MGT502 Organizational Behavior - Group Decision Making PDF

Organizational Behavior - MGT502 VU Lesson 19 GROUP DECISION MAKING Overview Group and o...

Organizational Behavior - MGT502 VU Lesson 19 GROUP DECISION MAKING Overview Group and organizational effectiveness hinge on minimizing process losses, achieving process gains, aligning group goals with organizational goals, and having the appropriate level of group cohesiveness. Three types of groups that are especially important in many organizations include the top management team, self-managed work teams, and research and development teams. This chapter makes the following points: Actual group performance often falls short of potential performance; process losses result from coordination and motivation problems in groups. Process gains cause the potential performance of a group to rise, and they enhance group effectiveness. Social loafing, a motivation problem that leads to process losses, is the tendency of individuals to exert less effort when they work in a group than when they work alone. Social loafing occurs for two reasons: (a) individuals in a group think that they will not receive positive outcomes for performing at a high level or negative outcomes for substandard performance because individual levels of performance cannot easily be identified and evaluated; and (b) individuals think that their own efforts are unimportant or not needed. Social loafing can be eliminated or reduced by making each individual feel that he or she can make an important and worthwhile contribution to the group, and by keeping group size small. Group tasks can be characterized in terms of the nature of interdependence between group members. Thompson describes three types of task interdependence: pooled, sequential, and reciprocal. The nature and causes of process losses and process gains depend on the type of task involved and the degree of interdependence among group members. Group cohesiveness is the attractiveness of a group to its members. Group size, the similar- ity/diversity of group members, competition with other groups, success, and the exclusiveness of the group help to determine the level of participation and communication within a group, the level of conformity to group norms, and group goal accomplishment. Group goals aligned with organization goals, lead to an optimal level of group cohesiveness that results in high performance. When group goals are not aligned with organization goals, group cohesiveness is dysfunctional for an organization. Four kinds of work groups that have the potential to affect organizational performance dramatically are top-management teams, self-managed work teams, research and development teams, and virtual teams. Deciding When to Use a Team Use a Team When: – Many perspectives are needed – Acceptance of the decision is critical – The problem is complex or unstructured – Individuals judgments are unreliable – Individuals are unwilling to take necessary risks – You want to develop team members’ team-related skills Be Cautious About Using a Team When: – The issue is unimportant – Individuals don’t want to participate © Copyright Virtual University of Pakistan 90 Organizational Behavior - MGT502 VU – Individual risk preferences are too high – Time is of the essence – Group norms are unacceptable Guidelines for Dealing with Problem Behaviors Choose team members carefully. Offer training. Provide clear goals. Clearly define member responsibilities. Use peer evaluations. Reward superior performance. Don’t let social considerations overwhelm concern with the task. Remove problem team members as a last resort. Group Decision Making Advantages 1. more knowledge through pooling of group resources 2. Increased acceptance & commitment due to voice in decisions 3. greater understanding due to 4. involvement in decision stages Disadvantages 1. Pressure in groups to conform 2. Domination by one forceful member or dominant clique 3. Amount of time required, because group is slower than individual to make a decision Group Problem Solving Techniques Consensus presenting opinions and gaining agreement to support a decision Brainstorming process to generate a quantity of ideas Nominal Group Technique process to generate ideas and evaluate solutions Delphi Technique process to generate ideas from physically dispersed experts Computer-Aided Decision Making Group Problem Solving Techniques Consensus Presenting opinions and gaining agreement to support a decision In these groups, members meet face to face and rely on both verbal and nonverbal interaction to communicate with each other. Interacting groups often censor themselves and pressure individual members toward conformity of opinion. Brainstorming, the nominal group technique, and electronic meetings have been proposed as ways to reduce many of the problems inherent in the traditional interacting group. Brainstorming “Process to generate a quantity of ideas” Group members actively generate as many ideas and alternatives as possible, and they do so relatively quickly and without inhibitions. It is meant to overcome pressures for conformity in the interacting group that retard the development of creative alternatives. © Copyright Virtual University of Pakistan 91 Organizational Behavior - MGT502 VU In a typical brainstorming session, a half dozen to a dozen people sit around a table. The process: a. The group leader states the problem clearly. b. Members then “free-wheel” as many alternatives as they can in a given length of time. c. No criticism is allowed, and all the alternatives are recorded for later discussion and analysis. One idea stimulates others, and group members are encouraged to “think the unusual.” The nominal group technique “Process to generate ideas and evaluate solutions” A form of structured group decision making that enables everyone to participate and have his/her ideas heard without hostile criticism or distortions. A structured voting procedure is used to prioritize responses to the nominal question. Restricts discussion or interpersonal communication during the decision-making process Group members are all physically present, but members operate independently. Specifically, a problem is presented, and then the following steps take place: a. Members meet as a group but, before any discussion takes place, each member independently writes down his or her ideas on the problem. b. After this silent period, each member presents one idea to the group. Each member takes his or her turn. c. The group now discusses the ideas for clarity and evaluates them. d. Each group member silently and independently rank-orders the ideas. e. The idea with the highest aggregate ranking determines the final decision. The chief advantage of the nominal group technique is that it permits the group to meet formally but does not restrict independent thinking, as does the interacting group. Delphi Technique For groups who do not meet face to face. Leader distributes topic or task Each member responds A leader collects responses and sends back to team and solicits feedback. Process is repeated until there is resolution on the issue in question. The computer-assisted group The computer-assisted group or electronic meeting blends the nominal group technique with sophisticated computer technology. Up to 50 people sit around a horseshoe-shaped table, empty except for a series of computer terminals. Issues are presented to participants, and they type their responses onto their computer screen. Individual comments, as well as aggregate votes, are displayed on a projection screen. The major advantages of electronic meetings are anonymity, honesty, and speed. Social loafing A motivation problem that leads to process losses is the tendency of individuals to exert less effort when they work in a group than when they work alone. Social loafing occurs for two reasons: (a) individuals in a group think that they will not receive positive outcomes for performing at a high level or negative outcomes for substandard performance because individual levels of performance cannot easily be identified and evaluated; and (b) individuals think that their own efforts are unimportant or not needed. Social loafing can be eliminated or reduced by making each individual feel that he or she can make an important and worthwhile contribution to the group, and by keeping group size small. In groups, individual performance is difficult to identify. There © Copyright Virtual University of Pakistan 92 Organizational Behavior - MGT502 VU is a strong potential for social loafing, the tendency to exert less effort in a group. Social loafing can impact work-group effectiveness. Social loafing occurs because workers feel that high-level performance goes unrewarded. This occurs because individual performance goes unidentified, and low-level performance goes unpunished. Motivation theories suggest that performance is high when outcomes are based on individual performance. Workers in a group believe that their efforts are unimportant and that others can do the work. Social loafing results in performance below the group potential. Lack of motivation makes some workers exert less effort than if they worked individually. Social loafing by one leads to reduced effort by others. The sucker effect occurs when members, not inclined to social loafing, reduce efforts because they refuse to become the “suckers” of social loafers. This reflects the equity theory of motivation; inequity leads to restoring equity by changing inputs or outcomes. Social Facilitation The presence of group members stimulates individuals, who feel that others will evaluate their performance and give them positive or negative feedback. Social facilitation refers to the effects that the physical presence of others has on an individual’s performance. Audience effects are the effects of passive spectators on performance, whereas co-action effects are the effects of others when individuals perform the same task. This research indicates that the presence of others has positive and negative effects on performance. The type of effect depends on how well the task is known. When others are present and the task is well learned or performed repeatedly in the past, performance is enhanced. When others are present and the task is difficult, novel, or complex, performance is impaired. People realize that the presence of others interferes with performance and isolate them. Organizations can help workers benefit from, rather than be harmed by, social facilitation effects. They can provide private offices or special furniture for performing difficult tasks, and meeting rooms and tables for performing tasks that benefit from the presence of group members. © Copyright Virtual University of Pakistan 93 Organizational Behavior - MGT502 VU Lesson 20 COMMUNICATION Overview Communication is one of the most important processes that take place in organizations. Effective communication allows individuals, groups, and organizations to achieve their goals and perform at a high level, and it affects virtually every aspect of organizational behavior. This chapter makes the following points. Communication is the sharing of information between two or more individuals or groups in an organization to reach a common understanding. Communication serves four major functions in organizations: providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions. The communication process entails a number of steps including the sender’s encoding of the message, selection of a medium, decoding of the message by the receiver, and completing the feedback loop. Jargon (specialized language used by members of a group) facilitates communication within the group and hinders communication outside the group. Filtering and information distortion, poor listening, lack of or inappropriate feedback, rumors, and cross-cultural differences in linguistic styles can all lead to ineffective communication in organizations. Communication can be improved by establishing trust and encouraging open communication, improving listening skills, developing good feedback skills, using company TV to spread accurate information, and understanding cross-cultural differences in linguistic styles. Communication media vary in information richness (the amount of information they can carry and the potential they have for enabling senders and receivers to reach a common understanding). Face- to-face communication is the medium highest in information richness. It is followed by verbal communication electronically transmitted, personally addressed written communication, and impersonal written communication. Other factors that affect the selection of a medium include how much of the sender’s and receiver’s time it takes and whether it leaves a paper or electronic trail. Advances in information technology such as global computer networks like the Internet generally tend to contribute most to the knowledge function of communication. Given the vast array of information currently available to organizational members, organizations have to be careful that their members are not overloaded with information. Using electronic communication to replace face-to- face communication in work groups has certain disadvantages that tend to increase as the level of task interdependence between group members increases. Four types of work group communication networks are the wheel, the chain, the circle, and the all- channel network. As the level of task interdependence increases in a group, so too does the need for communication between group members. When a group’s task is characterized by pooled interdependence, the wheel network is likely to be used. When a group’s task is characterized by sequential interdependence, a chain network is likely to be used. When a group’s task is characterized by reciprocal interdependence, an all-channel network is likely to be used. An organization’s actual communication network is seldom accurately depicted in its formal organization chart. Networks change as communication needs change within the organization or group. What Is Communication? Communication is the sharing of information between two or more individuals or groups to reach a common understanding. Communication has two components: the sharing of information and the reaching of a common understanding. (This does not mean agreement, rather an understanding of the message). If people either do not receive the information or understand the meaning, then communication has not taken place. © Copyright Virtual University of Pakistan 94 Organizational Behavior - MGT502 VU Communication is critical for organizational effectiveness. If people lack needed information because it has not been shared, they cannot perform their jobs well. Because the interpretation of information affects job performance, if a common understanding of a message is lacking, workers cannot coordinate their efforts to achieve organizational goals. The Importance of Communication Skills “Top executives from Fortune 500 companies rate communications skills as the most important quality for business leaders.” New York Times (Business Section) “There may be no single thing more important in our efforts to achieve meaningful work and fulfilling relationships than to learn and practice the art of communication.” The Art of Leadership (Max De Pree, Author) The Communication Process Context Physical – where The Communication communication takes place, the environment, Process the distance between participants, seating, time of day Encoding Channel Decoding Social – the nature of the relationship Message Message Historical – the background of previous communication Source Receiver Psychological – the moods and feelings Feedback Cultural – the set of beliefs, values, and norms that are shared by a large group of people Participants Sender: the individual, group, or organization that needs or wants to share information with another individual, group, or organization to communicate Receiver: the individual, group, or organization for which the information is intended A sender might be a supervisor with instructions about performing a task and a receiver might be a new worker. Messages The information the sender needs or wants to share with other people. Effective messages are clear and complete. A message is clear if it is easily interpreted or understood. A message is complete if it contains the information to achieve a common understanding between the sender and the receiver. If a sender is vague or unsure about the message, communication is ineffective. Encoding “Translating the message into symbols or language that the receiver can understand” © Copyright Virtual University of Pakistan 95 Organizational Behavior - MGT502 VU A supervisor sends a message about policy changes to subordinates by encoding it in a memo. Senders must have basic writing and oral communication skills, which many employees lack. A sender must use words the receiver understands. Jargon, specialized language of members of a profession or occupation, affects good communication. Although jargon facilitates communication because a single term describes a complex idea, it leads to ineffective communication when receivers are outside the occupation or profession. Channels Formal vs. Informal Communication Formal communication refers to messages that use formally established channels. Follows the chain of authority and command. Informal communication is more spontaneous communication occurring without regard for the formal channels of communication. (The ‘grapevine’) Noise “Interferes with the communication process” Managers should decrease noise by increasing the readability and clarity of written communication or fixing broken answering machines and problematic e-mail systems. There are four communications problems in organizations: filtering and information distortion, poor listening, lack of or inappropriate feedback, and rumors. External noise – the sights, sounds, and other stimuli that draw people’s attention away from intended message Internal noise – the thoughts and feelings that interfere with meaning Semantic noise – alternate meanings aroused by a speaker’s symbols The Communication Process Feedback Noise The Medium Decodes Decodes “The pathway through which an encoded message is transmitted to a Sender Message Receiver receiver” Encodes Encodes Verbal communication is the sharing of information by means of words, either spoken Feedback or written. Verbal communication can take the form of face-to-face oral communication, telephone communication, and written communication using memos, letters, and reports, transmitted electronically through e-mail or fax machines. Because each medium of verbal communication has advantages and disadvantages, guidelines can assist the selection of a medium. It is important to choose a medium the receiver monitors and prefers. Some prefer face-to-face communication whereas others prefer written communication. The medium should be appropriate for the message. Certain messages are best conveyed face-to-face, such as termination or promotion messages. A complex message is best conveyed in written form for further reference. A final guideline is to use multiple media when necessary. When a message is important, it is wise to send through several forms (e.g., face-to-face, written), to ensure receipt and understanding of the message. Nonverbal communication is the sharing of information by means of facial expressions, body language, and even dress. Nonverbal communication is used when people feel uncomfortable about expressing part of a message verbally. People have less control over nonverbal communication; it is difficult to conceal insincerity © Copyright Virtual University of Pakistan 96 Organizational Behavior - MGT502 VU nonverbally. A sender says “Congratulations!” verbally, his or her tone of voice, facial expression, or gestures may convey a different message, such as resentment. Nonverbal communication communicates support, acceptance, and a sense of camaraderie. A hug reduces stress, raises self-confidence, and makes people feel connected. Studies of newborns, the elderly, and children in orphanages show that touch is necessary for psychological well-being. Hugs express powerful emotions and feelings. Barriers to Effective Communication and Ways to Improve Communication Noise interferes with the communication process. Managers should decrease noise by increasing the readability and clarity of written communication or fixing broken answering machines and problematic e-mail systems. There are four communications problems in organizations: filtering and information distortion, poor listening, lack of or inappropriate feedback, and rumors. Filtering occurs when senders withhold part of a message because they think the receiver does not need or want the information. Supervisors filter information by not telling subordinates’ details about downsizing. Withholding negative information results in real or potential disasters. A supervisor remains unaware of a minor problem until it is too late to resolve. Investigations into airline crashes revealed that junior crew members were reluctant to transmit important information to the captain, information that could have prevented the crash. The receiver then responds, starting the feedback loop. A variety of responses are possible: acknowledging receipt of the message, ignoring receipt of the message, responding with the requested information, or asking for clarification. The receiver encodes the message, choosing a medium the sender monitors. The sender decodes the response and determines if the receiver properly interpreted the message. If so, the process is complete. If not, the process continues until both parties reach an understanding. Selective Perception Receivers in the communication process selectively see and hear based on their needs, motivations, experience, background, and other personal characteristics. Defensiveness When individuals interpret another’s message as threatening, they often respond in ways that retard effective communication. Language Words mean different things to different people. Improve Sending Messages Clarify ideas before communicating Motivate the receiver Communicate feelings as well as facts Be aware of nonverbal behavior Obtain feedback Effective Listening Make eye contact Exhibit affirmative head nods and appropriate facial expressions. Avoid distracting actions or gestures. Ask questions. Avoid interrupting the speaker. Don’t over talk. Make smooth transitions between the roles of speaker and listener. © Copyright Virtual University of Pakistan 97 Organizational Behavior - MGT502 VU Lesson 21 COMMUNICATION Overview An organization’s effectiveness hinges on good communication, as does the effectiveness of groups and individuals inside the organization. This chapter focuses on the nature of communication, one of the most important processes in an organization. The communication process and its functions are de- scribed, as are communication problems and how to avoid them. Methods and patterns of communi- cation in organizations are also considered. Communication is the sharing of information between two or more individuals or groups to reach a common understanding. Communication has two components: the sharing of information and the reaching of a common understanding. (This does not mean agreement, rather an understanding of the message). If people either do not receive the information or understand the meaning, then communi- cation has not taken place. Communication is critical for organizational effectiveness. If people lack needed information because it has not been shared, they cannot perform their jobs well. Because the interpretation of information affects job performance, if a common understanding of a message is lacking, workers cannot coordinate their efforts to achieve organizational goals. Communication affects most aspects of organizational behavior. Effective communication is impor- tant for coordinating groups and for motivating workers. The functions of communication in organi- zations include: providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions. Communication Principles Communication has purpose Communication is continuous Communication messages vary in conscious encoding Communication is relational Communication is culturally bound Communication has ethical implications Communication is learned Functions f Communication Functions of Communication Communication affects most aspects of organizational behavior. Effective Control Motivation communication is important for coordinating groups and for motivating workers. The functions of communication in organizations include: providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and Information Emotional expressing feelings and emotions.. Expression Information Communication provides knowledge to organizational members to perform jobs effectively and achieve goals. Knowledge is critical for newcomers because only through effective communication do they learn organizational expectations. Knowledge is also important for experienced employees because tasks, goals, © Copyright Virtual University of Pakistan 98 Organizational Behavior - MGT502 VU responsibilities, and policies constantly change. Communication ensures that workers continue to understand the tasks needed to achieve organizational goals. Information Richness Media differ in information richness—the amount of information carried and how much they enable senders and receivers to reach understanding. Media high in information richness not only transmit more information but also generate a common understanding. Face-to-face communication is the medium highest in information richness for two reasons. The receiver has a verbal and nonverbal message for additional information to decode the message. Senders receive instant feedback and clarify ambiguous information until understanding is reached. The next-highest medium in information richness is verbal communication electronically transmitted over phone lines. Although a receiver does not see facial expressions or body language, some nonverbal communication such as voice tones and hesitations decode a message. Video telephone allows for nonverbal communication. Telephone conversations provide instant feedback to clear up misunderstandings. Voice mail and answering machines are electronic verbal media. Both allow senders to leave messages for receivers. Communication allows receivers to gather nonverbal information (e.g., from the tone of voice and inflections), but omits immediate feedback. Senders should make sure that receivers check their messages. Motivating Organizational Members Communication plays a central role in motivating employees to achieve goals. The expectancy theory of motivation suggests that managers should clarify outcomes obtained for a high performance level. Goal- setting theory suggests that managers set specific difficult goals to motivate workers to perform at a high level. Both models indicate that motivation depends on what managers communicate. Controlling and Coordinating Individual Efforts Groups and organizations exert control by communicating information about roles, rules, and norms to them. A group might communicate to a new member that social loafing is unacceptable. Communication helps coordinate the efforts of individuals. As interdependence increases, the coordinated communication efforts increase. Expressing Feelings and Emotions Communication allows people to express feelings and emotions. Because workers’ moods influence behavior, perception, and evaluation of people and situations, it is important to communicate these emotions to others. Supervisors and coworkers are more accepting of a worker’s lack of enthusiasm if there is a personal problem. By communicating moods and emotions, employees understand each other and can work together to achieve goals. Interpersonal Communication Oral Communication – Advantages: Speed and feedback. – Disadvantage: Distortion of the message. Written Communication – Advantages: Tangible and verifiable. – Disadvantages: Time consuming and lacks feedback. Nonverbal Communication © Copyright Virtual University of Pakistan 99 Organizational Behavior - MGT502 VU – Advantages: Supports other communications and provides observable expression of emotions and feelings. – Disadvantage: Misperception of body language or gestures can influence receiver’s interpretation of message. Communication Networks In work groups, a number of types of networks might develop, including the wheel, the chain, the circle, and the all-channel. In a wheel network, most information travels through one member, who receives all messages from other group members and is the sole sender of messages to them. Other members communicate only with the central member and do not communicate directly with each other. This network type is common when tasks have pooled interdependence, as members work independently and do not need to communicate. Most communication flows to and from the leader of the group (e.g., groups of sales representatives covering different geographical regions). In a chain network, communication flows sequentially from one group member to the next. Each member communicates with individuals on either side in the chain. Members on the ends of the chain communicate with only one individual. This network is for sequential task interdependence (e.g., an assembly line). The chain characterizes hierarchical communication, whereby information flows up and down the hierarchy. In the circle network, members communicate with those, adjacent to them. This can be physical adjacency, (e.g., seating or office location). It can refer to similarity on some dimension (e.g., experience, interests, or area of expertise). Communication may flow between members from similar backgrounds. In an all-channel network, every member communicates with every other member. This occurs in reciprocal task interdependence, as members depend on one another. All-channel communication allows group members to coordinate complex tasks (e.g., emergency room teams). Organizational communication networks are determined by formal reporting relationships, depicted by organization charts. Communication flows up and down the chain of command. Actual communication patterns differ from those in an organization chart because communication often flows around issues, goals, projects, and problems, not vertically through the chain of command. This flow ensures that workers access the information they need for their jobs. Although reporting relationships on an organization chart are somewhat stable, actual communication patterns change as conditions in the organization change. New patterns of communication are developed as the type of information needed changes. Common Small-Group Small Group Network Networks Effectiveness Networks Criteria Chain Wheel All-Channel Speed Moderate Fast Fast Wheel Accuracy High High Moderate Chain Emergence of Moderate High None Leader Member Moderate Low High All-Channel Satisfaction © Copyright Virtual University of Pakistan 100 Organizational Behavior - MGT502 VU Guidelines for Effective Speaking Gender Communication Determine the purpose of your Differences communication Men Women Consider issues of time and space Adapt to your listeners Gives advice Gives advice Use appropriate vocabulary quickly and indirectly and Practice voice control directly reluctantly Use appropriate gestures Avoids asking for Frequently asks for Organize your presentation information information Guidelines for Active Listening Less sensitive More sensitive to nonverbal to nonverbal cues cues Control the physical environment Be alert Be mentally prepared Be emotionally prepared Be attentive Read nonverbal cues Distinguish among facts, inferences, and value judgments Offer and Solicit Feedback © Copyright Virtual University of Pakistan 101 Organizational Behavior - MGT502 VU Lesson 22 LEADERSHIP THEORIES Overview Leadership Leadership plays a central part in understanding group behavior, for it is the leader who usually provides the direction toward goal attainment. Therefore, a more accurate predictive capability should be valuable in improving group performance. The original search for a set of universal leadership traits failed. At best, we can say that individuals who are ambitious, have high energy, a desire to lead, self-confidence, intelligence, hold job- relevant knowledge, are perceived as honest and trustworthy, and are flexible are more likely to succeed as leaders than individuals without these traits. The behavioral approach’s major contribution was narrowing leadership into task-oriented and people-oriented styles, but no one style was found to be effective in all situations. A major breakthrough in our understanding of leadership came when we recognized the need to develop contingency theories that included situational factors. At present, the evidence indicates that relevant situational variables would include the task structure of the job; level of situational stress; level of group support; the leader’s intelligence and experience; and follower characteristics such as personality, experience, ability, and motivation. “All Leaders are Managers…. But not all Managers are Leaders” Definition 1. John Kotter feels that management is about coping with complexity. Good management brings about order and consistency by drawing up formal plans, designing rigid organization structures, and monitoring results against the plans. Leadership is about coping with change. Leaders establish direction by developing a vision of the future; then they align people by communicating this vision and inspiring them to overcome hurdles. 2. Robert House of Wharton basically concurs: Managers use the authority inherent in their designated formal rank to obtain compliance. Management consists of implementing vision and strategy, coordinating and staffing, and handling day-to-day problems. 3. We define leadership as “the ability to influence a group toward the achievement of goals.” The source of this influence may be formal. A person may assume a leadership role simply because of his/her position. Not all leaders are managers, nor, for that matter, are all managers leaders. Non-sanctioned leadership—the ability to influence that arises outside the formal structure of the organization—is often as important as or more important than formal influence. Leaders can emerge from within a group as well as by formal appointment to lead a group. 4. Organizations need strong leadership and strong management for optimum effectiveness. Leaders must challenge the status quo, create visions of the future, and inspire organizational members. What Is Leadership? No universally agreed-upon definition. © Copyright Virtual University of Pakistan 102 Organizational Behavior - MGT502 VU Involves influencing the attitudes, beliefs, behaviors, and feelings of other people. Most people agree that it is an important topic! “Leadership is an interpersonal process in which influence is exercised in a social system for the achievement of organizational goals by others”. Researchers agree on two characteristics of leadership. First, leadership involves exerting influence over other members of a group or organization. Second, leadership involves helping a group or organization achieve its goals. Leaders of a group or organization are the individuals who exert such influence. A Leader helps others achieve organizational goals and influences perceptions and behaviors, including attitudes, learning, motivation, stress, performance, decision-making quality, turnover, and absenteeism. Leader effectiveness is the extent to which a leader helps a group or organization achieves its goals. Why Study Leadership? Understanding leadership helps organizations: – select the right people for leadership positions – train people in leadership positions to improve – Who benefits? – leaders – followers – organizations Distinctions between Managers and Leaders Distinctions Between Leadership & Followership Managers and Leaders Leaders Managers Leadership - the process of guiding & – Innovate Î Administer directing the behavior of people in the – Develop Î Maintain work environment – Inspire Î Control Formal leadership - the officially – Take the long-term Î Have a short-term sanctioned leader-ship based on the view view – Ask what and why Î Ask how and when authority of a formal position. Formal – Originate Î Accept the status leaders are members of an organization – Challenge the status quo with authority to influence other quo. members to achieve organizational goals. Informal leadership - the unofficial leadership accorded to a person by other members of the organization. Informal leaders lack formal authority, but sometimes exert just as much influence as formal leaders—and sometimes more. Informal leaders influence others, based on special skills or talents that help achieve group goals.. Followers-hip - the process of being guided & directed by a leader in the work environment Followers Can Make a Bigger Contribution By: Power is the capacity of a leader to influence work actions or decisions. Being more proactive in solving organizational problems. Becoming better skilled at “influencing upward.” Staying flexible and open to opportunities. How Leaders Interact with Followers Create environments where followers’ innovations and creative contributions are welcome. © Copyright Virtual University of Pakistan 103 Organizational Behavior - MGT502 VU Encourage growth and development in followers. Interested in the big picture of followers’ work. Motivate followers through more personal and intangible factors. Redefine the parameters of tasks and responsibilities. Change situations rather than just optimize their group’s adaptation to it. Leaders and power Sources of Leader Power 1. Furniture and office arrangements 2. Prominently displayed symbols 3. Appearances of title and authority 4. Choice of clothing 5. Presence or absence of crisis Theories of Leadership Trait Theories of Leadership Early studies identified during personal characteristics and traits that distinguish leaders from Trait Theories of Leadership followers and effective from ineffective leaders. Ambition Desire They were concerned with leaders’ traits, the and Energy to Lead particular tendencies a person has to feel, think, and act in certain ways. Results from nearly 300 studies Honesty Self- suggested that the following traits have the strongest and Integrity Confidence relationship to effective leadership: Job-Relevant Intelligence Intelligence Knowledge Task-relevant knowledge Dominance (the need to exert influence and control over others) Self-confidence Energy/activity levels Tolerance for stress Integrity and honesty Emotional maturity Although understanding leader characteristics is helpful, the trait approach is limited. Whether these traits are key for becoming a leader or result from being a leader is unclear. The trait approach provides little guidance as to how to train or help leaders. Because traits are stable, individuals cannot change traits associated with leadership. The trait approach fails to explain why or how effective leadership occurs. Many individuals who possess these traits never become leaders, and many leaders who possess them are ineffective. Researchers then considered other factors affecting leadership, such as leader behaviors. The media has long been a believer in trait theories of leadership. They identify leaders by focusing on personal qualities and characteristics such as charismatic, enthusiastic, and courageous. The search for attributes that describe leaders and differentiate them goes back to the 1930s. Research efforts at isolating leadership traits resulted in a number of dead ends. A review of 20 different studies identified nearly 80 leadership traits, but only five of these traits were common to four or more of the investigations. A search to identify traits that were consistently associated with leadership has better results. © Copyright Virtual University of Pakistan 104 Organizational Behavior - MGT502 VU Theories that attempt to isolate characteristics that differentiate leaders from nonleaders Attempts to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. Attempts to identify traits consistently associated with leadership have been more successful. Six traits on which leaders tend to differ from non-leaders are: Ambition and energy Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge. Recent research provides strong evidence that people who are high self-monitors are much more likely to emerge as leaders in groups than low self-monitors. The cumulative findings from a half of a century of research show that some traits increase the likelihood of success as a leader, but none guarantee success. The trait approach has at least four limitations: First, there are no universal traits that predict in all situations. Second, traits predict behavior more in “weak” situations than in “strong” situations. a. Strong situations are those in which there are strong behavioral norms, strong incentives for specific types of behaviors, and clear expectations. b. Such strong situations create less opportunity for leaders to express their inherent dispositional tendencies. Third, the evidence is unclear in separating cause from effect. Finally, traits do a better job at predicting the appearance of leadership than in actually distinguishing between effective and ineffective leaders. The Behavior Approach: Consideration and Initiating Structure Researchers using the behavior approach identified specific behaviors that contribute to leaders’ effectiveness at helping individuals, Behavioral Theories groups, and or organizations achieve goals. Initiating Structure The Ohio State researchers developed scales to Ohio State measure over 1800 leader behaviors and asked Consideration workers to indicate how much their leaders engaged in them. Researchers found that leader Employee-Orientation behaviors involved either consideration or University of initiating structure. Consideration is a Michigan Production-Orientation behavior indicating that a leader trusts, respects, and values good relationships with followers. A considerate leader might be friendly, treat others as equals, give explanations, and show concern for workers’ well-being and their opinions. Initiating structure refers to a leader’s behavior that assures that work is completed and subordinates perform their jobs. This structure includes assigning tasks, planning, setting goals, deciding how tasks are accomplished, and encouraging followers to accomplish them. © Copyright Virtual University of Pakistan 105 Organizational Behavior - MGT502 VU Consideration and initiating structures are complementary because leaders can engage in both. They are independent because describing a leader’s consideration does not describe the initiating structure. Researchers using the behavior approach to leadership have identified behaviors similar to consideration and initiating structure. Researchers at the University of Michigan identified two behaviors corresponding to consideration and initiating structure: employee-oriented and job-centered behaviors. An approach to organizational change, called the Managerial Grid, makes managers effective leaders by focusing how much they show concern for people and production. The Hersey and Blanchard model focuses on consideration and initiating structure behaviors. Studies show no consistent relationship between consideration and high job satisfaction or between initiating structure and subordinates’ performance. Other factors in leader behaviors may have brought about these results. The Behavior Approach: Leader Reward and Punishing Behavior Leaders demonstrate other important behaviors. Leader reward behavior occurs when a leader positively reinforces subordinates’ desirable behavior. A leader might acknowledge good performance with praise, compliments, a pay raise, or a promotion. Reward behavior keeps workers performing at a high level. Leader punishing behavior occurs when a leader reprimands or responds negatively to subordinates who perform undesirably. Punishing is best used only to curtail undesirable behavior as it has unintended side effects such as resentment. Although reinforcement is more effective, leaders often engage in punishing behavior. Researchers began to wonder if there was something unique in the way that effective leaders behave. The behavioral approach would have implications quite different from those of the trait approach. Trait and behavioral theories differ in terms of their underlying assumptions. Trait theories assumption: Leadership is basically inborn, therefore we could select the right leaders. Behavioral approach assumption: suggests that we could train people to be leaders. We can design programs to implant behavioral patterns. If training worked, we could have an infinite supply of effective leaders. The Ohio State Studies The most comprehensive and replicated of the behavioral theories resulted from research that began at Ohio State University in the late 1940s. These researchers sought to identify independent dimensions of leader behavior. They narrowed over a thousand dimensions into two dimensions—initiating structure and consideration. Initiating structure refers to the extent to which a leader is likely to define and structure his/her role and those of employees in the search for goal attainment. It includes attempts to organize work, work relationships, and goals. The leader high in initiating structure could be described as someone who “assigns group members to particular tasks,” “expects workers to maintain definite standards of performance,” and “emphasizes the meeting of deadlines.” Consideration is described as “the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings.” The leader shows concern for followers’ comfort, well-being, status, and satisfaction. A leader high in consideration could be described as one who helps employees with personal problems, is friendly and approachable, and treats all employees as equals. © Copyright Virtual University of Pakistan 106 Organizational Behavior - MGT502 VU Leaders high in initiating structure and consideration tended to achieve high employee performance and satisfaction. The “high-high” style did not always result in positive consequences. Leader behavior characterized as high on initiating structure led to greater rates of grievances, absenteeism, and turnover, and lower levels of job satisfaction for routine tasks. High consideration was negatively related to performance ratings of the leader by his/her superior. University of Michigan Studies Leadership studies were undertaken at the same time as those being done at Ohio State, with similar research objectives. They discovered two dimensions of leadership behavior— employee-oriented and production-oriented. Employee-oriented leaders emphasized interpersonal relations. They took a personal interest in the needs of their employees and accepted individual differences among members. The production-oriented leaders tended to emphasize the technical or task aspects of the job— group members were a means to that end. Michigan researchers’ conclusions strongly favored the leaders who were employee oriented. Employee-oriented leaders were associated with higher group productivity and higher job satisfaction. Production-oriented leaders tended to be associated with low group productivity and lower job satisfaction. Blake and Mouton proposed a managerial grid based on the styles of “concern for people” and “concern for production,” which essentially represent the Ohio State dimensions of consideration and initiating structure or the Michigan dimensions of employee-oriented and production-oriented. The grid has nine possible positions along each axis, creating 81 different positions. The grid shows the dominating factors in a leader’s thinking in regard to getting results. Based on the findings of Blake and Mouton, managers were found to perform best under a 9, 9 style, as contrasted, for example, with a 9,1 (authority type) or 1,9 (lassiez-faire type) style. Unfortunately, the grid offers a better framework for conceptualizing leadership style than for presenting any tangible new information. Leaders at all levels in an organization help individuals, groups, and the organization as a whole achieve their goals and The Managerial Grid can thus have profound effects in organizations. The 9 1,9 9,9 approaches to leadership 8 Country Club Management Team Management covered help explain how 7 leaders influence their followers 6 and why leaders are sometimes Concern for 5 effective and sometimes 5,5 People4 ineffective. Organization Man Management 3 2 1,1 9,1 Impoverished Management Authority-Obedience 1 1 2 3 4 5 6 7 8 9 Concern for Production © Copyright Virtual University of Pakistan 107 Organizational Behavior - MGT502 VU Lesson 23 LEADERSHIP APPLICATION Overview Leaders at all levels in an organization help individuals, groups, and the organization as a whole achieve their goals and can thus have profound effects in organizations. The approaches to leadership covered help explain how leaders influence their followers and why leaders are sometimes effective and sometimes ineffective. Leadership is the exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals. Formal leaders have formal authority to influence others by virtue of their job responsibilities. Informal leaders lack formal authority, but influence others by virtue of their special skills or talents. The trait approach to leadership found that good leaders tend to be intelligent, dominant, self- confident, energetic, able to withstand stress, honest, mature, and knowledgeable. Possessing these traits, however, does not guarantee that a leader will be effective, nor does the failure to have one or more of these traits mean that a leader will be ineffective. A lot of the behaviors that leaders engage in fall into two main categories: consideration and initiating structure. Consideration includes all leadership behaviors that indicate that leaders trust, respect, and value a good relationship with their followers. Initiating structure includes all the behaviors that leaders engage in to help subordinates achieve their goals and perform at a high level. Leaders also engage in reward and punishing behaviors. Fiedler’s contingency theory proposes that leader effectiveness depends on both leader style and situational characteristics. Leaders have either a relationship-oriented style or a task-oriented style. Situational characteristics, including leader-member relations, task structure, and position power, determine how favorable a situation is for leading. Relationship-oriented leaders are most effective in moderately favorable situations. Task-oriented leaders are most effective in extremely favorable or unfavorable situations. Leaders cannot easily change their style, so Fiedler recommends changing situations to fit the leader or assigning leaders to situations in which they will be most effective. Path-goal theory suggests that effective leaders motivate their followers by giving them outcomes they desire when they perform at a high level or achieve their work goals. Effective leaders also make sure their subordinates believe that they can obtain their work goals and perform at a high level, show subordinates the paths to goal attainment, remove obstacles that might come along the way, and express confidence in their subordinates’ capabilities. Leaders need to adjust the type of behavior they engage in (directive, supportive, participative, or achievement-oriented) to correspond to the nature of the subordinates they are dealing with and the type of work they are doing. The Vroom and Yetton model specifies the extent to which leaders should have their subordinates participate in decision making. How much subordinates should participate depends on aspects of the decision that need to be made, the subordinates involved, and the information needed to make a good decision. Leader-member exchange theory focuses on the leader-follower dyad and suggests that leaders do not treat each of their followers the same but rather develop different kinds of relationships with different subordinates. Some leader-follower dyads have high-quality relationships. Subordinates in these dyads are members of the in-group. Other leader-follower dyads have low-quality relationships. Subordinates in these dyads form the out-group. Sometimes leadership does not seem to have much of an effect in organizations because of the existence of substitutes and neutralizers. A leadership substitute is something that acts in place of a formal leader. Substitutes make leadership unnecessary because they take the place of the influence of © Copyright Virtual University of Pakistan 108 Organizational Behavior - MGT502 VU a leader. A leadership neutralizer is something that prevents a leader from having influence and negates a leader’s efforts. When neutralizers are present, there is a leadership void—the leader is having little or no effect, and nothing else is taking the leader’s place. Transformational leaders increase their followers’ awareness of the importance of their jobs and the followers’ own needs for personal growth and accomplishment and motivate followers to work for the good of the organization. Leaders transform their followers by being charismatic, intelligently stimulating their followers, and engaging in developmental consideration. Transactional leadership occurs when leaders motivate their subordinates by exchanging rewards for high performance and reprimanding instances of low performance. Leader mood at work and levels of emotional intelligence have the potential to influence leader effectiveness. Preliminary research suggests that when leaders tend to be in a good mood at work, their subordinates may perform at a higher level and be less likely to resign. Women and men do not appear to differ in the leadership behaviors (consideration and initiating structure) that they perform in organizations. Women, however, appear to be more democratic or participative than men as leaders. Trait Theories of Leadership Behavioral Theories Ambition Desire Initiating Structure and Energy to Lead Ohio State Consideration Honesty Self- and Integrity Confidence Employee-Orientation University of Job-Relevant Michigan Intelligence Production-Orientation Knowledge Contingency Theories Path-Goal Theory The Managerial Grid One of the most respected 9 approaches to leadership is the 1,9 Country Club Management 9,9 Team Management 8 path-goal theory developed by 7 Robert House. 6 It is a contingency model of Concern 5 for leadership which extracts key People4 5,5 Organization Man Management elements from the Ohio State 3 leadership research on initiating 2 1,1 9,1 structure and consideration and the 1 Impoverished Management Authority-Obedience expectancy theory of motivation. 1 2 3 4 5 6 7 8 9 It is the leader’s job to assist Concern for Production followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the firm. The term path-goal is derived from the belief that effective leaders clarify the path to help their followers achieve their work goals. House identified four leadership behaviors: The directive leader lets followers know what is expected of them, etc. © Copyright Virtual University of Pakistan 109 Organizational Behavior - MGT502 VU The supportive leader is friendly and shows concern for the needs of followers. The participative leader consults with followers and uses their suggestions before making a decision. The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level. In contrast to Fiedler, House assumes leaders are flexible and can display any of these behaviors. Two classes of situational or contingency variables moderate the leadership behavior: Environmental or outcome relationship. These factors determine the type of leader behavior required as a complement if follower outcomes are to be maximized. Personal characteristics of the employee. These determine how the environment and leader behavior are interpreted. Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they are highly structured and well laid out. Supportive leadership results in high employee performance and satisfaction when employees are performing structured tasks. Directive leadership is likely to be perceived as redundant among employees with high perceived ability or with considerable experience. Employees with an internal locus of control will be more satisfied with a participative style. Achievement-oriented leadership will increase employees’ expectancies that effort will lead to high performance when tasks are ambiguously structured. Research evidence generally supports the logic underlying the path-goal theory. Directive leader Lets employees know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. Supportive leader Is friendly and shows concern for the needs of employees. Participative leader Consults with employees and uses their suggestions before making a decision. Achievement-oriented leader Sets challenging goals and expects employees Path-Goal Leadership Model to perform at their highest levels. Employee Contingencies Leader Leader Behaviors Effectiveness Directive Motivated employees Supportive Satisfied Participative employees Achievement- Leader oriented acceptance Environmental Contingencies © Copyright Virtual University of Pakistan 110 Organizational Behavior - MGT502 VU Transformational and Charismatic Leadership Defining Charismatic Leadership “Charismatic leaders Path-Goal Model have a combination of charm Follower/Subordinate Characteristics and personal magnetism that Locus of control contribute to a remarkable Experience Ability ability to get other people to Leader endorse to their vision and Behavior/Styles Followers/Subordinat Outcomes promote it passionately” Directive es Satisfaction Supportive Perceptions Performance Participative Trait of a Charismatic Leader Achievement- Motivation oriented Environmental Factors Self-confidence Tasks A vision Formal authority system Work group Strong conviction in that vision Out of the ordinary behavior The image of a change agent Two Types of Charismatic Leaders – Visionary Charismatic Leaders Through communication ability, the visionary charismatic leader links followers’ needs and goals to job or organizational goals. – Crisis-Based Charismatic Leaders The crisis-produced charismatic leader communicates clearly what actions need to be taken and what their consequences will be. Researchers suggest that leaders can have dramatic effects on followers and organizations, literally transforming them. Bernard Bass’ theory on transformational and charismatic leadership has been well received because it is comprehensive and incorporates ideas from other leadership approaches. Transformational leaders – Leading -- changing the organization to fit the environment – Develop, communicate, enact a vision Transactional leaders – Managing -- linking job performance to rewards – Ensure employees have necessary resources – Apply contingency leadership theories Transformational leadership occurs when a leader changes followers in ways that lead to trust and motivation towards organizational goals. Transformational leaders increase subordinates’ awareness of task significance and high performance levels. Transformational leaders make subordinates aware of their needs for personal growth, development, and accomplishment. They motivate subordinates to work for the good of the organization, not personal gain. © Copyright Virtual University of Pakistan 111 Organizational Behavior - MGT502 VU Transformational leaders are charismatic leaders, with a vision for the organization Transformational Leadership and the ability to induce followers to support the vision enthusiastically. To Elements convey their excitement, charismatic leaders have high self-confidence and self- Building Creating esteem, which encourage their followers to Commitment a Vision respect and admire them. They cause followers to view problems differently and Transformational feel responsibility for problem solving. Leadership Trust Modeling Communicating the Vision the Vision Credibility: the degree to which followers perceive someone as honest, competent and able to inspire. Trust: the belief in the integrity, character and ability of a leader. Five Dimensions of Trust Integrity (honesty and truthfulness) Competence (technical/interpersonal) Consistency (reliability, predictability and good judgment in handling situations) Loyalty (willingness to protect and save face for a person) Openness (willingness to share ideas and information freely) Types of Trust Deterrence-based trust Trust based on fear of reprisal if the trust is violated Knowledge-based trust Trust based on the behavioral predictability that comes from a history of interaction Identification-based trust Trust based on an emotional connection between the parties © Copyright Virtual University of Pakistan 112 Organizational Behavior - MGT502 VU Lesson 24 POWER AND POLITICS Overview If you want to get things done in a group or organization, it helps to have power. As a manager who wants to maximize your power, you will want to increase others’ dependence on you. You can, for instance, increase your power in relation to your boss by developing knowledge or a skill that he needs and for which he perceives no ready substitute, but power is a two-way street. You will not be alone in attempting to build your power bases. Others, particularly employees and peers, will be seeking to make you dependent on them. The result is a continual battle. While you seek to maximize others’ dependence on you, you will be seeking to minimize your dependence on others, and, of course, others you work with will be trying to do the same. Few employees relish being powerless in their job and organization. It has been argued, for instance, that when people in organizations are difficult, argumentative, and temperamental, it may be because they are in positions of powerlessness, where the performance expectations placed on them exceed their resources and capabilities. There is evidence that people respond differently to the various power bases. Expert and referent power are derived from an individual’s personal qualities. In contrast, coercion, reward, and legitimate power are essentially organizationally derived. Since people are more likely to enthusiastically accept and commit to an individual whom they admire or whose knowledge they respect (rather than someone who relies on his or her position to reward or coerce them), the effective use of expert and referent power should lead to higher employee performance, commitment, and satisfaction. Competence especially appears to offer wide appeal, and its use as a power base results in high performance by group members. The message for managers seems to be: Develop and use your expert power base! The power of your boss may also play a role in determining your job satisfaction. “One of the reasons many of us like to work for and with people who are powerful is that they are generally more pleasant, not because it is their native disposition, but because the reputation and reality of being powerful permits them more discretion and more ability to delegate to others. The effective manager accepts the political nature of organizations. By assessing behavior in a political framework, you can better predict the actions of others and use this information to formulate political strategies that will gain advantages for you and your work unit. Some people are just significantly more “politically astute” than are others. Those who are good at playing politics can be expected to get higher performance evaluations, and hence, larger salary increases and promotions. They are more likely to exhibit higher job satisfaction. Power Definition: Power refers to a capacity that A has to influence the behavior of B, so that B acts in accordance with A’s wishes. Power may exist but not be used. It is, therefore, a capacity or potential. Probably the most important aspect of power is that it is a function of dependency. The greater B’s dependence on A, the greater is A’s power in the relationship. Dependence, in turn, is based on alternatives that B perceives and the importance that B places on the alternative(s) that A controls. A person can have power over you only if he or she controls something you desire. © Copyright Virtual University of Pakistan 113 Organizational Behavior - MGT502 VU Concept of Power A Definition of Power Power - the ability to influence another person Influence - the process of B affecting the thoughts, A behavior, & feelings of another person Authority - the right to influence another person Coercive Power: The coercive power base is being dependent on fear. It rests on the application, or the threat of application, of physical sanctions such as the infliction of pain, the generation of frustration through restriction of movement, or the controlling by force of basic physiological or safety needs. At the organizational level, A has coercive power over B if A can dismiss, suspend, or demote B, assuming that B values his or her job. Similarly, if A can assign B work activities that B finds unpleasant or treat B in a manner that B finds embarrassing, A possesses coercive power over B. Reward Power: The opposite of coercive power is reward power. People comply because doing so produces positive benefits; therefore, one who can distribute rewards that others view as valuable will have power over those others. These rewards can be anything that another person values. Coercive power and reward power are actually counterparts of each other. a. If you can remove something of positive value from another or inflict something of negative value upon him/her, you have coercive power over that person. b. If you can give someone something of positive value or remove something of negative value, you have reward power over that person. Legitimate Power: In formal groups and organizations, the most frequent access power is one’s structural position. It represents the power a person receives as a result of his/her position in the formal hierarchy. Positions of authority include coercive and reward powers. Legitimate power, however, is broader than the power to coerce and reward. It includes acceptance of the authority of a position by members of an organization. Charismatic Power: Is an extension of referent power stemming from an individual’s personality and interpersonal style. Others follow because they can articulate attractive visions, take personal risks, demonstrate follower sensitivity, etc. © Copyright Virtual University of Pakistan 114 Organizational Behavior - MGT502 VU Expert Power: Expert power is "influence wielded as a result of expertise, special skill, or knowledge." Expertise has become a powerful source of influence as the world has become more technological. As jobs become more specialized, we become increasingly dependent on experts to achieve goals. PRINCIPLES OF POWER Power is perceived Power is relative Power bases must be coordinated Power is a double-edged sword (used and abused) Consequences of power: Managers who have power benefit the most from organizational decisions, such as obtaining scarce resources for their department. Contrasting Leadership and Power Consequences of Power Sources Consequences Leaders use power as a means of of Power of Power attaining group goals. Leaders Expert achieve goals, and power is a Power means of facilitating their Commitment Referent achievement. Power Differences between Leadership Legitimate Power Compliance and Power: Goal compatibility: Reward Power a. Power does not require goal Coercive Resistance compatibility, merely Power dependence. b. Leadership, on the other hand, requires some congruence between the goals of the leader and those being led. The direction of influence: a. Leadership focuses on the downward influence on one’s followers. b. Leadership research, for the most part, emphasizes style. c. Power does not minimize the importance of lateral and upward influence patterns. d. The research on power has tended to encompass a broader area and focus on tactics for gaining compliance. Dependency: The Key to Power The General Dependency Postulate: The greater B’s dependency on A, the greater the power A has over B. a. When you possess anything that others require but that you alone control, you make them dependent upon you and, therefore, you gain power over them. Dependency, then, is inversely proportional to the alternative sources of supply. a. This is why most organizations develop multiple suppliers rather using just one. b. It also explains why so many of us aspire to financial independence. © Copyright Virtual University of Pakistan 115 Organizational Behavior - MGT502 VU What Creates Dependency? Importance a. To create dependency, the thing(s) you control must be perceived as being important. b. Organizations actively seek to avoid uncertainty. c. Therefore, those individuals or groups who can absorb an organization’s uncertainty will be perceived as controlling an important resource. Scarcity a. A resource needs to be perceived as scarce to create dependency. b. Low-ranking members in an organization who have important knowledge not available to high-ranking members gain power over the high-ranking members. c. The scarcity-dependency relationship can further be seen in the power of occupational categories. d. Individuals in occupations in which the supply of personnel is low relative to demand can negotiate compensation and benefit packages, which are far more attractive than can those in occupations where there is an abundance of candidates. Political Behavior in Organizations Use & make authority Be a nice known person Many definitions focus on the use of power to affect decision making in the Show ability to Acquire and make expertise organization or on behaviors by provide or with- known hold rewards members that are self-serving and organizationally non-sanctioned. We Acquire and shall define political behavior in Show ability to make resources provide or with- organizations as those activities that are hold punishment known not required as part of one’s formal role in the organization but that influence, or PERSONAL POWER MANAGEMENT attempt to influence, the distribution of advantages and disadvantages within the organization. Politics is a fact of life in organizations because organizations are made up of individuals and groups with different values, goals, and interests. This sets up the potential for conflict over resources. Resources in organizations are also limited, which often turns potential conflict into real conflict. Also, gains by one individual or group are often perceived as being at the expense of others within the organization. These forces create a competition among members for the organization’s limited resources. Finally, the realization that most of the “facts” that are used to allocate the limited resources are open to interpretation creates political behavior. Because most decisions have to be made in a climate of ambiguity, where facts are rarely fully objective, and thus are open to interpretation, people within organizations will use whatever influence they can to taint the facts to support their goals and interests. Information and Power Organizational Factors that Contribute to Political Control over information flow Behavior – Based on legitimate power Low trust Role ambiguity – Relates to formal communication Democratic decision Self-serving network making senior managers – Common in centralized structures High performance Unclear (wheel pattern) pressures evaluation Coping with uncertainty Scarcity of systems – Those who know how to cope with resources Zero-sum organizational uncertainties gain allocations power © Copyright Virtual University of Pakistan 116 Organizational Behavior - MGT502 VU Prevention Forecasting Absorption Managing Political Behavior Maintain open communication Clarify performance expectations Use participative management Encourage cooperation among work groups Manage scarce resources well Provide a supportive organizational climate © Copyright Virtual University of Pakistan 117 Organizational Behavior - MGT502 VU Lesson 25 POWER AND POLITICS Overview Understanding and managing power, politics, and conflict is an integral part of a manager’s job. Organizations are composed of people who come together to achieve their common goals. When resources are scarce, people and groups have to compete for them, and some achieve their goals while others do not. In an organization, managers have the primary responsibility to ensure that competition for resources is free and fair and that people who obtain power over resources do so because they possess skills and abilities that will, in the long run, benefit all members of the organization. Managers also have the responsibility to manage conflicts as they arise to ensure the long-term success of the organization and to maintain a balance of power to ensure that politics and conflict benefit rather than harm the organization. Power is the ability of one person or group to cause another person or group to do something they otherwise might not have done. Politics are activities in which managers engage to increase their power and to pursue goals that favor their individual and group interests. Power and politics can benefit or harm an organization. Sources of formal individual power include legitimate power, reward power, coercive power, and information power. Sources of informal individual power include expert power, referent power, and charismatic power. Sources of functional and divisional power include the ability to control uncertain contingencies, irreplaceability, centrality and the ability to control and generate resources. Managers can use many kinds of political tactics to increase their individual power. These tactics include making oneself irreplaceable and central, controlling contingencies and resources, recognizing who has power, controlling the agenda, bringing in an outside expert, and building coalitions and alliances. Managing politics to obtain its positive effects requires a balance of power in an organization and a strong CEO who has the ability to keep powerful people and groups in check. Conflict is the struggle that arises when the goal-directed behavior of another person or group. Whether conflict benefits or harms an organization depends on how it is managed. The three main sources of conflict are differentiation, task relationships, and the scarcity of re- sources. When conflict occurs, it typically moves through a series of stages. In Pondy’s model of conflict, these stags are latent conflict, perceived conflict, felt conflict, manifest conflict, and the conflict aftermath. Various techniques are available to manage conflict. Conflict management techniques can be used at the individual, group, and organizational levels. Contingency Variables that Influence Use of Power Tactics Manager – Personality – Relative Power – Objectives for wanting to influence Employee – Perception of employee’s willingness and ability to comply Organization Culture © Copyright Virtual University of Pakistan 118 Organizational Behavior - MGT502 VU Examples: Power & its Use in Organizations Different forms of harassment Political behavior Groups & coalitions Impression management Ethics and Power Political Behavior in Organizations The Power Corruption Cycle There is very strong evidence indicating that perceptions of Power and Resources Employee Reactions organizational politics are with no Accountability Compliance negatively related to job Submission satisfaction. Dependence Distance from The perception of politics leads to Employees Consequences anxiety or stress. When it get too Poor Decisions Coercion much to handle, employees quit. Lower Morale It is a de-motivating force and Inflated View Ethics Violations performance may suffer as a result. The effect of politics is moderated by the knowledge the individual has of the decision making system and his/her political skills: High political skills individuals often have improved performance. Low political skills individuals often respond with defensive behaviors—reactive and protective behaviors to avoid action, change, or blame. Reaction to organizational politics is also moderated by culture. In countries that are more unstable politically, workers will tolerate higher levels of politicking that more politically stable counties. Organizational Politics - the use of power and influence in organizations Political Behavior - actions not officially sanctioned by an organization tha