Chapter 11 - Communication In Organization PDF

**CHAPTER 11 - COMMUNICATION IN ORGANIZATION** **INTRODUCTION** Communication is something that most of us take for granted - Even at work we often focus primarily on doing our jobs and pay a little attention to how we communicate about those jobs. However, methods of communication play such a per...

**CHAPTER 11 - COMMUNICATION IN ORGANIZATION** **INTRODUCTION** Communication is something that most of us take for granted - Even at work we often focus primarily on doing our jobs and pay a little attention to how we communicate about those jobs. However, methods of communication play such a pervasive role in affecting behavior in organization and represent a vital underpinning of interpersonal processes. **NATURE AND PURPOSE** - Communication is the social process in which two or more parties exchange information and share meaning. - Communication among individuals and groups is vital in all organizations. The ***primary purpose*** is to achieve coordinated action. Communication coordinates the actions of an organization. Without communication, organization would be merely a collection of individual workers doing separate tasks. - The ***second purpose*** of communication is information sharing. The most important information relates to organizational goals, which gives members a sense of purpose and direction. **Communication Across-Culture** Communication is an element of interpersonal relations that obviously is affected by the international environment partly because of language issues and partly because of coordination issues. ***Language*** - Differences in languages are compounded by the fact that the same word can mean different things in different cultures. - Example: KFC was about to launch a major new advertising campaign in China. A local manager pointed out that the firm's long-time American slogan "Finger Lickin Good" meant "Eat Your Fingers Off" when translated directly into Chinese. - Elements of nonverbal communication also vary across cultures. *Colors and body language* can convey quite a different message in one culture than in another. - For example: The American sign for "OK" is considered rude in Spain and vulgar in Brazil. ***Coordination*** - Internal communication is closely related to issues of coordination and internet and time differences are one of those great examples of how coordination works in communication in an organization. **Methods Of Communication**  The three primary methods of communicating in organizations are *written, oral and nonverbal.* Often the methods are combined. Considerations that affect the choice of method include the *audience* (whether it is physically present) the *nature of the message* (its urgency or secrecy) and the *cost of transmission.* ***Written Communication*** - Organizations typically produce a great deal of written communication of many kinds. A *letter* is a formal means of communicating with an individual, generally someone outside the organization. - *Email* is probably the most common form of written communication in organization today. The office memorandum or memo is also still very common. *Memos* are usually addressed to a person or group inside the organization. - Other common forms of written communication include ***reports, manuals and forms.* Reports** generally summarize the progress or results. **Manuals** have various functions in organizations. *Instruction* *Manuals* tell employees how to operate machines, policy. *Procedures Manuals* inform them the organization rules and *Operation Manuals* describe how to perform tasks. **Forms** are standardized documents on which to report information. ***Oral Communication*** - The most prevalent form of organizational communication is oral. - Oral communication takes place everywhere - thus oral communication skills as the number one criterion for hiring new college graduates. - Oral forms of communication are particularly powerful because they include not only speakers' words but also changes in tone, pitch, speed and volume. - The popular voice mail has all the characteristics of traditional verbal communication except that there is no feedback. ***Nonverbal Communication*** - The most prevalent form of organizational communication is oral. - Oral communication takes place everywhere - thus oral communication skills as the number one criterion for hiring new college graduates. - Oral forms of communication are particularly powerful because they include not only speakers' words but also changes in tone, pitch, speed and volume. - The popular voice mail has all the characteristics of traditional verbal communication except that there is no feedback. **The Communication Process** The communication process is a loop that connects the sender and the receiver and operates in both the message.  ***Source/Sender*** - Individual group, or organization interested in communicating something to another party. The source is responsible for preparing the message, encoding it unto the transmission medium. ***Encoding*** - Process by which the message is translated from an idea or thought into symbols that can be transmitted. The symbols may be words, numbers, pictures, sounds or physical gestures and movements. ***Transmission*** - Process through which the symbols that carry the message are sent to the receiver. The medium is the channel or path of transmission. ***Decoding*** - Process by which the receiver interprets its meaning. The receiver uses knowledge and experience to interpret the symbols of the message. The meaning that the receiver attaches to the symbols may be same as or different from the meaning intended by the source. ***Receiver*** - The receiver of the message may be an individual, a group, an organization or an individual acting as the representative of a group. The receiver decides whether to decode the message, whether to make an effort to understand it and whether to respond. - *The key skill for proper reception of the message is good listening.* ***Feedback*** - The receiver responds to the message. Feedback verifies the message by telling the source whether the receiver received and understood the message.The feedback may be simple as a phone call or a complex as a written brief on a complicated point of law. It could also be nonverbal. ***Noise*** - is any disturbance in the communication process that interferes with or distorts communication. Noise can be introduced at virtually any point in the communication process. - the principal type, called channel noise, is associated with the medium. **Electronic Information Processing And Telecommunications** - Communications-related changes in the workplace are occurring at a rapid clip. Many recent innovations are based on **new technologies - computerized information processing systems, telecommunication systems, the Internet, organizational intranets and extranets, and various combinations of these**. Indeed, many employees telecommute from home rather than going to the office everyday. And whole new industries are developing around information storage, transmission, and retrieval that were not even dreamed of a few years ago. - The \"office of the future\" is here, but it may be in a typical office building. Every office now has a facsimile (fax) machine, a copier, and personal computers, most of them linked into a single integrated system and to numerous databases and electrónic mail systems. The electronic office links managers, clerical employees, professional workers, sales personnel - and often suppliers and customers as well - in a worldwide communication network that uses a combination of computerized data storage, retrieval and transmission systems. - Research conducted among office workers using a new electronic office system indicated that attitudes toward the system were generally favorable. On the other hand, other research also suggests that a reduction of face-to-face meetings may depersonalize the office. - The real increases in organizational productivity due to information technology may come from the **ability to communicate in new and different ways rather than from simply speeding up existing communication patterns**. In effect, organizations will become \"knowledge-based\" learning organizations that are continually generating new ideas to improve themselves. This can only occur when expert knowledge is communicated and available throughout the organization. - One of these new ways of communicating is **idea sharing, or knowledge sharing**, by sharing information on what practices work best. A computer-based system is necessary to store, organize, and then make available to others the best practices from throughout the company. - Electronic information technology is, therefore, speeding up existing communication and developing new types of organizational communication processes with potential new benefits and problems for managers. **Communication Networks** - **Communication** links individuals and groups in a *social system*. Initially, task-related communication links develop in an organization so that employees can get the information they need to do their jobs and coordinate their work with that of others in the system. Over a long period, these communication relationships become a sophisticated social system composed of both small-group communication networks and a larger organizational network. These networks structure both the flow the content of communication and support the organizational structure. The pattern and content of communication also support the culture, beliefs, and value systems that enable the organization to operate. - A ***wheel network*** is a pattern in which information flows between the person at the end of each spoke and the person in the middle. Those on the ends of the spokes do not directly communicate with each other. The wheel network is a feature of the typical work group, in which the primary communication occurs between the members and the group manager. - In a ***chain network***, each member communicates with the person above and below, except for the individuals on each end, who communicate with only one person. The chain network is typical of communication in a vertical hierarchy, in which most communication travels up and down the chain of command. - Each person in a ***circle network*** communicates with the people on both sides but not with anyone else. The circle network often is found in task forces and committees. - Finally, in an ***all-channel network***, all members communicate with all the other members. The all-channel network often is found in informal groups that have no formal structure, leader, or task to accomplish. Communication may be more easily distorted by noise when much is being communicated or when the communication must travel a great distance. Improvements in electronic communications technology, such as computerized mail systems and intranets, are reducing this effect. A relatively central position gives a person an opportunity to communicate with all of the other members, so a member in a relatively central position can control the information flow and may become a leader of the group. This leadership position is separate and distinct from the informal group structure, although a central person in a group may also emerge as a formal group leader over a long period. Communication networks form spontaneously and naturally as interactions among workers continue. They are rarely permanent since they change as the tasks, interactions, and memberships change. The task is crucial in determining the pattern of the network. If the group's primary task is decision making, an all-channel network may develop to provide the information needed to evaluate all possible alternatives. If, however, the group's task mainly involves the sequential execution of individual tasks, a chain or wheel network is more likely because communication among members may not be important to the completion of the tasks. - The **environment** (the type of room in which the group works or meets, the seating arrangement, the placement of chairs and tables, the geographical dispersion, and other aspects of the group's setting) can affect the frequency and types of interactions among members. For example, if most members work on the same floor of an office building; the members who work three floors down may be considered outsiders and develop weaker communication ties to the group. They may even form a separate communication network. - **Personal factors** also influence the development of the communication network. These include technical expertise, openness, speaking ability, and the degree to which members are acquainted with one another. For example, in a group concerned mainly with highly technical problems, the person with the most expertise may dominate the communication flow during a meeting. - The **group performance factors** that influence the communication network include composition, size, norms and cohesiveness. For example, group norms in one organization may encourage open communication across different levels and functional units whereas the norms in another organization may discourage such lateral and diagonal communications. - Because the outcome of the group's efforts depends on the coordinated action of its members, the communication network strongly influences group effectiveness. Thus, to develop effective social relationships in the organization, managers need to make a special effort to manage the flow of information and the development of communication networks. Managers can, for example, arrange offices and work spaces to foster communication among certain employees. Managers may also attempt to involve members who typically contribute little during discussions by asking them questions directly. **Organizational Communication Network** - An **organization chart** shows reporting relationships from the line worker up to the CEO of the firm. The lines of an organization chart may also represent channels of communication through which information flows, yet communication may also follow paths that cross traditional reporting lines. Information moves not only from the top down---from CEO to group members---but also upward from group members to the CEO. In fact, a good flow of information to the CEO is an important determinant of the organization\'s success. ***Several companies have realized that the key to their continuing success was improved internal communication.*** - **Downward communication** generally provides directions whereas **upward communication** provides feedback to top management. Communication that flows horizontally or crosses traditional reporting lines usually is related to task performance The roles that people play in organizational communication networks can be analyzed in terms of their contribution to the functioning of the network. The most important roles are labeled in the bottom portion of Figure 11.5. A **gatekeeper** (employee 5) has a strategic position in the network that allows him or her to control information moving in either direction through a channel. A **liaison** (employee 15) serves as a bridge between groups, tying groups together and facilitating the communication flow needed to integrate group activities. Employee 13 performs the interesting function of **cosmopolite**, who links the organization to the external environment by, for instance, attending conventions and trade shows, keeping up with outside technological innovations, and having more frequent contact with sources outside the organization. This person may also be an opinion leader in the group. Finally, the **isolate** (employee 3) and the **isolated dyad** (employees 2 and 9) tend to work alone and have little interaction and communications with others. Each of these roles and functions plays an important part in the overall functioning of the communication network and in the organization as a whole. Understanding these roles can help both managers and group members facilitate communication **Communication Barriers (Noise)** *"The greatest problem with communication is the imperfect perceptual process of both the sender and receiver"* - Bernard Shaw *"In spite of the best intentions of the sender and receiver to communicate, several barriers (called noise) inhibit the effective exchange of information."* **[Barrier 1:]** **Imperfect Perceptual process** - As receivers, we don't listen as well as senders assume, and our needs and expectations influence what signals get noticed and ignored. Some studies suggest that we have difficulty stepping out of our own perspectives and stepping into the perspectives of others, so we overestimate how well other people understand the message we are communicating. **[Barrier 2:]** **Language Issues** - Language issues can be huge sources of communication noise because sender and receiver might not have the same code book. They might not speak the same language, or they might have different meanings for particular words and phrases. - The English language (among others) also has built-in ambiguities that cause misunderstandings. ***Example:*** +-----------------------------------+-----------------------------------+ | **"Can you close the door?"** | | +-----------------------------------+-----------------------------------+ | **Literal Meaning** | **Other interpretations** | | | | | *The question might be asking | *You might assume the sender is | | whether you are physically able | asking whether shutting the door | | to shut the door or whether the | is permitted.* | | door is designed such that it can | | | be shut.* | | | | | | *This question might not be a | | | question at all, the person could | | | be politely telling you to shut | | | the door.* | | +-----------------------------------+-----------------------------------+ **[Barrier 3:]** **Ambiguity of language** - The ambiguity of language isn't always dysfunctional noise. Corporate leaders are sometimes purposively obscure to reflect the ambiguity of the topic or to avoid using precise language that carries unwanted emotional responses. - One study reported that people rely on more ambiguous language when communicating with people who have different values and beliefs. In these situations, ambiguity minimizes the risk of conflict. **[Barrier 4:]** **Jargons** - Jargons - specialized works and phrases for specific occupations or groups - are usually designed to improve communication efficiency. However, it is the source of communication noise when transmitted to people who do not possess the jargon codebook. **[Barrier 5:]** **Filtering** - Another source of noise in the communication process is the tendency to filter messages. Filtering may involve deleting or delaying negative information or using less harsh words so the message sounds more favorable. - Filtering is less likely to occur when corporate leaders create a "culture of candor". This culture develops when leaders themselves communicate truthfully, seek out diverse sources for information, and protect and reward those who speak openly and truthfully. **[Barrier 6:]** **Information Overload** - Information overload occurs whenever the job\'s information load exceeds the individual's capacity to get through it. Information overload creates noise in the communication system because information gets overlooked or misinterpreted when people can't process it fast enough. The result is poorer-quality decisions as well as higher stress. **Cross-Cultural And Gender Communication** - Increasing globalization and cultural diversity have brought more cross-cultural communication issues. Voice information is one form of cross-cultural communication barrier. How loudly, deeply, and quickly people speak varies across cultures and these voice intonations send secondary messages that have different meanings in different cultures. - Language is an obvious cross-cultural communications challenge. Words are easily misunderstood in verbal communication, either because the receiver has a limited vocabulary or the sender's accent distorts the usual sound of some words. ***Nonverbal Differences Across Cultures*** - Nonverbal communication represents another potential area for misunderstanding across cultures. Many nonconscious or involuntary nonverbal cues (such as smiling) have the same meaning around the world, but deliberate gestures often have different interpretations. ***Gender Differences in Communication*** - Men and Women have similar communication practices, but there are subtle distinctions that can occasionally lead to misunderstanding and conflict. --------------------------------------------- --------------------------------------------- **WHEN MEN COMMUNICATE** **WHEN WOMEN COMMUNICATE** Report talk, giving advice, asserting power Rapport talk, relationship; bu Give advice directly Give advice indirectly Dominate the conversation Adopt a flexible conversation style Apologize less often Apologize more often Tend to be less sensitive to nonverbal cues Tend to be more sensitive to nonverbal cues --------------------------------------------- --------------------------------------------- - Gender differences are also emerging in the use of social media to communicate. Specifically, women are more likely to visit social networking sites like Facebook and Twitter, spend more time online, and click on more web pages than their male counterparts. **Communication Management** - Despite the seemingly simple nature of the communication process, messages are not always understood. Communication fidelity is the extent to which the source\'s intended message and the recipient\'s understanding of it match. **Communication fidelity,** - Communication fidelity, or the degree to which a message\'s intended meaning aligns with how it is understood by the receiver, is critical to effective organizational communication. - However, communication fidelity can suffer due to obstacles at various stages of the communication process, such as withholding information, encoding and decoding challenges, selective attention, and feedback gaps. **Improving the Communication Process** - Identifying potential issues is crucial to enhancing organizational communication. One problem with the fundamental communication process is that the source may leave out or filter information if they believe the recipient doesn\'t need it to fully understand the message. **Obstacles in communication and how to improve it** - One primary barrier to communication occurs at the source, where information may be withheld or filtered, sometimes leading to misunderstandings or errors. For instance, managers might withhold specific details in performance evaluations, assuming these are unnecessary for employees. This filtering, especially common in digital communications like email, can unintentionally create gaps in understanding that even follow-ups may not fully resolve. **Encoding and decoding** - Encoding and decoding issues are also common, as the meaning of symbols and language may differ between the sender and receiver. Problems here can stem from a lack of shared experience, differing language backgrounds, or the use of jargon, which can be confusing or exclusionary for those outside specialized groups. To overcome these challenges, communicators should agree on terms in advance, avoid unnecessary jargon, and select suitable communication channels for their audience. **Semantic issues** - Semantic issues occur when people interpret language differently. For instance, J. Edgar Hoover's note "watch the burden" was misunderstood as a directive to guard the border, though he was merely commenting on memo margins. Similarly, a manager\'s phrase "get rid of this problem" about an employee could be misinterpreted as a call to fire rather than retrain them **Receivers** - Receivers, too, contribute to communication issues through selective attention, value judgments, and source credibility assessments. Selective attention may lead them to hear only parts of a message, while value judgments may skew their perception, as they accept information that aligns with their beliefs and dismiss opposing views. Likewise, the perceived credibility of the message\'s source impacts how seriously a receiver takes it, making credibility an essential consideration in communication. **Feedback** - Feedback is another critical part of ensuring communication accuracy, as it allows the sender to confirm that the message was received and understood. A lack of feedback may force the sender to repeat information or result in the receiver taking inappropriate action due to misunderstanding. Effective communication, therefore, relies on a shared focus from both the sender and receiver, mutual attention to message clarity, and responsiveness to feedback. - Overload, time constraints, status disparities, and noise can all cause organizational communication to breakdown. Communication is hampered by the \"noise\" created by rumors about things like mergers or insolvency. Messages may be disregarded based on rank due to selective attention caused by status disparities. Furthermore, incomplete processing of messages due to time limits and message saturation can result in misconceptions. **Improving Organizational Factors in Communication** Overload, time constraints, status disparities, and noise can all cause organizational communication to breakdown. Communication is hampered by the \"noise\" created by rumors about things like mergers or insolvency. Messages may be disregarded based on rank due to selective attention caused by status disparities. Furthermore, incomplete processing of messages due to time limits and message saturation can result in misconceptions. +-------------+-------------+-------------+-------------+-------------+ | **Focus** | **Source** | **Source** | | | +-------------+-------------+-------------+-------------+-------------+ | | **Questions | **Correct | **Questions | **Correct | | | ** | Actions** | ** | Actions** | +-------------+-------------+-------------+-------------+-------------+ | **MESSAGE** | What idea | Give more | What idea | Listen | | | or thought | information | or thought | carefully | | | can you try | | does the | to the | | | to get | Give less | sender want | entire | | | across | information | you to | message, | | | | | understand | not just a | | | | Give entire | | part of it | | | | message | | | +-------------+-------------+-------------+-------------+-------------+ | **SYMBOLS** | Does the | Say it | What | Clarify | | | receiver | another way | symbols are | symbols | | | use the | Employ | being used | before | | | same | repetition | for | communicati | | | symbols, | | example, | on | | | words | Use | foreign | begins. Ask | | | jargons | receiver\'s | language | question, | | | | language or | technical | ask sender | | | | jargon, | jargon | to repeat | | | | before | | message | | | | sending | | | | | | clearly | | | | | | symbols to | | | | | | be used | | | +-------------+-------------+-------------+-------------+-------------+ | **MEDIUM** | Is this the | Use | What medium | Monitor | | | channel | multiple | | several | | | that the | media | or media is | media. | | | receiver | | the sender | | | | monitor | Change | (using) | | | | regularly? | medium | | | | | | | | | | | Sometimes? | Increase | | | | | | volume | | | | | Never? | (loudness) | | | +-------------+-------------+-------------+-------------+-------------+ | **FEEDBACK* | What is the | Pay | Did you | Repeat | | * | receiver | attention | correctly | message | | | reaction to | to the | interpret | | | | your | feedback, | the | | | | message? | especially | message? | | | | | nonverbal | | | | | | case ask | | | | | | questions. | | | +-------------+-------------+-------------+-------------+-------------+ **Noise Reduction** - Organizations can focus on a few important areas to enhance communication. Maintaining message accuracy can be improved by reducing noise, especially from the rumor grapevine, an informal system of communication that coexists with the formal system, Which usually transmits information faster than official channels do. Despite its rapid dissemination, the grapevine is frequently unreliable. - While keeping an eye on its correctness to prevent distortions, management can use it as an extra channel for information sharing. **Fostering informal communication** - it builds trust and minimizes status-related barriers. Open communication across diverse groups, like Monsanto's team initiatives, promotes understanding and contributes positively to company culture. Encouraging unstructured interactions, supported by physical workspaces and reward systems, allows information to flow freely and timely, outside rigid formal channels **A Balanced Information Network** - Avoiding excessive data that overwhelms decision-makers. Overloaded systems with too much formal data can reduce communication effectiveness. Dashboards and summarized data views help streamline essential information, making it accessible and manageable. Some companies, such as General Electric and McDonald's, support upward communication by implementing a corporate \"ombudsperson\" role. This provides employees with a safe channel for concerns, helping establish a balanced communication system and fostering a more open workplace environment. **CHAPTER 12**: **TRADITIONAL MODELS FOR UNDERSTANDING LEADERSHIP** **The Nature of Leadership** **Meaning of Leadership** - ***As Process -*** Leadership is the use of non-coercive influence to direct and coordinate the activities of group members to meet a goal. - ***As Property* -** Leadership is the set of characteristics attributed to those who are perceived to use such influence successfully. Influence a common element of both perspectives, is the ability to affect the perceptions, beliefs, attitudes, motivation, and/or behavior of others. *Leadership involves neither force nor coercion.* **LEADERSHIP VS. MANAGEMENT** **Activity** **Management** **Leadership** -------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ **Creating an Agenda** Planning and budgeting Establishing steps and timetables for achieving needed results, allocating the resources necessary to make those needed results happen. Planning and budgeting Establishing steps and timetables for achieving needed results, allocating the resources necessary to make those needed results happen. **Developing a human network** Organizing and staffing Establishing structure for accomplishing plan requirement, staffing that structure with individuals, delegating responsibility and authority for carrying out the plan providing policies and procedures to help guide people and creating method or systems to monitor implementation. Aligning people Communicating the direction by words and deeds to all those whose cooperation may be needed to influence the creation or team and condition that understand the vision and strategies the vision and strategies and accept their validity. **Executing Plans** Controlling and Problem solving Monitoring results vs plan in some detail, identifying deviations, and their planning and organizing to solve these problems. Motivating and inspiring Energizing people to overcome major political bureaucratic and resource barriers to change by satisfying very basic, but other unfulfilled human needs. **Outcomes** Produces 0 degree of predictability and order and has the potential to consistently produce major results expected by various stakeholders (e.g. for customers always being on time for stockholders, being on budget.) Produces change, often to a dramatic degree and has the potential to produce extremely useful change (e.g. new products that customers want, new approaches to labor relations that help make a firm more competitive.) **Early Approaches to Leadership** ***Trait Approaches to Leadership*** - Early researchers such as Lincoln, Napoleon, Joan of Arc, Hitler, and Gandhi believed that leaders had some unique set of qualities or traits that distinguished them from their peers. They believed that important leadership traits included **intelligence, dominance, self-confidence, energy, activity, and task-relevant knowledge.** - In recent years, however, the trait approach has received renewed in interest. Some researchers have sought to re-introduced a limited set of traits into the leadership literature. These traits include **emotional intelligence, drive, motivation, honesty and integrity, self-confidence, cognitive ability, knowledge of the business, and charisma.** ***Behavioral Approaches to Leadership*** - In the late 1940\'s, most researchers began to shift away from the trait approach and started leadership as an observable process or activity. - The behavioral approach to the study of leadership included the Michigan studies, the Ohio State studies, and the leadership grid. **[The Michigan Studies]** - The goal of this work was to determine the pattern of leadership behaviors that results in effective group performance. Two basic forms of leader behavior were identified -job-centered and employee-centered, which were presumed to be at opposite behavior \"consideration\" and \"initiating structure\". *Job-centered leader behavior* - pays close attention to performance - primary concern is efficient completion of the task. *Employee-centered leader behavior* - attempts to build effective work groups with high performance goals. - leader's main concern is with high performance, but that is to be achieved by paying attention to the human aspects of the group. **[The Ohio State Studies]** This study identified several forms of leader behavior but tended to focus on the two most significant ones consideration and initiating-structure. *Consideration Behavior* - The leader is concerned with the subordinate\'s feelings and respects subordinates ideas - The leader-subordinate relationship is characterized by mutual trust, respect, and two-way communication. *Initiating-structure Behavior* - The leader clearly defines the leader-subordinate rules so that subordinates know what is expected of them. - The leader also establishes channels of communication and determines the methods for accomplishing the group\'s task. **Leadership Grid (originally called the Managerial Grid)** - Provides a means for evaluating leadership styles and then training managers to move toward an ideal style of behavior. - The Leadership; Grid is a **method of evaluating leadership styles.** The overall objective of an organization using the Grid is to train its managers using organizational development techniques so that they are simultaneously more concerned for both people and production 9,9 style on the grid. **The Emergence Of Situational Leadership Models** Situational models assume that appropriate leader behavior varies from one situation to another. The goal of a situational theory, then, is to identify key situational factors and to specify how they interact to determine appropriate leader behavior. Before discussing the major situational theories, we first discuss an important early model that in many ways laid the foundation for these theories. In a seminar article about the decision-making process, Robert Tanembaun and Warren H. Schmidt proposed a continuum of leadership behavior. Their model is much like the original Michigan framework. Besides purely job-centered behavior (or boss-centered behavior, as they termed it and employee-centered (subordinate-centered) behavior, however, they identified several intermediate behaviors that a manager might consider. - Managerial characteristics include the manager\'s value system, confidence in subordinates personal inclinations, and feelings of security. - Subordinate characteristics include the subordinates need for independence, readiness to assume responsibility, tolerance for ambiguity, interest in the problem, understanding of goals, knowledge, experience, and expectation. - Situational characteristics that affect decision-making include the type of organization, group effectiveness, the problem itself, and time pressures. **The LPC Theory Of Leadership** *Fred Fiedler* - Attempts to explain and reconcile both the leader\'s personality and the complexities of the situation. - \"Contingency Theory of Leadership\" - Contends that a leader\'s effectiveness depends on the situation and, as a result, some leaders may be effective in one situation or organization, but not in another. - Explains why this discrepancy may occur and identifies leader-situation matches that should result in effective performance. *Task versus Relationship Motivation* - Fiedler devised special terms to describe a leader\'s basic personality traits in relation to leadership. \"task motivation\" versus \"relationship motivation\". He also conceptualized the situational context in terms of its favorableness for the leader, ranging from highly favorable to highly unfavorable. - **Task motivation** closely parallels job-centered and initiating structure leader behavior, and **relationship motivation** is similar to employee-centered and consideration leader behavior. - Researchers have offered several interpretations of the LPC score, arguing that it may be an index of behavior, personality, or some other unknown factor. Indeed, the LPC measure - and its interpretation - have long been among the most debated aspects of this theory. Pleasant 8 7 6 5 4 3 2 1 unpleasant ------------- ----------------- ------------ Inefficient 1 2 3 4 5 6 7 8 efficient Unfriendly 1 2 3 4 5 6 7 8 friendly **Least-preferred coworkers (LPC) scale** - measures the degree of task or relationship motivation in a given leader *Situational Favorableness* Fiedler also identified three factors that determine the favorableness of the situation. - Leader-member relations refers to the personal relationship that exists between subordinates and their leader. It is based on the extent to which subordinates trust, respect, and have confidence in their leader, and vice versa. - Task Structure is the second most important determinants of situational favorableness. A structured task in routine, simple, easily understood, and unambiguous. On the other hand, an unstructured task is one that is nonroutine, ambiguous, and complex. - Leader position power is the power inherent in the leader\'s role itself. *Leader Motivation and Situational Favorableness* - Fiedler and his associates conducted numerous studies examining the relationships among leader motivation, situational favorableness, and group performance. - **Leader-Situation Match -** What happens if a person-oriented leader faces a very favorable or unfavorable situation, or a task-oriented leader faces a situation of intermediate favorableness. Fielder considers these leader-situation combination to be \"mismatches\". Recall that a basic premise of his theory is that leadership behavior is a personality trait. Thus, the mismatched leader cannot readily adapt to the situation and achieve effectiveness. *Evaluation and Implications* - The validity of Fiedler\'s LPC theory has been heatedly because of the inconsistency of the research results. Apparent shortcomings of the theory are that the LPC measure lacks validity, the theory is not always supported by research, and Fiedler\'s assumption about the inflexibility of leader behavior are unrealistic. The theory itself, however, does represent an important contribution because it returned the field to a study of the situation and explicitly considered the organizational context and its role in effective **Path Goal Theory of Leadership** - Martin Evans - Robert House ***Path Goal Theory*** - focused on the situation and leader behaviors rather than on fixed train of the leader. -the path-goal theory suggests that leaders can readily adapt to different situations. -argues that subordinates are motivated by their leader to the extent that the behaviors of that leader influence their expectancies. Behavior's (paths) to rewards (goals) ***Leader Behaviors*** - **Directive -** the leader lets subordinates know what is expected of them, gives specific guidance as to how to accomplish tasks, schedules work to be done, and maintains definitive standards of performance for subordinates - **Supportive -** friendly and shows concern for subordinates status, well-being, and needs. - **Participative -** the leader consults with subordinates about issues and takes their suggestions into account before making a decision. - **Achievement-oriented -** setting challenging goals, expecting subordinates to perform at their highest level, and showing strong confidence that subordinates will put forth and accomplish the goals. ***Situational Factors*** - Personal Characteristics - Environmental Characteristics *Personal characteristics* - [Locus of control -] the extent to which individuals believe that what happens to them results from their own behavior or from external causes. - [Perceived ability -] pertains to how people view their own ability with respect to the task. *Environmental Characteristics* - Task structure - Authority system - Work group The path-goal theory proposes that leader behavior will motivate subordinates if it helps them cope with environmental uncertainty created by those characteristics. The extent to which leader behavior matches the people and environment in the situation is presumed to influence subordinates\' motivation to perform. **Vroom's Decision Tree Approach To Leadership** - Victor Vroom & Philip Yetton (Earliest version) - Victor Vroom & Arthur Jago (Revised and expanded version) **VROOM'S DECISION TREE APPROACH** - assumes that the degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. ***Three Factors to Consider Before using the Vroom-Yetton Decision Model*** - ***Decision Quality -*** Making a good decision requires committing resources such as time, workforce, money, equipment, etc. Not every decision is worth committing an excessive amount of resources and can lead to an unnecessary diversion of resources. - ***Subordinate / Team Commitment -*** When your decision might affect your team, a collaborative process might be the best way to go. This can help in better decision making and effective implementation of the decision. - ***Time Constraints -*** When faced with time critical decisions which don't allow you to spend a lot of time researching the variables which might result in a positive or negative outcome, you might require making the decision on your own instead of involving your team. **CHAPTER 13: CONTEMPORARY VIEWS OF LEADERSHIP IN ORGANIZATION** The three major situational theories of leadership discussed in Chapter 12 altered everyone\'s thinking about leadership. No longer did people feel compelled to search for the one best way to lead. Nor did they continue to seek universal leadership prescriptions or relationships. Instead, both researchers and practicing managers turned their attention to a variety of new approaches to leadership. These new approaches, as well as other current emerging leadership issues, are the subject of this chapter. We first describe two relatively new situational theories, as well as recent refinements to the earlier theories. We then examine leadership through the eyes of followers. Recent thinking regarding potential alternatives to traditional leadership are then explored. Next, we describe the changing nature of leadership. We conclude this chapter with a discussion of several emerging issues in leadership. **Contemporary Situational Theories** The LPC theory, the path-goal theory, and Vroom\'s decision three approach together redirected the study of leadership. Not surprisingly, then, other situational theories have also been developed. Moreover, there continue to be changes and refinements to the original situational models. ***The Leader-Member Exchange Model*** The **leader-member exchange model (LMX)** of leadership, conceived by George Graen and Fred Danserau, stresses the importance of variable relationships between supervisors and each of their subordinates. Each superior-subordinate pair\'s referred to as a \"vertical dyad\". The model differs from earlier approaches in that it focuses on the differential relationship leaders often establish with different subordinates. Figure 13.1 shows the basic concepts of the leader-member exchange theory. - The LMX model suggests that leaders from unique independent relationships with each of their subordinates. As illustrated here, a key factor in the nature of this relationship is whether the individual subordinate is in the leader\'s out-group or in-group. - The model suggests that supervisions establish a special relationship with a small number of trusted subordinates referred to as the in-group. The in-group often receives special duties requiring more responsibility and autonomy; they may also receive special privileges, such as more discretion about work schedules. Members of the in-group are also likely to be privy to sensitive information and are likely to know about upcoming events before others. They may also receive more rewards and generally stronger support from the leader. - Subordinates who are not a part of the group are called the out-group, and they receive less of the supervisor\'s time and attention. Members of the out-group are likely to be assigned the more mundane tasks the group must perform and not be \"in the loop\" insofar as information is being shared. They may also receive fewer rewards and overall weaker support from the leader. - Note in the figure that the leader has a dyadic, or one-to-one, relationship with each of the five subordinates. Early in his or her interaction with a given subordinate. The supervisor initiates either an in-group or out-group relationship. It is not clear how a leader selects members of the in-group but the decision may be based on personal compatibility and subordinates\' competence. Research has confirmed the existence of in-groups and out-groups. In addition, studies generally have found that in-group members tend to have a higher level of performance and satisfaction than out-group members. ***The Hersey and Blanchard Model*** Another recent situational perspective; especially popular among practicing managers, is the Hershey and Blanchard model. Like the leadership grid discussed in the previous chapter, this model was also developed as a consulting tool. The Hershey and Blanchard model is based on the notion that appropriate leader behavior depends on the \"readiness\" of the leader\'s followers. In this instance, readiness refers to the subordinate\'s degree of motivation, competence, experience, and interest in accepting responsibility. Figure 13.2 shows the basic model. The figure suggest that as the readiness of followers improves, the leader\'s basic style should also change. When subordinate readiness is low, for example., the leader should rely on a \"**telling**\" style by providing direction and defining roles. When low to moderate readiness exists, the leader should use a \"**selling**\" style by offering direction and role definition accompanied by explanation and information. In case of moderate-to-high follower readiness, the leader should use a \"**participating**\" style, allowing followers to share in decision making. Finally, when follower readiness is high, the leader is advised to use a \"**delegating**\" style by allowing followers to work independently with little or no overseeing. ***Refinements and Revisions of Other Theories*** - In addition to these somewhat newer models, the three dominant situational theories have also continued to undergo various refinements and revisions. For instance, while the version of the LPC theory presented in Chapter 12 is still the dominant model, researcher have made several attempts to improve its validity. Most recently, for example, Fiedler has added the concept of stress as a major element of situational favorableness. He also argued that the leader\'s intelligence and experience play a major role in enabling her or him to cope with various levels of stress that characterize any particular situation. - The path-goal theory has also undergone major refinements over the years. Its original formulation included only two forms of leader behavior. A third was later added and then, most recently, the theory evolved to include the four forms of leader behavior discussed in Chapter 12. While there has been relatively little research on this theory in recent years, its intuitive logic, and general research support make it highly likely that it will again one day emerge as a popular topic for research. - Finally, Vroom\'s decision three approach also continues to evolve. The version presented in Chapter 12 was the third published version. Moreover, Vroom and his associates have continued to develop training and assessment materials to better enable managers understand their own "natural decision- making styles. In addition, there are software versions of the various models that now can quickly help managers determine the optimal level of participation in any given situation. **Leadership Through The Eyes Of Followers** Another recent perspective that has been adopted by some leadership experts focuses on how leaders are seen through the eyes of followers. That is, in what ways and to what extent is it important that followers and other observers attribute leadership to others? The three primary approaches to leadership through the eyes of followers are transformational leadership, charismatic leadership, and attribution of leadership. ***Transformational Leadership*** - Transformational leadership focuses on the basic distinction between leading for change and leading for stability. According to this viewpoint, much of what a leader does occurs in the course of normal, routine, work-related transactions-assigning work, evaluating performance, making decisions, and so forth. Occasionally, however, the leader has to initiate and manage major change, such as managing a merger, creating a work group, or defining the organization\'s culture. The first set of issues involves transactional leadership whereas the second entails transformational leadership. - The Hershey and Blanchard theory suggests that leader behavior should vary in response to the readiness of followers. This figure shows the nature of this variation. The curved line suggests that leader\'s relationship behavior should start low, gradually increase, but then decrease again as follower readiness increases. But the leader\'s task behavior shown by the straight line, should start high when followers lack readiness and then continuously diminish as they gain readiness. - Recall from Chapter 12 the distinction between management and leadership. Transactional leadership is essentially the same as management in that it involves routine, regimented activities. Closer to the general notion of leadership, however, is transformational leadership, the set of abilities that allows the leaders to recognize the need for change, to create a vision to guide that change, and to execute the change effectively. Only a leaders with tremendous influence can hope to perform these functions successfully. Some experts believe that change is such a vital organizational functions that even successful firms need to change regularly to avoid complacency and stagnation, accordingly, leadership for change is also important. - Moreover, some leaders can adopt either transformational or transactional perspectives, depending on their circumstances. Others are able to do one or the other, but not both. For instance, when Alan Mullaly assumes the leadership role at Ford Motor, the firm was in desperate straits. Its production facilities ware outmoded, its costs were too high, and its product line was stale and had a reputation for poor quality. Using dramatic transformational leadership, Mullaly managed to completely overhaul the firm, revitalizing it along every major dimension and transforming it into the healthiest of the Big Three U.S. automakers. Indeed while General Motors and Chrysler needed federal bailout funds in 2009. Ford was able to maintain operations on its own without government assistance and posted a large profit in the first quarter of 2010. Now that the transformation is complete. Mullaly has transitioned to a transactional role and continues to lead the firm toward highest revenues, market share, and profits. - As Walt Disney, however, the story was different. Michael Eisner took over the floundering company in the early 1990s at a time when it had become stagnant and was heading into decline. Relying on his transformational skills, he turned things around in dramatic fashion. Among many other things, he quickly expanded the company\'s theme parks, built new hotels, improved Disney\'s movie business, created a successful Disney cruise line, launched several other major new initiatives, and changed the company into a global media powerhouse. But when the firm began to plateau and needed some time to let all the changes settle in, Eisner was unsuccessful at changing his own approach from transformational leadership to transactional leadership and was subsequently pressured into retiring. ***Charismatic Leadership*** - Perspectives based on charismatic leadership, like the trait discussed in Chapter 12, assume that charisma is an individual characteristic of the leader. Charisma is a form of interpersonal attraction that inspires support and acceptance. Charismatic leadership is accordingly a type of influence based on the leader\'s personal charisma. All else being equal, then, someone with charisma is more likely to be able to influence others than someone without charisma. For example, a highly charismatic supervisor will be more successful in influencing subordinate behavior than a supervisor who lacks charisma. Thus, influence is again a fundamental element of this perspective - Robert House first proposed a theory of charismatic leadership based on research findings from a variety of social science disciplines. His theory suggests that charismatic leaders are likely to have a lot of self-confidence, firm confidence in their belief and ideals, and a strong need to influence people. They also tend to communicate high expectations about follower performance and to express confidence in their follower. Herb Kelleber, legendary CEO of Southwest Airlines (now retired) is an excellent example of a charismatic leader, Kelleber skillfully blended a unique combination of executive skill, honesty, and playfulness. These qualities attracted a group of followers at Southwest who were willing to follow his lead without question and to dedicate themselves to carrying out his decisions and policies with unceasing passion. Other individuals who are or were seen as charismatic leaders include Barack Obama, Mary Kay Ash, Steve Jobs, Ted Turner, Martin Luther King, Jr. and Pope John Paul II. Unfortunately, however, charisma can also empower leaders in other directions. Adolf Hitler had also empower leaders in other directions. Adolf Hitler had strong charismatic qualities, for instance, as does Osama Bin Laden. - Figure 13.3 portrays the three elements of charismatic leadership in organizations that most experts acknowledge today. First, charismatic leaders are able to envision likely future trends and patterns, to set high expectations for themselves and for others, and to model behaviors consistent with meeting those expectations. Next, charismatic leaders are able to energize others by demonstrating personal excitement, personal confidence, and consistent patterns of success. Finally, charismatic leaders enable others by supporting them, empathizing with them, and expressing confidence in them. - The charismatic leader is characterized by three fundamental attitudes. As illustrated here, these are behaviors resulting in envisioning, energizing, and enabling. Charismatic leaders can be a powerful force in any organizational setting. - Charismatic leadership ideas are quite popular among managers today and are the subject of numerous books and articles. Unfortunately, few studies have specifically attempted to test the meaning and impact of charismatic leadership. Lingering ethical concerns about charismatic leadership also trouble some people. They stem from the fact that some charismatic leaders inspire such blind faith in their followers that they may engage in inappropriate, unethical, or even illegal behaviors just because the leader instructed them to do so. This tendency likely played a role in the unwinding of both Enron and Arthur Andersen as people followed orders from their charismatic bosses to hide information, shred documents, and mislead investigation. Taking over a leadership role from someone with substantial personal charisma is also a challenge. For instance, the immediate successors to very successful charismatic football coaches like Vince Lombardi(Green Bay Packers) Steve Spurrier (University of Florida)and Tom Osborne (University of Nebraska) each failed to measure up to his predecessors legacy and was subsequently fired. ***Attribution and Leadership*** - We discussed attribution theory back in Chapter 3 and noted then that people tend to observe behavior and then attribute causes (and hence meaning) to it. There are clear implications for attribution theory and leadership, especially when leadership is framed through the eyes of followers. Basically, then, the attribution perspective holds that when behaviors are observed in a context associated with leadership, others may attribute varying levels of leadership ability or power to the person displaying those behaviors. - For example, suppose we observe an individual behaving confidently and decisively, we also observe that others are paying close attention to what this person says and does and that they seem to defer to and/or consult with her on various things. We might subsequently conclude that this individual is a leader because of both her behavior and the behaviors of others. However, in a different setting we relatively indifferent to what she has to say and that she is not routinely consulted about things. In this case we are more likely to assume that this person is not really a leader. - The attributions we make subsequently affect both our own behavior and the actual capacity of an individual to behave like a leader. For instance, suppose after observing the first group described above we then become a member of that group, since we have attributed leadership qualities to a certain person, we are somewhat likely to mimic, the behaviors of others and treat this person like our own leader. Moreover, the fact that we and others do this reinforces this person\'s confidence in continuing the leadership role. - To further put this into perspective, assume that a group of strangers is trapped in an elevator. One person in the group immediately steps forward and takes charge. He appears confident, reassures and has a calming effect on others, and says that he knows how to call for help and what to do until that help arrives. In all likelihood, the others in the elevator will acknowledge his leadership, will respond positively to his behavior, and would later credit him with helping them get through the unpleasant experience. On the other hand, if in the same setting someone tries to take charge but clearly lacks confidence and/or clearly exhibits ignorance of what to do, others will quickly pick up on this, pay little attention to what the person subsequently says, and - The attribution perspective on leadership is especially clear during presidential campaigns. Candidates and their handlers strive to make sure that they are always shown in the best possible light-demonstrating confidence, being sympathetic, - Knowing what to do, looking poised and well-groomed, and so forth. George W. Bush received a lot of media attention when during the early stages of the war with Iraq he handed in a jet plane on an aircraft carrier, jumped out the cockpit, and boldly walked toward the cameras. Supporters of Bush, saw this as an illustration of his strong leadership. But his critics no doubt saw it as a carefully orchestrated media event designed solely to make him look strong and leader-like. Hence, each camp attributed things about Bush\'s leadership based on the same objective reality but heavily influenced by their own attitudes and predisposition. - One context in which followers pay especially close attention to a leader\'s behavior is during a time of crisis, particularly if followers perceive that their own best interest are directly at stake. **Alternatives To Leadership** Another perspective on leadership that has received considerable attention in recent years has focused on alternatives to leadership. In some cases, circumstances may exist that render leadership unnecessary or irrelevant. The factors that contribute to these circumstances are called leadership substitutes. In other cases, factors may exist that neutralize or negate the influence of a leader even when that individual is attempting to exercise leadership. ***Leadership Substitutes*** - Leadership substitutes are individual, task, and organizational characteristics that tend to outweigh the leader\'s ability to affect subordinates satisfaction and performance. In other words, if certain factors are present, the employee will perform his or her job capably with the directions of a leader. Unlike traditional theories, which assume that hierarchical leadership in one form or another is always important, the premise of the leadership substitutes perspective is that leader behaviors may be irrelevant in some situation. Several basic leadership substitutes are identified in Table 13.1 - Consider, for example, what happens when an ambulance with a critically injured victim screeches to the door of a hospital emergency room. Do the ER employee stand around waiting for someone to take control and instruct them on what to do? The answer is obviously no-they are highly trained and well-prepared professional who know how to respond who to depend on, who to communicate with, how to work together as a team, and so forth. In short, they are fully capable of carrying out their jobs without someone playing the role of leader. - Individual ability, experience, training, knowledge, motivation, and professional orientation are among the characteristics that may substitute for leadership. Similarly, a task characterized by routine, a high degree of structure, frequent feedback, and intrinsic satisfaction may also render leader behavior unnecessary. Thus, if the task gives the subordinate enough intrinsic satisfaction, she or he may not need support from a leader. - Explicit plans and goals, rules and procedures, cohesive work groups, a rigid reward structure, and physical distance between supervisor and subordinate are organizational characteristics that may substitute for leadership. For example, if job goals are explicit, and there are many rules and procedures for task performance, a leader providing directions may not be necessary. Research has provided support for the concept of leadership substitutes, but additional research is needed to identify other potential substitutes and their impact on leadership effectiveness. ***Leadership Neutralizers*** - In other situations, even if a leader is present and attempts to engage in various leadership behaviors, those behaviors may be rendered ineffective-neutralized-by various factors. These factors are referred to as leadership neutralizers. Suppose, for example, that a relatively new and inexperienced leader is assigned to a work group comprised of very experienced employee with long-standing performance norms and a high level of group cohesiveness. The norms and cohesiveness of the group may be so strong that there is nothing the new leader can do to change things. Of course, this pattern may also work in several different ways. The norms may dictate acceptable but not high performance, and the leader may be powerless to improve things because the group is to cohesive. Or, the norms may call for very high performance, and even a bungling and ineffective leader cannot cause any damage. In both cases, however, the process is the same- leader\'s ability to alter the situation is neutralized by elements in that situation. - In addition to group factors, elements of the job itself may also limit a leader\'s ability to \"make a conference\". Consider, for example, employees working on a moving assembly line. Employees may only be able to work at the pace of the moving line, so performance quantity is constrained by the speed of the line. Moreover, if performance quality is also constrained (say, by simple tasks and/or tight quality control procedures, the leader may again be powerless to influence individual work behaviors. - Finally, organizational factors can also neutralize at least some forms of leader behavior. Suppose a new leader is accustomed to using merit pay increases as a way to motivate people. But in her or his new job, pay increases are dictated by union contracts and are based primarily on employee seniority and cost-of-living. Or suppose that an employee is already at the top of the pay grade for his or her job. In either case, the leader\'s previous approach to motivating people has been neutralized and so new approaches wilI have to be identified. **The Changing Nature Of Leadership** Various alternatives to leadership aside, though, many settings still call for at least some degree of leadership, although the nature of that leadership continues to evolve. Among the recent changes in leadership that managers should recognize are the increasing role of leaders as coaches and gender and cross-cultural patterns of leader behavior. ***Leaders as Coaches*** - We noted in Chapter 10 that many organizations today are using teams. And many other organizations are attempting to become less hierarchical-that is, to eliminate the old-fashioned command-and-control mentality often inherent in bureaucratic organizations and to motivate and empower individuals to work independently. In each case, the role of leaders is also changing. Whereas leaders were once expected to control situations, direct work, supervise people, closely monitor performance, make decisions, and structure activities, many leaders today are being asked to change how they manage people. Perhaps the best description of this new role is for the leader to become a coach instead of an overseer. - Consider the metaphor from the standpoint of an actual coach of an athletic team. The coach plays a role in selecting the players for the team and deciding on the general direction to take (such as emphasizing offense versus defense). The coach also helps develop player talent and teaches them how to execute specific plays. But at game time, the coach stays on the sideline, it\'s up to the players themselves to execute plays and get the job done. And while the coach may get some of the credit for the victory, he or she didn\'t actually score any of the points. - Likewise, then, from the standpoint of an organizational leader, a coaching perspective would call for the leader to help select team members and other new employees, to provide some general direction, to help train and develop the team and the skills of its members, and to help the team get the information and other resources it needs. The leader may also have to help resolve conflict among team members and mediate other disputes that arise. And coaches from different teams may need to play important roles in linking the activities and functions of their respective teams. But beyond these activities, the leader keeps a low profile and lets the group get its work done with little or no direct oversight from the leader. - Of course, some managers long accustomed to the traditional approach may have trouble changing to a coaching role. But others seem to make the transition with little or no difficulty. Moreover, companies such as Texas Instruments, Halliburton, and Yum Brands have developed very successful training programs to help their managers learn how to become better coaches. Within the coaching role, some leaders have also excelled at taking on more responsibilities as a mentor-the role of helping a less-experienced person learn the ropes to better prepare himself or herself to advance within the organization. Texas Instruments, again, has maintained a very successful mentoring program for years. ***Gender and Leadership*** - Another factor that is clearly changing the nature of leadership is the growing number of women advancing to higher levels in organization. Given that most leadership theories and research studies have focused on male leaders, developing a better understanding of how females lead is clearly an important next step. For example, do women and men tend to lead differently? Some early research suggests that there are indeed fundamental differences in leadership as practiced by women and men. - For instance, in contract to original stereotypes, female leaders are not necessarily more nurturing or supportive than are male leaders. Likewise, male leaders are not systematically more harsh, controlling or task focused than are female leaders. The one difference that does seem to arise in some cases in that women have a tendency to be slightly more democratic in making decisions, whereas men have a similar tendency to be somewhat more autocratic. - There are two possible explanations for this pattern. One possibility is that women may tend to have stronger interpersonal skills than men and are hence able to better understand how to effectively involve others in making decisions. Men, on the other hand, may have weaker interpersonal skills and thus have a tendency to rely on their own judgment. The other possible explanation is that women may encounter more stereotype resistance to their occupying senior roles. If this is the case, they may actively work to involve others in making decisions so as to help minimize any hostility or conflict. Clearly, however, much more work needs to be done in order to better understand the dynamics of gender and leadership. It is obvious, of course, that high-profile and successful female leaders such as Andrea Jung (CEO of Avon Products) and Condoleeza Rice (former Secretary of State) are demonstrating the effectiveness with which women can be truly exceptional leaders. ***Cross-Cultural Leadership*** - Another changing perspective on leadership relates to cross-cultural issues. In this context culture is used as a broad concept to encompass both international differences and diversity-based differences within one culture. For instance, when a Japanese firm sends an executive to head up the firm\'s operation in the United States, that person will need to become acclimated to the cultural differences that exist between the two countries and consider changing his or her style accordingly. Japan is generally characterized by collectivism, while the United States (U of C 15.34) is base more on individualism. The Japanese executive, then, will find it necessary to recognize the importance of individual contributions and rewards and the differences in individual and group roles that exist in Japanese and U.S. businesses. - Similarly, cross-cultural factors also play a growing role in organizations as their workforces become more and more diverse. Most leadership research, for instance, has been conducted on samples or case studies involving white male leaders (since until several years ago most business leaders were white males). But as African groups achieve leadership positions, it may be necessary to reassess how applicable current theories and models of leadership are when applied to an increasingly diverse pool of leaders. **Emerging Issues In Leadership** Finally, there are also three emerging issues in leadership that warrant discussion. These issues are strategic leadership, ethical leadership, and virtual leadership. ***Strategic Leadership*** - Strategic leadership is a new concept that explicitly relates leadership to the role of top management. We will define strategic leadership as the capability to understand the complexities of both the organization and its environment and to lead change in the organization so as to achieve and maintain a superior alignment between the organization and its environment. In some ways, then, strategic leadership may be seen as an extension of the transformational leadership role discussed earlier. However, this recent focus has more explicitly acknowledged and incorporated the importance of strategy and strategic decision making. That is, while both transformational and strategic leadership implicitly emphasized the ability to lead change as the central focus. Strategic leadership, on the other hand, puts greater weight on the leader\'s ability to think and function strategically. - To be effective in this role, a manager needs to have a thorough and complete understanding of the organization - its history, its culture, its strengths, and its weaknesses. In addition, the leader needs a firm grasp of the organization\'s environment. This understanding must encompass current conditions and circumstances as well as significant trends to recognize how the firm is currently aligned with its environment-where it relates effectively with that environment, and where it relates less effectively. Finally, looking at environmental trends and issues, the strategic leader works to improve not only the current alignment but also the future alignment. Andrea Jung (CEO of Avon Products), Michael Dell (founder and CEO of Dell Computer), and A.G. (U of C 8.6). Lafley (former CEO of Procter & Gamble) have all been recognized as strong strategic leaders. Reflecting on the dramatic turnaround he led at Procter & Gamble, for instance, Lafley commented, "I have made a lot of symbolic, very physical changes so people understand we are in the business of leading change\". On the other hand, Jurgen Schremp (former CEO of DaimlerChrysler, Raymond Gilmartin (CEO of Merck), and Scott Livengood (CEO of Krispy Kreme) have been singled out for their poor strategic leadership. ***Ethical Leadership*** - Most people have long assumed that top managers are ethical people. But in the wake of recent corporate scandals at firms like Enron, Boeing, and WorldCom, faith in top managers has been shaken. Hence, perhaps now more than ever, high standards of ethical conduct are being held up as a prerequisite for effective leadership. More specifically, top managers are being called upon to maintain high ethical standards for their own conduct, to unfailingly exhibit ethical behavior, and to hold others in their organizations to the same standards. - The behaviors of top leaders are being scrutinized more than ever, and those responsible for hiring new leaders for a business are looking more and more closely at the backgrounds of those being considered. The emerging pressures for stronger corporate governance models are likely to further increase the commitment to select only those individuals with high ethical standards for leadership positions in business, and to hold them more accountable than in the past for both their actions and the consequences of those actions. ***Virtual Leadership*** - Finally, virtual leadership is also emerging as an important issue for organizations. In earlier times leaders and their employees worked together in the same physical location and engaged in personal (i.e. face-to-face) interactions on a regular basis. But in today\'s world both leaders and their employees may work in locations that are far from one another. Such arrangements might include people telecommuting from a home office one or two days a week to people actually living and working far from company headquarters and seeing one another in person only very frequently. - How then do managers carry out leadership when they do not have regular personal contact with their followers? And how do they help mentor and develop others? Communication between leaders and their subordinates will still occur, of course, but it may be largely by telephone and email. Hence, one implication may be that leaders in these situations may simply need to work harder at creating and maintaining relationships with there employees that go beyond simply need to work harder at creating and imitating relationships with their employees that go beyond simply words on a computer screen. While nonverbal communication such as smiles and handshakes may not be possible online, managers can instead make a point of adding a few personal words in an email (whenever appropriate to convey appreciation, reinforcement, or constructive feedback. Building on this, managers should then also take advantage of every single opportunity whenever they are in face-to-face situation to go further than they might have done under different circumstances to develop, strong relationship. - But beyond these simple prescriptions, there is no theory or research to guide managers functioning in a virtual world. Hence, as electronic communications continues to pervade the workplace, researchers and managers alike need to work together to first help frame the appropriate issues and questions regarding virtual leadership, and then collaborate to help address those issues and answer those questions. **CHAPTER 14: CONFLICT AND NEGOTIATION IN ORGANIZATION** **The Nature of Conflict in Organizations** - **Conflict**: A disagreement or opposition between individuals or groups that can arise due to various reasons in an organizational setting. - First, Conflict is a Process, not singular effect. - Parties have to actually perceive it to exist in order for conflict to be real. - Finally discomfort or animosity must occur in order for the conflict to be real Parties involved in conflict may be individuals groups or organization **Impact of conflict on performance** - Too little or too much conflict may result in low performance - While moderate level of conflict may lead to higher performance - Either too much or too little conflict Can be dysfunctional for an organization [**Profit oriented ones**] managers believe that conflict is dysfunctional **[Non for profit organization]** conflict is a beneficial and conducive to higher quality decision making **Common Forms and Causes of Conflict** - **Task Conflict**: Disagreements over the content and goals of work, such as how tasks should be performed. - **Process Conflict**: Disputes about how work should be organized and who should do what. - **Relationship Conflict**: Personal incompatibilities and emotional tensions between team members, often unrelated to the actual tasks. - **Legal Conflict**: Disagreements that arise from legal constraints, laws, or regulations impacting organizational operations. **Causes of Conflict** - **Interpersonal Conflict**: Conflict between individuals, often due to differences in personality, values, or opinions. - **Intergroup Conflict**: Conflict that occurs between different teams or groups within an organization. - **Conflict Between Organization and Environment**: Conflict arising when an organization's actions clash with external forces, like societal expectations or regulations. **Task Interdependence** - The greater the interdependence, the greater likelihood that a conflict will occur. Three major forms are pooled, sequential, and reciprocal. - **Pooled Interdependence:** Lowest level of interdependence, least amount of conflict. Units operate with little interaction, their own operating budget and staff. - **Sequential Interdependence:** The output of one unit becomes the input of another creating a moderate level of interdependence resulting in higher potential for conflict. - **Reciprocal Interdependence:** Activities flow both ways between units, most complex interdependence, has the highest potential for conflict. **Reactions to Conflict** It is the people who are in conflict. Reactions of these people can be differentiated along two dimensions, the significance of goals for both parties, and compatibility of these goals.  - **Degree of goal compatibility:** extent to which the goals can be achieved simultaneously. Goals are compatible if one party can achieve its goal without preventing other parties from achieving their own goal. - **Avoidance:** occurs when interaction is relatively unimportant to either parties in achieving their goals, and these goals are incompatible. Parties simply try to avoid interacting with each other because parties are not striving toward compatible goals, and issues are not important. - **Accommodation**: occurs when goals are compatible, however interactions are not considered important to overall goal attainment. Involves discussions of how the parties can accomplish their independent task with the least expenditure of time and effort. - **Competition:** occurs when interactions are important, however the goals of both parties are incompatible. Since only one can reach the goal, parties will be in competition - **Collaboration:** occurs when interactions between groups are very important in achieving each goal of the parties, and these goals are compatible. These can lead to new and innovative ideas and solutions to differences. - **Compromise:** occurs when interactions are moderately important to goal attainment, but goals are only somewhat compatible. In these situations, parties interact with each other to achieve their goals, but may not aggressively pursue goal attainment in either competitive or collaborative manner. **Managing Conflict** - Managers must know when to stimulate conflicts and when to resolve them to avoid potential disruptive effects. **[Conflict Management]**: may involve resolution or stimulation of conflict depending on the situation. **Use resolution when conflict:** 1. Has become disruptive and too much time and effort are spent on the conflict  2. Focuses on internal goals of the group rather than on organizational goals **Use stimulation when:** 1. Work groups are stagnant and comfortable with the status quo 2. Consensus among the group is too easily reached 3. Groups are not creative nor motivated to challenge traditional ideas 4. Change within the organization is needed to maintain competitiveness. **[Stimulating Conflict]:** creation and constructive use of conflict by a manager. Its goal is to bring about the situation in which differences of opinion are exposed for examination by all. **[Methods to stimulate conflict]** include altering physical location of groups to stimulate interactions, forcing more resource sharing, and implementing other changes in relationships among groups. **Conflict Resolution** **Conflict needs to be resolved when: ** - It causes major disruptions in the organization, - It absorbs time and effort of the persons concerned, and  - It its focus is on the group\'s internal goals rather than on organizational goals. *What should the managers' do to resolve conflict?* - Determine the source of conflict With this, the manager should move the conflictinf parties to one of the five types of reactions, depending on the nature of the conflicting parties. **Structural Approaches to Conflict Management** - **Emphasizing Superordinate Goals** - Shared company-wide aspirations can reduce conflict between departments by unifying employees and shifting their focus away from competing individual or departmental goals. - **Reducing Differentiation** - Reducing differences between two opposite groups through shared experiences and beliefs can help reduce conflict and encourage collaboration. - **Improving Communication and Mutual Understanding** - Improving communication and mutual understanding between conflicting parties through techniques like the Johari Window and contact hypothesis can help resolve dysfunctional conflict, but it\'s important to consider factors like differentiation and cultural differences. - **Reducing Independence** - This explains how to minimize conflict by decreasing the level of dependence among individuals or work units. - **Create Buffers**: This involves creating mechanisms that loosen the connection between people or units, reducing their reliance on each other. An example is building up inventories in an assembly line to decrease the dependency of workers on each other. - **Use integrator**: Employees who coordinate diverse teams toward a common goal. They act as buffers, reducing direct conflict between units with differing objectives. While lacking direct authority, integrators leverage influence and persuasion to harmonize efforts and achieve shared outcomes. - **Combine Jobs**: Such as assembling an entire toaster, enriches jobs and reduces interdependence between workers. This shift from sequential to pooled task interdependence minimizes the potential for dysfunctional conflict. - **Increasing Resources** - While increasing resources can mitigate conflict caused by scarcity, the associated costs may deter decision-makers. However, it\'s crucial to weigh these costs against the potential harm of dysfunctional conflict arising from resource limitations. - **Clarifying Rules and Regulations** - Conflicts that arise from ambiguities can be reduced by implementing clear rules and procedures.  **Using Interpersonal Techniques to Manage Conflict** - **Team Building**: - Activities designed to strengthen relationships and trust within a group. - Enhance effectiveness and satisfaction of individuals who work in groups or teams and to promote overall group effectiveness, less conflict among members of the team - **Survey Feedback** - Collecting and acting on feedback to address potential conflicts. - Each employee responds to a questionnaire intended to measure perceptions and attitudes - **Third-Party Peacemaking** - Bringing in an external mediator to help resolve conflict. - A more extreme form of interpersonal conflict management, Often used when substantial consequences within the organization. **Negotiation Conflict Management**: - Resolving conflict through negotiation techniques. **Resolving Conflict Through Negotiation** - **Negotiation**: It is a process where two or more parties, with differing preferences on a specific issue, work towards a mutually agreeable solution. This can range from a simple decision like who pays for lunch to more complex scenarios like labor union negotiations or corporate mergers. **Key issues of negotiation:** - **○** At least two parties must be involved in the negotiation process. - **○** The parties involved should have contrasting viewpoints or desires on the issue. - **○** The ultimate goal is to reach a consensus or compromise that satisfies the needs of all parties involved. **Approaches to Negotiation** - **Individual Differences:** The key to a successful negotiation was selecting the right person to do the negotiating, one who had the appropriate demographic characteristics. - **Situational Characteristics:** The context within which negotiation takes place, beyond control of negotiators. - **Game Theory:** using a mathematical model to predict the outcome of negotiation situations. - **Cognitive Approaches:** recognizes negotiators often depart from perfect rationality during negotiation, ties to predict how and when negotiation will make these departures. **Win-Win Negotiation** **Win-Win Negotiation**: An approach that focuses on finding mutually beneficial solutions where both parties\' needs are satisfied and a long-term relationship is fostered. **Four-Step Approach (PRAM Model)** - **Planning**: Negotiators should set their goals, anticipate the other party\'s goals, identify areas of agreement, and develop strategies for resolving disagreements. - **Building Relationships**: Cultivate trust and positive personal relationships before discussing business. - **Forming Agreements**: Confirm goals, verify areas of agreement, propose positive solutions, and jointly resolve differences. - **Maintaining Relationships**: Provide feedback, uphold agreements, stay in contact, and reaffirm trust. **Conclusion** - In organizations, conflict is inevitable but manageable. With the right strategies---like identifying root causes, balancing responses, and using negotiation---conflict can be transformed from a disruptive force to a source of innovation and growth. Effective conflict management not only resolves issues but also enhances team cohesion, aligns individual goals with organizational objectives, and ultimately supports better decision-making and performance. **CHAPTER 15: ORGANIZATION CULTURE** **The Nature Of Organization** ***Early 1980s*** - Organization culture became a central concern in the study of organizational behavior. - Interest in organization culture was not limited to academic researchers. - Business Week, Fortune and other business periodicals published articles - The study of organization culture remains important, although the enthusiasm of the early 1980s has waned somewhat - Studies have shown that organizations with strong cultures that are strategically appropriate and that have norms that permit the organization to change actually do perform well. **What Is Organization Culture?** ***Definition*** - A belief system shared by an organization's members - Strong, widely shared core values - The way we do things around here - The collective programming of the mind - Collective understanding - A set of shared, enduring beliefs communicated through a variety of symbolic media, creating meaning in people's work lives - A set of symbols, ceremonies, and myths that communicates the underlying values and beliefs of that organization to its employees - A dominant and coherent set of shared values conveyed by such symbolic means as stories, myths, legends, slogans, anecdotes, and fairy tales - The pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration **Despite The Apparent Diversity Of These Definitions, A Few Common Attributes Emerge** - All the definitions refer to a set of values held by individuals in an organization. These values define good or acceptable behaviors and bad or unacceptable behavior - A second attribute common to many of the definitions in the table is that the values that make up an organization's culture are often taken for granted; that is, they are basic assumptions made by the firm's employees rather than prescriptions written in a book or made explicit in a training program. - The final attribute shared by many of the definitions in the table is an emphasis on the symbolic means through which the values in an organization's culture are communicated. Although, as we noted, companies sometimes could directly describe these values, their meaning is perhaps best communicated to employees through the use of stories, examples, and even what some authors call "myths" or "fairy tales." Stories typically reflect the important implications of values in an organization's culture. ***We can use the three common attributes of definitions of culture just discussed to develop a definition with which most authors probably could agree:*** **Organization Culture** - is the set of shared values, often taken for granted, that help people in an organization understand which actions are acceptable and which are considered unacceptable. - Often these values are communicated through stories and other symbolic means. ***Historica