations of others….the single most destructive VABE is the “I’m Right and You are wrong!” VABE» Power distance refers to the relationship between those in power and the subordinates in a society where lower ranking individuals depending on the high or low power distance culture react to that authority. In high power distance countries members of society accept that power is distributed unequally. In low power distance countries people strive to equalize the distribution of power. Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. In high Masculine countries society at large is considered tough and competitive. In high Feminine countries society is consensus oriented and tender.  LECTURE 3 In cross-cultural psychology, uncertainty avoidance is how cultures differ on the amount of tolerance they have of unpredictability.... The uncertainty avoidance dimension relates to the degree to which individuals of a specific society are comfortable with uncertainty and the unknown. Masculinity stands for a society in which social gender roles are clearly distinct: Men are supposed to be assertive, tough, and focused on material success; women are supposed to be more modest, tender, and concerned with the quality of life. In high Masculine countries society at large is considered tough and competitive. In high Feminine countries society is consensus oriented and tender. LECTURE 3 LECTURE 3 HLBT Method for communicating In public Hook : This is to grab the attention of the audience (i.e. something interesting) Look : To explain briefly at the beginning of presentation what you are going to talk about Book : The details, theory, facts, method, etc… (the boring part) Took : To convince or persuade the audience that what you have just told them is important and useful.