Leadership and Management: Everything You Need
Moral Leadership Today:
- CBS Poll – 79% believe questionable business practices are widespread.
- Less than 33% believe CEOS are honest
Unethical vs. Ethical Leadership:
|Unethical Leader||Ethical Leader|
|Arrogant and self-serving||Possesses humility|
|Always promotes self-interest||Concern for the greater good|
|Practices deception||Honest and straightforward|
|Breeches agreements||Fulfills commitments|
|Deals unfairly||Strives for fairness|
|Shifts blame to others||Takes responsibility|
|Diminishes others’ dignity||Shows respect for individuals|
|Neglects follower development||Encourages and develops others|
|Withholds help and support||Serves others|
|Lacks courage to confront unjust acts||Shows courage to stand up for what is right|
Acting Like a Moral Leader:
- Don’t neglect profit and loss
- Must lead by example and encourage others to develop and use moral values in workplace
5 Common Ethical Traps:
- False Necessity Trap – convince yourself that no other options exist. You have no choice, but really your just picking the easiest choice
- Doctrine-of-Relative-Filth Trap – compare your behavior with someone that is worse.
- Rationalization Trap – justify actions with excuses (company hasn’t been far so…)
- Self–Deception Trap – convince yourself that a lie isn’t really a lie
- Ends–Justify-the-Means Trap – use unethical means to accomplish what you think is a good goal
Tools for Doing the Right Thing:
- Is it legal?
- Can you see others’ point of view?
- Have you considered all alternatives?
- Can you talk about this?
- How would you feel if your family or friends found out?
How to Act Like a Moral Leader:
- Set the example you want others to live by
- Drive out fear and eliminate undiscussables
- Develop a backbone – show 0 tolerance for ethical violations
- Treat everyone with fairness, dignity, and respect.
- Do the right thing in both your private and professional life – EVEN WHEN NOBODY IS LOOKING!
Moral Leadership – distinguishing right from wrong and doing right. Seeking the just, honest, and good in the practice of leadership.
Moral Leaders Create Ethical Support Systems:
- Support open-door policies that encourage employees to talk without fear of reprisal.
- Establish clear code of ethics
- Reward ethical conduct
- Show 0 tolerance for violations
- Protect whistle blowers
Levels of Moral Development:
- Preconventional Level – individuals are egocentric, want rewards and want to avoid punishment. Acts in own interest. Has blind obedience to authority.
- Conventional Level – will adhere to norms of larger social system. Fulfills duties and obligations of social system. Upholds the law. MOST PEOPLE ARE HERE
- Postconventional Level (Principled level) – guided by internalized principles. Leader is a visionary, empowering and committed to serving others. Balances concern for self with concern for others. Acts in an independent manner regardless of others’ expectations.
- Courage – ability to step forward through fear. You can reach deep within yourself to stand up for something or make choices that you might be ridiculed for.
- Acting IN SPITE of fear.
- Accept responsibility
- Push beyond comfort zone
- Saying what you think
- Fighting for what you believe (as long as its not just for your benefit)
Opposing Unethical Conduct:
- Whistle Blowing – employee disclosure of illegal, immoral, or unethical practices in the organization
- Finding Personal Courage:
- Believe in higher purpose
- Draw strength from others
- Welcome failure
- Harness frustration and anger
- Role of Followers:
- Everyone is a follower at some point
- Followers’ influence on leader can enhance the leader or underscore shortcomings
- Desirable qualities held by leader are often the same as those held by an effective follower.
- Leaders develop effective followers and vice versa.
- Critical Thinking – thinking INDEPENDENTLY and being mindful of the effects of your behavior on achieving the organization’s vision.
- Uncritical Thinking – failing to consider possibilities beyond what you are told. Accepting the leader’s ideas without thinking. PASSIVE and DEPENDENT. Doesn’t contribute to culture of organization. (9 to 5ers).
Styles of Followers:
- Alienated Follower – passive, yet an independent, critical thinker. Can often be very useful because they are usually very bright people. They may have experienced a personal set back and feel that a promise was unfulfilled for them.
- Conformist – active participant but does not utilize critical thinking skills.
- Pragmatic Survivor – one who can cover all extremes depending on which style fits the situation best. Problem is that your style might not fit the one they want.
- Passive Follower – does not exhibit critical thinking, independent thinking, nor active participation.
- Effective Follower – both a critical independent thinker and active in the organization. They are advocates of change and team players. Not very confrontational but wont avoid necessary conflict.
Demands on the Effective Follower:
- Will to assume responsibility
- Will to serve
- Will to challenge
- Will to help transform
- Will to leave
Developing Personal Potential:
- Dependent – people expect others to take care of them, blame others.
- Independent – people have developed a sense of self-worth and an attitude of self-reliance.
- Interdependent – people realize it is better to work cooperatively, one experiences the richness of close interpersonal relationships.
Success with Teams:
- Increased productivity
- Quality improvement
- Greater innovation (as long as there is diversity)
- Higher employee satisfaction
Team – unit of 2 or more people who interact and coordinate their work to accomplish a shared goal or purpose. (size 5-12 is associated with most success and diversity is important!!)
Groups vs. Teams:
|Designated, strong leader||Shares / rotates leadership roles|
|Performance goals set by others||Performance goals set by team|
|Works within organizational boundaries||Not inhibited by organizational boundaries|
|Individual work products||Collective work products|
Stages of Team Development:
- Forming – orientation, breaking the ice and getting people acquainted. High uncertainty! Leaders should facilitate social interchanges
- Storming – conflict and disagreement. Good conflict is cognitive and intellectually driven. Bad conflict is affective and personality driven. Leaders should encourage participation and surface differences.
- Norming – establishment of order and cohesion. Leaders should help clarify team roles, norms, and values.
- Performing – cooperation and problem solving. Leaders should facilitate task accomplishment.
Types of Teams:
- Functional Teams (Vertical Teams) – made up of leader and subordinates in formal chain of command.
- Cross-Functional Teams – made up of members from different departments. Usually have specific team leader.
- Self–Directed Teams – work together without direction of managers. They are member centered.
- Interdependence – extent to which team members depend on each other for information, resources, or ideas to accomplish tasks.
- Pooled Interdependence – lowest form of team interdependence. Members are relatively independent of one another in completing their work. (Ex: share same machine but use it for different work)
- Sequential Interdependence – serial form of interdependence in which the output of 1 member becomes input of another member (ex: assembly line)
- Reciprocal Interdependence – highest form of interdependence. Members influence and affect one another in reciprocal fashion. (ex: trauma team)
Team Effectiveness – extent to which a team achieves 4 performance outcomes:
- innovation / adaptation – how well team responds to change
- efficiency – how well team uses available resources
- quality – have minimal defects
- employee satisfaction – how happy workers are with benefits.
Team Cohesiveness – extent to which members stick together and remain united in pursuit of common goal.
- how often you meet
- shared mission / goals
- team success
Team Leadership Roles: (doing both generally results in better leadership)
- Task Specialist Role – initiates new ideas, evaluates effectiveness, seeks to clarify tasks and responsibilities, stimulates others, and summarizes the facts.
- Socio–Emotional Role – facilitates others’ participation, smoothes conflicts, shows concern for team members’ needs, serves as role model.
- Virtual Team – made up of geographically or organizationally dispersed members who share a common purpose and are linked primarily through advanced info technologies.
- Global Teams – made up of culturally diverse members who live and work in different countries and coordinate some part of their activities on global basis.
Differences Between Teams:
|Type of Team||Spatial Distance||Communications||Member Cultures||Leader Challenge|
|Conventional||Collocated||Face to face||Same||High|
|Global||Widely scattered||Mediated||Different||Very high|
Planning & Strategy:
- Planning – identifying and selecting appropriate goals and courses of action for an organization. Details the goals and specifies how managers will attain goals. CANT TAKE ACTION WITHOUT PLANNING ß FATAL
- Strategy – cluster of decisions that managers take to help an organization reach its goals.
- Mission – board declaration of an organization’s purpose that identifies products and customers, and distinguishes the organization from its competitors.
- Vision – ambitious view of the future
- Determine Organization’s Mission and Goals – define overriding purpose and goals.
- Define who customers are, what needs are being satisfied, and how we satisfy those needs.
- Provide organization with sense of direction. Goals must be challenging but realistic with a definite period in which they are to be achieved.
- Formulate Strategy – analyze current situation and develop strategies to achieve mission
- SWOT Analysis
- Implement Strategy – decide how to allocate resources between groups to ensure strategy is achieved.
Levels of Planning:
- Corporate Level Plan – top management’s decisions pertaining to organization’s mission, overall strategy, and structure. FRAMEWORK for all other planning
- Corporate Level Strategy – plan that indicates in which industries and national markets an organization intends to compete
- Business Level Plan – divisional managers’ decisions pertaining to divisions’ long term goals, overall strategy and structure. How business will meet corporate goals.
- Business Level Strategy – indicates how a division intends to compete against rivals.
- Functional Level Plan – functional managers’ decisions pertaining to the goals that they will pursue to help division attain its business-level goals.
- Functional Level Strategy – indicates how a department intends to achieve its goals.
Time Horizons of Plans – intended duration
- Long Term – usually 5 + years (Corporate and Business Level)
- Intermediate – usually 1-5 years (All)
- Short Term – usually less than 1 year (Functional Level)
Most companies have a ROLLING PLANNING CYCLE to amend plans constantly
Types of Plans:
- Standing Plans – use in programmed decision situations. Policies are general guidelines, rules are formal and written, standard operating procedures specify an exact series of actions to follow. (ex: ethical plans in an organization)
- Single Use Plans – developed for 1 time, non-programmed decisions. Usually very complex and a big deal. (ex: announcing we are putting a man on the moon)
Importance of Planning:
- Participation – all managers are involved in setting future goals
- Sense of Direction and Purpose – sets goals and strategies for all managers
- Coordination – provide all parts of the firm with understanding of how they fit into the whole
- Control – specify who is responsible for accomplishing particular goal.
Scenario (Contingency) Planning – generation of many forecasts of future conditions followed by an analysis of how to effectively respond to those conditions. Helps managers to become better at strategic planning. Allows you to see how your plans might work and prepare for all possible outcomes.
Corporate Level Strategies:
- Concentration in Single Business – can become a strong competitor, but very risky.
- Related Diversification – move into similar market areas to build upon existing competencies. Ex: Pepsi bought Frito Lay
- – Unrelated Diversification – entry into industries unrelated to current business. Ex: GE bought NBC
Vertical Integration – allows an organization to create value by producing its own inputs or distributing its own product.
- Backward Vertical Integration – occurs when a firm seeks to reduce its input costs by producing its own inputs. Ex: McDonalds purchasing potato farm to make their fries
- Forward Vertical Integration – occurs when a firm distributes its own products to lower distribution costs and ensure quality of service. Ex: Pepsi owns Taco Bell and distributes there
- Low Cost Strategy – driving total costs down below total costs of rivals. Reducing waste, selling for less and being profitable. Ex: Dell Computers
- Differentiation – offering products different from those of competitors. Customers must value the differentiation. Ex: Rolex watches
4 Leader Frames of Reference:
|Mind-Set:||Sees organization as a machine, economics, plans||Sees organization as family, belonging clan||Sees organization as jungle, power, schemes||Sees organization as a theatre, spiritual, meaning, dreams|
|Emphasis:||Goals, systems, efficiency, formal authority||People, support, empowerment||Resource allocation, negotiation, coalition building||Vision, culture & values, inspiration|
|Dangers:||Rigidity and tyranny||Lack of content or substance||Power plays for purpose or self-interest||“Messiah” complex|
- Black Hat of Charismatic Leaders – might use charisma to do harm.
- Power- ability of 1 person or department to influence other people to bring about desired outcome
- Influence – effect a person’s actions have on the attitudes, values, beliefs, or actions of others.
Types of Power:
- Legitimate – authority a manager has by virtue of his/her position in hierarchy
- Reward – ability to give or withhold tangible rewards and intangible rewards
- Coercive – ability of manager to punish others. May require documentation for dismissals.
- Expert – based on special knowledge, skills, and expertise
- Referent – more informal. Comes from co-worker respect and personal characteristics (such as being a person of your word).
- Position Power – includes Legitimate, Reward, and Coercive
- Personal Power – includes Expert and Referent
Responses to Use of Power:
- Position Power – appropriate use results in compliance. Excessive use results in resistance.
- Personal Power – results in commitment
Low Dependency In Organizations – when leader has control over unimportant, widely available resources that have substitutes.
High Dependency In Organizations – when leader has control over important, scarce resources that have no substitutes.
- Strategic Contingencies That Cause Increased Leader Power:
- Interdepartmental Dependency
- Control over Information
- Organizational Centrality
- Coping with Uncertainty
Politics – activities to acquire, develop, and use power and other resources to obtain desired future outcomes when there is uncertainty or disagreement about choices.
7 Principles for Asserting Leader Influence:
- Use rational persuasion
- Make people like you
- Rely on the rule of reciprocity (Win / Win)
- Develop allies (quid pro quo – “this for that”)
- Ask for what you want
- Remember the principle of scarcity (people want more of what they cant have…so share)
- Extend authority with expertise and credibility (be knowledgeable, credible, trustworthy)
Guidelines for Ethical Action:
- Is action consistent with organization’s goals
- Does action respect rights of individuals
- Does action meet standards of fairness and equity
- Would you wish others to behave the same way to you
8 Stage Model of Planned Organizational Change:
- Establish Sense of Urgency – crises may thaw resistance
- Establish a Coalition – gain alliance of different groups
- Develop a Vision and Strategy – leader must guide
- Communicate Vision and Strategy – must communication about change 10 times more than you thought necessary
- Empower Employees – revise procedures and do things differently
- Generate Short–Term Wins – celebrate and praise
- Consolidate Gains – create greater change and tackle bigger problems
- Institutionalize Change into Organizational Culture – what your doing becomes expected and establishes direction for future.
- Creativity – generation of new ideas that result in improved efficiency and effectiveness of the organization.
- Idea Incubator – safe harbor where ideas from employees throughout the organization can be developed without interference from company bureaucracy or politics.
- Corporate Entrepreneurship – internal entrepreneurial spirit that includes values of exploration, experimentation, and risk taking.
- Idea Champions – people who passionately believe in a new idea and actively work to overcome obstacles and resistance.
Characteristics of Innovative Organizations:
- Creative values
- Unofficial activity
- Diverse stimuli
- Within company communication
Characteristics of Creative Individuals:
- Commitment – Self Confidence – Loves people
- Focused approach – Nonconformity
- Interdependence – Curiosity
- Persistence – Open-mindedness
- Energy – Conceptual fluency
- Enjoys variety – Emotionally expressive
Personal Compact – reciprocal obligations and commitments that define the relationship between employees and the organization.
Why People Resist Change:
- Self Interest (fear of personal lose)
- Uncertainty (fear of unknown)
- Different Assessment of Situation and Goals
- Communication and Training
- Participation and Involvement
Downsizing – intentionally reducing the size of a company’s workforce
Examples of Companies:
Seattle’s Famous Pike Place Fish Market:
- John Yokoyama – Market Owner
- Changed from strong Theory X to strong Theory Y.
- At first his management style was one of “you did what I would you, or else.” He was a very tyrant boss.
- Now he believes you need to stay out of the way and allow workers to use their creativity to contribute to the organization.
- Waterfront in Seattle. Opened in 1907. By 1940s more than 2/3rds of stalls were owned by Japanese Americans.
- Executive Order 9066 – forced all Japanese Americans into internment camps after Pearl Harbor during WWII.
- To be on Pike’s team, you have to be committed whole-heartedly to the purpose. John does not treat people like numbers, rather he knows all of their names and has a close relationship with them.
- Each worker has the ability to “coach” others and empower them to create a result.
Working for the Best: The Container Store:
- Kip Tindell – President / CEO
- Garrett Boone – Chairman / Founder
- Voted # 1 and # 2 Twice on the Top 100 Companies to Work For.
- 15% – 20% turnover with employees. Overall, this type of business usually has 90% turnover.
- They want the best employees so they are willing to pay for them (pay 50% – 150% higher than industry average)
- The main goal of company is to EXCEED customer expectations and they go out of their way to achieve this.
- Part time employees are treated like full time employees.
- Company embodies Dwight Eisenhower’s quote “get people to do what you want them to do because they want to do it.”
- Company creates family-like atmosphere where employees are recognized with letters, calls, etc.
- Cross training and job rotation create a very Theory Y environment with empowered workers.
Milgram Studies Video:
- Stanley Milgram – Harvard Graduate
- Study done in 1962 at Yale University.
- Told participants the study looked at effects of punishment on learning.
- Teacher and learner involved. Teacher supposed to give learner electric shock for wrong answers. NO SHOCK WAS EVER REALLY USED
- Authority figure becomes key!!! People gave more and more shocks especially when they could pass responsibility off on the study administrator.
- It was predicted that 10 out of 100 subjects would go all the way.
- 70% of subjects carried through with punishment and delivered maximum shock, EVEN IF THEY SEEMED RELUCTANT.
- Study can’t be done today because it is considered deceptive.
- 14 of 40 teachers exhibited nervous laughter
- A lot of people felt remorse after study