Strategic Leadership Practice 4

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Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Robert N. Lussier, Ph.D. Springfield College

Christopher F. Achua, D.B.A. University of Virginia’s College at Wise

S I X T H E D I T I O N

Leadership THEORY, APPLICATION,

& SKILL DEVELOPMENT

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Leadership: Theory, Application, & Skill Development, 6e Robert N. Lussier, Christopher F. Achua

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WCN: 02-200-203

DEDICATION

To my wife Marie and our six children:

Jesse, Justin, Danielle, Nicole, Brian, and Renee

— Robert N. Lussier

To my family, especially my wife (Pauline),

the children (Justin, Brooke, Jordan, Cullen, Gregory and Zora)

and my mother (Theresia Sirri).

— Christopher F. Achua

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v

Brief Contents Preface xiii

Acknowledgments xxv

About the Authors xxviii

PART ONE INDIVIDuALS AS LEADERS

1 Who Is a Leader and What Skills Do Leaders Need? 1

2 Leadership Traits and Ethics 31

3 Leadership Behavior and Motivation 68

4 Contingency Leadership Theories 108

5 Influencing: Power, Politics, Networking, and Negotiation 144

PART TWO TEAM LEADERSHIP

6 Communication, Coaching, and Conflict Skills 183

7 Leader–Member Exchange and Followership 230

8 Team Leadership and Self-Managed Teams 268

PART THREE ORgANIzATIONAL LEADERSHIP

9 Charismatic and Transfor mational Leadership 319

10 Leadership of Culture, Ethics, and Diversity 357

11 Strategic Leadership and Change Management 395

12 Crisis Leadership and the Learning Organization 428

Appendix: Leadership and Spirituality in the Workplace 464

Glossary 474

Index 481

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vi

Contents Preface xiii Acknowledgments xxv About the Authors xxviii

PART ONE INDIVIDuALS AS LEADERS

CHAPTER 1 Who Is a Leader and What Skills Do Leaders Need? 1 Leadership Described 2

Leadership Development 2 / Defining Leadership with Five Key Elements 5

Leadership Skills 8 Are Leaders Born or Made? 8 / Can Leadership Be Taught and Skills Developed? 9 / Managerial Leadership Skills 9

Leadership Managerial Roles 11 Interpersonal Roles 11 / Informational Roles 12 / Decisional Roles 12

Levels of Analysis of Leadership Theory 14 Individual Level of Analysis 14 / group Level of Analysis 14 / Organizational Level of Analysis 14 / Interrelationships among the Levels of Analysis 15

Leadership Theory Paradigms 16 The Trait Theory Paradigm 16 / The Behavioral Leadership Theory Paradigm 16 / The Contingency Leadership Theory Paradigm 17 / The Integrative Leadership Theory Paradigm 17 / From the Management to the Leadership Theory Paradigm 17

Objectives of the Book 18 Leadership Theory 19 / Application of Leadership Theory 20 / Leadership Skill Development 20 / Flexibility 20

Organization of the Book 20

Chapter Summary 21 Key Terms 22 / Review Questions 22 / Critical-Thinking Questions 22 CASE: From Steve Jobs to Tim Cook—Apple 23 VIDEO CASE: Leadership at P. F. Chang’s 24 Developing Your Leadership Skills 1-1 24 Developing Your Leadership Skills 1-2 26

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CONTENTS vii

CHAPTER 2 Leadership Traits and Ethics 31 Personality Traits and Leadership Trait universality 32

Personality and Traits 33 / Personality Profiles 34 / Leadership Trait universality 35

The Big Five Including Traits of Effective Leaders 36 Surgency 36 / Agreeableness 37 / Adjustment 37 / Conscientiousness 38 / Openness 38

The Personality Profile of Effective Leaders 41 Achievement Motivation Theory 41 / Leader Motive Profile Theory 43

Leadership Attitudes 45 Theory X and Theory Y 46 / The Pygmalion Effect 47 / Self-Concept 48 / How Attitudes Develop Leadership Styles 49

Ethical Leadership 50 Does Ethical Behavior Pay? 51 / Factors Influencing Ethical Behavior 52 / How People Justify unethical Behavior 54 / guides to Ethical Behavior 56

Chapter Summary 57 Key Terms 58 / Review Questions 58 / Critical-Thinking Questions 59 CASE: Blake Mycoskie and TOMS 59 VIDEO CASE: “P.F.” Chang’s Serves Its Workers Well 61 Developing Your Leadership Skills 2-1 61 Developing Your Leadership Skills 2-2 63 Developing Your Leadership Skills 2-3 63

CHAPTER 3 Leadership Behavior and Motivation 68 Leadership Behavior and Styles 69

Leadership Behavior 69 / Leadership Styles and the university of Iowa Research 70

university of Michigan and Ohio State university Studies 71 university of Michigan: Job-Centered and Employee-Centered Behavior 72 / Ohio State university: Initiating Structure and Consideration Behavior 74 / Differences, Contributions, and Applications of Leadership Models 75

The Leadership grid 75 Leadership grid Theory 76 / Leadership grid and High-High Leader Research 77 / Behavioral Theory Contributions and Applications 78

Leadership and Major Motivation Theories 79 Motivation and Leadership 79 / The Motivation Process 79 / An Overview of Three Major Classifications of Motivation Theories 80

Content Motivation Theories 80 Hierarchy of Needs Theory 80 / Two-Factor Theory 82 / Acquired Needs Theory 86 / Balancing Work–Life Needs 87

Process Motivation Theories 87 Equity Theory 87 / Expectancy Theory 88 / goal-Setting Theory 89 / using goal Setting to Motivate Employees 91

Reinforcement Theory 92 Types of Reinforcement 93 / Schedules of Reinforcement 94 / You get What You Reinforce 95 / Motivating with Reinforcement 96 / giving Praise 96

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viii CONTENTS

Putting the Motivation Theories Together within the Motivation Process 99

Chapter Summary 100 Key Terms 100 / Review Questions 101 / Critical-Thinking Questions 101 CASE: Facebook COO Sheryl Sandberg 102 VIDEO CASE: Motivation at Washburn guitars 103 Developing Your Leadership Skills 3-1 103 Behavior Model Skills Training 3-1 104 Behavior Model Video 3-1 104 Developing Your Leadership Skills 3-2 104

CHAPTER 4 Contingency Leadership Theories 108 Contingency Leadership Theories and Models 109

Leadership Theories versus Leadership Models 110 / Contingency Theory and Model Variables 110 / global Contingency Leadership 111

Contingency Leadership Theory and Model 112 Leadership Style and the LPC 113 / Situational Favorableness 114 / Determining the Appropriate Leadership Style 114 / Research, Criticism, and Applications 116

Leadership Continuum Theory and Model 117

Path–goal Leadership Theory and Model 119 Situational Factors 120 / Leadership Styles 121 / Research, Criticism, and Applications 122

Normative Leadership Theory and Models 123 Leadership Participation Styles 124 / Model Questions to Determine the Appropriate Leadership Style 124 / Selecting the Time-Driven or Development-Driven Model for the Situation 127 / Determining the Appropriate Leadership Style 127 / Research, Criticism, and Applications 127

Putting the Behavioral and Contingency Leadership Theories Together 128 Prescriptive and Descriptive Models 129

Leadership Substitutes Theory 131 Substitutes and Neutralizers 131 / Leadership Style 132 / Changing the Situation 132 / Research, Criticism, and Applications 132

Chapter Summary 133 Key Terms 134 / Review Questions 134 / Critical-Thinking Questions 134 CASE: Foxconn Technology group 135 VIDEO CASE: Leadership at McDonald’s 136 Developing Your Leadership Skills 4-1 139 Developing Your Leadership Skills 4-2 140

CHAPTER 5 Influencing: Power, Politics, Networking, and Negotiation 144 Power 145

Sources of Power 146 / Types of Power and Influencing Tactics, and Ways to Increase Your Power 146

Organizational Politics 153 The Nature of Organizational Politics 154 / Political Behavior 155 / guidelines for Developing Political Skills 156

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CONTENTS ix

Networking 159 Perform a Self-Assessment and Set goals 160 / Create Your One-Minute Self-Sell 161 / Develop Your Network 162 / Conduct Networking Interviews 162 / Maintain Your Network 164 / Social Networking at Work 164

Negotiation 165 Negotiating 166 / The Negotiation Process 166

Ethics and Influencing 171

Chapter Summary 172 Key Terms 173 / Review Questions 173 / Critical-Thinking Questions 173 CASE: Organizational Power and Politics 174 VIDEO CASE: Employee Networks at Whirlpool Corporation 175 Developing Your Leadership Skills 5-1 176 Developing Your Leadership Skills 5-2 177 Developing Your Leadership Skills 5-3 178 Developing Your Leadership Skills 5-4 179

PART TWO TEAM LEADERSHIP

CHAPTER 6 Communication, Coaching, and Conflict Skills 183 Communication 184

Communication and Leadership 185 / Sending Messages and giving Instructions 185 / Receiving Messages 188

Feedback 191 The Importance of Feedback 191 / Common Approaches to getting Feedback on Messages—and Why They Don’t Work 192 / How to get Feedback on Messages 192

Coaching 194 How to give Coaching Feedback 194 / What Is Criticism—and Why Doesn’t It Work? 197 / The Coaching Model for Employees Who Are Performing Below Standard 198 / Mentoring 200

Managing Conflict 200 The Psychological Contract 201 / Conflict Management Styles 201

Collaborating Conflict Management Style Models 205 Initiating Conflict Resolution 206 / Responding to Conflict Resolution 207 / Mediating Conflict Resolution 207

Chapter Summary 210 Key Terms 210 / Review Questions 211 / Critical-Thinking Questions 211 CASE: Reed Hastings—Netflix 211 VIDEO CASE: Communication at Navistar International 213 Developing Your Leadership Skills 6-1 214 Behavior Model Skills Training 6-1 215 Behavior Model Video 6-1 221 Developing Your Leadership Skills 6-2 222 Behavior Model Skills Training 6-2 222 Behavior Model Video 6-2 223 Developing Your Leadership Skills 6-3 223 Developing Your Leadership Skills 6-4 224 Behavior Model Video 6-3 225 Developing Your Leadership Skills 6-5 225 Behavior Model Video 6-4 226

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x CONTENTS

CHAPTER 7 Leader–Member Exchange and Followership 230 From Vertical Dyadic Linkage Theory to Leader–Member Exchange Theory 232

Vertical Dyadic Linkage Theory 232 / Leader–Member Exchange (LMX) Theory 234 / Factors That Influence LMX Relationships 235 / The Benefits of High-Quality LMX Relationships 237 / Criticisms of LMX Theory 238

Followership 239 Defining Followership 240 / Types of Followers 241 / Becoming an Effective Follower 242 / guidelines to Becoming an Effective Follower 244 / Factors That Can Enhance Follower Influence 246 / Dual Role of Being a Leader and a Follower 249

Delegation 249 Delegating 249 / Delegation Decisions 250 / Delegating with the use of a Model 252 / Evaluating Followers: guidelines for Success 254

Chapter Summary 255 Key Terms 256 / Review Questions 256 / Critical-Thinking Questions 257 CASE: W. L. gore & Associates 257 VIDEO CASE: Delegation at Boyne uSA Resorts 259 Developing Your Leadership Skills 7-1 260 Behavior Model Skills Training 260 The Delegation Model 260 Behavior Model Video 7.1 261 Developing Your Leadership Skills 7-2 261

CHAPTER 8 Team Leadership and Self-Managed Teams 268 The use of Teams in Organizations 270

Is It a group or a Team? 271 / Benefits and Limitations of Teamwork 272 / What Is an Effective Team? 275 / Characteristics of Highly Effective Teams 276 / Team Leadership 279 / Organizational Culture and Team Creativity 281

Types of Teams 283 Functional Team 283 / Cross-Functional Team 284 / Virtual Team 285 / Self-Managed Team (SMT) 285

Decision Making in Teams 286 Normative Leadership Model 286 / Team-Centered Decision-Making Model 287 / Advantages and Disadvantages of Team-Centered Decision Making 287

Conducting Effective Team Meetings 288 Planning Meetings 289 / Conducting Meetings 290 / Handling Problem Members 291

Self-Managed Teams 293 The Nature of Self-Managed Teams 294 / The Benefits of Self-Managed Teams 295 / Top Management and Self-Managed Team Success 297 / The Changing Role of Leadership in Self-Managed Teams 298 / The Challenges of Implementing Self-Managed Teams 299

Chapter Summary 300 Key Terms 301 / Review Questions 301 / Critical Thinking Questions 302 CASE: Frederick W. Smith—FedEx 302 VIDEO CASE: The NEADS Team: People and Dogs 304 Behavior Model Skills Training 8-1 304 Leadership Decision-Making Model 305 Behavior Model Video 8-1 and Video Exercise 307 Developing Your Leadership Skills 8-1 308 Developing Your Leadership Skills 8-2 310

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CONTENTS xi

PART THREE ORgANIzATIONAL LEADERSHIP

CHAPTER 9 Charismatic and Transfor mational Leadership 319 Charismatic Leadership 321

Weber’s Conceptualization of Charisma 321 / Locus of Charismatic Leadership 322 / The Effects of Charismatic Leaders on Followers 323 / How One Acquires Charismatic Qualities 324 / Charisma: A Double-Edged Sword 326

Transformational Leadership 328 The Effects of Transformational Leadership 328 / Transformational versus Transactional Leadership 329 / The Transformation Process 331

Charismatic-Transformational Leadership 333 Qualities of Effective Charismatic and Transformational Leadership 333 / Charismatic and Transformational Leadership: What’s the Difference? 339

Stewardship and Servant Leadership 342 Stewardship and Attributes of the Effective Steward Leader 343 / Servant Leadership and Attributes of the Effective Servant Leader 344

Chapter Summary 346 Key Terms 348 / Review Questions 348 / Critical-Thinking Questions 348 CASE: ursula Burns: Xerox’s Chairwoman and CEO 349 VIDEO CASE: Timbuk2: Former CEO Sets a Course 351 Developing Your Leadership Skills 9-1 351

CHAPTER 10 Leadership of Culture, Ethics, and Diversity 357 What Is Organizational Culture? 359

Culture Creation and Sustainability 359 / The Power of Culture 360 / Strong versus Weak Cultures 361 / The Leader’s Role in Influencing Culture 364 / Types of Culture 366 / National Culture Identities—Hofstede’s Value Dimensions 369

Organizational Ethics 371 Fostering an Ethical Work Environment 372 / Authentic Leadership 374

Diversity Leadership 375 The Changing Work Place 376 / Benefits of Embracing Diversity 376 / Creating a Pro-Diversity Organizational Culture 378 / The Effects of globalization on Diversity Leadership 382

Chapter Summary 383 Key Terms 384 / Review Questions 385 / Critical-Thinking Questions 385 CASE: Mary Barra—New CEO of general Motors 385 VIDEO CASE: Diversity at PepsiCo 387 Developing Your Leadership Skills 10-1 387 Developing Your Leadership Skills 10-2 388 Developing Your Leadership Skills 10-3 389

CHAPTER 11 Strategic Leadership and Change Management 395 Strategic Leadership 397

globalization and Environmental Sustainability 399 / Strategic Leadership and the Strategic Management Process 400

The Strategic Management Process 401 Crafting a Vision and Mission Statement 402 / Setting Organizational Objectives 404 / Strategy Formulation 405 / Strategy Execution 408 / Strategy Evaluation and Control 411

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xii CONTENTS

Leading Organizational Change 411 The Need for Organizational Change 412 / The Role of Top Leaders in Managing Change 412 / The Change Management Process 413 / Why People Resist Change 414 / Minimizing Resistance to Change 416

Chapter Summary 418 Key Terms 419 / Review Questions 419 / Critical Thinking Questions 420 CASE: Nike in the Era of CEO Mark Parker 420 VIDEO CASE: Original Penguin Spreads Its Wings 422 Developing Your Leadership Skills 11-1 422 Developing Your Leadership Skills 11-2 423 Developing Your Leadership Skills 11-3 423

CHAPTER 12 Crisis Leadership and the Learning Organization 428 Crisis Leadership 430

Crisis Communication in the Age of Social Media 432 / Formulating a Crisis Plan 433 / The Three-Stage Crisis Management Plan 433 / The Five-Step Crisis Risk Assessment Model 437 / Effective Crisis Communication 440 / guideliness to Effective Crisis Communication 441

The Learning Organization and Knowledge Management 443 Learning Organization Characterisitcs 444 / What Is Knowledge Management? 445 / Traditional Versus the Learning Organization 446 / The Learning Organizational Culture and Firm Performance 449 / The Role of Leaders in Creating a Learning Organization Culture 449

Chapter Summary 452 Key Terms 454 / Review Questions 454 / Critical Thinking Questions 454 CASE: Merck CEO–Ken Frazier. First African American Leading a Major Pharmaceutical Company 455 VIDEO CASE: Managing in Turbulent Times at Second City Theater 457 Developing Your Leadership Skills 12-1 457 Developing Your Leadership Skills 12-2 458

Appendix: Leadership and Spirituality in the Workplace 464 Glossary 474 Index 481

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xi i i

Preface Target Market This book is intended for leadership courses offered at the undergraduate and graduate levels in schools of busi- ness, public administration, health care, education, psychology, and sociology. No prior coursework in business or management is required. The textbook can also be used in management development courses that emphasize the leadership function, and can supplement management or organizational behavior courses that emphasize leader- ship, especially with an applications/skill development focus.

Goals and Overview of Competitive Advantages In his book Power Tools, John Nirenberg asks, “Why are so many well-intended students learning so much and yet able to apply so little in their personal and professional lives?” Is it surprising that students cannot apply what they read and cannot develop skills, when most textbooks continue to focus on theoretical concepts? Textbooks need to take the next step and develop students’ ability to apply what they read and to build skills using the concepts. I (Lussier) started writing management textbooks in 1988—prior to the call by the Association to Advance Collegiate Schools of Business (AACSB) for skill development and outcomes assessment—to help professors teach their stu- dents how to apply concepts and develop management skills. Pfeffer and Sutton concluded that the most important insight from their research is that knowledge that is actually implemented is much more likely to be acquired from learning by doing, than from learning by reading, listening, or thinking. We designed this book to give students the opportunity to learn by doing.

The overarching goal of this book is reflected in its subtitle: theory, application, skill development. We devel- oped the total package to teach leadership theory and concepts, to improve ability to apply the theory through critical thinking, and to develop leadership skills. Following are our related goals in writing this book:

• To be the only traditional leadership textbook to incorporate the three-pronged approach. We make a clear dis- tinction between coverage of theory concepts, their application, and the development of skills based on the con- cepts. The Test Bank includes questions under each of the three approaches.

• To make this the most “how-to” leadership book on the market. We offer behavior models with step-by-step guidelines for handling various leadership functions (such as how to set objectives, give praise and instructions, coach followers, resolve conflicts, and negotiate).

• To offer the best coverage of traditional leadership theories, by presenting the theories and research findings with- out getting bogged down in too much detail.

• To create a variety of high-quality application material, using the concepts to develop critical-thinking skills. • To create a variety of high-quality skill-development exercises, which build leadership skills that can be used in

students’ personal and professional life. • To offer behavior-modeling leadership skills training. • To make available a DVD, including 7 Behavior Model Videos and 12 Video Cases. • To suggest self-assessment materials that are well integrated and illustrate the important concepts discussed in the

text. Students begin by determining their personality profile in Chapter 2, and then assess how their personality affects their leadership potential in the remaining chapters.

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xiv PREFACE

• To provide a flexible teaching package, so that professors can design the course to best meet the leadership needs of their students. The total package includes more material than can be covered in one course. Supplemental material is included, thus only one book is needed—making it a low-cost alternative for the student.

Flexibility Example The textbook, with 12 chapters, allows time for other materials to be used in the leadership course. The textbook includes all the traditional topics in enough detail, however, to use only the textbook for the course. It offers so much application and skill-development material that it cannot all be covered in class during one semester. Instructors have the f lexibility to select only the content and features that best meet their needs.

Specific Competitive Advantage— Pedagogical Features Three-Pronged Approach We created course materials that truly develop students into leaders. As the title of this book implies, we provide a balanced, three-pronged approach to the curriculum:

• A clear understanding of the traditional theories and concepts of leadership, as well as of the most recently developed leadership philosophies

• Application of leadership concepts through critical thinking • Development of leadership skills

The three-pronged approach is clear in the textbook and is carried throughout the Instructor’s Manual and Test Bank.

Theory

Leadership Theories, Research and References, and Writing Style: This book has been written to provide the best coverage of the traditional leadership theories, present- ing the theories and research findings clearly without being bogged down in too much detail. The book is heavily referenced with classic and current citations. Unlike the text- books of some competitors, this book does not use in-text citations, to avoid distract- ing the reader and adding unnecessary length to the text chapters. Readers can refer to the notes for complete citations of all sources. Thus, the book includes all the traditional leadership topics, yet we believe it is written in a livelier, more conversational manner than those of our competitors.

The following features are provided to support the first step in the three-pronged approach—theory.

Learning Outcomes: Each chapter begins with Learning Outcomes. At the end of the chapter, the Learning Outcomes are integrated into the chapter summary.

Key Terms: A list of key terms appears at the end of each chapter. Clear definitions are given in the text for approximately 15 of the most important concepts from the chapter (with the key term in bold and the definition in italic).

Chapter Summary: The summary lists the Learning Outcomes from the beginning of the chapter and gives the answers. For each chapter, the last Learning Outcome requires

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PREFACE xv

students to define the key terms of the chapter by writing the correct key term in the blank provided for each definition.

Review Questions: These questions require recall of information generally not covered in the Learning Outcomes.

Application The second prong of our textbook is to have students apply the leadership theories and concepts so that they can develop critical-thinking skills. Students develop their applica- tion skills through the following features.

Opening Case Application: At the beginning of each chapter, information about an actual manager and organization is presented. The case is followed by four to eight questions to get students involved. Throughout the chapter, the answers to the ques- tions are given to illustrate how the manager/organization actually uses the text concepts to create opportunities and solve problems through decision making. A distinctive head (Opening Case APPLICATION) appears when the opening case is applied in the text.

Work Applications: Open-ended questions, called Work Applications, require students to explain how the text concepts apply to their own work experience; there are over 100 of these scattered throughout the text. Student experience can be present, past, summer, full-time, or part-time employment. The questions help the students bridge the gap between theory and the real world. The Work Applications are also included in the Test Bank, to assess students’ ability to apply the concepts.

Concept Applications: Every chapter contains a series of two to six Concept Applica- tion boxes that require students to determine the leadership concept being illustrated in a specific, short example. All the recommended answers appear in the Instructor’s Manual with a brief explanation. In addition, the Test Bank has similar questions, clearly labeled, to assess students’ ability to apply the concepts.

WORK Application 2-1 Based on your personality profile, identify which dimensions are stronger, moderate, and weaker.

1. What Big Five and leadership personality traits does Ellen Kullman possess?

To a large extent, Ellen Kullman is a successful leader because of her strong personality in the Big Five. She has a strong need for surgency that helped her climb the corporate ladder at DuPont, which is dominated by men.

It took energy and determination to become the first woman CEO of DuPont. She is ranked #3 on the Fortune 50 Most Powerful Women list.

Kullman has agreeableness. She gets along well with people having strong interpersonal skills with EI. Kullman relies more on her personal relationships than her power as CEO to get the job done. She is also sociable and sensitive to others.

She is conscientious at getting the job done. Being very dependable by achieving great success was a cornerstone of her climbing the corporate ladder at DuPont. Plus she is viewed has having a high level of integrity.

Kullman is well adjusted. Competing in a company and industry dominated by men, she has self-control and self-confidence. She is calm, good under pressure, relaxed, secure, and positive. She praises the accomplishments of her employees at all levels.

She is open to new experience because of her innovating and bringing to market new products at a faster clip. Kullman is highly intelligent, has an internal locus of control as she takes charge to bring changes, and is flexible.

OPENING CASE Application

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xvi PREFACE

Critical-Thinking Questions: There are more than 80 critical-thinking questions (an average of seven per chapter) that can be used for class discussion and/or written assign- ments to develop communication and critical thinking skills.

Cases: Following the Review Questions and Critical Thinking Questions, students are presented with another actual manager and organization. The students learn how the manager/organization applies the leadership concepts from that chapter. Each Case is fol- lowed by questions for the student to answer. Chapters 2 through 11 also include cumula- tive case questions. Cumulative questions relate case material from prior chapters. Thus, students continually review and integrate concepts from previous chapters. Answers to the Case questions are included in the Instructor’s Manual.

Video Cases: All chapters include one Video Case. Seeing actual leaders tackling real management problems and opportunities enhances student application of the concepts. The 12 Video Cases have supporting print material for both instructors and students, including a brief description and critical-thinking questions. Answers to the Video Case questions are included in the Instructor’s Manual.

P.F. Chang’s has over 120 full-service, casual dining Asian bistros and contemporary Chinese diners across the country, and its employees have the authority to make decisions that benefit customers. Giving employees the free- dom to make decisions has had a huge impact on their at- titudes and performance. Managers at P.F. Chang’s receive extensive training on how to create and nurture a positive attitude among their employees, and all workers receive an

employee handbook, which clearly spells out exactly what is expected of them.

1. In what ways does P.F. Chang’s create organizational commitment among its workers?

2. How might a manager at P.F. Chang’s use the Big Five personality factors to assess whether a candidate for a position on the wait staff would be suitable?

V I D E O C A S E

“P.F.” Chang’s Serves Its Workers Well

CONCEPT APPLICATION 2-1

Big Five Personality Dimensions Identify each of these seven traits/behaviors by its personality dimension. Write the appropriate letter in the blank before each item. a. surgency d. conscientiousness b. agreeableness e. openness to experience c. affiliation

1. A leader is saying a warm, friendly hello to followers as they arrive at the meeting.

2. A leader is brainstorming ideas with followers on new products.

3. A follower is yelling about a problem, a leader calmly explains how to solve it.

4. A leader is not very talkative when meeting some unexpected customers.

5. A leader is letting a follower do the job his or her own way to avoid a conflict.

6. A leader is giving detailed instructions to a follower to do the job.

7. A purchasing agent submitted the monthly report on time as usual.

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PREFACE xvii

Skill Development The difference between learning about leadership and learning to be a leader is the ac- quisition of skills, our third prong. This text focuses on skill development so students can use the leadership theories and concepts they learn to improve their personal and profes- sional life.

Self-Assessments: Scattered throughout the text are 37Self-Assessments. Students com- plete these exercises to gain personal knowledge. All information for completing and scoring the assessments is contained within the text. Students determine their personal- ity profile in Chapter 2, and then assess how their personality affects their leadership in the remaining chapters. Self-knowledge leads students to an understanding of how they can and will operate as leaders in the real world. Although Self-Assessments do not de- velop a specific skill, they serve as a foundation for skill development.

SELF-ASSESSMENT 9-3 Personality and Charismatic and Transformational Leadership

Charismatic leaders have charisma based on personality and other personal traits that cut across all of the Big Five personality types. Review the ten qualities of charismatic leaders in Exhibit 9.3 on page 333. Which traits do you have?

If you have a high surgency Big Five personality style and a high need for power, you need to focus on

using socialized, rather than personalized, charismatic leadership.

Transformational leaders tend to be charismatic as well. In Self-Assessment 9-1 on page 329 you determined if you were more transformational or transactional. How does your personality affect your transformational and transac- tional leadership styles?

You Make the Ethical Call The boxes present issues of ethics for class discussion, with many presenting actual situations faced by real companies. Each dilemma contains two to four questions for class discussion.

YOU Make the ETHICAL Call

1.1 Is Leadership Really Important?

Scott Adams is the creator of the cartoon character Dilbert. Adams makes fun of manag- ers, in part because he distrusts top-level managers, saying that leadership is really a crock. Leadership is about manipulating people to get them to do something they don’t want to do, and there may not be anything in it for them. CEOs basically run the same scam as fortune-tellers, who make up a bunch of guesses, and when by chance one is correct, they hope you forget the other errors. First, CEOs blame their predecessors for anything that is bad, then they shuffle everything around, start a new strategic program, and wait. When things go well, despite the CEO, the CEO takes the credit and moves on to the next job. Adams says we may be hung up on leadership as part of our DNA. It seems we have always sought to put somebody above everybody else.

1. Do you agree with Scott Adams that leadership is a crock?

2. Do we really need to have someone in the leadership role?

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xviii PREFACE

Developing Your Leadership Skills: There are between one and four Exercises at the end of each chapter. We use the term developing your leadership skills only in referring to an exercise that will develop a skill that can be used in the students’ personal or professional life at work. Full support of 30 activities can be found in the Instructor’s Manual, includ- ing detailed information, timing, answers, and so on. There are three primary types of exercises:

Individual Focus. Students make individual decisions about exercise questions before or during class. Students can share their answers in class discussions, or the instructor may elect to go over recommended answers.

Group/Team Focus. Students discuss the material presented and may select group an- swers and report to the class.

Role-Play Focus. Students are presented with a model and given the opportunity to use the model to apply their knowledge of leadership theories through role-playing exercises.

Behavior Model Skills Training: Six of the Developing Your Leadership Skills Exercises may be used as part of behavior modeling by using the step-by-step models in the text and the Behavior Model Videos. Meta-analysis research has concluded that behavior modeling skills training is effective at developing leadership skills. For example, students read the conflict resolution model in the text, watch the video in class, and then complete an Exercise (role-play) to resolve a conflict, using the model and feedback from others.

Case Role-Play Exercise: Following each Case are instructions to prepare students to conduct an in-class role-play, based on a situation presented in the Case. Through role- playing, students develop their skills at handling leadership situations. For example, stu- dents are asked to conduct a motivational speech and to develop a vision and mission statement for an organization.

Step-by-Step Behavior Models: In addition to traditional theories of leadership, the text includes behavior models: how-to steps for handling day-to-day leadership functions, such as how to set objectives, give praise, coach, resolve conflicts, delegate, and negotiate.

Behavior Model Videos: There are seven Behavior Model Videos that reinforce the de- velopment of skills. The videos demonstrate leaders successfully handling common lead- ership functions, using the step-by-step behavior models discussed earlier in the Theory section. Students learn from watching the videos and/or using them in conjunction with the Skill-Development Exercises. Material in the text integrates the videos into the chap- ters. Ideas for using all videos are detailed in the Instructor’s Manual.

Objectives

To better understand the four situational communication styles and which style to use in a given situation

Video (12 minutes) Overview

You will first listen to a lecture to understand how to use the situational communications model. Then, you will view two man- agers, Steve and Darius, meeting to discuss faulty parts. You are asked to identify the communication style Darius uses in four

different scenes. Write the letters of the style on the scene line after each scene. This may be completed as part of Developing Your Leadership Skills Exercise 6-2.

Scene 1. Autocratic (S1A)

Scene 2. Consultative (S2C)

Scene 3. Participative (S3P)

Scene 4. Empowerment (S4E)

Behavior Model Video

Situational Communications

6.1

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PREFACE xix

In this behavior model skills training session, you will perform three activities:

1 Read “Improving Performance with the Coaching Model” (to review how to use the model).

2 Watch Behavior Model Video 6.2, “Coaching.’’

3 Complete Developing Your Leadership Skills Exercise 6-3 (to develop your coaching skills).

For further practice, use the coaching model in your personal and professional life.

Session 2

Behavior Model Skills Training 2

Supplements Support Instructor’s Companion Site. Access important teaching resources on this companion Web site. For your convenience, you can download electronic versions of the instructor supplements from the password-protected section of the site, including the Instructor’s Manual, Cognero Testing files, Word Test Bank files, PowerPoint® slides, and a DVD Guide.

• Instructor’s Manual. The accompanying Instructor’s Manual, prepared by Robert Lus- sier and Christopher Achua, contains the following for each chapter of the book: a de- tailed outline for lecture enhancement, Review Question answers, Concept Application answers, Case and Video Case question answers, instructions on use of videos, and De- veloping Your Leadership Skills Exercise ideas (including setup and timing). The In- structor’s Manual also contains an introduction that discusses possible approaches to the course and provides an overview of possible uses for various features and how to test and grade them. It explains the use of permanent groups to develop team leadership skills and provides guidance in the development of a course outline/syllabus.

• Cengage Learning Testing Powered by Cognero. This is a flexible, online system that al- lows you to author, edit, and manage test bank content from multiple Cengage Learning solutions; create multiple test versions in an instant; and deliver tests from your LMS, your classroom, or wherever you want. Cengage Learning Testing Powered by Cognero works on any operating system or browser, no special installs or downloads needed. You can create tests from school, home, the coffee shop—anywhere with Internet access.

• Word Test Bank files. These files are converted from the Cognero testing system. All questions have been scrutinized for accuracy, the test bank for each chapter includes true/false, multiple-choice, and essay questions, all correlated to national business standards, learning objectives, level of difficulty, and page references.

• PowerPoint® Lecture Presentations. An asset to any instructor, the lectures provide out- lines for every chapter, illustrations from the text, and emphasize key concepts provid- ing instructors with a number of learning opportunities for students.

• DVD Guide. Designed to facilitate use of the accompanying DVD, this guide provides summaries of each Video Case, as well as the Behavior Model Video segments. Discus- sion starter question and suggested answers are included.

DVD. Chapter closing videos and Behavior Model videos compiled specifically to accom- pany Leadership allow students to engage with the textual materials by applying theories and concepts of real-world situations.

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xx PREFACE

Summary of Key Innovations Our goal is to make both students and instructors successful by providing learning fea- tures that not only teach about leadership but also help students become leaders. Here are the special ways in which this is done:

• Three-pronged approach (theory, application, skill development) in the textbook and corresponding assessment of the three areas in the Test Bank

• Unique skill-development materials that build leadership skills for use in students’ per- sonal and professional life

• Unique application material to develop critical-thinking skills in applying the leadership concepts and theories

• Unsurpassed video package, with 12 Video Cases and 7 Behavior Model Videos • Flexibility—use any or all of the features that work for you!

Changes to the Sixth Edition The sixth edition and accompanying supplements have been thoroughly revised.

Chapter 1 The chapter has been updated and 90 percent of the references are new to this edition. Learning outcomes 5 and 6 have been combined because they are related, and learning outcome 7 has been deleted, but the review and list of key terms remains in the Chapter Summary. There is a new Opening Case Application about Amazon. The opening section headings (level 1 and 2 heads) have been changed to better match the first learning out- come. The subsection (level 3 head) on the Importance of Leadership has been rewritten with all new current references. There is a new subsection, Why Study Leadership? to an- swer this question. There is a new sub-section, The Need for Self-Assessment in Leader- ship Development, so that students understand the value of the self-assessment exercises in each chapter. Also, it gets student self-assessment in the very first section of the chap- ter. Self-Assessment 1-1 has been expanded to include more questions, which makes some changes to the Five Elements of Leadership. Within the Five Elements of Leadership, The Leader–Follower subsection now has level 4 headings and the influencing, organizational objectives, change, and people subsections have been heavily revised and shortened with new references. The section “Can Leadership Skills be Taught and Skills Developed” has been rewritten and shortened with all new references. The introduction to the Manage- ment Leadership Skills and the discussion of the three management skills has been short- ened with new references. The Interpersonal Roles now begins with the leader, and the discussion of all ten roles has been condensed. You Make the Ethical Call 1.2, Execu- tive Compensation, has been shortened and updated with all new references. Each of the Leadership Theory Paradigms has been shortened by removing some of the details of the findings of each paradigm that is discussed in later chapters. AACSB standards have been updated using the 2013 AACSB Business Accreditation Standards, General Skills Areas. The listing of AACSB skills developed in each of the Skill Building Exercises throughout the book has also been updated. The case is essentially new as indicated in the new title “From Steve Jobs to Tim Cook—Apple.” The information on Jobs has been decreased and the information on Cook has been increased, with several new references and current performance reported with Cook as CEO.

Chapter 2 The chapter has been updated and 92 percent of the references are new to this edition. The opening case is still DuPont, but it has been rewritten and updated with new references.

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PREFACE xxi

The first major section has been re-titled “Personality Traits and Leadership Trait Uni- versality” and reorganized to better focus on Learning Outcome 1, “Explain the univer- sality of traits of effective leaders.” The number 2 head “Applying Trait Theory” has been replaced with “Leadership Trait Universality,” and the discussion of “We Can Improve” and “Derailed Leadership Traits” level 3 heads has been moved to the “Personality Pro- file” section. The introduction to the Ethical Leadership section has been rewritten with all new references. The section “Does Ethical Behavior Pay?” has been rewritten with all new references. There is a new subsection, “Why Do Good People Do Bad Things?” The subsection “The Situation” has been expanded to include the “bad apple bad barrel” con- cept and include more situations in which unethical behavior may occur. In the “Guides to Ethical Behavior” section, subsection discussing codes of ethics and discernment and getting advice have been added. There is a new Work Application 2-4 to apply how people justify unethical behavior at work. The section “ Being an Ethical Leader ” has been de- leted to shorten the chapter a bit. The end-of-chapter case is new—TOMS.

Chapter 3 The chapter has been updated and 86 percent of the references are new to this edition while listing the classical references to leadership and motivation theory. The opening case is still Trader Joe’s, but it has been updated and shortened. The introduction to the chapter has been rewritten with all new references. The “University of Michigan and Ohio State University Studies” section has been shortened a bit. The section, Motivation and Leadership, has been rewritten with all new references. The section on Reinforce- ment Theory has been shortened some, and the subsection “The Folly of Rewarding A, While Hoping for B” with Exhibit 3.12 has been deleted. The end-of-chapter case is new, Facebook COO Sheryl Sandberg. There is also a new role-play exercise that goes with it.

Chapter 4 The chapter has been updated throughout. However, this chapter is based on older con- tingency leadership theories. Therefore, it includes more classical references than several of the other chapters. There are 46 references and 13 are from the fifth edition, so 33 or 72 percent of the references are new to this edition. The opening case is still Indra Nooyi at PepsiCo, but the case has been completely rewritten. The Contingency Leader- ship Theory and Models section introduction has been updated with all new references. The closing case name has been changed by dropping the name Terry Gou from the title. It has been updated and the information about Foxconn has been shortened a bit. There are changes to all of the applying the concept boxes. The skill building exercises include the new AACSB General Skills Areas.

Chapter 5 The chapter has been updated throughout. There are 80 references and 5 are from the fifth edition; so 75, or 94 percent, of the references are new to this edition. The opening case is Mark Cuban, but the case has been completely rewritten and shorter. The intro- duction to the Power section has been essentially rewritten with all new references. The amount of explanation of the Types of Power and Influencing Tactics, and Ways to In- crease Your Power has been reduced. The subsection “Acquiring and Losing Power” has been deleted. The introduction to the Networking section has been rewritten with all new references. The second level heading Social Networking at Work has been dropped to a third level, rewritten and shortened. The key term definition of negotiation has been changed. The end-of-chapter case title and the people’s names in the case have been changed.

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xxii PREFACE

Chapter 6 The chapter has been updated throughout. There are 87 references and 3 are from the fifth edition; so 84, or 97 percent, of the references are new to this edition. The entire Communications section has been shortened a bit throughout. The section “Communi- cation and Leadership” has been completely rewritten with all new references. The second level heading 360-Degree Multirater Feedback is now a level 3 head. Learning Outcome 6 and the section “Common Approaches to “Getting Feedback on Messages, and Why They Don’t Work” have been changed by dropping the four reasons why people don’t ask questions. The introduction to the Coaching section has been rewritten with new refer- ences. The Managing Conflict section has been reorganized, moving the Conflict and Leadership section into the introduction and Psychological Contract sections. The end- of-chapter cases is still Netflix, but it has been updated and shortened a bit.

Chapter 7 More than 90 percent of the references are new to this edition. Learning Outcomes 1 through 4 and 8 are new. The opening case has been updated with new references. We changed the opening section title heading to read as follows: “From Vertical Dyadic Link- age Theory to Leader–Member Exchange Theory.” We redirected the discussion away from Evolution of Dyadic Theory and focused only on VDL and LMX. The subsection on Team Member Exchange Theory is eliminated from Chapter 7 and moved to Chapter 8 that deals with Team Leadership. The subsection on factors that influence LMX relation- ships has been rewritten with two new level 3 headings: The Role of the Leader and The Role of the Follower in Inf luencing LMX relationships. We eliminated the subsection titled “Developing High-Quality LMX Relationships.” The content in this section is now discussed under the newly created subsection titled “The Role of the Follower in Influ- encing LMX Relationships.” The subsection on strengths and limitations of LMX theory has been eliminated. In its place is a new subsection titled “The Two Main Criticisms of LMX Theory.” The subsection “Determinants of Follower Influence” has been renamed “Factors That Can Enhance Follower Influence.” The subsection “Follower Evaluation and Feedback” has been renamed “Evaluating Followers: Guidelines for Success.”

Chapter 8 This chapter has been broadly updated with a significant amount of references new to this edition. The opening case is still Southwest Airlines, but it has been rewritten and updated with new references. There is a new Concept Application 8-2 to test the student’s understanding of organizational culture and team creativity. There has been a major re- vision of the opening heading “The Use of Teams in Organizations” with new references. The subsection “Groups versus Teams: What is the Difference” has been re-titled “Is It a Group or a Team?” This section has been completely revised and shortened. Exhibit 8-2, “The Team Leader’s Role in Creating Effective,” has been deleted. The listed activities in the exhibit have been summarized into a concise but easy to understand narrative. Exhibit 8.3, “Guidelines for Improving Cross-Functional Team Effectiveness,” has been deleted due to its redundancy to the characteristics of effective teams presented in Exhibit 8-1. The end-of-chapter case has been revised with new references and updates.

Chapter 9 This chapter has been broadly updated with a significant amount of references new to this edition. The opening case still features Oprah Winfrey, but it has been completely rewrit- ten from a different vantage point and updated with new references. The introduction

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PREFACE xxiii

to the chapter has been shortened. All Concept Application exercises have been updated and, in many cases, new questions added. The subsection on the Effects of Transforma- tional Leadership has been rewritten and the content shortened. The subsection on the Transformational versus Transactional Leadership has been rewritten and the content shortened. The section on Stewardship and Servant Leadership has been restructured from three subheadings to just two subheadings. The new sub-headings are: Stewardship and Attributes of the Effective Steward Leader and Servant Leadership and Attributes of the Effective Servant Leader. The end-of-chapter case still features Ursula Burns and Xe- rox Corporation but with new information and updates.

Chapter 10 The chapter has been updated throughout. There are 117 references and 4 are from the fifth edition; so 113, or 97%, of the references are new to this edition. The opening case is Avon Corporation, but the case has been completely rewritten to focus on Avon’s a new CEO—Sheri McCoy. All the Concept Application Exercises have been changed or modified. A new subsection on Culture Creation and Sustainability has been added. Two subheadings—Characteristics of Strong Cultures and Characteristics of Weak Cultures— have been dropped from level 2 to level 3 subheadings. These two subheadings have been significant shortened by not discussing each characteristic as a separate subheading. In- stead, a summary narrative is given and the specific characteristics presented in the ex- hibits. The four subheadings on types of culture—Cooperative, Competitive, Adaptive, and Bureaucratic—have been dropped from level 2 to level 3 subheadings. Each of Hof- stede’s Five Value Dimensions for Understanding National Cultures has been dropped from a level 2 to a level 3 subheading. The four recommended practices for fostering an ethical work environment have been dropped from level 2 to level 3 subheadings. The subsection on the Characteristics of Authentic Leaders has been dropped. Its content is included in the subsection titled “What is Authentic Leadership?” The subheading for- merly titled “Changing Demographics and Workforce Diversity” has been re-titled “The Changing Workplace.” Also, demographic diversity has been deleted as a key term. The subsection titled “The Downside of Diversity” has been deleted. Each of the factors that support a pro-diversity organizational culture has been changed from level 2 to level 3 subheadings. The end-of-chapter case is new.

Chapter 11 The chapter has been updated throughout. There are 98 references and 12 are from the fifth edition; so 86, or 90 percent, of the references are new to this edition. The opening case has been updated. All the Concept Application Exercises have been modified. The subsection on strategic leadership failures has been dropped. The focus of the chapter is on strategic leadership; as such, we made it is the first major heading (level 1) and con- verted Globalization and Environmental Sustainability into a level 2 subheading under Strategic Leadership. The first part of the chapter on strategic leadership and the strategic management process has undergone significant restructuring and rewriting. A new sub- heading titled “Leading the Strategic Management Process” has been added under strate- gic leadership. Each of the five tasks of the strategic management process is discussed as level 2 subheadings with significant revisions and updates. Exhibit 11-1 (Strategic Man- agement Framework) has been replaced with a new exhibit). It is now titled “The Strategic Management Process.” We have eliminated the subsection (level 3 heading) titled “Rec- ommendations for Minimizing Resistance to Change.” The subsection titled “Strategic Management in Action” has been dropped. Exhibit 11-2 (Change Implementation Pro- cess) has been dropped. The end-of-chapter case has been updated.

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xxiv PREFACE

Chapter 12 The chapter has been updated throughout. There are 121 references, and only 13 are from the fifth edition; so 108, or 89 percent, of the references are new to this edition. The opening chapter case is new. It focuses on Antonio Perez and Eastman Kodak. The sub- section on crisis leadership training has been dropped. Content has been incorporated under Crisis Leadership. The section on formulating a crisis management plan has been reorganized with two new subsections added and one deleted. Also, in this section, crisis risk assessment has received expanded coverage and elevated to a level 2 subheading now titled “The Five-Step Risk Assessment Model.” The subsection titled “Spotlight on the Af- rican Crisis” has been deleted. The end-of-chapter case is still on Ken Frazier and Merck but completely new in its content and focus.

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x xv

Acknowledgments I’m deeply honored that Judi Neal, CEO of Edgewalkers, http://edgewalkers.org/ (wrote the Appendix, “Leadership and Spirituality in the Workplace”). I also want to thank my mentor and coauthor of many publications, Joel Corman, for his advice and encourage- ment during and after my graduate education at Suffolk University.

I hope everyone who uses this text enjoys teaching from these materials as I do.

Robert N. Lussier, Springfield College

As it has been with past editions of this book, working with Bob Lussier is always a learn- ing and growth experience that I value very much. He is a good friend and a mentor. To my students, friends, and colleagues who have encouraged and supported me morally, I say thanks. And, finally, I give recognition and thanks to the leadership of my institution, the University of Virginia’s College at Wise, for their support of scholarship of this kind.

Christopher F. Achua, University of Virginia’s College at Wise

Finally, we both would like to acknowledge the superb assistance we received from our editorial team. The guidance, support, and professionalism of Scott Person, Julia Chase, Jennifer Ziegler, the team at Lumina Datamatics, Inc., and Sally Nieman were invaluable to the completion of this project. We would also like to thank Amy Richard for her prepa- ration of support material. We sincerely acknowledge the reviewers and survey respon- dents of this and past editions who provided feedback that greatly improved the quality of this book in many areas.

Reviewers Chris Adalikwu, Concordia College—Selma, Alabama Josje Andmore, Camosun College School of Business Kathy Bohley, University of Indianapolis John Bonosoro, Webster University Brenda D. Bradford, Missouri Baptist University Brian W. Bridgeforth, Herzing College Carl R. Broadhurst, Campbell University Jon Burch, Trevecca Nazarene University Debi Cartwright, Truman State University Don Cassiday, North Park University Ken Chapman, Webster University Felipe Chia, Harrisburg Area Community College Valerie Collins, Sheridan College George W. Crawford, Clayton College & State University Janice Cunningham, Indiana Tech

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xxvi ACKNOWLEDgMENTS

Sue Cunningham, Rowan Cabarrus Community College Joseph Daly, Appalachian State University Frederick T. Dehner, Rivier College Melinda Drake, Limestone College Rex Dumdum, Marywood University Ray Eldridge, Freed-Hardeman University Debi Carter-Ford, Wilmington College Dave Foster, Montana State University Gerald A. Garrity, Anna Maria College Thomas Garsombke, Northland College Ronald Gayhart, Lakeshore Tech College Michele Geiger, College of Mount St. Joseph James Gelatt, University of Maryland University College Don R. Gibson, Houston Baptist University Eunice M. Glover, Clayton College & State University Garry Grau, Northeast State Community College Wade Graves, Grayson County College Ray Grubbs, Millsaps College Frank Hamilton, Eckerd College Deborah Hanson, University of Great Falls Nathan Hanson, Palm Beach Atlantic Mary Ann Hazen, University of Detroit Mercy Linda Hefferin, Elgin Community College Marilyn M. Helms, Dalton State College Mary Hogue, Kent State University, Stark Campus Carol Himelhoch, Siena Heights University Donny Hurwitz, Austin Community College Stewart Husted, Virginia Military Institute Dr. Katherine Hyatt, Reinhardt University Gale A. Jaeger, Marywood University Lori Happel-Jarratt, The College of St. Scholastica David Jones, North Carolina State University Thomas O. Jones, Jr., Greensboro College Louis Jourdan, Clayton State University Paul N. Keaton, University of Wisconsin–La Crosse Gary Kleemann, Arizona State University East Susan Kowalewski, D’Youville College Bill Leban, DeVry University Chet Legenza, DeVry University Sondra Lucht, Mountain State University Cheryl Macon, Butler Community College James Maddox, Friends University Kathleen B. Magee, Anna Maria College

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ACKNOWLEDgMENTS xxvii

Charles Mambula, Suffolk University Gary May, Clayton College & State University David McCalman, University of Central Arkansas Lee E. Meadows, Walsh College Ken Miller, Mountain State University Michael Monahan, Frostburg State University Steve Morreale, Worcester State College Lorrie Mowry, McCook Community College Jamie Myrtle, MidAmerica Nazarene University Rhonda S. Palladi, Georgia State University Patricia Parker, Maryville University Jeff Pepper, Chippewa Valley Tech College Nicholas Peppes, St. Louis Community College Melinda Phillabaum, Indiana University Laura Poppo, Virginia Tech William Price, North County Community College Dr. Kanu Priya, Arkansas State University Gordon Rands, Western Illinois University Kira K. Reed, Syracuse University Marlys Rizzi, Simpson College Mary Sacavage, Alvernia College Schuylkill Center Khaled Sartawi, Fort Valley State University Christopher Sieverdes, Clemson University H. D. Sinopoli, Waynesburg College Thomas G. Smith, Fort Valley State University Emeric Solymossy, Western Illinois University—Quad Cities Martha C. Spears, Winthrop University Shane Spiller, Morehead State University Karen Stephens, Camosun College Bill Tracey, Central Connecticut State University Dr. Robert Trumpy, Central Washington University Robin Turner, Rowan-Cabarrus Community College John Waltman, Eastern Michigan University Fred A. Ware, Jr., Valdosta State University Kerr F. Watson, Mount Olive College Kristopher Weatherly, Campbellsville University Amy Wojciechowski, West Shore Community College Mike Woodson, Northeast Iowa Community College Jan Wyatt, Hesser College Benjamin R. Wygal, Southern Adventist University Kimberly S. Young, St. Bonaventure University Kenneth J. Zula, Keystone College Joseph E. Zuro, Troy State University

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x xvi i i

About the Authors ROBERT N. LUSSIER is a professor of management at Springfield College and has taught management for more than 25 years. He has developed innovative and widely copied methods for applying concepts and developing skills that can be used in one’s personal and professional life. He was the director of Israel Programs and taught there. Other international experiences include Namibia and South Africa.

Dr. Lussier is a prolific writer, with over 400 publications to his credit. His articles have been published in the Academy of Entrepreneurship Journal, Business Horizons, En- trepreneurship Theory and Practice, Journal of Business Strategies, Journal of Management Education, Journal of Small Business Management, Journal of Small Business Strategy, SAM® Advanced Management Journal, and others. His other textbooks include Manage- ment Fundamentals: Concepts, Applications, Skill Development 6e (Sage); Human Rela- tions in Organizations: Applications and Skill Building 9e (Irwin/McGraw-Hill); Business, Society and Government Essentials: Strategy and Applied Ethics (Routledge); and others.

When not writing, Dr. Lussier consults to a wide array of commercial and nonprofit organizations. In fact, some of the material in the book was developed for such clients as Baystate Medical Center, Coca-Cola, Friendly’s Ice Cream, the Institute of Financial Education, Mead, Monsanto, Smith & Wesson, the Social Security Administration, the Visiting Nurses Associations of America, and the YMCA.

Dr. Lussier holds a bachelor of science in business administration from Salem State College, two master’s degrees in business and education from Suffolk University, and a doctorate in management from the University of New Haven.

CHRISTOPHER F. ACHUA is a professor in the Department of Business and Economics at the University of Virginia’s College at Wise. His teaching has centered on three disciplines: strategic management, marketing, and organizational leadership. Dr. Achua’s interest in engaging students in real-life learning opportunities led him to create and direct programs such as the Center for Entrepreneurship, Leadership, and Service and the Small Business Institute at his university. These programs focused on developing students’ leadership and entrepreneurial skills by applying theory to real-world situations.

Dr. Achua has presented scholarly papers at regional and national conferences. His papers have been published in many refereed proceedings, the Small Business Institute Journal, and the Journal of Small Business Strategy. When not involved in academic pur- suits, he lends his expertise to community development programs and initiatives. He has served on several boards of organizations in the local community, and was chair of the Mountain Empire Regional Business Incubator’s board of directors.

Dr. Achua received his undergraduate degree in business administration and account- ing from the University of Sioux Falls, South Dakota; his MBA from the University of South Dakota; and his doctorate from the United States International University (now Alliant International University) in San Diego, California.

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1

Chapter

1

C h a p t e r O U t L I N e

Leadership Described

Leadership Development

Defining Leadership with Five Key Elements

Leadership Skills

Are Leaders Born or Made?

Can Leadership Be Taught and Skills Developed?

Managerial Leadership Skills

Leadership Managerial Roles

Interpersonal Roles

Informational Roles

Decisional Roles

Levels of Analysis of Leadership Theory

Individual Level of Analysis

Group Level of Analysis

Organizational Level of Analysis

Interrelationships among the Levels of Analysis

Leadership Theory Paradigms

The Trait Theory Paradigm

The Behavior Leadership Theory Paradigm

The Contingency Leadership Theory Paradigm

The Integrative Leadership Theory Paradigm

From the Management to the Leadership Theory Paradigm

Objectives of the Book

Leadership Theory

Application of Leadership Theory

Leadership Skill Development

Flexibility

Organization of the Book

Who Is a Leader and What Skills Do Leaders Need?

Learning Outcomes After studying this chapter, you should be able to:

1 Briefly describe the five key elements of leadership. p. 5

2 Identify and define the managerial leadership skills. p. 8

3 List the ten managerial roles based on their three categories. p. 11

4 Explain the interrelationships among the levels of leadership analysis. p. 15

5 Describe the major similarity and difference between the trait and behavioral leadership theories, and the interrelationships between them and contingency theories. p. 16

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2 part 1 INDIVIDUALS AS LEADERS

Jeff Bezos amazon.com We begin each chapter by introducing an exceptional leader and company, followed by some questions for you to answer, and we answer the questions throughout the chapter.

Back in July 1995, e-commerce pioneer Jeff Bezos launched Amazon.com as an online bookstore at age 30. Over the years he transformed Amazon into “the every- thing store” that rivals Walmart as a store, Apple as a de- vice maker, and IBM as a data services provider. Amazon is a Fortune 500 company, ranked in the top 50, with sales expected to exceed $75 billion in 2013.

Bezos is a demanding boss who doesn’t tolerate stu- pidity. If employees don’t have the right answers or try to bluff or show uncertainty or frailty, he has been known to make harsh comments. But his criticism is almost always on target that leads to improvements. He is obsessed with improving company performance and customer service and has a public e-mail. When he gets a complaint that irks him, employees get a Bezos question mark e-mail, and they react to resolve the issue quickly, like a ticking bomb.

Bezos is incredibly intelligent, even about things he knows little about. He has won numerous awards for his leadership, including Time magazine Person of the Year and Fortune named Bezos as the best CEO in 2012. He has an estimated net worth of close to $30 billion.

OpeNING CaSe QUeStIONS:

1. Why is Amazon so successful?

2. Does Amazon use our definition of leadership?

3. What managerial leadership skills does CEO Jeff Bezos use at Amazon?

4. What managerial leadership roles does CEO Jeff Bezos perform at Amazon?

Can you answer any of these questions? You’ll find an- swers to these questions about Amazon and its leadership throughout the chapter.

To learn more about Amazon, visit the company’s Web site at http://www. amazon.com.

1 Reference for open case and answers to the question within the chapter.

OPENING CASE Application

The focus of this chapter is on helping you understand what leadership is and what this book is all about. As you can see in the chapter outline, we begin by discussing why leadership is important and defining leadership. Then we explain the three managerial leadership skills and the ten roles that managerial leaders perform. Next we explain the three levels of leadership analysis, which provides the framework for the book. After explaining the four major leadership paradigms that have developed over the years, we end this chapter by stating the objectives of the book and presenting its organization.

Leadership Described In this section, we discuss the leadership course and define leadership as having five key elements.

Leadership Development Leadership is everyone’s business, so let’s begin with a discussion of the importance of leadership, then answer the question, “Why study leadership?” and also state the impor- tance of self-awareness in leadership development.

Why Leadership Development Is Important Here are just a few reasons why leadership is so important and the need for self-awareness in leadership.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 3

Leadership is a key issue in management and has been for more than 100 years,2 as thousands of leadership studies have been conducted,3 and interest in leadership remains strong.4 I did a Google search and got “about 434,000,000 results.”5

Organizations spend a great deal of effort and resources to teach employees how to lead.6 More specifically, corporations spend more than $2.2 trillion on education and training, with an estimated $10 billion being spent on leadership development alone.7 Leadership development is often cited as an important priority because it is viewed as a competitive advantage8 as there can be significant positive returns to the investment in leadership development.9

Although it is generally agreed that leadership is important, critics of leadership devel- opment programs state that new college graduates lack the skills necessary to effectively lead people.10

As the examples illustrate, leadership matters, and there is a great need for leaders to use best practices.11 To this end, the focus of this book is to help you develop your leadership skills, so that you can become a successful leader in your personal and professional life.

Why Study Leadership? It’s natural at this point to be thinking, “What can I get from this book?” or “What’s in it for me?” These common questions are seldom asked or answered directly. The short answer is that the better you can work with people—and this is what most of this book is about—the more successful you will be in both your personal and your professional lives.12 If you are a manager, or want to be a manager someday, you need good leadership skills to be successful.13 Even if you are not interested in being a manager, you still need leadership skills to succeed in today’s workplace.14 The old workplace, in which managers simply told employees what to do, is gone. Today, employees want to be involved in management,15 and organizations expect employees to work in teams and share in decision making and other management tasks.16

The study of leadership also applies directly to your personal life. You communicate with, and interact with, people every day; you make personal plans and decisions, set goals, prioritize what you will do, and get others to do things for you. Are you ever in con- flict with family and friends? This book can help you develop leadership skills that you can apply in all of those areas.

The Need for Self-Assessment in Leadership Development Instructors often incorporate self-assessment.17 “Know Thyself ” or self-awareness has been called the leadership first commandment,18 so the first step to leadership devel- opment is self-awareness of leadership competencies.19 To provide you with leadership self-awareness, every chapter has self-assessment exercises. Let’s start now to better un- derstand your leadership potential by completing Self-Assessment 1-1.

Leadership potential SELF-ASSESSMENT 1-1

As with all of the self-assessment exercises in this book, there are no right or wrong answers, so don’t try to pick what you think is the right answer. Be honest in answering the questions, so that you can better understand yourself and your behavior as it relates to leadership.

For each pair of statements, distribute 5 points, based on how characteristic each statement is of you. If the first statement is totally like you and the second is not like you at all, give 5 points to the first and 0 to the second. If it is the opposite, use 0 and 5. If the statement is usually like you, then the distribution can be 4 and 1, or 1 and 4.

If both statements tend to be like you, the distribution should be 3 and 2, or 2 and 3. Again, the combined score for each pair of statements must equal 5.

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4 part 1 INDIVIDUALS AS LEADERS

1. Why is amazon so successful?

Founder and CEO Jeff Bezos is the key to Amazon’s success. Bezos is obsessed with improving company performance and customer service by offering wider selection, lower prices, and fast, reliable delivery. Amazon’s mission is to seek to be Earth’s most customer-centric company for four primary customer sets: consumers, sellers, enterprises, and content creators. Under Bezos’s leadership, Amazon has grown to become the everything store, with global operation in Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Spain, and the United Kingdom, selling more than 20 million products. It is known as one of the most successful companies in the world, and is ranked 3rd as the Fortune World’s Most Admired Companies and ranked 1st as the most trusted U.S. brand.

OPENING CASE Application

here are the scoring distributions for each pair of statements:

0–5 or 5–0 one of the statements is totally like you, the other not like you at all. 1–4 or 4–1 one statement is usually like you, the other not. 2–3 or 3–2 Both statements are like you, although one is slightly more like you.

1. I’m interested in and willing to take charge of a group of people.

I want someone else to be in charge of the group.

2. When I’m not in charge, I’m willing to give input to the leader to improve performance.

When I’m not in charge, I do things the leader’s way, rather than offer my suggestions.

3. I’m interested in and willing to get people to listen to my suggestions and to imple- ment them.

I’m not interested in influencing other people. 4. I offer ideas and suggestions that are com-

monly implemented by others. I don’t offer many ideas and suggestions,

and they are often ignored. 5. When I’m in charge, I want to share the

management responsibilities with group members.

When I’m in charge, I want to perform the management functions for the group.

6. I want to have clear goals and to develop and implement plans to achieve them.

I like to have very general goals and take things as they come.

7. I like to change the way my job is done and to learn and do new things.

I like stability, or to do my job the same way; I don’t like learning and doing new things.

8. I enjoy working with people and helping them succeed.

I don’t really like working with people and helping them succeed.

9. I get greater pleasure in team accomplishments.

I get greater pleasure in personal accomplishments.

10. I seek harmony in teams and try to resolve conflicts.

I avoid conflict and let group members resolve their own conflicts.

to determine your leadership potential score, add up the numbers (0–5) for the first statement in each pair; don’t bother adding the numbers for the second statement. the total should be between 0 and 50. Place your score on the continuum at the end of this assessment.

0 — 5 — 10 — 15 — 20 — 25 — 30 — 35 — 40 — 45 — 50 Lower leadership potential Higher leadership potential

Generally, the higher your score, the greater your potential to be an effective leader. however, essentially no one gets a perfect score. the key to success is not simply potential but persistence and hard work. You can develop your leadership ability through this course by applying the principles and theories to your personal and professional lives.

If you want to be a leader, what areas do you need to work on to improve your leadership skills?

SELF-ASSESSMENT 1-1 Leadership potential (continued)

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 5

YOU Make the ethICaL Call

1.1 Is Leadership Really Important?

Scott Adams is the creator of the cartoon character Dilbert. Adams makes fun of manag- ers, in part because he distrusts top-level managers, saying that leadership is really a crock. He says leadership is about manipulating people to get them to do something they don’t want to do, and when there may not be anything in it for them. According to Adams, CEOs basically run the same scam as fortune-tellers, who make up a bunch of guesses and when by chance one is correct, they hope you forget the other errors. First, CEOs blame their predecessors for anything that is bad, then they shuffle everything around, start a new strategic program, and wait. When things go well, despite the CEO, the CEO takes the credit and moves on to the next job. Adams says we may be hung up on leader- ship as part of our DNA. It seems we have always sought to put somebody above every- body else.20

1. Do you agree with Scott Adams that leadership is a crock?

2. Do we really need to have someone in the leadership role?

Briefly describe the five key elements of leadership.Learning outcome 1

Defining Leadership with Five Key elements When people think about leadership, images come to mind of powerful dynamic individ- uals who command victorious armies, shape the events of nations, develop religions, or direct corporate empires. Why are certain leaders so successful? Why do certain leaders have dedicated followers while others do not? Why were Gandhi, Mother Theresa, Martin Luther King, and Nelson Mandela such influential leaders? In this book, you will learn the major leadership theories and research findings regarding leadership effectiveness.

There is no universal definition of leadership because leadership is complex, and be- cause leadership is studied in different ways that require different definitions. As in lead- ership research studies, we will use a single definition that meets our purpose in writing this book. Here, we define leadership and discuss its five elements, which are included in Self-Assessment 1-1, as each of the ten questions relates to the elements of our leadership definition and to your leadership potential.

Leadership is the influencing process between leaders and followers to achieve orga- nizational objectives through change. Let’s discuss the five key elements of our definition; see Exhibit 1.1 for a list.

Leadership Definition Key EXHIBIT 1.1

Influence

Organizational Objectives

PeopleChange

LeadershipLeaders–Followers

© C

en ga

ge L

ea rn

in g®

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6 part 1 INDIVIDUALS AS LEADERS

Leaders–Followers Leadership is typically understood to take place where leaders and followers share a formal group membership,21 and leadership is important as more organizations struc- ture work around teamwork.22 Question 1 of Self-Assessment 1-1 is meant to get you thinking about whether you want to be a leader or a follower. If you are not interested and not willing to be in charge, you are better suited to be a follower. However, leader- ship is shared.

Leadership is shared. One leader can’t figure it all out.23 Leadership is plural, not singular, as you can have many leaders.24 Good followers also perform leadership roles when needed. And followers influence leaders. Thus, in our definition of leadership, the inf luencing process is between leaders and followers, not just a leader inf luencing fol- lowers; it’s a two-way street.25 Knowing how to lead and developing leadership skills will make you a better leader and follower.26 So whether you want to be a leader or a follower, you will benefit from this book.

Organizations and managers or employees. Throughout this book, leadership is referred to in the context of formal organizational settings in business corporations (GE, IBM), government agencies (the Kent Police Department), and nonprofit organizations (Red Cross). Organizations have two major classifications of employees: managers, who have subordinates and formal authority to tell them what to do; and employees, who do not. All managers perform four major functions: planning, organizing, leading, and con- trolling. Leadership is thus a part of the manager’s job. However, there are managers— you may know some—who are not effective leaders. There are also nonmanagers who have great influence on managers and peers.27

Manager or leader and followers? In this book, we do not use the terms manager and leader interchangeably. When we use the word manager, we mean a person who has a formal title and authority. When we use the term leader, we mean a person who may be either a manager or a nonmanager. A leader has the ability to influence others; a manager may not. Thus, a leader is not necessarily a person who holds some formal position such as manager.

A follower is a person who is being influenced by a leader. A follower can be a man- ager or a nonmanager—leadership is shared. Good followers are not “yes people” who simply follow the leader without giving input that inf luences the leader. The qualities needed for effective leadership are the same as those needed to be an effective follower. Throughout this book, we use the term behavior when referring to the activities of peo- ple or the things they do and say as they are influenced. You will learn more about fol- lowership in Chapter 7.

As implied in Question 2 of Self-Assessment 1-1, good followers give input and influ- ence leaders. If you want to be an effective follower, you need to share your ideas. Also, as a leader you need to listen to others and implement their ideas to be effective. According to GE CEO Jeff Immelt, GE is not run like a big company; it is run like a big partner- ship, where every leader can make a contribution not just to their job, but to the entire company.28

Influence Influencing is the process of a leader communicating ideas, gaining acceptance of them, and motivating followers to support and implement the ideas through change. The essence of leadership is inf luencing.29 Let’s face it; we all want to get our way, which is being influential.

Question 3 of Self-Assessment 1-1 asked if you were interested in, and willing to, inf luence others, as a leader or follower and Question 4 asked if you offer ideas and

WORK Application 1-1 Recall a present or past job. Were you both a leader and a follower? Explain.

WORK Application 1-2 Briefly explain the influencing relationship between the leader and followers where you work(ed).

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 7

suggestions that are commonly implemented by others. When you have a management position, you have more power to inf luence others. But, effective followers also inf lu- ence others. Your ability to inf luence others can be developed. Inf luencing includes power, politics, and negotiating; you will learn more about how to inf luence others in Chapter 5.

Question 5 asked if you want to share management responsibility as a leader. Influenc- ing is also about the relationship between leaders and followers. Managers may coerce subordinates to influence their behavior, but leaders do not. Leaders gain the commit- ment and enthusiasm of followers who are willing to be influenced as they share leader- ship. Good leaders seek input from all team members.30

Organizational Objectives Effective leaders influence followers, but to do what—to accomplish shared objectives.31 Setting objectives clearly affects performance.32 Members of the organization need to work together toward an outcome that the leader and followers both want, a desired fu- ture or shared purpose that motivates them toward this more preferable outcome. As im- plied in Question 6 of Self-Assessment 1, effective leaders set clear goals with their team. You will learn how to set objectives in Chapter 3.

Change Influencing and setting objectives is about change, as leaders set objectives for behav- ioral change.33 Leaders bring about change by asking followers for their input,34 to change the status quo,35 to continuously improve work processes, and to develop new innovative products and services.36 As implied in Question 7 of Self-Assessment 1 and the informa- tion in this section, to be an effective leader and follower you must be open to change. To be successful, you need to change your systems and strategies.37 When was the last time you did something new and different? You will learn more about leading change in Chapter 11.

People Although the term people is not specifically mentioned in our definition of leadership, after reading about the other elements, you should realize that leadership is about leading people through relationships.38 It’s the people that accomplish the objectives.39 As im- plied in Questions 8–10 of Self-Assessment 1-1, to be effective at almost every job today, you must be able to get along with people.40 You will learn how to develop your people skills throughout this book.

WORK Application 1-3 State one or more objectives from an organization where you work(ed).

WORK Application 1-4 Are the managers where you work(ed) effective at influencing their employees to bring about change? Explain.

WORK Application 1-5 Do managers where you work(ed) treat their employees as valuable assets? Explain.

2. Does amazon use our definition of leadership?

Jeff Bezos is clearly the leader at Amazon, but he also gets ideas from his followers. Bezos is also very influential. He con- vinces investors to give him money to grow Amazon, gets other businesses to offer products and services through his Web site, and gets customers to buy those products. Bezos has a clear shared vision and objectives for the company. Amazon is fundamentally changing the way that people buy and read books with e-book readers and tablets. Amazon is about service to people.

OPENING CASE Application

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8 part 1 INDIVIDUALS AS LEADERS

Leadership Skills In this section, let’s start by answering the age old question—are leaders born or made and can leadership be taught and skills developed—and then we will discuss the three skills managerial leaders need to succeed. But first complete Self-Assessment 1-2 to deter- mine your managerial leadership skills.

are Leaders Born or Made? Are leaders born or made, or what determines leadership—nature or nurture? You may think this is a trick question, because most researchers say the answer is both. Effective leaders are not simply born or made. They are born with some leadership ability and develop it.41 So both perspectives add to the debate on the origins of leadership skills.42 Researchers estimate that 30 percent of leadership is heritable, whereas 70 percent is de- veloped.43 You will learn more about leadership traits (nature) in Chapter 2.

Some go so far as to say that leaders are definitely made, not born, and that everyone has equal potential to develop leadership skills (nurture). NFL Greenback Packers legend- ary football coach Vince Lombardi said, “Leaders are made, they are not born. They are made by hard effort.”44 Whatever your leadership ability is now, you can invest in devel- oping your leadership skills, or you can allow them to remain as they are now. We’ll talk more about this in the last section of this chapter.

Identify and define the managerial leadership skills.Learning outcome 2

Managerial Leadership SkillsSELF-ASSESSMENT 1-2

Rate each statement by how well the behavior describes you on a scale of 1–5. 1 2 3 4 5 Doesn’t describe me Describes me

1. I enjoy working with things.

2. I enjoy working with people.

3 I enjoy working with conceptual ideas.

4. I like to work with technical things like computers and equipment.

5. I like to figure out people’s feeling, atti- tudes, and motives.

6. I like to solve problems.

7. Following directions and procedures comes easy for me.

8. Getting along with a variety of people comes easy for me.

9. Analytical and quantitative reasoning comes easy for me

10. I’m good at getting a task done by the deadline.

11. I’m good at getting people to overcome conflict and work together.

12. I’m good at figuring out ways of overcom- ing barriers to get things done.

to determine your score, add up the numbers (1–5) for each skill and place them on the following lines. Each skill score should be between 5 and 20.

technical skill (items 1, 4, 7, 10) Interpersonal skill (items 2, 5, 8, 11) Decision-making skill (items 3, 6, 9, 12)

Your score for each skill is essentially a measure of your preference. As the first three questions ask, do you prefer working with things, people, or conceptual ideas, or are they equal? In this section, you will learn about these three skills and throughout the book you will be given the opportunity to develop your managerial leadership skills.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 9

Can Leadership Be taught and Skills Developed? Another question to answer is: Can leadership be taught and skills developed? Leadership is an individual capability.45 Research supports that leadership is learnable,46 that stu- dents can develop their leadership skills,47 including their knowledge, skills, and abilities (KSA).48 As already discussed, why would colleges and corporations spend a great deal of effort and resources (billions of dollars) on leadership training if leadership skills can’t be developed?49 Also, as stated, self-assessments aid in leadership development.50 Leadership skills are developed through various forms of play, so it can be fun.51 Because leadership skills are so important, the focus of this book is on developing our skills.

Managerial Leadership Skills Now let’s discuss the three management skills that you need to be successful,52 as man- agement skills have been identified as a core competency.53 They are listed in Exhibit 1-2 and discussed here. We also point out the differences in the skills needed based on the level of management.

WORK Application 1-6 Do you believe that you are a born leader? Do you believe that you can develop your leadership skills to improve job performance?

Management Skills EXHIBIT 1.2

Decision Making Skills

(primarily concerned with conceptual ideas)

Interpersonal Skills (primarily concerned with people)

Technical Skills (primarily concerned with things)

Technical Skills technical skills involve the ability to use methods and techniques to perform a task. This includes knowledge about methods, processes, procedures, and techniques, and the abil- ity to use tools and equipment to perform a task. Technical skills can also be called busi- ness skills, or can include them.54 When managers are working on budgets, for example, they may need computer skills in order to use spreadsheet software such as Microsoft® Excel®. Most employees are promoted to their first management position primarily be- cause of their technical skills. Technical skills vary widely from job to job, and they are the easiest of the three management skills to develop.55 Therefore, we do not focus on developing technical skills.

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10 part 1 INDIVIDUALS AS LEADERS

Interpersonal Skills Interpersonal skills involve the ability to understand, communicate, and work well with individuals and groups through developing effective relationships. Interpersonal skills are also called human, people, and soft skills. As we interact with others, we are using our in- terpersonal skills.56 As discussed in our definition of leadership, relationships are critical to leadership success, and they are built on interpersonal skills.57 Unfortunately, college grads have been found lacking it their interpersonal skills.58Interpersonal skills are based on several other skills, including communicating, teamwork, power, politics, negotiating, networking, motivating, conflict, diversity, and ethical skills. We will discuss these inter- personal skills throughout the book, and you will have the opportunity to develop your interpersonal skills through this course.

Decision-Making Skills Decision-making skills are based on the ability to conceptualize situations and select al- ternatives to solve problems and take advantage of opportunities. It’s about how we reason and made decisions.59 It involves critical thinking,60 using a rational process,61 analyz- ing alternatives,62 and attempting to maximize positive outcomes for the organization.63 Clearly the decisions you have made over the years affect who you are today and your success.

Decision-making skills are based on several other skills, including conceptual, diag- nostic, analytical, critical-thinking, quantitative reasoning, and time management skills, as well as the ability to be creative, perceive trends, anticipate changes, and recognize problems and opportunities. We will discuss decision-making skills throughout the book, and you will have the opportunity to develop your decision-making skills through this course.

Skills Needed Based on Management Level Although managers need all three skills, the need for each skill does vary based on the level of management. Top-level managers have a greater need for interpersonal and deci- sion-making skills than technical skills. Middle-level managers have a balanced need for all three skills. First-level managers have a greater need for technical and interpersonal skills than decision-making skills. Complete Concept Application 1-1 to apply the man- agement skills.

WORK Application 1-7 Select a manager, preferably one who is or was your boss, and state the specific management skills he or she uses(used) on the job.

Managerial Leadership Skills Identify each activity as being one of the following types of management skills: a. technical b. interpersonal c. decision-making

1. A manager is trying to figure out why a delivery hasn’t been shipped out yet.

2. A manager is sending a text message from her smartphone.

3. A manager is making copies of a report he just finished at the copy machine downstairs.

4. A manager is praising an employee for a job well done.

5. A manager is determining the priority of orders to be filled next week.

CONCept APPLICATION 1-1

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 11

3. What managerial leadership skills does CeO Jeff Bezos use at amazon?

Jeff Bezos has technical skills as he developed the first online bookstore as a high-tech pioneer. He continues to challenge his employees’ technical operations that expand the company performance and customer service. He also has interpersonal skills as he motivates employees to continually grow the business. Bezos clearly has decision-making skills as he is the one who has the conceptual ability to develop a successful business model and to continually change it to grow the company.

OPENING CASE Application

Leadership Managerial Roles In this section, we discuss what leaders do on the job—the management roles they play.64 You will notice an overlap between the skills and roles because the leader needs the com- petencies (knowledge, skills, and ability—KSAs) to enact the managerial roles.65 So we need to engage effectively in leadership roles.66

Henry Mintzberg identified ten managerial roles that leaders perform to accomplish organizational objectives.67 He grouped these roles into three categories. The manage- rial role categories are interpersonal, informational, and decisional. Exhibit 1.3 shows the ten managerial roles, based on the three categories.

List the ten managerial roles based on their three categories.Learning outcome 3

Interpersonal roles The interpersonal leadership roles include figurehead, leader, and liaison. Clearly, interpersonal skills are needed to successfully play interpersonal roles through managing interpersonal relationships.68

Leader Role The leader role is that of performing the management functions (planning, organizing, leading, and controlling) to effectively operate the managers’ unit to accomplish orga- nizational objectives.69 Therefore, the leader role influences how the leader performs the other roles. You will learn more about the leadership role throughout this book.

Figurehead Role Leaders perform the figurehead role when they represent the organization or depart- ment in legal, social, ceremonial, and symbolic activities. Here are some of the figure- head activities: signing official documents; entertaining clients or customers as official

Managerial Roles EXHIBIT 1.3

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Interpersonal roles Informational roles Decisional roles

Leader Figurehead Liaison

Monitor Disseminator Spokesperson

Entrepreneur Disturbance- handler Resource-allocator Negotiator

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12 part 1 INDIVIDUALS AS LEADERS

representatives and receiving/escorting official visitors; informally talking to people and attending outside meetings as an organizational representative; presiding at meetings and ceremonial events.

Liaison Role Leaders perform the liaison role when they interact with people outside their organiza- tional unit. Liaison behavior includes networking to develop and maintain relationships, serving on committees with members from outside the organizational unit, and attend- ing professional/trade association meetings.

Informational roles The informational leadership roles include monitor, disseminator, and spokesperson. Informational role success is also based on interpersonal skills.

Monitor Role Leaders perform the monitor role when they gather information by talking to others, reading (memos, reports, professional/trade publications, newspapers, etc.), attending meetings, visiting competitor facilities, and so forth.

Disseminator Role Leaders perform the disseminator role when they send information to others within the organizational unit. Using information translated into skills that advance the organiza- tion is now often being referred to as knowledge management.

Spokesperson Role Leaders perform the spokesperson role when they provide information to people outside the organizational unit. People must report information to their boss and other depart- ments, customers, suppliers, and so forth.

Decisional roles The decisional leadership roles include entrepreneur, disturbance-handler, resource allocator, and negotiator. Decision-making skills are important and they are needed to be successful in the decisional roles.70

Entrepreneur Role Leaders perform the entrepreneur role when they innovate new or improved products and services and initiate improvements in business processes. Leaders often get ideas for im- provements through the monitor role.

Disturbance-Handler Role Leaders perform the disturbance-handler role when they take corrective action during crisis that interrupts business, such as a natural disaster, or emergencies like a breakdown of important machines/equipment or needed material not arriving as scheduled. Leaders typically give this role priority over all other roles during the disruption.

Resource-Allocator Role Leaders perform the resource-allocator role when they schedule, request authorization, and perform budgeting activities. Deciding who gets the limited resources is important as people make decisions seeking self-interest that may not be in the best interest of the organization.71

Negotiator Role Leaders perform the negotiator role when they represent their organizational unit during transactions that do not include set boundaries, such as only one price and term of a sale

WORK Application 1-8 Give one job example of the specific behavior you or some other leader displayed when performing the figurehead, leader, and liaison roles. For each of the three roles, be sure to identify the leader as you or another, the role by its name, and the specific behavior.

WORK Application 1-9 Give one job example of the specific behavior you or some other leader conducted when performing the monitor, disseminator, and spokesperson roles. For each of the three roles, be sure to identify the leader as you or another, the role by its name, and the specific behavior.

WORK Application 1-10 Give one job example of the specific behavior you or some other leader performed when fulfilling the entrepreneur, disturbance- handler, resource-allocator, and negotiator roles. For each of the four roles, be sure to identify the leader as you or another, the role by its name, and the specific behavior.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 13

or purchase for a product/service, pay of an employee, or a raise for themselves. Leaders can try to negotiate a good deal to benefit the organization.

Although managers are responsible for all ten roles, which roles are most important— and which roles the manager performs and which are performed by other leaders—will vary based on the manager’s job and the organizational environment.

After answering Work Applications 8 through 10, you should realize that we perform the leadership roles regardless of management title. Completing Concept Application 1-2, Questions 6-20, gives you practice at identifying the ten managerial roles.

4. What managerial leadership roles does CeO Jeff Bezos perform at amazon?

Like all managers who are good leaders, Jeff Bezos plays all ten roles, and he delegates these roles to his followers. His interpersonal roles include signing documents; entertaining customers; running and attending meetings; leadership devel- opment and evaluation of followers; and serving on committees and boards.

His informational roles include extensive communications. Bezos is consistently analyzing information in the monitoring role, and sending information in his disseminator role, and is clearly the spokesperson for the company in the decisional role category. Bezos is an online entrepreneur. His other roles include developing new products to keep ahead of the competition and dealing with disturbances created by local and foreign government business laws and regulations.

OPENING CASE Application

Leadership Managerial Roles Identify each of the following 15 behaviors by its leadership role. Write the appropriate letter in the blank before each item.

Interpersonal roles Informational roles Decisional roles a. leader d. monitor g. entrepreneur b. figurehead e. disseminator h. disturbance-handler c. liaison f. spokesperson i. resource-allocator j. negotiator

6. The supervisor is being promoted to middle management and is discussing her pay for the new job.

7. The supervisor is disciplining an employee for smoking on the job.

8. The leader is visiting a competitor’s Web site to find out its prices.

9. The leader is getting maintenance to come fix a broken pipe and clean up a flood of water in the work area.

10. The manager has decided to stop having customers sign credit card receipts for less than $50 to speed up the checkout line.

11. The manager is breaking up a fight between two employees and getting the other employees to get back to work.

12. The manager is e-mailing the employees to inform them of their work hours for next week.

13. The manager in productions is talking to the manager in facilities about performing routine maintenance for the department equipment.

CONCept APPLICATION 1-2

(continued)

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14 part 1 INDIVIDUALS AS LEADERS

Levels of Analysis of Leadership Theory One useful way to classify leadership theory and research is by the levels of analysis.72 The three levels of analysis of leadership theory are individual, group, and organiza- tional. Most leadership theories are formulated in terms of processes at only one of these three levels.73 You will briefly learn about each level in this section, and the details of each in Parts One through Three of this book.

Individual Level of analysis The individual level of analysis of leadership theory focuses on the individual leader and the relationship with individual followers.74 The individual level can also be called the dyadic process. There is an implicit assumption that leadership effectiveness can- not be understood without examining how a leader and follower inf luence each other over time. You will also have multiple dyadic relationships at work. In Part One, “In- dividuals as Leaders” (Chapters 1 through 5), the focus is on the individual level of analysis.

Group Level of analysis The second level of analysis of leadership theory focuses on the relationship between the leader and the collective group of followers. This level is also called group process. Group process theories focus on how a leader contributes to group effectiveness. Extensive re- search on small groups has identified important determinants of group effectiveness, which you will learn about in Part Two, “Team Leadership” (Chapters 6 through 8). An important part of group process is meetings. In Chapter 8, you will learn how to conduct productive meetings.

Organizational Level of analysis The third level of analysis focuses on the organization, and is also called organizational process. Individuals and teams contribute to organizational success. Organizational per- formance in the long run depends on effectively adapting to the environment and ac- quiring the necessary resources to survive. You will learn more about determinants of organizational performance in Part Three, “Organizational Leadership” (Chapters 9 through 12).

14. An employee quit and the manager is in the process of replacing the person.

15. The manager is signing a purchase order for new equipment.

16. The public relations leader is sending a press release to the local newspaper.

17. The manager has been given $1,000 to split and give to two of his 20 employees as bonuses.

18. The purchasing manager is discussing the price of an expensive new machine, and its installation and maintenance contract deal.

19. At the company annual employee meeting, the CEO is passing out awards for excellent performance.

20. The manager is reading the monthly trade journal.

CONCept APPLICATION 1-2

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 15

Interrelationships among the Levels of analysis Exhibit 1.4 illustrates the interrelationships among the levels of analysis of leadership theory. Note that the individual is placed at the bottom of the triangle because group and organizational performance are based on individual performance. It has been said that an organization is the sum of all of its individual transactions. Depending on the size of the group and organization you work for, your individual performance may influence the performance of the group and organization positively or negatively.76

YOU Make the ethICaL Call

1.2 Executive Compensation

Executive compensation is a complex and controversial subject. On one side of the de- bate, executive management skill has a direct impact on the success of the firm. Top ex- ecutives should be paid multimillion-dollar compensation packages; after all, if it weren’t for some effective CEOs, companies would not be making the millions of dollars of profits they make each year. They deserve a piece of the pie they helped create. In capitalist countries, talented CEOs, like in pro sports, are entitled to fetch their price.

On the other side, top executives have been criticized for being overpaid, especially as CEO pay rose while employees were getting laid off during the recession. Eight CEOs, led by J.C. Penny, made more than 1,000 times their average worker. The Oracle CEO made an estimated $189,000 per hour. Fortune 500 CEOs all make millions. Some say top executives are being overpaid.75

1. Do executives deserve to make around 300 times as much as the average worker?

2. Is it ethical for managers to take large pay increases while laying off employees and when giving them only small raises?

3. Are companies being socially responsible when paying executives premium compensation?

Explain the interrelationships among the levels of leadership analysis.Learning outcome 4

Individual

Organizational

Gr ou

p

Interrelationships among the Levels of Analysis of Leadership Theory EXHIBIT 1.4

If individual performance is low throughout the organization, the triangle will fall be- cause it will not have a firm foundation, or performance will be low. The group part of the triangle supports the organizational side. So if the groups are not effective, the triangle

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16 part 1 INDIVIDUALS AS LEADERS

will fall or organizational performance will be low. At the same time, both group and organizational performance affect the performance of the individual. If groups are highly motivated and productive (or not productive), chances are the individual will be produc- tive (or not) as well. Success tends to be contagious. Working for a winning organization like Google tends to motivate individuals to perform at their best to stay on top. However, an organization and its performance are more than the simple sum of its individuals and groups.

Leadership Theory Paradigms The first thing we need to do is define the important concepts of this section. A leader- ship theory is an explanation of some aspect of leadership; theories have practical value because they are used to better understand, predict, and control successful leadership. So, the main purpose of a theory is to inform practice.77 It has been said that there is nothing as practical as a good theory. There are four major classifications of leadership theory, also called research approaches, used to explain leadership. Leadership theory classifica- tions include trait, behavioral, contingency, and integrative theories. In this section, we discuss each classification and indicate where it is covered in more detail later in this book.

A leadership paradigm is a shared mindset that represents a fundamental way of thinking about, perceiving, studying, researching, and understanding leadership. The lead- ership paradigm has changed in the 60 years during which it has been studied. The four major classifications of leadership theory all represent a change in leadership paradigm. You will also learn about the change in paradigm from management to leadership in this section.

Describe the major similarity and difference between the trait and behavioral leadership theories, and the interrelationships between them and contingency theories.

Learning outcome 5

the trait theory paradigm Early leadership studies were based on the assumption that leaders are born, not made. Researchers wanted to identify a set of characteristics or traits that distinguished leaders from followers, or effective leaders from ineffective leaders. Leadership trait theo- ries attempt to explain distinctive characteristics accounting for leadership effectiveness. Researchers analyzed physical and psychological traits, or qualities, such as high energy level, appearance, aggressiveness, self-reliance, persuasiveness, and dominance, in an ef- fort to identify a set of traits that all successful leaders possessed.

The list of traits was to be used as a prerequisite for promoting candidates to leader- ship positions. Only candidates possessing all the identified traits would be given leader- ship positions. You will learn more about trait theory in the next chapter.

the Behavioral Leadership theory paradigm By the 1950s, most of the leadership research had changed its paradigm, going from trait theory to focusing on what the leader actually did on the job (behavior).78 In the continu- ing quest to find the one best leadership style in all situations, researchers attempted to identify differences in the behavior of effective leaders versus ineffective leaders. Another subcategory of behavioral leadership focuses on the nature of management work. Thus, behavioral leadership theories attempt to explain distinctive styles used by effec- tive leaders, or to define the nature of their work. Mintzberg’s ten managerial roles are an

WORK Application 1-11 Give examples of traits and behaviors that helped make your past or present manager a successful leader.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 17

example of behavioral leadership theory. Behavioral research focuses on finding ways to classify behavior that will facilitate our understanding of leadership. You will learn about some of the most popular behavioral leadership theories in Chapter 3.

the Contingency Leadership theory paradigm Both the trait and behavioral leadership theories were attempts to find the one best lead- ership style in all situations; thus they are called universal theories. In the 1960s, it be- came apparent that there is no one best leadership style in all situations; the right answer often depends on the situation.79 Thus, the leadership paradigm shifted to contingency theory. Contingency leadership theories attempt to explain the appropriate leader- ship style based on the leader, followers, and situation. In other words, which traits and/or behaviors will result in leadership success given the situational variables? You will learn about the major contingency leadership theories in Chapter 4.

the Integrative Leadership theory paradigm In the mid-to-late 1970s, the paradigm began to shift to the integrative, to tie the theories together, or neo-charismatic theory. As the name implies, integrative leadership the- ories attempt to combine the trait, behavioral, and contingency theories to explain suc- cessful, influencing leader–follower relationships. Theories identify behaviors and traits that facilitate the leader’s effectiveness, and explore why the same behavior by the leader may have a different effect on followers, depending on the situation. The integrative lead- ership theory paradigm is emphasized in our definition of leadership and thus influences this entire book, especially Chapters 6 through 12.

From the Management to the Leadership theory paradigm In the first section, we talked about some of the differences between a manager (formal position of authority) and a leader (has the ability to influence others), because the over- arching paradigm has shifted from management to leadership. Successful managers tend to use a truly participative form of leadership as they share the responsibility of manage- ment with employees, or as leadership responsibilities are transitioned from managers to influential team members.

Some of the differences identified between managers and leaders are as follows. Man- agers focus on doing things right, and leaders focus on doing the right thing. Managers are concerned with stability and the best way to get the job done, and leaders place greater concern on innovation and change. The old command-and-control model of manage- ment just doesn’t work in today’s global economy.80 The old-style autocratic managers are not climbing today’s corporate ladder. Today, managers must be able to lead through mo- tivating others and creating favorable conditions for success, as well as manage. So, going from the management to the leadership theory paradigm is a shift from the older autocratic management style to the newer participative leadership style of management.

Although we have made a comparison between managers and leaders, you should real- ize that successful leaders are also good at managing, and successful managers are good leaders. There is overlap between the two paradigms—a successful organization needs both managers and leaders. The focus is on how to integrate management and leadership, or on developing leadership skills of managers and employees, which we do in this book. To simplistically stereotype people as either managers or leaders does little to advance our understanding of leadership. Also, because the term manager is an occupational title, to foster an inaccurate, negative stereotype of managers is certainly not our intent.

WORK Application 1-12 Does your present or past manager focus more on management or leadership? Explain, using examples.

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18 part 1 INDIVIDUALS AS LEADERS

Objectives of the Book The overarching objectives of this book are reflected in its subtitle: Theory, Application, and Skill Development. We call it a three-pronged approach, with these objectives:

• To teach you the theory and concepts of leadership • To develop your ability to apply leadership theory through critical thinking • To develop your leadership skills in your personal and professional life

There has been a call to bridge the gap between research and practice (knowing and doing)81 to teach students how to apply the concepts,82 and for students to develop lead- ership skills.83 To meet these calls, unlike most other books, ever since our first edition, we don’t simply teach you leadership theory; we develop your ability to apply the theory and actually develop skills. This book offers some unique features relating to each of the three objectives (see Exhibit 1.5). We encourage you to turn back to the preface and read our goals in writing this book, and the descriptions of the features so that you can get the most from this book.

The Three-Pronged Approach: Features of the Book EXHIBIT 1.5

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Leadership Theories Identify each research approach by its leadership theory paradigm. Write the appropriate letter in the blank before each item.

a. trait d. integrative b. behavioral e. management to leadership c. contingency

21. A researcher is determining which leadership style is most appropriate.

22. A researcher is training managers to include employees in their decision making.

23. A researcher is observing managers’ actions as they interact with employees.

24. A researcher is attempting to understand how managers influence employees to achieve high levels of performance.

25. A researcher is attempting to determine if the way managers dress influences their effectiveness.

CONCept APPLICATION 1-3

theory application Skill Development

Research References Learning Outcomes Key terms Summary Review questions

Opening cases Work applications Concept applications Critical-thinking questions Cases Video cases You make the ethical call

Self-assessment exercises Case role-playing exercises Step-by-step behavior models Behavior model videos Developing your leadership skills exercises Behavior modeling training

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 19

Leadership theory Throughout this book, you will learn about several leadership theories and the concepts on which they are based. Conceptual knowledge is the foundation for its application and skill development.84 As shown in Exhibit 1.5, this book offers six features to help you learn the leadership theory. The theories and concepts you will learn are based on re- search (EBM) and are considered important (AACSB), as discussed later in this chapter.

Evidence-Based Management Research-based knowledge is relevant and useful to practice, and evidence-based man- agement translates theory into workplace behavior.85 evidence-based management (eBM) means that decisions and organizational practices are based on the best available scientific evidence. The theories and concepts you will learn in this book are based on sci- entific research (not opinions, outdated research, or myths). If you look at the references at the end of this book, you will see that a majority of the journal articles are published by the premier professional association, the Academy of Management (AoM), and what it publishes is relevant to practicing leaders. However, unlike the AoM journals, we write about the theory and concepts at a level that is easy to read and understand.

Published research influences what people do in organizations; however, many organi- zations do not practice EBM.86 Our objective is to move you away from making decisions based on personal preference and unsystematic experience toward EBM. If you go to the next level and apply EBM theory and concepts, you can develop your leadership skills.

AACSB 2013 Business Accreditation Standards It is important to develop managerial leadership competencies. So how do we know what leadership competencies are important to your career success? For the answer, we turned to the Association to Advance Collegiate Schools of Business (AACSB), which gives ac- creditation to business schools, which states that “students engage in experiential and ac- tive learning designed to improve skills and the application of knowledge in practice is expected.” Following is the list of “General Skills Areas” students are expected to develop taken from the 2013 AACSB Accreditation Standards, Standard 9.87

• Written and oral communication (able to communicate effectively orally and in writ- ing). Chapter 6 covers communications.

• Ethical understanding and reasoning (able to identify ethical issues and address the issues in a socially responsible manner). Chapters 2 and 10 cover ethics, and each chap- ter includes “You Make the Ethical Call” situations

• Analytical thinking (able to analyze and frame problems). This general skill is de- veloped throughout the book through multiple applications and skill-development exercises.

• Information technology (able to use current technologies in business and management contexts). This is not normally a topic of a leadership course.

• Interpersonal relations and teamwork (able to work effectively with others and in team environments). Chapter 8 focuses on team leadership.

• Diverse and multicultural work environments (able to work effectively in diverse en- vironments). Chapter 10 covers these topics.

• Reflective thinking (able to understand oneself in the context of society). This general skill is developed throughout the book through multiple applications and skill-develop- ment exercises, especially the self-assessment exercises.

• Application of knowledge (able to translate knowledge of business and management into practice). This general skill is developed throughout the book through every ap- plication and skill-development exercise.

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20 part 1 INDIVIDUALS AS LEADERS

All of the Developing Your Leadership Skills exercises state which AACSB General Skills Area standards are developed through completing the exercise.

application of Leadership theory Students need to learn to think critically,88 but one of the most common criticisms of management education is the tendency to focus on teaching of theory but not on the ap- plication of theory to practice.89 Thus, students lack the ability to apply knowledge.90 Stu- dents need to be given the opportunity to practice applying what they learn.91 To this end, this book offers you seven features (see Exhibit 1.5, the Application column) to practice applying the concepts and theory.

Leadership Skill Development Many business programs do little to prepare leaders for their day-to-day realities.92 There isn’t enough effort given to developing leadership skills.93 Thus, students need to be given the op- portunity to practice their leadership skills.94 To this end, this book offers you six features (see Exhibit 1.5, the Skill Development column) to help you develop your leadership skills. We also discuss a model versus an exhibit, behavior modeling, and the need to practice the skills next.

Models versus Exhibits All of the behavioral “models” in this book provide specific, step-by-step instructions, and they are labeled as models. They are “prescriptive models.” When we offer general advice without a specific instruction, we label the guidelines “exhibits.” However, the purpose of both models and exhibits is to help you improve your performance.

Behavior Modeling Leadership Skills Training Behavior modeling is the only multiple leadership skills training that has been empirically validated by rigorous procedures.95 In some of the chapters, the features listed in Exhibit 1.5 are combined in behavior modeling skills training. For these exercises you may do a self-assessment. In any case, follow this procedure: (1) read the step-by-step models, (2) watch a behavior modeling video, and (3) practice the skill (which may include role-play- ing) through a skill-development exercise. The last step in this training is using the skill in your personal and/or professional life for further development of the leadership skill.

Practice As with just about everything in life, you cannot become skilled by simply reading or try- ing something once. Vince Lombardi said that leaders are made by effort and hard work. If we want to develop our leadership skills, we need to learn the leadership concepts, apply the concepts, and do the preparation and skill-development exercises. But most important, to be successful, we need to be disciplined to practice using our leadership skills in our personal and professional lives. Think of leadership development like a sport. If you don’t practice, you will not be good at it, and you will lose the skill you do have over time.

Flexibility This book has so many features that they most likely cannot all be covered during a one-semes- ter course. Your instructor will select the features to be covered that best meet the course objec- tives and the amount of class time available. You may do some or all of the features not covered in the course on your own, or do some exercises with the assistance of others outside of class.

Organization of the Book This book is organized by level of leadership analysis and leadership theory paradigm. See Exhibit 1.6 for an illustration of the organization of this book.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 21

The chapter summary is organized to answer the six learning outcomes for Chapter 1.

1 Briefly describe the five key elements of leadership. Leader–Follower—leaders influence the behavior of fol- lowers, and vice versa. Influencing—the relationship between leaders and followers, who change roles. Or- ganizational objectives—outcomes that leaders and fol- lowers want to accomplish. Change—needed to achieve objectives. People—leadership is about leading people.

2 Identify and define the managerial leadership skills.

the three skills are technical, interpersonal, and deci- sion making. Technical skills involve the ability to use methods and techniques to perform a task. Interpersonal skills involve the ability to understand, communicate, and work well with individuals and groups through develop- ing effective relationships. Decision-making skills are based on the ability to conceptualize situations and select

alternatives to solve problems and take advantage of opportunities.

3 List the ten managerial roles based on their three categories.

Leaders perform the interpersonal role when they act as figurehead, leader, and liaison. Leaders perform the informational role when they act as monitor, dissemina- tor, and spokesperson. Leaders perform the decisional role when they act as entrepreneur, disturbance-handler, resource-allocator, and negotiator.

4 explain the interrelationships among the levels of leadership analysis.

the three levels of leadership analysis are individual, group, and organizational. the individual performance affects the group and organizational performance. the group performance affects the organizational perfor- mance. And both the group and organization affect the performance of the individual.

Chapter Summary

© C

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Organization of the Book, Including Level of Analysis and Leadership Paradigm EXHIBIT 1.6

part ONe. INDIVIDUaLS aS LeaDerS (individual-level analysis of leadership theory—–Trait, Behavioral, and Contingency Leadership Theories)

1. Who Is a Leader and What Skills Do Leaders Need? 2. Leadership Traits and Ethics 3. Leadership Behavior and Motivation 4. Contingency Leadership Theories 5. Influencing: Power, Politics, Networking, and Negotiation

part tWO. teaM LeaDerShIp (group-level analysis of leadership theory—– Integrative Leadership Theory Applications)

6. Communication, Coaching, and Conflict Skills 7. Leader–Member Exchange and Followership 8. Team Leadership and Self-Managed Teams

part three. OrGaNIZatIONaL LeaDerShIp (organizational-level analysis—– Integrative Leadership Theory Applications)

9. Charismatic and Transformational Leadership 10. Leadership of Culture, Ethics, and Diversity 11. Strategic Leadership and Change Management 12. Crises Leadership and the Learning Organization

“Take It To The Net”. Access student resources at www.cengagebrain.com. Search for Lussier, Leadership 6e to find student study tools.

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5 Describe the major similarity and difference between the trait and behavioral leadership the- ories, and the interrelationships between them and contingency theories.

the similarity between the trait and behavioral leader- ship theories is that they are both universal theories, or they are seeking one best leadership style for all situations. the difference is the approach to determining

leadership effectiveness. trait theory attempts to explain personal characteristics of effective leaders, whereas behavioral theory attempts to explain what leaders actually do on the job.

The contingency theory is interrelated with the trait and behav- ioral leadership theories because it uses these two theories as the foundation for determining which leadership style is most appropriate—based on the leader, followers, and situation.

Key terms behavioral leadership theories, 16

contingency leadership theories, 17

decisional leadership roles, 12

decision-making skills, 10

evidence-based management (EBM), 19

influencing, 6

informational leadership roles, 12

integrative leadership theories, 17

interpersonal leadership roles, 11

interpersonal skills, 10

leadership, 5

leadership paradigm, 16

leadership theory, 16

leadership theory classifications, 16

leadership trait theories, 16

levels of analysis of leadership theory, 14

management to the leadership theory paradigm, 17

managerial role categories, 11

technical skills, 9

1 Why is leadership important?

2 What are the five key elements in our leadership definition? How do the elements interrelate to form this definition?

3 Are leaders born or made, and can leadership skills be developed?

4 List and define the interpersonal managerial leadership roles.

5 List and define the informational managerial leadership roles.

6 List and define the decisional managerial leadership roles.

7 List and define the levels of analysis of leadership theory.

8 List and define the leadership theory paradigms.

9 How can the shift in paradigm from management to leader- ship possibly help—and hurt—the management profession?

10 What are the three-pronged approach objectives to this book?

review Questions

The following critical-thinking questions can be used for class dis- cussion and/or as written assignments to develop communica- tion skills. Be sure to give complete explanations for all questions.

1 Should leadership be the manager’s job, or should leader- ship be a shared process?

2 Are you interested in sharing leadership, or do you prefer to be a follower?

3 Some people say the hard skills (e.g., finance, quantitative analysis) are more important for managers than soft skills

(e.g., interpersonal skills), and some say the opposite is true. What is your view?

4 Should leadership courses focus on teaching students about leadership or on teaching students to be leaders?

5 Can college students really develop their leadership skills through a college course? Why or why not?

6 Is leadership ability universal, or is a good leader in one environment also effective in another? For example, can a leader in one industry (e.g., a hospital) be successful in another industry (e.g., a bank)?

Critical-thinking Questions

22 part 1 INDIVIDUALS AS LEADERS

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 23

C A S E

From Steve Jobs to Tim Cook—Apple

Steven Jobs cofounded Apple Computer with Steven Wozniak back in 1976 in Jobs’s family garage. At age 21, Steven Jobs coproduced the first PC and Apple Com- puter ; at 25 Jobs was running Apple with a net worth of $25 million, and at age 26 he made the cover of Time magazine. Over the years, Jobs was consistently ranked as one of the best CEO leaders of all times. In 2011, eight of the ten most read Wall Street Journal ar ticles were about Steve Jobs and Apple products.96

Jobs also star ted two other companies. In 1985, Jobs started NeXT (a computer platform development). In 1986, he went to Hollywood starting what became Pixar Animated Studios. Jobs contracted with Disney to produce a number of computer-animated feature films, which Disney would co- finance and distribute. In 2006, Jobs sold Pixar to Disney and became its largest shareholder. In fact, Jobs’s shares in Disney were worth more than five times the value of his Apple stock.

Most of us never have any real influence over any industry, but Jobs is ranked #1 for his leadership and power in influenc- ing five industries: computers (coproducer of the PC—Mac), Hollywood (Pixar), music (iPod), retailing (iTunes and Apple stores), and wireless phones/telecom (iPhone and iPad). So far, no one has had more influence over a broader range of businesses than Jobs. Some say that his influence actually trans- formed these industries.97

On August 24, 2011, Jobs resigned as CEO, naming Tim Cook as his successor. Jobs died in October 2011. Many peo- ple questioned whether Apple could succeed without Jobs. Being seriously ill for a couple of years, without hype or fanfare, Jobs was quietly making sure Apple success would continue. In his resignation letter, Jobs wrote, “I believe Apple’s brightest and most innovative days are ahead of it.”98 Apple insiders say that Cook was really the driving force for two years prior to Jobs’s resignation.99 To his own credit, in his first year as CEO, Tim Cook was ranked 8th on the Fortune 2011 Business Per- son of the Year.100

CEO Tim Cook’s performance was assessed a year after the death of Steve Jobs. Tim Cook is not trying to be Jobs’s clone and is making his own mark changing Apple.101 He is a different type of leader than Jobs—being less emotional and more of a professional manager. Cook got the operations side working better than ever, coordinating suppliers to deliver on

the unprecedented sale of the iPhone 5 in nearly 30 countries, and Apple is on track to launch it in 100 countries. Cook is quicker to admit product flaws and take corrective action than Jobs, such as the faulty Maps on the iPhone 5.102 Cook has also given a stockholder dividend and is placing greater emphasis on corporate social responsibility, such as charitable contribu- tions that Jobs was against.103

A year after Jobs’s death, Apple stock was up 75 percent, making it the most valuable company in the world. In 2013, Apple was ranked 1st on the Fortune World’s Most Admired Companies,104 ranked 6th for revenues on the Fortune 500 U.S. largest corporations, 2nd by profits of $41,733,000,105 and ranked 19th on the Global 500 largest corporations.106 It is also ranked 4th as the most trusted U.S. brands.107

One thing Cook says he will not change is the Apple’s fo- cus on making the best products in the world—not just good ones, or lots of them—the absolute best. Cook really likes the fact that people really care so much about Apple and its prod- ucts.108 The final grade for Cook: No one is saying Apple is better off without Jobs, but to a surprising degree, Apple is doing fine without him.109

However, Cook is not without critics.110 Even some who say he did a good job in his first year question, Can he keep it up?111 One criticism is that there are no new product catego- ries (such as no Apple TV set).112 Only time will tell if Cook can keep Apple’s momentum going.

Jobs found the secret to career fulfillment—he discovered something he was good at and loved to do. We can’t all be another Steve Jobs, but we can find career fulfillment.

G O t O t h e I N t e r N e t :   To learn more about Steve Jobs and Tim Cook and Apple, visit Apple’s Web site (http://www.apple.com).

Support your answers to the following questions with specific information from the case and text or with information you get from the Web or another source.

1. Explain how each of the five elements of our definition of leadership applies to Tim Cook leading Apple.

2. Identify leadership skills Tim Cook has that led to his and Apple’s success. Which skill is his strongest?

3. Identify managerial leadership roles played by Tim Cook as CEO of Apple. Which role was the most important?

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24 part 1 INDIVIDUALS AS LEADERS

4. Which level of analysis is the primary focus of this case?

5. Explain how each of the leadership theory classifications applies to this case, and which one is most relevant.

6. Can Tim Cook continue grow Apple, or will it be like so many other companies (like BlackBerry) that lose their competitive edge. Why or why not?

C a S e e X e r C I S e a N D r O L e - p L aY

Preparation: Assume that you were a powerful board mem- ber of Apple in the 1980s. You were involved in helping Jobs select the new CEO, John Sculley, and that you have worked with Jobs on the board for five years. The board has disagreed with Jobs’s recommendation to replace Sculley as CEO, so Sculley stays in power and Jobs is out of power. You have to tell Jobs the bad news, which you know he will not want to hear.

Your instructor may elect to let you break into small groups to share ideas and develop a plan for your meeting with Jobs. If you develop a group plan, select one leader to present the meeting with Jobs.

role-play: One person (representing him- or herself or their group) conducts the meeting with Steve Jobs (to notify him that Sculley stays as CEO and he is removed from power) before the entire class. Or, multiple role-plays may take place in small groups of five to six; however, role-players can’t conduct the meeting in front of the team that developed the meet- ing plan. They must present to a group that did not develop the plan for the meeting. The people role-playing Jobs should put themselves in his place. How would you feel about being thrown out of the company you cofounded and led? Don’t forget that Jobs is rather hot tempered and very outspoken.

Rick Federico is chairman and CEO of P.F. Chang’s, which owns and operates a chain of Asian restaurants across the country. He has earned the respect of his managers, his workers, his customers, and even his competitors. He be- lieves his greatest tasks as a leader involve remaining focused on his customers, his workers, and the food they serve. As P.F. Chang’s grows, Federico wants to be sure that the quality of service, atmosphere, and food are always at their highest.

1. Describe some of Rick Federico’s personal leadership traits.

2. Choose three of the leadership managerial roles and explain how Rick Federico might use them as head of P. F. Chang’s.

V I D E o C A S E

Leadership at P. F. Chang’s

Getting to Know You by Name

preparing for this exercise Complete Self-Assessment 1-2 on page 8, and read the accompanying information before class.

Objectives

1 To get acquainted with some of your classmates

2 To get to know your instructor

3 To develop your skill at remembering and calling people by their name

aaCSB General Skills area

The primary AACSB skill developed through this exercise is communication ability with application of knowledge.

In this chapter you learned about the importance of leader–follower relationships. An impor tant par t of leadership relations is making people feel important. Being able to call people by name will improve your leadership effectiveness.

1-1Developing Your Leadership Skills

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 25

tips for remembering people’s Names

• The first thing you need to do is make a conscious effort to improve your skill at calling people by name. If you say you are no good at remembering names, you won’t be. If you say, “I can be good at it,” and work at it, you can.

• When you are introduced to a person, consciously greet them by name. For example, say, “Hi, Juan, glad to meet you.” Then, during your conversation, say the name a few more times until it sticks with you. Use the person’s name when you ask and answer questions.

• When you meet a person whom you will see again, with- out being introduced by someone else, introduce yourself by name—and get the other person to say their name. Then, as before, call them by name during your conversa- tion. For example, if you get to class early and want to talk, introduce yourself to someone rather than just talking without learning the person’s name. If someone you don’t know just starts talking to you, introduce yourself.

• When you are in a small group being introduced to peo- ple, don’t just say “hi” and ignore the names. Depending on the number of people, you can say “hello” and repeat each name as you look at the person. If you don’t remember a name, ask. Just say, “I’m sorry, I didn’t get your name.” You may also want to mentally repeat the person’s name several times. As you talk to the people in the group, use their names. If you forget a name, listen for others to say it as the discussion continues.

• If you have been introduced to a person and forget their name the next time you meet them, you have two choices. You can apologetically ask them their name. Or, before talking to the person, you can ask someone else for the person’s name, and then greet them by name. Again, use the person’s name during the conversation.

• Use association to help you remember. For example, if you meet John Higby, you could picture him hugging a bee. If the person’s name is Ted, picture him with the body of a teddy bear. If you know the person likes something, say tennis, picture him or her with a tennis ball on his or her head. Think of other people you know who have the same name and make an association.

• Ask for a business card, or ask for the person’s telephone number so you can write it down; this will help you remember the name.

• Write down the person’s name and some information about them after you meet them. Sales representatives use this technique very effectively to recall personal information they may forget. If you are on a committee with people you don’t know and don’t see very often, use the membership list of names (or write them yourself).

Then write an association for each person, so that you can identify all members (this may be done during the meeting without drawing attention). Your notes might include personal characteristics (tall, thin, dark hair) or something about their work (marketing, engineer). Then, before the next meeting, review the list of names and characteristics so you can make the association and greet each person by name.

Doing this exercise in Class

procedure 1  (5–8 minutes) Break into groups of five or six, preferably with people you do not know. In the group, have each member give his or her name and two or three significant things about himself or herself. After all the members have finished, ask each other questions to get to know each other better.

procedure 2 (2–4 minutes) Can anyone in the group call the others by name? If so, he or she should do so. If not, have each member repeat his or her name. Follow with each member calling all members by name. Be sure that each person has a turn to call everyone by name.

procedure 3  (5–8 minutes) Select a person to play the spokesperson role for your group. Remember, this is a leader- ship course. The spokesperson writes down questions in the following two areas:

• Course: Is there anything more that you want to know about the course, such as any expectations or concerns that you have?

• Instructor: Make a list of questions for the instructor in order to get to know him or her better.

procedure 4  (10–20 minutes) Each spokesperson asks the instructor one question at a time, until all questions are asked. If time permits, people who are not the spokesperson may ask questions.

Conclusion

The instructor may make concluding remarks.

apply It (2–4 minutes) What did I learn from this experience? How will I use this knowledge in the future? Specifically state which tip for remembering names you will use in the future. Identify precisely when you will practice this skill: for example, on “x” day/date when I go to class—or to work, or to a party— I will introduce myself to someone I don’t know.

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

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26 part 1 INDIVIDUALS AS LEADERS

On the line before each statement, write Y for yes, or N for no.

1. I enjoy meeting new people. 2. I’m good at remembering people’s names. 3. When I meet new people, I learn their

names and call them by name. 4. I’m interested in and willing to improve my

ability to remember and use names.

If you answered yes to Questions 1–3, you have developed some skill in this area. Your answer to Question 4 indicates whether you intend to further develop your skill. the choice is yours.

SELF-ASSESSMENT 1-3 Names

Objective

To gain a better understanding of leadership traits and behavior

aaCSB General Skills area

The primary AACSB skill developed through this exercise is analytic skills and application of knowledge.

preparing for this exercise Read and understand the trait and behavioral leadership theo- ries. On the following lines, list specific traits and behaviors that you believe effective leaders have or should have. Your answers may or may not be based on your observation of successful leaders.

Traits: Behaviors:

Doing this exercise in Class

Option 1  (5–15 minutes) Students give their answers to the instructor, who writes them on the board under the heading of Traits or Behaviors. During or after the answers are listed, the class may discuss them.

Option 2  (10–20 minutes) Break into groups of five or six, and select a leader to perform the spokesperson role (remem- ber, this is a leadership class). The spokesperson records the answers of the group, and then writes them on the board (5–10 minutes). The instructor leads a class discussion (5–10 minutes).

Developing Your Leadership Skills

Identifying Leadership Traits and Behaviors

1-2

endnotes 1 Open case references: B. Stone, “The Secrets of Bezos:

How Amazon Became the Everything Store,” Business- Week (October 10, 2013): 58–76; “Scorecard,” Forbes (October 28, 2013): 23; www.amazon.com, accessed October 24, 2013; “Largest U.S. Corporations— Fortune 500,” Fortune (May 20, 2013): 1–20; G. Anders, “Jeff Bezos Gets It,” Forbes (April 23, 2012): 77–86; P. Andruss, “Branding’s Big Guns,” Entrepreneur (April 2012): 50–55.

2 M. A. Hogg, D. Van Knippenberg, and D. E. Rast, “Intergroup Leadership in Organizations: Leading Across Group and Organizational Boundaries,” Academy of Management Review 37(2) (2012): 232–255.

3 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

4 B. Schyns, T. Kiefer, R. Kerschreiter, and A. Tymon, “Teaching Implicit Leadership Theories to Develop Leaders and Leadership: How and Why It Can Make a Difference,” Academy of Management Learning & Education 10(3) (2012): 397–408.

5 Google search (www.google.com), accessed October 3, 2013.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 27

6 R. Kark, “Games Managers Play: Play as a Form of Leadership Development,” Academy of Management Learning & Education 10(3) (2011): 507–527.

7 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

8 S. K. Johnson, L. L. Garrison, G. H. Bronnme, J. W. Fleenor, and J. L. Steed, “Go for the Goals: Relationship between Goal Setting and Transfer of Training Following Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 555–569.

9 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

10 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

11 “Call for Papers,” Academy of Management Learning & Education 12(2) (2013): 324.

12 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates.” Academy of Management Learning & Education 10(3) (2011), 452–472.

13 N. Breugst, H. Patzelt, D. A. Shepherd, and H. Aguinis, “Relationship Conflict Improves Team Performance Assessment Accuracy: Evidence from a Multilevel Study.” Academy of Management Learning & Education 11(2) (2012): 187–206.

14 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention.” Academy of Management Perspectives 26 (4) (2012): 66–85.

15 W. J. Henisz, “Leveraging the Financial Crisis to Fulfill the Promise of Progressive Management,” Academy of Management Learning & Education 10 (2) (2011): 298321.

16 R. E. Silverman, “Who’s the Boss? There Isn’t One.” The Wall Street Journal (June 20, 2012): B1.

17 M. W. Ohland, “The Comprehensive Assessment of Team Member Effectiveness: Development of a Behaviorally Anchored Rating Scale for Self- and Peer Evaluation,” Academy of Management Learning & Education 11(3) (2012): 609–630.

18 G. Petriglieri, J. D. Wood, and J. L. Petriglieri, “Up Close and Personal: Building Foundations for Leaders’ Development through the Personalization of Management Learning,” Academy of Management Learning & Education 10(3) (2011): 430–450.

19 M. Mayo, M. Kakarika, J. C. Pastor, and S. Brutus, “Aligning or Inflating Your Leadership Self-Image? A Longitudinal Study

of Responses to Peer Feedback in MBA Teams,” Academy of Management Learning & Education 11(4) (2012): 631–652.

20 G. Williams, “Comic Belief: Is Leadership Really a Crock?” Entrepreneur (April 2003): 28.

21 M. A. Hogg, D. Van Knippenberg, and D. E. Rast, “Intergroup Leadership in Organizations: Leading across Group and Organizational Boundaries,” Academy of Management Review 37(2) (2012): 232–255.

22 S. B. Sitkin and J. R. Hackman, “Developing Team Leadership: An Interview with Coach Mike Krzyzewski,” Academy of Management Learning & Education 10(3) (2011): 494–501.

23 B. P. Owens and D. R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal 55(4) (2012): 787–818.

24 S. B. Sitkin and J. R. Hackman, “Developing Team Leadership: An Interview with Coach Mike Krzyzewski,” Academy of Management Learning & Education 10(3) (2011): 494–501.

25 B. P. Owens and D. R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal 55(4) (2012): 787–818.

26 D. S. DeRue and S. J. Ashford, “Who Will Lead and Who Will Follow? Social Process of Leadership Identity Construction in Organizations,” Academy of Management Review 35(4) (2010): 627–647.

27 D. S. DeRue and S. J. Ashford, “Who Will Lead and Who Will Follow? Social Process of Leadership Identity Construction in Organizations,” Academy of Management Review 35(4) (2010): 627–647.

28 J. Immelt, GE Annual Shareowners Meeting, April 26, 2006, http://www.ge.com/pdf/investors/events/068 /ge_annualshar-eownersmeeting_042606_en.pdf.

29 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

30 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

31 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

32 S. K. Johnson, L. L. Garrison, G. H. Bronnme, J. W. Fleenor, and J. L. Steed, “Go for the Goals: Relationship between Goal Setting and Transfer of Training Following Leadership

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28 part 1 INDIVIDUALS AS LEADERS

Development,” Academy of Management Learning & Education 11(4) (2012): 555–569.

33 S. K. Johnson, L. L. Garrison, G. H. Bronnme, J. W. Fleenor, and J. L. Steed, “Go for the Goals: Relationship between Goal Setting and Transfer of Training Following Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 555–569.

34 H. A. Richardson and S. G. Taylor, “Understanding Input Events: A Model of Employees’ Responses to Requests for Their Input,” Academy of Management Review 37(3) (2012): 471–491.

35 E. R. Burris, “The Risks and Rewards of Speaking Up: Managerial Responses to Employee Voice,” Academy of Management Journal 55(4) (2012): 851–875.

36 J. Liang, C. I.C. Farh, and J. L. Farh, “Psychological Antecedents of Promotive and Prohibitive Voice: A Two- Wave Examination,” Academy of Management Journal 55(1) (2012): 71–92.

37 S. B. Sitkin and J. R. Hackman, “Developing Team Leadership: An Interview with Coach Mike Krzyzewski,” Academy of Management Learning & Education 10 (3) (2011): 494–501.

38 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

39 A. J. Nyberg and R. E. Ployhart, “Context-Emergent Turnover (CET) Theory: A Theory of Collective Turnover,” Academy of Management Review 38(1) (2013): 109–131.

40 M. A. Hogg, D. Van Knippenberg, and D. E. Rast, “Intergroup Leadership in Organizations: Leading across Group and Organizational Boundaries,” Academy of Management Review 37(2) (2012): 232–255.

41 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

42 R. Kark, “Games Managers Play: Play as a Form of Leadership Development,” Academy of Management Learning & Education 10(3) (2011): 507–527.

43 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

44 V. Lombardi, “Quote,” SBANC Newsletter (May 19, 2009): 1.

45 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

46 J. Antonakis, M. Fenley, and S. Liechti, “Can Charisma Be Taught? Tests of Two Interventions,” Academy of Management Learning & Education 10(3) (2011): 374–396.

47 R. Klimoski and B. Amos, “Practicing Evidence-Based Education in Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 685–702.

48 A. J. Nyberg and R. E. Ployhart, “Context-Emergent Turnover (CET) Theory: A Theory of Collective Turnover,” Academy of Management Review 38(1) (2013): 109–131.

49 R. Kark, “Games Managers Play: Play as a Form of Leadership Development,” Academy of Management Learning & Education 10(3) (2011): 507–527.

50 M. Feys, F. Anseel, and B. Wille, “Improving Feedback Reports: The Role of Procedural Information and Information Specificity,” Academy of Management Learning & Education 10(4) (2011): 661–681.

51 R. Kark, “Games Managers Play: Play as a Form of Leadership Development,” Academy of Management Learning & Education 10(3) (2011): 507–527.

52 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

53 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

54 R. B. Kaiser and R. B. Kaplan, “The Deeper Work of Executive Development: Outgrowing Sensitivities,” Academy of Management Learning & Education 5(4) (2006): 463–483.

55 R. B. Kaiser and R. B. Kaplan, “The Deeper Work of Executive Development: Outgrowing Sensitivities,” Academy of Management Learning & Education 5(4) (2006): 463–483.

56 E. R. Crawford and J. A. Lepine, “A Configural Theory of Team Process: Accounting for the Structure of Taskwork and Teamwork,” Academy of Management Review 38(1) (2013): 32–48.

57 M. Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Developing Leadership Character in Business Programs,” Academy of Management Learning & Education 12(2) (2013): 285–305.

58 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

59 S. Mantere and M. Ketokivi, “Reasoning in Organization Science,” Academy of Management Review 38(1) (2013): 70–89.

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Chapter 1 Who IS A LEADER AND WhAt SkILLS Do LEADERS NEED? 29

60 D. F. Baker and S. J. Baker, “To Catch the Sparkling Glow: A Canvas for Creativity in the Management Classroom,” Academy of Management Learning & Education 11(4) (2012): 704–721.

61 H. R. Greve, “Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action,” Academy of Management Perspectives 27(2) (2013): 103–119.

62 A. H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

63 A. H. Jordan and P. G. Audia, “Self-Enhancement and Learning from Performance Feedback,” Academy of Management Review 37(2) (2012): 211–231.

64 H. C. Vough, M.T, Cardador, J. S. Bendar, E. Dane, and M. G. Pratt, “What Clients Don’t Get about My Profession: A Model of Perceived Role–Based Image Discrepancies,” Academy of Management Journal 56(4) (2013): 1050–1080.

65 R. Grossman, E. Salas, D. Pavlas, and M. A. Rosen, “Using Instructional Features to Enhance Demonstration- Based Training in Management Education,” Academy of Management Learning & Education 12(2) (2013): 219–243.

66 R. Kark, “Games Managers Play: Play as a Form of Leadership Development,” Academy of Management Learning & Education 10(3) (2011): 507–527.

67 H. Mintzberg, The Nature of Managerial Work (New York: Harper & Row, 1973).

68 E. R. Crawford and J. A. Lepine, “A Configural Theory of Team Process: Accounting for the Structure of Taskwork and Teamwork,” Academy of Management Review 38(1) (2013): 32–48.

69 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

70 S. Mantere and M. Ketokivi, “Reasoning in Organization Science,” Academy of Management Review 38(1) (2013): 70–89.

71 A. H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

72 H. R. Greve, “Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action,” Academy of Management Perspectives 27(2) (2013): 103–119.

73 M. Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Developing Leadership Character in Business Programs,” Academy of Management Learning & Education 12(2) (2013): 285–305.

74 S. G. Winter, “Habit, Deliberation, and Action: Strengthening the Microfoundations of Routines and Capabilities,” Academy of Management Perspectives 27(2) (2013): 120–137.

75 Information taken from the AFL-CIO’s Web site at http:// www.aflcio.org/corporatewatch/paywatch/pay/index.cfm, accessed October 21, 2013; R. Lowenstein, “Is Any CEO Worth $189,000 per hour?” BusinessWeek (February 20–26, 2012): 8–9; R. Fisman and T. Sullivan, “In Defense of the CEO,” The Wall Street Journal (January 12–13, 2013): C1–C2; E. D. Smith and P. Kuntz, “Some CEOs Are More Equal Than Others,” BusinessWeek (May 6–12, 2013): 70–73.e more equal than others. BusinessWeek (May 6 – 12, 2013), 70-73

76 S. G. Winter, “Habit, Deliberation, and Action: Strengthening the Microfoundations of Routines and Capabilities,” Academy of Management Perspectives 27(2) (2013): 120–137.

77 B. Schyns, T. Kiefer, R. Kerschreiter, and A. Tymon, “Teaching Implicit Leadership Theories to Develop Leaders and Leadership: How and Why It Can Make a Difference,” Academy of Management Learning & Education 10(3) (2012): 397–408.

78 A. H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

79 H. R. Greve, “Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action,” Academy of Management Perspectives 27(2) (2013): 103–119.

80 A. Murray, “The End of Management,” The Wall Street Journal (August 21–22, 2010): W3.

81 R. Klimoski and B. Amos, “Practicing Evidence-Based Education in Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 685–702.

82 T. T. Baldwin, J. R. Pierce, R. C. Jones, and S. Farouk, “The Elusiveness of Applied Management Knowledge: A Critical Challenge for Management Education,” Academy of Management Learning & Education 10(4) (2011): 583–605.

83 J. K. Nelson, L. W. Poms, and P. P. Wolf, “Developing Efficacy Beliefs for Ethics and Diversity Management,” Academy of Management Learning & Education 11(1) (2012): 49–68.

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30 part 1 INDIVIDUALS AS LEADERS

84 T. T. Baldwin, J. R. Pierce, R. C. Jones, and S. Farouk, “The Elusiveness of Applied Management Knowledge: A Critical Challenge for Management Education,” Academy of Management Learning & Education 10(4) (2011): 583–605.

85 R. Klimoski and B. Amos, “Practicing Evidence-Based Education in Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 685–702.

86 “Call for Papers,” Academy of Management Learning & Education 12(2) (2013): 324.

87 AACSB Web site (http://www.aacsb.edu/accreditation /business/standards/2013/learning-and-teaching/standard9. asp), accessed October 24, 2013.

88 D. F. Baker and S. J. Baker, “To Catch the Sparkling Glow: A Canvas for Creativity in the Management Classroom,” Academy of Management Learning & Education 11(4) (2012): 704–721.

89 S. Mantere and M. Ketokivi, “Reasoning in Organization Science,” Academy of Management Review 38(1) (2013): 70–89.

90 T. T. Baldwin, J. R. Pierce, R. C. Jones, and S. Farouk, “The Elusiveness of Applied Management Knowledge: A Critical Challenge for Management Education,” Academy of Management Learning & Education 10(4) (2011): 583–605.

91 R. Grossman, E. Salas, D. Pavlas, and M. A. Rosen, “Using Instructional Features to Enhance Demonstration- Based Training in Management Education,” Academy of Management Learning & Education 12(2) (2013): 219–243.

92 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452-472.

93 R. Klimoski and B. Amos, “Practicing Evidence-Based Education in Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 685–702.

94 J. K. Nelson, L. W. Poms, and P. P. Wolf, “Developing Efficacy Beliefs for Ethics and Diversity Management,” Academy of Management Learning & Education 11(1) (2012): 49–68.

95 M. Sorcher and A. P. Goldstein, “A Behavior Modeling Approach in Training,” Personnel Administration 35(1972): 35–41.

96 J. E. Vascellaro, “Top Stories of 2011: All Apple All the Time,” The Wall Street Journal (December 29, 2011): B4.

97 “America’s Most Admired Companies,” Fortune (March 17, 2008): 116–133; J. Hempel and B. Kowitt, “Smartest People in Tech,” Fortune (June 26, 2010): 82–83.

98 M. Helft, “Steve Jobs’ Real Legacy: Apple Inc,” Fortune (September 26, 2011): 59–65.

99 P. Burrows and J. Tyrangiel, “Unfortunately, That Day Has Come,” BusinessWeek (August 29–September 4, 2011): 33.

100 R. Murphy, “The 2011 Businessperson of the Year,” Fortune (December 12, 2011): 87–91.

101 A. Lashinsky, “How Tim Cook Is Changing Apple,” Fortune (July 11, 2012): 111–118.

102 B. Stone, A. Satariano, and P. Burrows, “Out of the Shadow,” BusinessWeek (October 8–14, 2012): 6–8.

103 J. Tyrangiel, “Tim Cook’s Freshman Year,” BusinessWeek (December 6, 2012): 62–76.

104 Staff, “The World’s Most Admired Companies,” Fortune (March 18, 2013): 137–139.

105 Staff, “Largest U.S. Corporations,” Fortune (May 20, 2013): 1–20.

106 Staff, “Global 500 World’s Largest Corporations,” Fortune (July 22, 2013): 134.

107 P. Andruss, “Brankding’s Big Guns,” Entrepreneur (April 2012): 50–56.

108 J. Tyrangiel, “Tim Cook’s Freshman Year,” BusinessWeek (December 6, 2012): 62–76.

109 B. Stone, A. Satariano, and P. Burrows, “Out of the Shadow,” BusinessWeek (October 8–14, 2012): 6–8.

110 A. Lashinsky, “Game Over?,” Fortune (July 22, 2013): 64–68.

111 B. Stone, A. Satariano, and P. Burrows, “Out of the Shadow,” BusinessWeek (October 8–14, 2012): 6–8.

112 J. Tyrangiel, “Tim Cook’s Freshman Year,” BusinessWeek (December 6, 2012): 62–76.

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31

Chapter

C h a p t e r O U t L I N e

Personality Traits and Leadership Trait Universality

Personality and Traits

Personality Profiles

Leadership Trait Universality

The Big Five Including Traits of Effective Leaders

Surgency

Agreeableness

Adjustment

Conscientiousness

Openness

The Personality Profile of Effective Leaders

Achievement Motivation Theory

Leader Motive Profile Theory

Leadership Attitudes

Theory X and Theory Y

The Pygmalion Effect

Self-Concept

How Attitudes Develop Leadership Styles

Ethical Leadership

Does Ethical Behavior Pay?

Factors Influencing Ethical Behavior

How People Justify Unethical Behavior

Guides to Ethical Behavior

Being an Ethical Leader

Leadership Traits and Ethics

Learning Outcomes After studying this chapter, you should be able to:

1 Explain the universality of traits of effective leaders. p. 35

2 Describe the Big Five personality dimensions. p. 35

3 Discuss why the trait of dominance is so important for managers to have. p. 36

4 State how the Achievement Motivation Theory and the Leader Motive Profile are related and different. p. 41

5 Identify similarities and differences among Theory X and Theory Y, the Pygmalion effect, and self-concept. p. 46

6 Describe how attitudes are used to develop four leadership styles. p. 49

7 Compare the three levels of moral development. p. 52

8 Explain the stakeholder approach to ethics. p. 56

2

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32 part 1 INDIVIDUALS AS LEADERS

Ellen Kullman is an effective leader. The focus of this chapter is on leadership traits, which includes ethics. We begin by learning about personality traits of leaders and the personality profile of effective leaders. Next we learn how attitudes affect leadership. We end with a discussion of ethics in leadership. Personality Traits and Leadership Trait Universality Recall that trait theory of leadership was the foundation for the field of leadership stud- ies. Some authors believe that the most important thing about a leader is traits, rather than skills.6 In this section, we discuss traits and personality, personality profiles, and leadership trait universality. But before you learn about personality traits, complete Self-Assessment 2-1 to determine your personality profile. Throughout this chapter, you will gain a better understanding of personality traits, which help explain why people do the things they do (behavior).

ellen Kullman Dupont DuPont was founded over 200 years ago and continues to be a world leader in market-driven innovation and science. Its innovation includes thousands of new products and patent applications every year, serving markets as diverse as agriculture, nutrition, electronics and communications, safety and protection, home and construction, transporta- tion and apparel.1 Look closely at the things around your home and workplace, and chances are you’ll find dozens of items made with DuPont materials.

Ellen Kullman received a BS in mechanical engineering from Tufts University, and later a master’s degree in man- agement from Northwestern University, and she began her career at GE. She started at DuPont in 1988 as a market- ing manager. Kullman climbed the corporate ladder to the top in 2009, becoming chair of the board and CEO of Du- Pont.2 Under Kullman’s leadership DuPont’s strategy shifted from selling commodity units into high-margin areas and the stock has more than doubled during her tenure.

DuPont operates in more than 90 countries, with rev- enues in excess of $39.5 billion. DuPont is ranked #72

on the Fortune 500 company list and 1st in the chemi- cals ranking,3 ranked #267 on the Global 500,4 and ranked #41 on the Fortune World’s Most Admired Companies.5

OpeNING CaSe QUeStIONS:

1. What Big Five personality traits does Ellen Kull- man possess?

2. Does Ellen Kullman have the personality profile of an effective leader?

3. How did “attitude” help improve the perfor- mance of DuPont?

4. How did Ellen Kullman’s self-concept affect her leadership?

5. What role does ethics play at DuPont?

Can you answer any of these questions? You’ll find answers to these questions and learn more about DuPont and its leadership throughout the chapter.

To learn more about Ellen Kullman and DuPont, visit its Web site at http://www.dupont.com.

OPENING CASE Application

SELF-ASSESSMENT 2-1 Big Five personality profile

There are no right or wrong answers, so be honest and you will really increase your self-awareness. We suggest doing this exercise in pencil or making a copy before you write on it. We will explain why later.

Using the scale below, rate each of the 25 statements according to how accurately it describes you. Place a number from 1 to 7 on the line before each statement.

(continued)

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Chapter 2 LEADERShIP TRAITS AND EThICS 33

Like me Some what like me Not like me 7 6 5 4 3 2 1

______ 1. I step forward and take charge in lead- erless situations.

______ 2. I am concerned about getting along well with others.

______ 3. I have good self-control; I don’t get emotional, angry, or yell.

______ 4. I’m dependable; when I say I will do something, it’s done well and on time.

______ 5. I try to do things differently to improve my performance.

______ 6. I don’t give up very easily, and push myself to achieve my objectives.

______ 7. I enjoy having lots of friends. ______ 8. I think positively about the outcomes

of situations and perform well under pressure.

______ 9. I work hard to be successful. ______ 10. I’m flexible and go with the flow when

things change. ______ 11. I am outgoing and willing to be assertive

when in conflict. ______ 12. I try to see things from other people’s

points of view. ______ 13. I have confidence in my judgments, deci-

sion making, ideas, and capabilities.

______ 14. I am loyal to my boss, coworkers, and the organizations.

______ 15. I’m good at problem solving and making decisions.

______ 16. I want to climb the corporate ladder to as high a level of management as I can.

______ 17. I want other people to like me and to view me as very friendly.

______ 18. I give people lots of praise and encour- agement; I don’t put people down and criticize.

______ 19. I follow the policies and rules of an organization.

______ 20. I volunteer to be the first to learn and do new tasks at work.

______ 21. I try to influence other people to get my way.

______ 22. I enjoy working with others more than working alone.

______ 23. I am relaxed and secure, rather than nervous and insecure.

______ 24. I am considered to be trustworthy because I do a good job and support others.

______ 25. I believe that my successful performance depends on me, not others or good luck

Surgency Agreeableness Adjustment Conscientiousness Openness to Experience

_____ _____ _____ _____ _____ _____

1. 6. 11. 16. 21.

Total

35 30 25 20 15 10 5

Scale

_____ _____ _____ _____ _____ _____

2. 7. 12. 17. 22.

Total

35 30 25 20 15 10 5

Scale

_____ _____ _____ _____ _____ _____

3. 8. 13. 18. 23.

Total

35 30 25 20 15 10 5

Scale

_____ _____ _____ _____ _____ _____

4. 9. 14. 19. 24.

Total

35 30 25 20 15 10 5

Scale

_____ _____ _____ _____ _____ _____

5. 10. 15. 20. 25.

Total

35 30 25 20 15 10 5

Scale

To determine your Big Five personality profile: (1) In the blanks, place the numbers from 1 to 7 that represents your score for each statement. (2) Add up each column; your total should be a number from 5 to 35. (3) On the number scale, circle the number that is closest to your total score. Each column in the chart represents a specific personality dimension.

The higher the total number, the stronger is the personality dimension that describes your personality. What is your strongest dimension? Your weakest dimension? Continue reading the chapter for specifics about your personality in each of the five dimensions.

You may visit http://ipip.ori.org for a more detailed 50- or 100-item Big Five Personality Assessment.

personality and traits Why are some people outgoing and others shy, loud and quiet, warm and cold, aggressive and passive? This list of behaviors is made up of individual traits.

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34 part 1 INDIVIDUALS AS LEADERS

Personality and Traits Are Different but Related traits are distinguishing personal characteristics. The image we project is based largely on our character traits.7 personality is a combination of traits that classifies an individu- al’s behavior. Researchers study personal characteristics8 and personality9 to understand and explain why people behave the way they do.10

Personality is developed based on genetics and environmental factors. The genes you received before you were born influence your personality traits today. Your family, friends, school, and work also inf luence your personality. So our personality is partly innate, partly learned, and we can change, but it takes time and effort.11

Why Understanding Personality Is Important Understanding people’s personalities is important because personality affects behavior as well as perceptions and attitudes.12 Understanding personalities helps us explain and predict others’ behavior and job performance.13 For a simple example, if you know Kate is very shy, you can better understand why she is quiet when meeting new people. You can also predict that Kate will be quiet when going places and meeting new people. You can also better understand why Kate would not seek a job as a salesperson, and if she did, you could predict that she might not be highly successful.

personality profiles personality profiles identify individual stronger and weaker traits. Completing Self- Assessment 2-1 gives us our personality profile. Student profiles tend to have a range of scores for the five dimensions. Review your personality profile. Do you have higher scores (stronger traits) on some dimensions and lower scores (weaker traits) on others? There are many personality tests, such as the Myers-Briggs Type Indicator and the Minnesota Multiphasic Personality Inventory.

When we take personality tests, our self-awareness goes up as we figure out our stron- ger and weaker traits. But we have to make a realistic assessment and acceptance of our strengths and weaknesses and work to improve our behavior. We realize that we are dif- ferent from other people, and, as stated above, we can change our behavior to improve our relationships and develop leadership skills.14

Job Performance Many organizations (including the National Football League) give personality tests to ensure a proper match between the worker and the job. Personality profiles are also used to categorize people as a means of predicting job success, and high conscientiousness is a good predictor of job performance, whereas people who are unstable tend to have poor job performance. People who are high in openness to experience tend to lead innovation to improve organizational performance.15

The Big Five Correlates with Leadership Researchers conducted a major meta-analysis combining 73 prior studies to correlate the Big Five personality dimensions with leadership. The highest correlation with leadership was surgency (.31), followed by conscientiousness (.28) and openness to experience (24). Agreeableness was weakly correlated (.08), and adjustment was negatively correlated with leadership (–.24).16 In other words, people high in surgency are perceived as leaderlike—they work hard, and they bring about change. They are not too concerned about being well liked and trying to please everyone, and they are stable or not overly emotional.

WORK Application 2-1 Based on your personality profile, identify which dimensions are stronger, moderate, and weaker.

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Chapter 2 Leadership TraiTs and eThics 35

Derailed Leadership Traits Let’s identify traits that led to leadership failure. A study was conducted that compared 21 derailed executives with 20 executives who had successfully climbed the corporate lad- der to the top. The derailed executives had prior success and were expected to go far, but they were passed over for promotion again, were fired, or were forced to retire early. See Exhibit 2.1 for a list of the six major reasons for derailment.17 Overall, the problem of derailed managers is poor human relations skills.

WORK Application 2-2 Select a present or past manager, and state whether he or she has any of the six traits of derailment. Give specific examples of weaknesses.

Why Executives Are Derailed EXHIBIT 2.1

We Can Improve As stated, we can change our behavior to be more effective. The key to success is to assess our personality strengths and weaknesses and to plan how to change our behavior to improve our relationships and leadership skills. Once we determine the behavior we want to improve, it takes deliberate practice to succeed. You are given the opportunity to apply what you learn throughout this book in your personal and professional lives.

Explain the universality of traits of effective leaders.Learning outcome 1

Describe the Big Five personality dimensions.Learning outcome 2

Leadership trait Universality In applying trait theory, we need to remember that there are traits that many successful leaders have,18 and we will discuss them in the next major section with the Big Five, but there is no agreed-upon list of traits that leaders need to be successful. So you don’t need to have all of them to be a successful leader.

There are always exceptions to all the traits. For example, in Fortune 500 companies, 30 percent of the CEOs are 6 feet 2 inches or taller, compared to only 4 percent of the general U.S. population. However, there are lots of CEOs who are less than 6 feet.19 Successful leaders are commonly extroverts, but 40 percent of CEOs describe themselves as introverts, including Microsoft’s Bill Gates and investors Warren Buffet and Charles Schwab.20 Also, certain personality traits have been shown to be important in some team settings, but not in others.

· They used a bullying style viewed as intimidating, insensitive, and abrasive. · They were viewed as being cold, aloof, and arrogant. · They betrayed personal trust. · They were self-centered and viewed as overly ambitious and thinking of the next job. · They had specific performance problems with the business. · They overmanaged and were unable to delegate or build a team.

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36 part 1 indiVidUaLs as Leaders

The Big Five Including Traits of Effective Leaders There are many personality classification methods.21 However, the Big Five Model of Personality traits is the most widely accepted way to classify personalities because of its strong research support and its reliability across age, sex, race, and language groups.22

The purpose of the Big Five is to reliably categorize, into one of five dimensions, most if not all of the traits you would use to describe someone. Thus, each dimension includes multiple traits. The Big Five Model of personality categorizes traits into the dimen- sions of surgency, agreeableness, adjustment, conscientiousness, and openness to experi- ence. The dimensions are listed in Exhibit 2.2 and described in this section.

Note that some researchers have slightly different names for the five dimensions, and not all will agree under which dimension each leadership trait should be classified; there is some overlap. We include traits of effective leaders under each dimension based on their strong research support, and our definitions of each of the Big Five include the effective leadership traits in that category. However, again we should realize that there is no one list of traits accepted by all researchers, and that not all effective leaders have all these traits and, like all of us, are higher and lower in some than others.

Surgency The surgency personality dimension includes dominance, extraversion, and high energy with determination. Review Self-Assessment 2-1 statements 1, 6, 11, 16, and 21 for examples of surgency traits. Let’s discuss the three important dimensions of surgency here.

Discuss why the trait of dominance is so important for managers to have.Learning Outcome 3

Dominance Successful leaders assert themselves and want to be managers and to take charge.23 If you do not want to be a leader, chances are you will not be an effective manager. Thus, the dominance trait affects all the other traits related to effective leaders. Do you want to be a leader?

the Big Five Model of personality Leadership traits within the Big Five

Surgency

Agreeableness

Adjustment

Conscientiousness

Openness

a. Dominance b. Extroversion c. Energy/Determination d. Sociability/Sensitivity e. Emotional intelligence f. Emotional Stability and Narcissism g. Self-confidence h. Dependability i. Integrity j. Flexibility k. Intelligence l. Locus of control

The Big Five Including Traits of Effective Leaders EXHIBIT 2.2

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Chapter 2 LEADERShIP TRAITS AND EThICS 37

Extraversion It is on a continuum between extravert and introvert. Extraverts are outgoing, like to meet new people, and are assertive and willing to confront others, whereas introverts are shy. Extraverts are frequently selected for leadership positions.24 How outgoing are you?

High energy with determination Leaders tend to have high energy with a positive drive to work hard to achieve goals, and they create energy in others.25 Their positive attitude and optimism influence their high tolerance for frustration as they strive to overcome obstacles through being persistent; they don’t give up easily. Do you have a high energy level with determination?

agreeableness The agreeableness personality dimension includes traits of sociability and emo- tional intelligence. Review Self-Assessment 2-1 statements 2, 7, 12, 17, and 22 for examples of agreeableness traits. Let’s discuss the two important dimensions of agreeableness next.

Sociability/Sensitivity Sociable people have an inclination to seek out enjoyable social relationships. Strong sociability personality types are friendly, courteous, easy to get along with, and diplo- matic. How important is having good social relationships to you?

Sensitivity is part of being sociable. It refers to understanding group members as indi- viduals. Recall that being insensitive is one of the reasons why executives are derailed. If you are concerned only about yourself and don’t understand others, you probably will not be very successful. Are you sensitive to others?

Emotional Intelligence An offshoot of IQ is EQ (emotional quotient—EQ or emotional intelligence—EI). EI is the ability to work well with people.26 EQ is being used to identify future leaders.27 There are four components of EQ:28

• Self-awareness relates to being conscious of your emotions and how they affect your personal and professional life. Self-awareness is the cornerstone of all insight. Use your self-awareness (the exercises in this book help) to accurately assess your strengths and limitations; this leads to higher self-confidence.

• Social awareness relates to the ability to understand others. Empathy is an ability to put yourself in other people’s situations, sense their emotions, and understand things from their perspective.

• Self-management relates to the ability to control disruptive emotions, ours and others. Successful leaders are self-motivated and don’t let negative emotions (worry, anxiety, fear, anger) interfere with getting things done.

• Relationship management relates to the ability to work well with others, which is dependent on the other three EI components. Most of this book focuses on developing relationship management skills. Do you have high EI skills in all four areas?

adjustment The adjustment personality dimension includes traits of emotional stability and self-confidence. Review Self-Assessment 2-1 statements 3, 8, 13, 18, and 23 for exam- ples of adjustment traits. Let’s discuss the two important dimensions of adjustment here.

WORK Application 2-3 Select a present or past manager and assess his or her surgency traits of effective leaders. Give an example of the manager’s strong or weak dominance, extroversion, and energy/determination in a typical specific situation.

WORK Application 2-4 Using the same manager from Work Application 3, assess his or her agreeableness traits of effective leaders. Give an example of the manager’s strong or weak sociability/sensitivity and emotional intelligence in a typical specific situation.

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38 part 1 INDIVIDUALS AS LEADERS

Emotional stability/self-control and narcissism We all have emotions in leader–follower interactions. The question is how do we handle them? 29 Adjustment is on a continuum between being emotionally stable and unstable. Stable refers to self-control, being calm—good under pressure, relaxed, secure, and positive—praising others. Unstable is out of control—poor under pressure, nervous, insecure, negative, and hostile— criticizing others without helping them improve. How emotionally stable are you?

Narcissism is related to being unstable, and it is on the increase.30 Narcissists are pre- occupied with themselves, ignoring the needs of others, have an exaggerated sense of their own self-importance, and tend to make bad decisions.31 Are you just looking out for yourself as #1 as a narcissist?

Self-confidence It is on a continuum from strong to weak, indicating whether we are self-assured in our judgments, decision making, ideas, and capabilities. How can we succeed at anything if we don’t believe we can? Our self-confidence builds with our success at setting and achieving our goals. Effective self-confidence is based on an accurate awareness of our strengths and weaknesses, with an orientation to self-improvement. Do you have effective self-confidence?

Conscientiousness The conscientiousness personality dimension includes traits of dependability and integrity. Review Self-Assessment 2-1 statements 4, 9, 14, 19, and 24 for examples of con- scientiousness. How strong is your desire to be successful?

Dependability It is on a continuum between responsible/dependable to irresponsible/undependable. Highly dependable people get the job done and are characterized as loyal, committed to their coworkers and the organization. Are you dependable?

Integrity It is on a continuum between being honest and ethical or not. Integrity is the foundation for trustworthiness.32 We focus on honesty here and will discuss ethics in more detail in the last section of this chapter. Integrity is about being honest—no lying, cheating (ma- nipulating), or stealing.33 Clearly, to be effective, leaders need integrity.34 Do you have integrity?

Openness The openness-to-experience personality dimension includes traits of f lexibility, intelligence, and internal locus of control. Review Self-Assessment 2-1 statements 5, 10, 15, 20, and 25 for examples of openness-to-experience traits.

Flexibility It refers to the ability to adjust to different situations and change.35 Without f lexibility, you will not be successful. Flexible people are generally more creative and innovative— willing to try new things and change. How willing are you to change and try new things? Are you flexible?

Intelligence It refers to cognitive ability to think critically, to solve problems, and to make decisions. It is also referred to as general mental ability intelligence quotient (IQ). Intelligence is the

WORK Application 2-5 Using the same manager from Work Application 3, assess his or her emotional adjustment traits of effective leaders. Give an example of the manager’s strong or weak emotional stability and narcissism and self-confidence in a typical specific situation.

WORK Application 2-6 Using the same manager from Work Application 3, assess his or her conscientiousness traits of effective leaders. Give an example of the manager’s strong or weak dependability and integrity in a typical specific situation.

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Chapter 2 LEADERShIP TRAITS AND EThICS 39

best predictor of job performance but not the only one as conscientiousness is also im- portant. The founders of Microsoft (Bill Gates), Google (Sergey Brin and Larry Page), and Facebook (Mark Zuckerberg) all have 150+ IQs and math SAT skills at the 800 level, and they tend to have a bias for IQ when hiring.36

IQ, EQ, and I got a clue. It has been said that to be successful a high IQ is important37 but not enough. We also need strong interpersonal skills, or a high EQ (leading). Plus, we have to have a clue of what we are trying to accomplish (objectives) and how we will get the job done (planning, organizing, and controlling). Can you think of any people who are intelligent but lack people skills or don’t seem to have a clue about what to do or how to get things done?

Locus of control It is on a continuum between external and internal belief in control over one’s destiny/ performance. Externalizers believe that they have no control over their fate and that their behavior has little to do with their performance. Internalizers believe that they control their fate and that their behavior directly affects their performance. Effective internal- izer leaders take responsibility for who they are, for their behavior and performance, and for the performance of their organizational unit. Are you more of an internalizer or an externalizer?

YOU Make the ethICaL Call

2.1 Downsizing and Part-Time Workers

As firms struggle to compete in the global economy, many have downsized. Downsizing is the process of cutting resources to increase productivity. The primary area of cutting is human resources, which has led to layoffs. Another method of keeping costs down is using part-time employees who do not receive benefits (e.g., health care) rather than full-time employees who receive benefits.

Walmart is known for having a heavy ratio of part- to full-time employees to keep costs down. Walmart is expanding its sales of grocery items, competing directly with supermarket chains. One of the reasons Walmart has lower prices is because it uses mostly part-time workers at or close to minimum wage and without benefits. Most super- market chain employees are unionized and get higher wages and more benefits, and they want better pay and benefits. But supermarket chains state that they can’t afford to pay more; they must compete with Walmart.

1. Do you view Walmart as a company with integrity?

2. Is downsizing ethical and socially responsible?

3. Is using part-time, rather than full-time, employees ethical and socially responsible?

1. What Big Five and leadership personality traits does ellen Kullman possess?

To a large extent, Ellen Kullman is a successful leader because of her strong personality in the Big Five. She has a strong need for surgency that helped her climb the corporate ladder at DuPont, which is dominated by men.

It took energy and determination to become the first woman CEO of DuPont. She is ranked #3 on the Fortune 50 Most Powerful Women list.38

Kullman has agreeableness. She gets along well with people having strong interpersonal skills with EI. Kullman relies more on her personal relationships than her power as CEO to get the job done. She is also sociable and sensitive to others.

OPENING CASE Application

WORK Application 2-7 Using the same manager from Work Application 3, assess his or her openness to experience traits of effective leaders. Give an example of the manager’s strong or weak flexibility, intelligence, and locus of control in a typical specific situation.

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40 part 1 INDIVIDUALS AS LEADERS

She is conscientious at getting the job done. Being very dependable by achieving great success was a cornerstone of her climbing the corporate ladder at DuPont. Plus she is viewed has having a high level of integrity.

Kullman is well adjusted. Competing in a company and industry dominated by men, she has self-control and self-confidence. She is calm, good under pressure, relaxed, secure, and positive. She praises the accomplishments of her employees at all levels.

She is open to new experience because of her innovating and bringing to market new products at a faster clip. Kullman is highly intelligent, has an internal locus of control as she takes charge to bring changes, and is flexible.

CONCept APPLICATION 2-1

Big Five Personality Dimensions Identify each of these seven traits/behaviors by its personality dimension. Write the appropriate letter in the blank before each item. a. surgency d. conscientiousness b. agreeableness e. openness to experience c. affiliation

1. A leader is saying a warm, friendly hello to followers as they arrive at the meeting.

2. A leader is brainstorming ideas with followers on new products.

3. A follower is yelling about a problem, a leader calmly explains how to solve it.

4. A leader is not very talkative when meeting some unexpected customers.

5. A leader is letting a follower do the job his or her own way to avoid a conflict.

6. A leader is giving detailed instructions to a follower to do the job.

7. A purchasing agent submitted the monthly report on time as usual.

CONCept APPLICATION 2-2

Personality Traits of Effective Leaders Identify each of the following eight behaviors by its trait. The leader may be behaving effectively, or the behavior may be the opposite of the effective trait behavior. Refer to Exhibit 2.2 and use the “leadership traits within the Big Five.” Write the appropriate letter a–l in the blank before each item.

8. A leader telling his boss that he is right on schedule to finish the job, planning to catch up before the boss finds out.

9. A leader assigned a task to one follower, giving very specific instructions, and another task telling that follower to complete the task any way they want to.

10. A leader is fixing a broken machine.

11. A leader is acting very nervous while giving the follower a new task.

12. A leader tells a follower that he can have lunch at noon. But 15 minutes later, the leader tells the follower to have lunch at 1:00.

13. A leader listens to the follower complain and then paraphrases the complaint back to the follower.

14. A leader in situation 10 above is/has been working to fix the machine for three hours now.

15. A leader is giving excuses as to why performance is low and that nothing can be done to improve.

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Chapter 2 LEADERShIP TRAITS AND EThICS 41

The Personality Profile of Effective Leaders Effective leaders have a common personality profile. David McClelland’s trait theories of Achievement Motivation Theory and Leader Motive Profile Theory have strong research support and a great deal of relevance to the practice of leadership. Achievement Motiva- tion Theory identifies three major traits, which McClelland calls needs. Leader Motive Profile Theory identifies the personality profile of effective leaders.39 You will learn about both of these theories in this section.

WORK Application 2-8 How can you improve your leadership skills by understanding your manager’s (and other people’s) personality profile?

State how the Achievement Motivation Theory and the Leader Motive Profile are related and different

Learning Outcome 4

achievement Motivation theory achievement Motivation theory attempts to explain and predict behavior and performance based on a person’s need for achievement, power, and affiliation. Through an unconscious process, our behavior is motivated by our desire to satisfy our needs. McClelland stated that needs are based on personality and are developed as we interact with the environment. All people possess these three needs but to varying degrees.

The Need for Achievement (n Ach) The need for achievement is the concern for excellence in accomplishments through individual efforts. High n Ach is categorized as the Big Five dimension of conscientious- ness with dependability, but the person is not necessarily being high in integrity. People with high n Ach tend to be characterized as wanting to take personal responsibility for solving problems. They are goal oriented and set moderate, realistic, and attainable goals. They seek challenge, excellence, and individuality; take calculated, moderate risk; desire concrete feedback on their performance; and work hard. McClelland’s research showed that only about 10 percent of the U.S. population has a very “strong” dominant need for achievement. There is evidence of a correlation between high achievement need and high performance in the general population.

The Need for Power (n Pow) The need for power is the concern for inf luencing others and seeking positions of authority. High n Pow is categorized as the Big Five dimension of surgency. People with a high need for power tend to be characterized as wanting to control the situation, want- ing influence or control over others, enjoying competition in which they can win (they don’t like to lose), being willing to confront others, and seeking positions of authority and status. They tend to be ambitious and have a lower need for affiliation and agreeableness. They are attuned to power and politics as essential for successful leadership, and they tend to seek management positions.

The Need for Affiliation (n Aff) The need for affiliation is the concern for developing, maintaining, and restoring close personal relationships. High n Aff is categorized as the Big Five dimension of agreeable- ness. People with strong n Aff have the trait of sociability/sensitivity and often high EI. People with high n Aff tend to be characterized as seeking close relationships with others, wanting to be liked by others, enjoying lots of social activities, and seeking to belong; so they join groups and organizations. People with high n Aff are more concerned about what others think of them than about getting their own way (influencing others). N Aff is negatively related to leadership. Those with a high n Aff tend to have a low n Pow; they tend to avoid management because they like to be one of the group rather than its leader.

WORK Application 2-9 Explain how your need for achievement, power, and/or affiliation has affected your behavior and performance, or that of someone you work with or have worked with. Give an example of the behavior and performance, and list your predicted motive need.

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42 part 1 INDIVIDUALS AS LEADERS

Your Motive Profile Note that McClelland does not have a classification for the adjustment and openness- to- experience Big Five personality dimensions; they are not needs. A person can have a high or low need for achievement, power, and affiliation and be either well adjusted or not, and either open or closed to new experiences. So these two dimensions of personality are ignored in determining the Achievement Motivation Theory personality profile. Complete Self-Assessment 2 to determine your motive profile now.

CONCept APPLICATION 2-3

Achievement Motivation Theory Identify each of the five behaviors below by its need, writing the appropriate letter in the blank before each item. The person may be behaving based on a strong need, or the behavior may be the opposite, indicating a weak need. Also state how the behavior meets the need and predict the performance. a. achievement b. power c. affiliation

16. A person is refusing to be the chairman of the committee.

17. A person is going to talk to a coworker to resolve a conflict they have.

18. The other coworker above will not be the first one to make a move to resolve the conflict; but when the other party comes to him, he will be receptive.

19. A finance major has offered to calculate the financial analysis for the group’s simulation game and to make the presentation to the class.

20. A management major is studying hard for many hours to maintain his A average.

SELF-ASSESSMENT 2-2 Motive profile

Return to Self-Assessment 2-1 on page 32 and place the scores from your Big Five personality profile in the following blanks, next to their corresponding needs. On the number scale, circle your total score for each need.

Need for achievement (conscientiousness)

Need for power (surgency)

Need for affiliation (agreeableness)

35 35 35 30 30 30 25 25 25 20 20 20 15 15 15 10 10 10 5 5 5

Total Score ___________ Total Score_________ Total Score_________

There is no right or wrong score for this profile. To interpret your score, check to see if there is much difference between the three need scores. If all three are about the same, one need is not stronger than the others are. If scores vary, one need is higher than the others and is called the stronger or dominant need, and the lower score is the weaker need. You can also have other combinations, such as two stronger and one weaker, or vice versa. Do you have stronger and weaker needs?

Knowing a motive profile is useful, because it can explain and predict behavior and performance. Read on to determine if you have the motive profile of an effective leader.

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Chapter 2 LEADERShIP TRAITS AND EThICS 43

Leader Motive profile theory Leader Motive profile theory attempts to explain and predict leadership success based on a person’s need for achievement, power, and affiliation. McClelland found that effective leaders consistently have the same motive profile and that Leader Motive Profile has been found to be a reliable predictor of leader effectiveness.40 Let’s first define the profile of effective leaders and then discuss why it results in success. The Leader Motive profile (LMp) includes a high need for power, which is socialized, that is greater than the need for affiliation and with a moderate need for achievement. The achievement score is usually somewhere between the power and affiliation score, and the reason is described below.

Power Power is essential to leaders because it is a means of inf luencing followers. Without power, there is no leadership. To be successful, leaders need to want to be in charge and enjoy dominance in the leadership role,41 with high energy and determination to succeed. We will need power to inf luence our followers, peers, and higher-level managers. We will discuss how to gain power and be successful in organizational politics in Chapter 5.

Socialized Power McClelland further identified power as neither good nor bad. It can be used for personal gain at the expense of others (personalized power), or it can be used to help oneself and others (socialized power).42 Social power is discussed again later, with ethics. Effective leaders use socialized power, which includes the traits of sensitivity to others and stability with good EI relationships,43 and is the Big Five adjustment dimension. Thus, a person with a low need for affiliation can have a high sensitivity to others. McClelland’s research supports the reasons for executive derailment, because these negative traits are personalized power. Socialized power is not included in the motive profile, so complete Self-Assessment 3 to determine your motive profile with socialized power.

Achievement To be effective, leaders generally need to have a moderate need for achievement. They have high energy, self-confidence, and openness-to-experience traits, and they are dependable—conscientious (Big Five dimension). The reason for a moderate, rather than a high, need for achievement, which would include a lower need for power, is the danger of personalized power. People with a high need for achievement tend to seek individual achievement, and when they are not interested in being a leader, there is the chance for personalized power and derailment.

Affiliation Effective leaders have a lower need for affiliation than power, so that relationships don’t get in the way of inf luencing followers. If the achievement score is lower than that for affiliation, the probability of the following problems occurring may be increased. Lead- ers with high n Aff tend to have a lower need for power and are thus reluctant to play the bad-guy role, such as disciplining and influencing followers to do things they would rather not do—like change. However, recall that effective leaders do have concern for followers—socialized power.

WORK Application 2-10 Make an intelligent guess about your present or past manager’s motive profile. Is it an LMP? Explain.

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44 part 1 INDIVIDUALS AS LEADERS

SELF-ASSESSMENT 2-3 Motive profile with Socialized power

Return to Self-Assessment 2-1 on page 32 and place the scores from Self-Assessment 2 (your motive profile) in the following blanks. On the number scale, circle your total score.

Need for achievement (conscientiousness)

Need for power (surgency)

Socialized power (adjustment)

Need for affiliation (agreeableness)

35 35 35 35 30 30 30 30 25 25 25 25 20 20 20 20 15 15 15 15 10 10 10 10 5 5 5 5

Total Score ___________ Total Score ___________ Total Score ___________ Total Score ___________

Again, there is no right or wrong score. The adjustment score will give you an idea if your power is more social or personal. Also realize that the questions in Self-Assessment 2-1 (3, 8, 13, 18, and 23) are not totally focused on social power. Thus, if you believe you have higher sensitivity to others, your score on McClelland’s LMP socialized power could be higher.

The Leader Motive Profile is included in the definition of leadership. Our definition of leadership includes the five key elements of leadership (see Exhibit 1.1 on page 5) in the LMP. Our definition of leadership includes influencing and leaders–followers (power) and getting along with people (social power with EI). It also includes organizational objectives (which achievers set and accomplish well) and change (which achievers are open to).

2. Does ellen Kullman have the personality profile of an effective leader?

Ellen Kullman has an LMP. Her need for power is illustrated through climbing the corporate ladder in a male-dominated industry and company. She has a socialized need for power since she relies more on relationships than simply her power as CEO, and she uses participative management and does allow others to make decisions in local issues. Kullman has a need for achievement that leads to continued success. She also has a lower need for affiliation as she sets objectives and standards for improving performance and uses her power when needed.

Do you have an LMP? Complete Self-Assessment 4 now to find out.

OPENING CASE Application

SELF-ASSESSMENT 2-4 Leadership Interest

Select the option that best describes your interest in leadership now.

______ 1. I am, or want to become, a manager and leader.

______ 2. I am, or want to become, a leader with- out being a manager.

______ 3. I am not interested in being a leader; I want to be a follower.

If you want to be a leader, recall that research has shown that you can develop your leadership skills.

If you selected option 1, do you have an LMP? If you answered yes, it does not guarantee that you will climb the corporate ladder. however, having an LMP does increase your chances, because it is a predictor of leadership suc- cess. On the other hand, an LMP is not enough; you need leadership skills to be successful. If your Self-Assessment 3

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Chapter 2 LEADERShIP TRAITS AND EThICS 45

Before we go on to discuss leadership attitudes, let’s review what we’ve covered so far in Exhibit 2.3 by putting together the Big Five Model of Personality, the nine traits of effective leaders, and Achievement Motivation Theory and LMP.

Leadership Attitudes attitudes are positive or negative feelings about people, things, and issues. We all have favorable or positive attitudes, and unfavorable or negative attitudes about life, work, school, leadership, and everything else.44 J.W. Marriott, Jr., president of Marriott Corporation, stated that the company’s success depends more upon employee attitudes than any other single factor. Legendary football coach Lou Holtz says that attitude is the most

score doesn’t indicate that you have an LMP, go back to Self-Assessment 2-1 on page 33 and review questions 1, 6, 11, 16, and 21. Did you score them accurately? The most important question is 16. If you believe you have an LMP, be aware that your profile could be different using McClelland’s LMP questionnaire. Also recall that not all successful leaders have an LMP; you can still be successful. Developing your leadership skills, through effort, will increase your chances of leadership success.

If you selected option 2, don’t be concerned about your LMP. Focus on developing your leadership skills. however, your personality profile can help you better understand your strengths and weaknesses to identify areas to improve upon. This also holds true for people who selected option 1.

If you selected option 3, that’s fine. Most people in the general population probably would select this option. Many professionals who have great jobs and incomes are followers, and they have no interest in becoming managers. however, recall that research has shown that leaders and followers need the same skills, that organizations are looking for employees with leadership skills, and that organizations con- duct skills training with employees at all levels. To increase your chances of having a successful and satisfying career, you may want to develop your leadership skills. You may someday change your mind about becoming a leader and manager.

Your need for power and LMP can change over time, along with your interest in leadership and management and your skill level, regardless of which option you selected.

the Big Five Model of personality

Leadership traits within the Big Five

achievement Motivation theory and Leader Motive profile (LMp)

Surgency a. Dominance b. Extroversion c. Energy/Determination

Need for power

Agreeableness d. Sociability/Sensitivity e. Emotional intelligence

Need for affiliation

Adjustment f. Emotional Stability and Narcissism

g. Self-confidence

Socialized power (LMP)

Conscientiousness h. Dependability i. Integrity

Need for achievement

Openness j. Flexibility k. Intelligence l. Locus of control

No separate need; it is included in the other needs

Combing the Big Five with Traits and Needs EXHIBIT 2.3

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46 part 1 INDIVIDUALS AS LEADERS

important thing in this world and that we each choose the attitude we have. So, being a positive or negative person is your choice. Successful leaders have positive, optimistic at- titudes. Do you?

In this section, we discuss the important question, “how does leadership affect the behavior of followers?”45 We start with how attitudes relate to Theory X and Theory Y, and how the Pygmalion effect influences followers’ behavior and performance. Then we discuss self-concept and how it affects the leader’s behavior and performance. Lastly, we consider how the leader’s attitudes about followers, and about his or her self-concept, affect the leadership style of the leader.

Identify similarities and differences among Theory X and Theory Y, the Pygmalion effect, and self-concept.

Learning Outcome 5

theory X and theory Y Today, theory X and theory Y attempt to explain and predict leadership behavior and performance based on the leader’s attitude about followers. Before you read about Theory X and Y, complete Self-Assessment 2-5.

SELF-ASSESSMENT 2-5 theory X and theory Y attitudes

For each pair of statements distribute 5 points, based on how characteristic each statement is of your belief system. The combined score for each pair of the ten statements must equal 5.

here are the scoring distributions for each pair of statements:

0–5 or 5–0 I believe one statement and not the other. 1–4 or 4–1 I believe one statement much more than the other. 2–3 or 3–2 I believe both statements, although one more than the other.

1. People enjoy working. People do not like to work. 2. Employees don’t have to be closely super-

vised to do their job well. Employees will not do a good job unless

you closely supervise them. 3. If the manager is not around, the employ-

ees will work just as hard. If the manager is not around, the employ-

ees will take it easier than they will when being watched.

4. Employees will do a task well for you if you ask them to.

If you want something done right, you need to do it yourself.

5. Interesting, challenging work is the best motivator of employee.

Money is the best motivator of employees.

6. Employees want to be involved in making decisions.

Employees want the managers to make the decisions.

7. Employees will do their best work if you allow them to do the job their own way.

Employees will do their best work if they are taught how to do it the one best way.

8. Managers should share the management responsibilities with group members.

Managers should perform the manage- ment functions for the group.

9. Managers should let employees have full access to information that is not confidential.

Managers should give employees only the information they need to know to do their job.

(continued)

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Chapter 2 LEADERShIP TRAITS AND EThICS 47

Douglas McGregor classif ied att itudes or belief systems, which he ca l led assumptions, as Theory X and Theory Y.46 People with Theory X attitudes hold that employees dislike work and must be closely supervised in order to do their work. Theory Y attitudes hold that employees like to work and do not need to be closely supervised in order to do their work. In each of the ten pairs of statements in Self- Assessment 2-5, the f irst lines are Theory Y attitudes and the second lines are Theory X attitudes.

Managers with Theory X attitudes tend to have a negative, pessimistic view of em- ployees and display more coercive, autocratic leadership styles using external means of controls, such as threats and punishment. Managers with Theory Y attitudes tend to have a positive, optimistic view of employees and display more participative leadership styles using internal motivation and rewards.

It is widely accepted that managers with Theory Y attitudes are generally more pro- ductive than Theory X attitudes.47 The six derailed executive traits ref lect Theory X behaviors. If you scored higher in Theory X for Self-Assessment 2-5, it does not mean that you cannot be an effective leader. There are some situations, such as large-scale produc- tion and unskilled workers where a more autocratic style works well. As with personality traits, we can change our attitudes, with effort. We don’t have to be autocratic leaders.

the pygmalion effect The pygmalion effect proposes that leaders’ attitudes toward and expectations of followers, and their treatment of them, explain and predict followers’ behavior and performance. We have already talked about attitudes, so let’s add expectations and treatment. In business, expectations are stated as objectives and standards. Lou Holtz advises setting a higher standard; the worst disservice you can do as a coach, teacher, parent, or leader is to expect little and lower standards. Just treating employees well and getting them in a good mood as they start their day can have a huge impact on performance.48

10. The participative management style is the best leadership style.

The autocratic management style is the best leadership style.

To determine your attitude about people at work, add up the numbers (0–5) for the first statement in each pair; don’t bother adding the numbers for the

second statements. The total should be between 0 and 50. Place your score on the continuum below.

0 — 5 — 10 — 15 — 20 — 25 — 30 — 35 — 40 — 45 — 50 Theor y X Theor y Y

Generally, the higher your score, the greater are your Theory Y beliefs, and the lower the score, the greater your Theory X attitudes.

WORK Application 2-11 Give an example of when a person (parent, friend, teacher, coach, manager) really expected you either to perform well or to fail, and treated you like you would, which resulted in your success or failure

3. how did “attitude” help improve the performance of Dupont?

A major factor in Ellen Kullman’s improving the performance of DuPont is in her positive attitude with a Theory Y attitude toward her employees. She has a positive optimistic view of employees and uses a participative leadership style. Kullman has faith in her employees and expects them to succeed, and they do.

OPENING CASE Application

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48 part 1 INDIVIDUALS AS LEADERS

Self-Concept So far, we have discussed the leaders’ attitudes about followers. Now we will examine leaders’ attitudes about themselves. Self-concept refers to the positive or negative attitudes people have about themselves. If you have a positive view of yourself as being a capable person, you will tend to have the positive self-confidence trait. Self-efficacy is the belief in your own capability to perform in a specific situation, which is based on your self-concept and self-confidence.

What we think determines what happens to us. As Henry Ford put it, “If you think you can, you can; if you think you can’t, you can’t.” Recall times when you had positive self- efficacy and were successful, or negative self-efficacy and failed. If you don’t believe you can be a successful leader, you probably won’t be.

4. how did ellen Kullman’s self-concept affect her leadership?

Ellen Kullman rarely doubted that she could do whatever she applied herself to accomplish. Back when she went to Tufts to major in engineering, there were not many women entering the male-dominated field, but she knew she would gradu- ate and go on to a successful career. Without a positive self-attitude, she would not have had the confidence, especially being in a male-dominated company, that she could climb the corporate ladder at DuPont all the way to the top. Kullman has self-efficacy as CEO, as she knew she could improve the performance at DuPont, and she is doing that.

OPENING CASE Application

Developing a More Positive Attitude and Self-Concept Our behavior and performance will be consistent with the way we see ourselves. Think and act like a winner, and you may become one. Self-awareness and self-development help.49 Follow- ing are some ideas to help you change your attitudes and develop a more positive self-concept:

1. Realize that there are few, if any, benefits to negative, pessimistic attitudes about others and yourself. Do holding a grudge, worrying, and being afraid of failure help you to succeed?

2. Consciously try to have and maintain a positive, optimistic attitude. If you don’t have a positive attitude, it may be caused by your unconscious thoughts and behavior. Only with conscious effort can you improve your self-concept.

3. Cultivate optimistic thoughts. Scientific evidence suggests that your thoughts affect every cell in your body. Every time you think positive thoughts, your body, mind, and spirit respond. Use positive self-talk—I will do a good job; it will be done on time; and so on. Also use mental imagery—picture yourself achieving your goal.

4. If you catch yourself complaining or being negative in any way, stop and change to a positive attitude. With time, you will catch yourself less often as you become more positive about yourself.

5. Avoid negative people, especially those who make you feel negative about yourself. Associate with people who have a positive self-concept, and use their positive behavior.

6. Set and achieve goals. Set short-term goals (daily, weekly, monthly) that you can achieve. Achieving specific goals will improve your self-concept.

7. Focus on your success; don’t dwell on failure. We are all going to make mistakes and experience failure, but we need to bounce back. If you achieve five of six goals, dwell on the five and forget the one you missed. Lou Holtz says happiness is nothing more than a poor memory for the bad things that happen to you.

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Chapter 2 LEADERShIP TRAITS AND EThICS 49

8. Don’t belittle accomplishments or compare yourself to others. If you meet a goal and say it was easy anyway, you are being negative. If you compare yourself to someone else and say they are better, you are being negative. No matter how good you are, there is almost always someone better. So focus on being the best that you can be, rather than putting yourself down for not being the best.

9. Accept compliments. When someone compliments you, say thank you; it builds self- concept. Don’t say things like it was nothing, or anyone could have done it, because you lose the opportunity for a buildup.

10. Be a positive role model. If the leader has a positive attitude, the followers usually do too. We can choose to be optimistic or pessimistic—and we usually find what we are looking for. If you look for the positive, you are likely to be happier and get more out of life; why look for the negative and be unhappy?

11. When things go wrong and you’re feeling down, do something to help someone who is worse off than you. You will realize that you don’t have it so bad, and you will realize that the more you give, the more you get. Volunteering at a hospital, soup kitchen, or becoming a Big Brother or Sister can help change your attitude. This is also a great cure for loneliness.

WORK Application 2-12 Recall a present or past manager. Using Exhibit 2.4, which combinations of attitudes best describe your manager’s leadership style? Give examples of the manager’s behavior that illustrate his or her attitudes.

Describe how attitudes are used to develop four leadership styles.Learning Outcome 6

how attitudes Develop Leadership Styles We now put together the leader’s attitudes toward others, using Theory X and Theory Y, and the leader’s attitude toward self, using self-concept, to illustrate how these two sets of attitudes develop into four leadership styles. Com- bining attitudes with the Leader Motive Profile (LMP), an effective leader tends to have Theory Y attitudes with a positive self-concept. See Exhibit 2.4 to understand how attitudes toward self and others affect leadership styles.

Leadership Styles Based on Attitudes EXHIBIT 2.4

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theory Y attitudes theory X attitudes

Positive self-concept The leader typically gives and accepts positive feedback, expects others to succeed, and uses a participative leadership style.

The leader typically is bossy, pushy, and impatient; does much criticizing with little praising; and uses an autocratic leadership style.

Negative self-concept The leader typically is afraid to make decisions, is unassertive, and is self- blaming when things go wrong.

The leader typically blames others when things go wrong, is pessimistic about resolving personal or organizational problems, and promotes feeling of hopelessness among followers.

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50 part 1 INDIVIDUALS AS LEADERS

Ethical Leadership Before we discuss ethical behavior, complete Self-Assessment 2-6 to find out how ethical your behavior is.

how ethical Is Your Behavior?SELF-ASSESSMENT 2-6

For this exercise, you will be using the same set of statements twice. The first time you answer them, focus on your own behavior and the frequency with which you use it for each question. On the line before the question number, place the numbers 1–4 that represent how often you “did do” the behavior in the past, if you “do the behavior now,” or if you “would do” the behavior if you had the chance.

These numbers will allow you to determine your level of ethics. You can be honest without fear of having to tell others your score in class. Sharing ethics scores is not part of the exercise.

Frequent ly Never 1 2 3 4

The second time you use the same statements, focus on other people in an organization that you work/worked for. Place an “O” on the line after the number if you observed someone doing this behavior. Also place an “R” on the line if you reported (whistle-blowing) this behavior within the organization or externally.

O—obser ved R—repor ted 1–4 O–r

College

1. Cheating on homework assignments. 2. Cheating on exams. 3. Passing in papers that were com-

pleted by someone else, as your own work.

Workplace 4. Lying to others to get what you

want or stay out of trouble. 5. Coming to work late, leaving work

early, taking long breaks/lunches and getting paid for it.

6. Socializing, goofing off, or doing personal work rather than doing the work that should be done and getting paid for it.

7. Calling in sick to get a day off, when not sick.

8. Using the organization’s phone, computer, Internet, copier, mail, car, and so on for personal use.

9. Taking home company tools/ equipment for personal use with- out permission and then returning them/it.

10. Taking home organizational supplies or merchandise and keeping it.

11. Giving company supplies or mer- chandise to friends or allowing

them to take them without saying anything.

12. Putting in for reimbursement for meals and travel or other expenses that weren’t actually eaten or taken.

13. Taking spouse/friends out to eat or on business trips and charging it to the organizational expense account.

14. Accepting gifts from customers/ suppliers in exchange for giving them business.

15. Cheating on your taxes. 16. Misleading customers to make a

sale, such as short delivery dates. 17. Misleading competitors to get infor-

mation to use to compete against them, such as saying/pretending to be a customer/supplier.

18. Manipulating data to make you look good, or others bad.

19. Selling more of the product than the customer needs, to get the commission.

20. Spreading false rumors about coworkers or competitors to make yourself look better for advance- ment or to make more sales.

21. Lying for your boss when asked/told to do so.

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Chapter 2 LEADERShIP TRAITS AND EThICS 51

Members of organizations face moral issues,50 and leaders set the ethical climate and are responsible for employee ethical or unethical behavior.51 Unfortunately, scandals have become too commonplace,52 often based on the greedy win at all cost philosophy.53 Corporate scandals globally have led to a distrust of leaders,54 to the point where only around 30 percent of developed countries trust organizational leaders.55 ethics are the standards of right and wrong that influence behavior. Right behavior is considered ethical, and wrong behavior is considered unethical.

Government laws and regulations are designed to help keep business honest. To this end, Congress passed the Sarbanes-Oxley Act of 2002 to help ensure that complaints about financial irregularities would surface and be swiftly acted upon, without retaliation against the person who exposed the unethical behavior (“whistle-blower”). However, the government can’t make people be ethical. But recall that AACSB (Chapter 1) lists ethi- cal understanding as an important competency.56 Thus, business schools are focusing on ethics,57 as it is generally agreed that ethics can be taught.58

In this section, we discuss that ethical behavior does pay; how personality traits and attitudes, moral development, and the situation affect ethical behavior; how people justify unethical behavior; some simple guides to ethical behavior; and being an ethical leader.

Does ethical Behavior pay? Generally, the answer is yes. Research has found a direct link to bottom-line performance.59 Unethical decisions have led to dramatic costs in fines, reputational damage, and impris- onment.60 Society also suffers, such as the financial crisis that plunged world economies into recession.61 Most highly successful people are ethical.62 Being ethical may be difficult, but it has its rewards.63 It actually makes you feel better.64 Honest people have fewer mental health and physical complaints, like anxiety and back pain, and better social interactions.65

22. Deleting information that makes you look bad or changing infor- mation to look better than actual results—false information.

23. Being pressured, or pressuring oth- ers, to sign off on documents with false information.

24. Being pressured, or pressuring others, to sign off on documents you haven’t read, knowing they may contain information or deci- sions that might be considered inappropriate.

25. If you were to give this assessment to a person you work with and with whom you do not get along very well, would she agree with your answers? Use a scale of yes 4–1 on the line before the number 25 and skip O or R.

Other Unethical Behavior: Add other unethical behaviors you observed. Identify if you reported the behavior by using R.

26. _____ 27. _____ 28. _____

Note: This self-assessment is not meant to be a pre- cise measure of your ethical behavior. It is designed to get you thinking about ethics and your behavior and that of others from an ethical perspective. There is no right or wrong score; however, each of these actions is considered unethical behavior in most organizations. Another ethical issue of this exercise is your honesty when rating the frequencies of your behavior. how honest were you? Scoring: To determine your ethics score, add the numbers 1–4. Your total will be between 25 and 100. Place the number here and on the continuum below that represents your score. The higher your score, the more ethical is your behavior, and vice versa for lower scores.

25—30—40—50—60—70—80—90—100 Unethical Ethical

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52 part 1 INDIVIDUALS AS LEADERS

Ethics is so important that large organizations have ethics officers who are responsible for developing and implementing ethics codes (standards of what is ethical and what is not) to help guide employees to ethical behavior.66

Leadership success is based on personal traits, including integrity—having character of being honest (no lying, steeling, or cheating).67 Trust among employees is vital, and trust is based on integrity.68 If you are not honest with people and take advantage of them, they will not trust you and you will not have the ability to influence them. So there is a direct link between being ethical and being an effective leader.69

Compare the three levels of moral development.Learning Outcome 7

Factors Influencing ethical Behavior In this subsection, we discuss why good people do bad things, and three related concepts: how personality traits and attitudes, moral development, and the situation affect ethical behavior.

Why Do Good People Do Bad Things? Most people understand right and wrong behavior and have a conscience. So why do good people do bad things? Most often, when people behave unethically, it is not because they have some type of character flaw or were born bad. It can be incredibly tempting to be unethical.70 Most people aren’t simply good or bad. Just about everyone has the capacity to be dishonest.71 One percent of people will always be honest, one percent will always be dishonest, and 98 percent will be unethical at times but just a little.72 We respond to “incentives” and can usually be manipulated to behave ethically or unethically, if you find the right incentives.73 The incentive is usually looking out for our own self-interest,74 and can be personal gain or to avoid getting into trouble.75

Most people don’t go into business thinking, “I’m going to be unethical.” It often starts with the temptation to do something unethical for personal gain. Without getting caught and punished, people tend to get worse over time as they become desensitized to their unethical behavior. In most cases, the person is eventually caught and punished. This is illustrated in the film The Wolf of Wall Street. Leonardo DiCaprio plays the role of Jordan Belfort, whose unethical behavior starts small and leads to his imprisonment.76 So once you start down the road of unethical behavior, it is difficult to pull a u-turn.

Personality Traits and Attitudes Our ethical behavior is related to our individual needs and personality traits of character with integrity.77 But personality alone is not a good predictor of unethical behavior. Lead- ers with surgency (dominance) personality traits have two choices: to use power for per- sonal benefit or to use socialized power. To gain power and to be conscientious with high achievement, some people will use unethical behavior.

An agreeableness personality sensitive to others can lead to following the crowd in ei- ther ethical or unethical behavior. Emotionally unstable people and those with external lo- cus of control are more likely to use unethical behavior. People with positive attitudes about ethics tend to be more ethical than those with negative or weak attitudes about ethics.78

Moral Development A second factor affecting ethical behavior is moral development, which refers to under- standing right from wrong and choosing to do the right thing with a moral identity.79

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Chapter 2 LEADERShIP TRAITS AND EThICS 53

Our ability to make ethical choices is related to our level of moral development and judg- ments.80 There are three levels of personal moral development, as discussed in Exhibit 2.5, and we can improve our character development.81

Levels of Moral Development EXHIBIT 2.5

3. postconventional Behavior is motivated by universal principles of right and wrong, regardless of the expecta- tions of the leader or group. One seeks to balance the concerns for self with those of others and the common good. He or she will follow ethical principles even if they violate the law at the risk of social rejection, economic loss, and physical punishment (Martin Luther King, Jr., broke what he considered unjust laws and spent time in jail seeking universal dignity and justice).

“I don’t lie to customers because it is wrong.”

The common leadership style is visionary and committed to serving others and a higher cause while empowering followers to reach this level.

2. Conventional Living up to expectations of acceptable behavior defined by others motivates behavior to fulfill duties and obligations. It is common for followers to copy the behavior of the leaders and group. If the group (can be society/organization/department) accepts lying, cheating, stealing, and so on, when dealing with customers/suppliers/government/competitors, so will the individual. On the other hand, if these behaviors are not accepted, the individual will not do them either. Peer pressure is used to enforce group norms.

“I lie to customers because the other sales reps do it too.”

It is common for lower-level managers to use a similar leadership style of the higher-level managers.

1. preconventional

Self-interest motivates behavior to meet one’s own needs to gain rewards while following rules and being obedient to authority to avoid punishment.

“I lie to customers to sell more products and get higher commission checks.”

The common leadership style is autocratic toward others while using one’s position for personal advantage.

Source: Adapted from Lawrence Kohlberg, “Moral Stages and Moralization: The Cognitive- Development Approach.” In Thomas Likona (ed.),

Moral Development and Behavior : Theory, Research, and Social Issues (Austin, TX: Holt, Rinehart and Winston, 1976), 31–53.

At the first level, preconventional, we choose right and wrong behavior based on our self- interest and the consequences (reward and punishment). With ethical reasoning at the second level, conventional, we seek to maintain expected standards and live up to the expectations of others. One does what the others do. At the third level, postconventional, we make an effort to define moral principles regardless of leader or group ethics. Although most of us have the ability to reach the third level of moral development, postconventional, only about 20 percent of people reach this level.

Source: Adapted from Lawrence Kohlberg, “Moral Stages and Moralization: The Cognitive-Development Approach.” In Thomas Likona (ed.), Moral Development and Behavior : Theory, Research, and Social Issues (Austin, TX: Holt, Rinehart and Winston, 1976), 31–53.

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54 part 1 INDIVIDUALS AS LEADERS

Most people behave at the second level, conventional, while some have not advanced beyond the first level, preconventional. How do you handle peer pressure to be unethical? What level of moral development are you on? What can you do to further develop your ethical behavior? We will discuss how to be an ethical leader.

The Situation Our third factor affecting ethical behavior is the situation. People consider the situational forces in determining ethical behavior.82 We are susceptible to social influence.83 Unethi- cal organizational behavior has been attributed to the effects of individual unethical “bad apples.”84 The bad is stronger than the good effect as a bad apple can spoil the whole barrel (organization).85

Highly competitive and unsupervised situations increase the odds of unethical behav- ior. Unethical behavior occurs more often when there is no formal ethics policy or code of ethics, and when unethical behavior is not punished, and it is especially prevalent when it is rewarded. In other words, people are more unethical when they believe they will not get caught and punished.86 Unethical behavior is also more likely when performance falls below aspiration levels. People also tend to be more ethical in the morning.87 People are also less likely to report unethical behavior (blow the whistle) when they perceive the violation as not being serious and when the offenders are their friends.

Integration To tie the three factors affecting ethical behavior together, we need to realize that personality traits and attitudes and moral development interact with the situation to determine if a person will use ethical or unethical behavior. In this chapter we use the individual level of analysis: Am I ethical, and how can I improve my ethical behavior? At the organizational level, many firms offer training programs and develop codes of ethics to help employees behave ethically. The organizational level of analysis is examined in Part Three of this book; therefore, ethics and whistle-blowing will be further discussed in Chapter 10.

WORK Application 2-13 Give an organizational example of behavior at each of the three levels of moral development.

5. What role does ethics play at Dupont?

It always has been, and continues to be, the intent of DuPont that its employees maintain the highest ethical standards in their conduct of company affairs. Here are some of its ethical principles. In living up to its ethical philosophy, DuPont will be fair and honest in all dealings on behalf of the company, do what is right rather than what is expedient, and conduct all dealings with suppliers, customers, and others in a manner that excludes consideration of personal advantage.88

OPENING CASE Application

how people Justify Unethical Behavior As we seek our own self-interest,89 most of us give in to temptation and do the wrong thing sometimes.90 Few people see themselves as unethical. We all want to view ourselves in a positive manner. If we only cheat a little, we can still feel good about our sense of integrity.91 Therefore, when we do use unethical behavior, we often justify the behavior to protect our self-concept so that we don’t have to feel bad.92 Moral justification is the thinking process of rationalizing why unethical behavior is used. We rationalize with statements like “this is a widespread business practice,” “everybody does it,” and “I deserve it.” Let’s discuss several thinking processes used to justify unethical behavior.

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Chapter 2 LEADERShIP TRAITS AND EThICS 55

• Higher purpose is rationalizing immoral behavior in terms of a higher purpose. “It’s for a greater good.”93 People lie, cheat, and steal, claiming it is for the good of the organiza- tion, department, or employees.

• Displacement of responsibility is the process of blaming one’s unethical behavior on others. “I was only following orders; my boss told me to inflate the figures.”94

• Diffusion of responsibility is the process of the group using the unethical behavior with no one person being held responsible. “It isn’t my decision.”95 Everyone does it.”96 “We all take bribes/kickbacks; it’s the way we do business,” or “We all take merchandise home (steal).” If you hear others are doing something, you will tend to be tempted to be unethical to.97

• Advantageous comparison is the process of comparing oneself to others who are worse. “I call in sick when I’m not sick only a few times a year; Tom and Ellen do it all the time.” “We pollute less than our competitors do.” I’m only fudging a little.”98

• Disregard or distortion of consequences is the process of minimizing the harm caused by the unethical behavior. 99 “If I inflate the figures, no one will be hurt and I will not get caught. And if I do, I’ll just get a slap on the wrist anyway.” Was this the case at Enron?

• Attribution of blame is the process of claiming the unethical behavior was caused by someone else’s behavior. “It’s my coworker’s fault that I hit him. He called me/did xxx, so I had to hit him.”

• Euphemistic labeling is the process of using “cosmetic” words to make the behavior sound acceptable. Terrorist group sounds bad but freedom fighter sounds justifiable. Misleading or covering up sounds better than lying to others.

It is important to understand the subtlety of how unethical behavior can take hold of you. Simply doing what “works for you,” what “makes you feel good,” or “doing whatever it takes,” often leads to unethical behavior. Unethical behavior that you justify might give you some type of short-term gain, but in the long run, you’ve sabotaged yourself.100 Which justification pro- cesses have you used? How can you improve your ethical behavior by not using justification?

WORK Application 2-14 Give at least two organizational examples of unethical behavior and the process of justification.

CONCept APPLICATION 2-4

Justifying Unethical Behavior Identify each thinking process used to justify the unethical behavior below. a. moral justification e. disregard or distortion of consequences b. displacement of responsibility f. attribution of blame c. diffusion of responsibility g. euphemistic labeling d. advantageous comparison

21. Yes. We have to take the other team’s play book so that we can win the game.

22. I only take candy once in a while. Jean takes one every day.

23. We all do it, so don’t worry about it. Everyone takes candy without paying for it.

24. It’s not my fault. Kevin started breaking it, so I just joined in.

25. Yes. I’m keeping it. I found it and the company will never miss it anyway.

26. I lied to the customer because my boss told me too.

27. Yes. Our boss is married, but that is no stopping her from having an affair with the president.

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56 part 1 INDIVIDUALS AS LEADERS

Guides to ethical Behavior Every day in our personal and professional life, we face situations in which we can make ethical or unethical choices. As discussed, you make these choices based on your personal- ity traits and attitudes, level of moral development, and the situation. Research shows that making a decision without using an ethical guide leads to less ethical choices.101 So ethical guidelines can have a positive influence on our making ethical decisions.102 Following are some guides that can help us make ethical decisions.

Golden Rule The golden rule is, “Do unto others as you want them to do unto you.” Or, put other ways, “Don’t do anything to other people that you would not want them to do to you.” “Lead others as you want to be led.” Sammy Hagar says, “You have to treat people the way you want to be treated.”103 Do you like it when people lie to you, cheat you, or steal from you?

Four-Way Test Rotary International developed the four-way test of the things we think and do to guide business transactions. The four questions are (1) Is it the truth? (2) Is it fair to all con- cerned? (3) Will it build goodwill and better friendship? (4) Will it be beneficial to all concerned? When making your decision, if you can answer yes to these four questions, it is probably ethical. Anne Beiler, founder of Auntie Anne’s, advice is to tell the truth, even if it hurts.104

YOU Make the ethICaL Call

2.2 Sex and Violence

Over the years, various social activist groups, including the Parents Television Council, the National Viewers and Listeners Association, and the National Coalition against Censorship, have taken a stance for and against censorship of sex and violence on TV and in the mov- ies. People call for more censorship to protect children from seeing sex and violence, while others don’t want censorship, stating it violates free speech laws.

Advocates of regulation state the fact than many cable stations show reruns of major network shows in the daytime and early evening when children are watching. For example, Sex and the City and Jersey Shore are aired in different areas at all hours of the day and night.

1. Does the media (TV, movies, and music) influence societal values?

2. Does the media, with sex and violence, reflect current religious and societal values?

3. The Federal Communications Commission (FCC) has the power to regulate televi- sion. Should the FCC regulate the media, and, if yes, how far should it go? Should it require toning down the sex and violence, airing the shows only later at night, or should it take shows like Sex and the City and Jersey Shore off the air?

4. Is it ethical and socially responsible to show sex and violence against women, and to portray women as sex objects?

5. Which of the seven justifications of unethical behavior do the media use to defend sex and violence?

Explain the stakeholder approach to ethics.Learning Outcome 8

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Chapter 2 LEADERShIP TRAITS AND EThICS 57

Codes of Ethics Also called codes of conduct, state the importance of conducting business in an ethical manner and provide guidelines or standards for ethical behavior.105 Most large businesses have written codes of ethics you should follow.

Stakeholder Approach to Ethics Under the stakeholder approach to ethics, one creates a win–win situation for rel- evant parties affected by the decision. A win–win situation meets the needs of the orga- nization and employees as well as those of other stakeholders, so that everyone benefits from the decision. Stakeholders include everyone affected by the decision.106 You can ask yourself one simple question to help you determine if your decision is ethical from a stakeholder approach:

“Am I proud to tell relevant stakeholders my decision?”

If you are proud to tell relevant stakeholders your decision, it is probably ethical. If you are not proud to tell others your decision, or you keep justifying it, the decision may not be ethical. Justifying is usually a cop-out. You can’t always create a win for everyone, but you can try.

Discernment and Advice Making an immediate decision leads to increased odds of unethical behavior, whereas taking time to contemplate the decision and talking to others for advice lead to increased odds of ethical behavior.107 If you are unsure whether a decision is ethical, talk to your boss, higher-level managers, and other people with high ethical standards. If you are re- luctant to ask others for advice because you may not like their answers, and you keep justifying it, the decision may not be ethical. Seeking advice is especially important in the global economy because what is considered unethical in one country may be considered ethical in another country.108

Chapter Summary

The chapter summary is organized to answer the ten learning outcomes for this chapter.

1 explain the universality of traits of effective leaders.

Traits are universal in the sense that there are certain traits that most effective leaders have. however, traits are not universal in the sense that there is no one list of traits that is clearly accepted by all researchers, and not all effective leaders have all the traits.

2 Describe the Big Five personality dimensions. The surgency personality dimension includes leadership and extraversion traits. The agreeableness personality

dimension includes traits related to getting along with people. The adjustment personality dimension includes traits related to emotional stability. The conscientious- ness personality dimension includes traits related to achievement. The openness-to-experience personal- ity dimension includes traits related to being willing to change and try new things.

3 Discuss why the trait of dominance is so impor- tant for managers to have.

Because the dominance trait is based on the desire to be a leader, this trait affects the other traits in a positive or negative way based on that desire.

“Take It To The Net”. Access student resources at www.cengagebrain.com. Search for Lussier, Leadership 6e to find student study tools.

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58 part 1 INDIVIDUALS AS LEADERS

Key terms Achievement Motivation Theory, 41

adjustment personality dimension, 37

agreeableness personality dimension, 37

attitudes, 45

Big Five Model of Personality, 36

conscientiousness personality dimension, 38

ethics, 51

Leader Motive Profile (LMP), 43

Leader Motive Profile Theory, 43

moral justification, 54

openness-to-experience personality dimension, 38

personality, 34

personality profiles, 34

Pygmalion effect, 47

self-concept, 48

stakeholder approach to ethics, 57

surgency personality dimension, 36

Theory X and Theory Y, 46

traits, 34

review Questions

1 What are the Big Five dimensions of traits?

2 What is the primary use of personality profiles?

3 What are some of the traits that describe the high-energy trait?

4 Is locus of control important to leaders? Why?

5 What does intelligence have to do with leadership?

6 Does sensitivity to others mean that the leader does what the followers want to do?

4 State how the achievement Motivation theory and the Leader Motive profile are related and different.

Achievement Motivation and Leader Motive Profile the- ories are related because both are based on the need for achievement, power, and affiliation. They are different because the Achievement Motivation Theory is a general motive profile for explaining and predicting behavior and performance, while the LMP is the one profile that spe- cifically explains and predicts leadership success.

5 Identify similarities and differences among theory X and theory Y, the pygmalion effect, and self-concept.

The concept of Theory X and Theory Y is similar to the Pygmalion effect, because both theories focus on the leader’s attitude about the followers. The Pygmalion effect extends Theory X and Theory Y attitudes by including the leader’s expectations and how he or she treats the follow- ers, using this information to explain and predict follow- ers’ behavior and performance. In contrast, Theory X and Theory Y focus on the leader’s behavior and performance. Both approaches are different from self-concept because they examine the leader’s attitudes about others, whereas self-concept relates to the leader’s attitude about him- or herself. Self-concept is also different because it focuses on how the leader’s attitude about him- or herself affects his or her behavior and performance.

6 Describe how attitudes are used to develop four leadership styles.

The leader’s attitude about others includes Theory Y (positive) and Theory X (negative) attitudes. The lead- er’s attitude about him- or herself includes a positive self-concept or a negative self-concept. Combinations of these variables are used to identify four leadership styles: Theory Y positive self-concept, Theory Y negative self-concept, Theory X positive self-concept, and Theory X negative self-concept.

7 Compare the three levels of moral development. At the lowest level of moral development, preconventional, behavior is motivated by self-interest, seeking rewards, and avoiding punishment. At the second level, conventional, be- havior is motivated by meeting the group’s expectations to fit in by copying others’ behavior. At the highest level, post- conventional, behavior is motivated to do the right thing, at the risk of alienating the group. The higher the level of moral development, the more ethical is the behavior.

8 explain the stakeholder approach to ethics. Under the stakeholder approach to ethics, the leader (or follower) creates a win–win situation for relevant parties affected by the decision. If you are proud to tell relevant stakeholders your decision, it is probably ethical. If you are not proud to tell others your decision, or you keep justifying it, the decision may not be ethical.

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7 Does McClelland believe that power is good or bad? Why?

8 Should a leader have a dominant need for achievement to be successful? Why or why not?

9 How do attitudes develop leadership styles?

10 Which personality traits are more closely related to ethical and unethical behavior?

11 Do people change their level of moral development based on the situation?

12 Why do people justify their unethical behavior?

The following critical-thinking questions can be used for class discussion and/or as written assignments to develop commu- nication skills. Be sure to give complete explanations for all questions.

1 Would you predict that a person with a strong agreeable- ness personality dimension would be a successful com- puter programmer? Why or why not?

2 McGregor published Theory X and Theory Y over 30 years ago. Do we still have Theory X managers? Why?

3 In text examples related to the Pygmalion effect, Lou Holtz calls for setting a higher standard. Have the standards in school, society, and work increased or decreased over the last five years?

4 Do you believe that if you use ethical behavior it will pay off in the long run?

5 Can ethics be taught and learned?

6 Which justification do you think is used most often?

7 As related to the simple guide to ethical behavior, how do you want to be led?

Critical-thinking Questions

Chapter 2 LEADERShIP TRAITS AND EThICS 59

C A S E

Blake Mycoskie and TOMS

By age 29, Blake Mycoskie had already started four busi-nesses. He got the idea to start his fifth business on a trip to Argentina. Blake observed that many people were wearing alpargatas—soft casual canvas shoes—and he thought they would sell in America. But he also realized that there were also many poor people without any shoes who had blisters, sores, and infections. So he decided to help.

Back home in America, Blake got involved in a vol- unteer shoe drive to ship shoes overseas. But he realized that there was a need for a constant flow of shoes and that even a nonprofit organization couldn’t be very sustainable through simply donations. He was also an entrepreneur and wanted to make money. So Blake came up with the idea of being a social entrepreneur by combining business and charity to help oth- ers and make the world a better place.109

Blake Mycoskie founded TOMS, which stands for TOMmorrowS shoes, in 2006. He developed the One for One business model—for every pair of shoes TOMS sells, it

gives away a free pair to a child in need. But as with entre- preneurial new ventures, it wasn’t easy. In fact, Blake was told that he didn’t understand the shoe industry and that his busi- ness wouldn’t be successful. But that didn’t stop Blake. To date, TOMS has given away more than 10 million pairs of shoes.110

Blake realized that he couldn’t just buy the alpar- gate shoes. They needed to be more stylish, comfortable, and durable to sell in the United States. So with no knowledge of the shoe industry and not speaking Spanish, he returned to Argentina to find a local partner, and teamed up with shoe- maker Alejo for help. Together they developed a prototype and Blake brought 250 pairs home to Los Angeles.

Blake ran a focus group by inviting a bunch of friends, mostly women, to his place. He told them his story and One for One, and they discussed the potential mar- ket and price for the shoes and where they could be sold. They loved the story, bought a pair of shoes, and spread the word.

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60 part 1 INDIVIDUALS AS LEADERS

Blake went to retail stores and told his story and tried to get them to sell TOMS, but he got lots of rejections. Blake would tell his story to anyone who would listen. He would wear two different shoes just to get people to talk to him so he could tell his story. Blake’s first two big breaks came when American Rag agreed to sell TOMS and the LA Times ran his story in the newspaper. Orders started pouring in. So Blake started the business on a shoestring budget by using his apart- ment and three interns he found through Craigslist.

Blake went back to Argentina to give away free shoes and develop a supply chain of TOMS shoes. Blake be- lieves that success is more than status and money and that it’s about contributing to the world and living and working on your own terms. He has personal, professional, and philan- thropic success. Today, TOMS gives free shoes to 60 countries.

Blake has expanded his social entrepreneurship mission to include writing a book, Start Something That Matters, to inspire others to contribute to the world.111 He also expanded his unique One for One business model to include TOMS Eyewear, helping save and restore sight for those in need. TOMS Web site (www.toms.com) includes the Marketplace where people can shop for a variety of other products and contribute to funding education. TOMS has Giving Partners to increase its charity, and it has given millions to nonprofit organi- zations. To encourage social entrepreneurship, TOMS develops ways to use its platform to support their ventures. In addition, the Start Something That Matters Foundation has begun to help innovators bring their ideas to life.112

G O t O t h e I N t e r N e t :   To learn more about Blake Mycoskie and TOMS, visit the Web site (http:// www.toms.com).

Support your answers to the following questions with spe- cific information from the case and text or with other informa- tion you get from the Web or other sources.

1. What do you think Blake Mycoskie’s personality traits are for each of the Big Five dimensions?

2. Which of the traits of effective leaders would you say has had the greatest impact on Blake Mycoskie success at TOMS?

3. Which motivation would McClelland say was the ma- jor need driving Blake Mycoskie to continue to work so hard despite being worth millions of dollars?

4. Does Blake Mycoskie have an LMP?

5. What type of self-concept does Blake Mycoskie have, and how does it affect his success?

6. Is Blake Mycoskie ethical in business? Which level of moral development is he on?

C U M U L at I V e C a S e Q U e S t I O N

7. Which leadership managerial role(s) played by Blake Mycoskie have an impor tant par t in the success of TOMS (Chapter 1)?

C a S e e X e r C I S e a N D r O L e - p L aY

Preparation: Think of a business that you would like to start some day and answer these questions, which will help you develop your plan. (1) What would be your company’s name? (2) What would be its mission (purpose or reason for being)? (3) What would your major products and/or services be? (4) Who would be your major competitors? (5) What would be your competitive advantage? (What makes you different from your competitors? Why would anyone buy your product or service rather than the competition’s?) (6) As Blake would say, what is your story?

Your instructor may elect to let you break into groups to develop a group business idea. If you do a group business, select one leader with a thick skin who can handle a “Blake” meeting to present the proposal to the entire class. An alter- native is to have a student(s) who has an actual business idea/ project/proposal of any type present it for feedback.

role-play “Blake” Meeting: One person (representing oneself or a group) may give the business proposal idea to the entire class; or break into groups of five or six and, one at a time, deliver proposals. The members of the class that listen play the role of Blake at the “Blake” meeting, or they challenge presenters and offer suggestions for improvement.

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Chapter 2 LEADERShIP TRAITS AND EThICS 61

P.F. Chang’s has over 120 full-service, casual dining Asian bistros and contemporary Chinese diners across the country, and its employees have the authority to make decisions that benefit customers. Giving employees the free- dom to make decisions has had a huge impact on their at- titudes and performance. Managers at P.F. Chang’s receive extensive training on how to create and nurture a positive attitude among their employees, and all workers receive an

employee handbook, which clearly spells out exactly what is expected of them.

1. In what ways does P.F. Chang’s create organizational commitment among its workers?

2. How might a manager at P.F. Chang’s use the Big Five personality factors to assess whether a candidate for a position on the wait staff would be suitable?

V I D E O C A S E

“P.F.” Chang’s Serves Its Workers Well

Improving Attitudes and Personality Traits

preparing for this exercise You should have read and now understand attitudes and per- sonality traits. Effective leaders know themselves and work to maximize their strengths and minimize their weaknesses. As the name of this exercise implies, you can improve your attitudes and personality traits through this exercise by following these steps.

1 Identify strengths and weaknesses. Review the six self-assessment exercises in this chapter. List your three major strengths and areas that can be improved:

We don’t always see ourselves as others do. Research has shown that many people are not accurate in describing their own personalities, and that others can describe them more objectively. Before going on with this exercise, you may want to ask some- one you know well to complete your personality profile (see Self-Assessment 2-1 on page 32), rate your attitude as positive or negative, and list your strengths and areas for improvement.

2 Develop a plan for improving. Start with your Number One area to improve on. Write down specific things that you can do to improve. List specific times, dates, and places that you will implement your plans. You may want to review the 11 tips for developing a more positive attitude and self-concept for ideas.

3 Work on other areas for improvement. After you see improvement in your first area, develop a new plan for your second area, and proceed through the steps again.

Optional Way to Improve: If you have a negative attitude toward yourself or others—or you would like to improve your behavior with others (family, coworkers), things, or issues (disliking school or work)—try following the inter- nationally known motivational speaker and trainer Zig Ziglar’s system.113 Thousands of people have used this system suc- cessfully. This system can also be used for changing personality traits as well.

Here are the steps to follow, with an example plan for a per- son who has a negative self-concept and also wants to be more sensitive to others. Use this example as a guide for developing your own plan.

1 Self-concept. Write down everything you like about your- self. List all your strengths. Then go on and list all your weaknesses. Get a good friend to help you.

2 Make a clean new list, and using positive affirmations, write all your strengths. Example: “I am sensitive to others’ needs.”

3 On another sheet of paper, again using positive affirmations, list all your weaknesses. For example, don’t write “I need to lose weight.” Write “I am a slim (whatever you realisti- cally can weigh in 30 days) pounds.” Don’t write “I have to stop criticizing myself.” Write “I positively praise myself often, every day.” Write “I have good communications skills,” not “I am a weak communicator.” The following list gives example affirmations for improving sensitivity to others. Note the repetition; you can use a thesaurus to help.

2-1Developing Your Leadership Skills

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62 part 1 INDIVIDUALS AS LEADERS

I am sensitive to others.

My behavior with others conveys my warmth for them. I convey my concern for others.

My behavior conveys kindness toward others.

My behavior helps others build their self-esteem. People find me easy to talk to.

I give others my full attention. I patiently listen to others talk.

I answer others slowly and in a polite manner.

I answer questions and make comments with useful information.

My comments to others help them feel good about themselves.

I compliment others regularly.

4 Practice. Every morning and night for at least the next 30 days, look at yourself in the mirror and read your list of positive affirmations. Be sure to look at yourself between each affirmation as you read. Or, record the list on a tape recorder and listen to it while looking at yourself in the mirror. If you are really motivated, you can repeat this step at other times of the day. Start with your areas for improvement. If it takes five minutes or more, don’t bother with the list of your strengths. Or stop at five min- utes; this exercise is effective in short sessions. Although miracles won’t happen overnight, you may become more aware of your behavior in the first week. In the second or third week, you may become aware of yourself using new behavior successfully. You may still see some negatives, but the number will decrease in time as the positive increases.

Psychological research has shown that if a person hears something believable repeated for 30 days, he or she will tend to believe it. Ziglar says that you cannot consistently perform in a manner that is inconsistent with the way you see yourself. So, as you listen to your positive affirmations, you will believe them, and you will behave in a manner that is consistent with your belief. Put simply, your behav- ior will change with your thoughts without a lot of hard work. For example, if you listen to the affirmation, “I am an honest person” (not, “I have to stop lying”), in time— without having to work at it—you will tell the truth. At first you may feel uncomfortable reading or listening to positive affirmations that you don’t really believe you have. But keep looking at yourself in the mirror and reading or listening, and with time you will feel comfortable and believe it and live it.

Are you thinking you don’t need to improve, or that this method will not work? Yes, this system often does work. Zig Ziglar has trained thousands of satisfied people. One of this book’s authors tried the system himself, and within two or three weeks, he could see improvement in his behavior. The question isn’t will the system work for you, but rather will you work the system to improve?

5 When you slip, and we all do, don’t get down on yourself. In the sensitivity-to-others example, if you are rude to

someone and catch yourself, apologize and change to a positive tone. Effective leaders admit when they are wrong and apologize. If you have a hard time admitting you are wrong and saying you are sorry, at least be obvi- ously nice so that the other person realizes you are saying you are sorry indirectly. Then forget about it and keep trying. Focus on your successes, not your slips. Don’t let ten good discussions be ruined by one insensitive com- ment. If you were an MLB player and got nine out of ten hits, you’d be the best in the world.

6 Set another goal. After 30 days, select a new topic, such as developing a positive attitude toward work, school, or trying a specific leadership style that you want to develop. You can also include more than one area to work on.

Doing this exercise in Class

Objective

To develop your skill at improving your attitudes and per- sonality traits. As a leader, you can also use this skill to help your followers improve.

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic and reflective thinking skills and application of knowledge.

preparation You should have identified at least one area for improvement and developed a plan to improve.

procedure 1 (1–2 minutes) Break into groups of two or pref- erably three; be sure the others in your group are people you feel comfortable sharing with.

procedure 2 (4–6 minutes) Have one of the group members volunteer to go first. The first volunteer states the attitude or personality trait they want to work on and describes the plan. The other group members give feedback on how to improve the plan. Try to give other plan ideas that can be helpful and/or provide some specific help. You can also make an agreement to ask each other how you are progressing at set class intervals. Don’t change roles until you’re asked to do so.

procedure 3 (4–6 minutes) A second group member volun- teers to go next. Follow the same procedure as above.

procedure 4  (4–6 minutes) The third group member goes last. Follow the same procedure as above.

Conclusion

The instructor may lead a class discussion and/or make conclud- ing remarks.

apply It  (2–4 minutes) What did I learn from this exercise? Will I really try to improve my attitude and personality by implementing my plan?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

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Chapter 2 LEADERShIP TRAITS AND EThICS 63

2-2

preparing for this exercise Read the section on “Personality Traits and Leadership,” and complete Self-Assessment 2-1 on page 32. From that exercise, rank yourself below from the highest score (1) to lowest (5) for each of the Big Five traits. Do not tell anyone your ranking until asked to do so.

– surgency – adjustment – openness to experience – agreeableness – conscientiousness

Doing this exercise in Class

Objective

To develop your skill at perceiving personality traits of other people. With this skill, you can better understand and predict people’s behavior, which is helpful to leaders in influencing followers.

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic and reflective thinking skills and application of knowledge.

procedure 1  (2–4 minutes) Break into groups of three. This group should be with people you know the best in the class. You may need some groups of two. If you don’t know people in the class, and you did Skill-Development Exercise 1 in Chapter 1, “Getting to Know You by Name,” get in a group with those people.

procedure 2  (4–6 minutes) Each person in the group writes down their perception of each of the other two group members. Simply rank which trait you believe to be the highest and lowest (put the Big Five dimension name on the line) for each person. Write a short reason for your perception, including some behavior you observed that leads you to your perception.

Name Highest personality score Lowest score

Reason for ranking

Name Highest personality score Lowest score

Reason for ranking

procedure 3  (4–6 minutes) One of the group members volunteers to go first to hear the other group members’ perceptions.

1 One person tells the volunteer which Big Five dimension he or she selected as the person’s highest and lowest score, and why these dimensions were selected. Do not discuss this information yet.

2 The other person also tells the volunteer the same information.

3 The volunteer gives the two others his or her actual high- est and lowest scores. The three group members discuss the accuracy of the perceptions.

procedure 4  (4–6 minutes) A second group member volunteers to go next to receive perceptions. Follow the same procedure as above.

procedure 5  (4–6 minutes) The third group member goes last. Follow the same procedure as above.

Conclusion The instructor may lead a class discussion and/or make concluding remarks.

apply It  (2–4 minutes) What did I learn from this exercise? How will I use this knowledge in the future?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

Personality Perceptions

Developing Your Leadership Skills

2-3

preparing for this exercise Now that you have completed Self-Assessment 2-6 on pages 50–51 regarding ethical behavior, answer the discussion questions based on that assessment.

Discussion Questions

1 For the “College” section, items 1–3, who is harmed and who benefits from these unethical behaviors?

2 For the “Workplace” section, items 4–24, select the three items (circle their numbers) you consider the most seriously unethical behavior. Who is harmed and who benefits by these unethical behaviors?

3 If you observed unethical behavior but didn’t report it, why didn’t you report the behavior? If you did blow the whistle, why did you report the unethical behavior? What was the result?

Ethics and Whistle-blowing

Developing Your Leadership Skills

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64 part 1 INDIVIDUALS AS LEADERS

1 DuPont Web site (www.dupont.com), accessed November 7, 2013.

2 DuPont Web site (www.dupont.com), accessed November 7, 2013.

3 “Largest U.S. Corporations—Fortune 500,” Fortune (May 20, 2013): 1–20.

4 “Global 500,” Fortune (July 22, 2013): F1–F7.

5 “The World’s Most Admired Companies,” Fortune (March 18, 2013): 137–147.

6 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

7 H. C. Vough, M.T, Cardador, J.S. Bendar, E. Dane, and M.G. Pratt, “What Clients Don’t Get about My Profession: A Model of Perceived Role-Based Image Discrepancies,” Academy of Management Journal 56(4) (2013): 1050–1080.

8 B. Schyns, T. Kiefer, R. Kerschreiter, and A. Tymon, “Teaching Implicit Leadership Theories to Develop Leaders and Leadership: How and Why It Can Make a Difference,” Academy of Management Learning & Education 10(3) (2012): 397–408.

9 J. Antonakis, M. Fenley, and S. Liechti, “Can Charisma Be Taught? Tests of Two Interventions,” Academy of Management Learning & Education 10(3) (2011): 374–396.

10 M.R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

11 J. Antonakis, M. Fenley, and S. Liechti, “Can Charisma Be Taught? Tests of Two Interventions,” Academy of Management Learning & Education 10(3) (2011): 374–396.

12 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

13 J. Antonakis, M. Fenley, and S. Liechti, “Can Charisma Be Taught? Tests of Two Interventions,” Academy of Management Learning & Education 10(3) (2011): 374–396.

14 J. Antonakis, M. Fenley, and S. Liechti, “Can Charisma Be Taught? Tests of Two Interventions,” Academy of Management Learning & Education 10(3) (2011): 374–396.

15 C. Bendersky and N.P. Shah, “The Downfall of Extraverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” Academy of Management Journal 56(2) (2013): 387–406.

16 T. A. Judge, R. Ilies, J.E. Bono, and M.W. Gerhardt, “Personality and Leadership: A Qualitative and Quantitative Review,” Journal of Applied Psychology 87(4) (2002): 765–768.

endnotes

4 As a manager, it is your responsibility to uphold ethical behavior. If you know employees are using any of these unethical behaviors, will you take action to enforce compliance with ethical standards?

Doing this exercise in Class

Objective

To better understand ethics and whistle-blowing, and decide what you will do about unethical behavior.

aaCSB General Skills area

The primary AACSB skills developed through this exercise are ethical understanding, analytic and reflective thinking skills, and application of knowledge.

preparation

You should have completed the preparation for this exercise.

experience

You will share your answers to the preparation questions but are not requested to share your ethics score.

procedure 1  (5–10 minutes) The instructor writes the num- bers 1–24 on the board. For each statement, students first raise their hands if they have observed this behavior, then if they have

reported the behavior. The instructor writes the numbers on the board. (Note: Procedure 1 and Procedure 2A can be combined.)

procedure 2  (10–20 minutes) Option A: As the instruc- tor takes a count of the students who have observed and reported unethical behavior, he or she leads a discussion on the statements.

Option B: Break into groups of four to six, and share your answers to the four discussion questions at the end of the prep- aration part of this exercise. The groups may be asked to report the general consensus of the group to the entire class. If so, se- lect a spokesperson before the discussion begins.

Option C: The instructor leads a class discussion on the four dis- cussion questions at the end of the preparation part of this exercise.

Conclusion

The instructor may make concluding remarks.

apply It  (2–4 minutes) What did I learn from this exercise? How will I use this knowledge in the future to be ethical? When will I use a simple guide to ethics?

Sharing

Volunteers may give their answers to the “Apply It” questions.

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Chapter 2 LEADERShIP TRAITS AND EThICS 65

17 M. W. Morgan and M.M. Lombardo, Off the Track: Why and How Successful Executives Get Derailed (Greensboro, NC: Center for Creative Leadership, January 1988), Technical Report Nos. 21 & 34.

18 Staff, “Follow My Lead,” Entrepreneur (September 2013): 8.

19 M. Rosenwald, “The Origin of C-Suites,” BusinessWeek (January 24–30, 2011): 116–117.

20 J. B. Kahnweiler, “Why Introverts Can Make the Best Leaders,” Forbes (December 28, 2009): 8.

21 B. L. Blume, T.T. Baldwin, and K.C. Ryan, “Communication Apprehension: A Barrier to Students’ Leadership, Adaptability, and Multicultural Appreciation,” Academy of Management Learning & Education 12(2) (2013): 158–172.

22 M. R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

23 C. Bendersky and N.P. Shah, “The Downfall of Extraverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” Academy of Management Journal 56(2) (2013): 387–406.

24 C. Bendersky and N.P. Shah, “The Downfall of Extraverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” Academy of Management Journal 56(2) (2013): 387–406.

25 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

26 T.T. Baldwin, J.R. Pierce, R.C. Jones, and S. Farouk, “The Elusiveness of Applied Management Knowledge: A Critical Challenge for Management Education,” Academy of Management Learning & Education 10(4) (2011): 583–605.

27 M. Korn, “Business Schools Know How You Think, but How Do You Feel?” Wall Street Journal (May 2, 2013): B1.

28 R. E. Boytzis and D. Goleman, The Emotional Competence Inventory (Boston: Hay Group, 2001).

29 G. Toegel, M. Kilduff, and N. Anand, “Emotion Helping by Managers: An Emergent Understanding of Discrepant Role Expectations and Outcomes,” Academy of Management Journal 56(2) (2013): 334–357.

30 C. Bendersky and N.P. Shah, “The Downfall of Extraverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” Academy of Management Journal 56(2) (2013): 387–406.

31 B. P. Owens and D.R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal 55(4) (2012): 787–818.

32 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

33 R. Hurley, “Trust Me,” Wall Street Journal (October 24, 2011): R4.

34 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

35 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

36 R. Karlgaard, “Scary Smart: The Next Trillion-Dollar Industry,” Forbes (October 25, 2010): 26.

37 T. T. Baldwin, J.R. Pierce, R.C. Jones, and S. Farouk, “The Elusiveness of Applied Management Knowledge: A Critical Challenge for Management Education,” Academy of Management Learning & Education 10(4) (2011): 583–605.

38 C. Dunn, B. Kowitt, C. Leahey, and A. Vandermey, “The 50 Most Powerful Women,” Fortune (October 2013): 133–140.

39 D. McClelland, The Achieving Society (New York: Van Nostrand Reinhold, 1961); and D. McClelland and D. H. Burnham, “Power Is the Great Motivator,” Harvard Business Review (March/April 1978): 103.

40 D. C. McClelland and R. E. Boyatzis, “Leadership Motive Pattern and Long-Term Success in Management,” Journal of Applied Psychology 6(1982): 737–743.

41 C. Bendersky and N.P. Shah, “The Downfall of Extraverts and Rise of Neurotics: The Dynamic Process of Status Allocation in Task Groups,” Academy of Management Journal 56(2) (2013): 387–406.

42 D. C. McClelland, Human Motivation (Glenview, IL: Scott Foresman, 1985).

43 G. Toegel, M. Kilduff, and N. Anand, “Emotion Helping by Managers: An Emergent Understanding of Discrepant Role Expectations and Outcomes,” Academy of Management Journal 56(2) (2013): 334–357.

44 S. S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

45 D. M. Mayer, K. Aquino, R.L. Greenbaum, and M. Kuenzi, “Who Displays Ethical Leadership, and Why an Examination of Antecedents and Consequences of Ethical Leadership,” Academy of Management Journal 55(1) (2012): 151–171.

46 D. McGregor, Leadership and Motivation (Cambridge, MA: MIT Press, 1966).

47 Mind Tools Web site “Comparing Theory X and Theory Y” (www.mindtools.com), accessed November 27, 2013.

48 N. Rothbard, “Put on a Happy Face, Seriously,” Wall Street Journal (October 24, 2011): R2.

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66 part 1 INDIVIDUALS AS LEADERS

49 S. Waddock and J.M. Lozano, “Developing More Holistic Management Education: Lessons Learned from Two Programs,” Academy of Management Education & Learning 12(2) (2013): 265–284.

50 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

51 A. Simha and J.B. Cullen, “Ethical Climates and Their Effects on Organizational Outcomes: Implications from the Past and Prophecies for the Future,” Academy of Management Perspectives 26(4) (2012): 20–34.

52 A. W. Martin, S.H. Lopez, V.J. Roscigno, and R. Hodson, “Against the Rules: Synthesizing Types and Processes of Bureaucratic Rule-Breaking,” Academy of Management Review 38(4) (2013): 550–574.

53 R.A. Giacalone and M.D. Promislo, “Broken When Entering: The Stigmatization of Goodness and Business Ethics Education,” Academy of Management Learning & Education 12(1) (2012): 86–101.

54 M. Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Developing Leadership Character in Business Programs,” Academy of Management Learning & Education 12(2) (2013): 285–305.

55 N. M. Pless, T. Moak, and D.A. Waldman, “Different Approaches toward Doing the Right Thing: Mapping the Responsibility Orientations of Leaders,” Academy of Management Perspectives 26(4) (2012): 51–65.

56 AACSB Web site (http://www.aacsb.edu/accreditation/ business/standards/2013/learning-and-teaching/standard9. asp), accessed October 24, 2013.

57 J. K. Nelson, L.W. Poms, and P.P. Wolf, “Developing Efficacy Beliefs for Ethics and Diversity Management,” Academy of Management Learning & Education 11(1) (2012): 49–68.

58 M. Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Develop- ing Leadership Character in Business Programs,” Academy of Management Learning & Education 12(2) (2013): 285–305.

59 D. M. Mayer, K. Aquino, R.L. Greenbaum, and M. Kuenzi, “Who Displays Ethical Leadership, and Why an Exami- nation of Antecedents and Consequences of Ethical Leadership,” Academy of Management Journal 55(1) (2012): 151–171.

60 B. C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making,” Academy of Management Journal 55(1) (2012): 13–33.

61 K. Leavitt, S.J. Reynolds, C.M. Barnes, P. Schilpzand, and S.T. Hannah, “Different Hats, Different Obligations: Plural Occupational Identities and Situated Moral

Judgments,” Academy of Management Journal 55(6) (2012): 1316–1333.

62 R. Murphree, “Visionary Leader: Gospel Is Key to Unlimited Success,” AFA Journal (March 2013): 11.

63 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

64 P. Zak, The Moral Molecule (New York: Penguin, 2012).

65 C. Downs, “Liar, Liar—Back’s on Fire,” AARP Magazine (October/November 2012): 22.

66 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

67 F. Farley, “What’s a Hero?” Entrepreneur (December 2013): 64.

68 J. A. Colquitt, J.A. Lepine, C.P. Zapata, and R.E. Wild, “Trust in Typical and High-Reliability Contexts: Building and Reacting to Trust among Firefighters,” Academy of Management Journal 54(5) (2011): 999–1015.

69 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

70 B. C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making,” Academy of Management Journal 55(1) (2012): 13–33.

71 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

72 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

73 S. D. Levitt and S.J. Dubner, Super Freakonomics: Global cooling, patriotic prostitutes, and why suicide bomb- ers should buy life insurance. Academy of Management Perspectives 25(2) (2011): 86–87.

74 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

75 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

76 S. Kolhathar, “The Man, the Myth, the Wolf,” BusinessWeek (November 11–17, 2013): 72–76.

77 M. Crossan, D. Mazutis, G. Seijts, and J. Gandz, “Developing Leadership Character in Business Programs,” Academy of Management Learning & Education 12(2) (2013): 285–305.

78 S. S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

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Chapter 2 LEADERShIP TRAITS AND EThICS 67

79 D. M. Mayer, K. Aquino, R.L. Greenbaum, and M. Kuenzi, “Who Displays Ethical Leadership, and Why an Examination of Antecedents and Consequences of Ethical Leadership,” Academy of Management Journal 55(1) (2012): 151–171.

80 K. Leavitt, S.J. Reynolds, C.M. Barnes, P. Schilpzand, and S.T. Hannah, “Different Hats, Different Obligations: Plural Occupational Identities and Situated Moral Judgments,” Academy of Management Journal 55(6) (2012): 1316–1333.

81 R. L. Dufresne and E.H. Offstein, “Holistic and Intentional Student Character Development Process: Learning from West Point,” Academy of Management Learning & Education 11(4) (2012): 570–590.

82 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

83 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

84 J. M. Schaubroeck, “Embedding Ethical Leadership within and across Organizational Levels,” Academy of Management Journal 55(5) (2012): 1053–1078.

85 R. Sutton, “How a Few Bad Apples Ruin Everything,” Wall Street Journal (October 24, 2011): R5.

86 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

87 D. Akst, “Ethics’ Afternoon Swoon,” Wall Street Journal (November 9–10, 2013): C4.

88 Information taken from the DuPont Web site November 21, 2013.

89 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

90 B.C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making,” Academy of Management Journal 55(1) (2012): 13–33.

91 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

92 K. Leavitt, S.J. Reynolds, C.M. Barnes, P. Schilpzand, and S.T. Hannah, “Different Hats, Different Obligations: Plural Occupational Identities and Situated Moral Judgments,” Academy of Management Journal 55(6) (2012): 1316–1333.

93 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

94 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

95 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

96 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

97 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

98 D. Ariely, “Why We Lie,” Wall Street Journal (May 26–27, 2012): C1–C2.

99 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

100 C. Bonanos, “The Lies We Tell at Work,” BusinessWeek (February 4–10, 2013): 71–73.

101 B. C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making,” Academy of Management Journal 55(1) (2012): 13–33.

102 B. C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making,” Academy of Management Journal 55(1) (2012): 13–33.

103 S. Hagar, “The Sammy Hagar School of Business,” Inc. (November 2013): 102.

104 A. Beiler, “My Advice,” Fortune (July 22, 2013): 24.

105 S. S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

106 K. Leavitt, S.J. Reynolds, C.M. Barnes, P. Schilpzand, and S.T. Hannah, “Different Hats, Different Obligations: Plural Occupational Identities and Situated Moral Judgments,” Academy of Management Journal 55(6) (2012): 1316–1333.

107 B. C. Gunia, L. Wang, L. Huang, J. Wang, and J.K. Murnighan, “Contemplation and Conversation: Subtle Influences on Moral Decision Making.” Academy of Management Journal 55(1) (2012): 13–33.

108 J. M. Schaubroeck, “Embedding Ethical Leadership within and across Organizational Levels,” Academy of Management Journal 55(5) (2012): 1053–1078.

109 B. Mycoskie, Start Something That Matters (New York: Spiegel & Grau, 2012).

110 TOMS Web site (www.TOMS.com), accessed December 5, 2013.

111 B. Mycoskie, Start Something That Matters (New York: Spiegel & Grau, 2012).

112 TOMS Web site (www.TOMS.com), accessed December 5, 2013.

113 For more information on Zig Ziglar training, go to his Web site (www.ziglar.com).

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68

Chapter

3

C h a p t e r O U t L I N e

Leadership Behavior and Styles

Leadership Behavior

Leadership Styles and the University of Iowa Research

University of Michigan and Ohio State University Studies

University of Michigan: Job-Centered and Employee-Centered Behavior

Ohio State University: Initiating Structure and Consideration Behavior

Differences, Contributions, and Applications of Leadership Models

The Leadership Grid

Leadership Grid Theory

Leadership Grid and High- High Leader Research

Behavioral Theory Contributions

Leadership and Major Motivation Theories

Motivation and Leadership

The Motivation Process

An Overview of Three Major Classifications of Motivation Theories

Content Motivation Theories

Hierarchy of Needs Theory

Two-Factor Theory

Acquired Needs Theory

Balancing Work-Life Needs

Process Motivation Theories

Equity Theory

Expectancy Theory

Goal-Setting Theory

Reinforcement Theories

Types of Reinforcement

Schedules of Reinforcement

You Get What You Reinforce

Motivating with Reinforcement

Giving Praise

Putting the Motivation Theories Together within the Motivation Process

Leadership Behavior and Motivation

Learning Outcomes After studying this chapter, you should be able to:

1 List the University of Iowa leadership styles. p. 70

2 Describe similarities and differences between the University of Michigan and Ohio State University leadership models. p. 72

3 Discuss similarities and differences between the Ohio State University Leadership Model and the Leadership Grid. p. 75

4 Discuss similarities and differences among the three content motivation theories. p. 80

5 Discuss the major similarities and differences among the three process motivation theories. p. 87

6 Explain the four types of reinforcement. p. 93

7 State the major differences among content, process, and reinforcement theories. p. 98

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 69

In this chapter, we discuss two related topics: leadership behavior and motivation. The goal of behavioral scientists is to explain why people do what they do at work.2 Much of the leadership research has focused on behavior.3 Research findings include that behavior of leaders affects follower performance,4 and that leaders need to use behaviors that promote, develop, and maintain team performance.5 The fundamental task for leaders is to motivate followers.6 Thus, leader behavior is used to motivate followers.7 In this chapter, we discuss four behavioral leadership models and seven motivation theories.

Leadership Behavior and Styles In this section, we discuss leadership behavior and the University of Iowa leadership styles.

Leadership Behavior By the late 1940s, most of the leadership research had shifted from the trait theory para- digm (Chapters 2 and 3) to the behavioral theory paradigm, which focuses on what the leader says and does. In the continuing quest to find the one best leadership style in all

trader Joe’s Trader Joe’s mission is to bring you the best-quality prod- ucts at the best prices. It’s not complicated; it just focuses on what matters—great food + great prices = Value. Joe Coulombe named the store Trader Joe’s to evoke images of the South Seas. As part of its unique culture, employ- ees wear Hawaiian shir ts because they’re traders on the culinary seas, searching the world over for cool items to bring home to its customers. They sail those seven seas, so customers can have some fun with its finds at their neigh- borhood Trader Joe’s.

Joe Coulombe opened the first Trader Joe’s over 40 years ago in Pasadena, California, with a quirky in-store culture with a different business model to make shopping at Trader Joe’s different from what people were used to in a supermarket—it’s an adventure. It’s an offbeat, fun discov- ery zone that elevates food shopping from being a chore to a cultural experience. Trader Joe’s stocks its shelves with a winning combination of low-cost, yuppie-friendly staples and exotic affordable luxuries.

Although Joe moved on, Joe’s fingerprints are still all over the company that bears his name, from the busi- ness model, robust selection of products, and culture to

the Hawaiian-print shirts that employees wear. Trader Joe’s is family-owned, not having any publicly owned stock. The current CEO Dan Bane runs the company with around 20,000 employees in 400 stores. 1

OpeNING CaSe QUeStIONS:

1. Which Ohio State University, University of Michi- gan, and Leadership Grid leadership style is em- phasized at Trader Joe’s?

2. What does Trader Joe’s do to motivate its em- ployees, and how does it affect performance?

3. (a–c). How does Trader Joe’s meet its employees’ content motivation needs?

4. (a–c). How does Trader Joe’s meet its employees’ process motivation needs?

5. How does Trader Joe’s use reinforcement theory to motivate its employees?

Can you answer any of these questions? You’ll find an- swers to these questions and learn more about Trader Joe’s and its leadership throughout the chapter.

To learn more about Trader Joe’s, visit the company’s Web site at http://www.traderjoes.com.

OPENING CASE Application

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70 part 1 InDIvIDUaLS aS LEaDErS

situations, researchers attempted to identify the differences in the behavior of effective leaders versus ineffective leaders. Although the behavioral leadership theory made major contributions to leadership research, it never achieved its goal of finding one best style. However, today research continues to seek a better understanding of behavior in the workplace.8

Leadership Behavior Is Based on Traits Although the behavioral theorists focus on behavior, it’s important to realize that leaders’ behavior is based on their traits and skills. The manager’s leadership personality traits and attitudes directly affect his or her behavior and relationship with employees.9 Recall that the Pygmalion effect is based on traits, attitude expectations, and the manager’s be- havioral treatment of employees, which in turn determines the followers’ behavior and performance.

Leading by example is important to managers, and it takes place as followers observe the leader’s behavior and copy it. And the leader’s behavior is based on his or her traits. However, behavior is easier to learn and change than traits. We need to select relevant behaviors to influence follower behavior and performance.10

List the University of Iowa leadership styles.Learning Outcome 1

Leadership Styles and the University of Iowa research Leadership style is the combination of traits, skills, and behaviors leaders use as they interact with followers. Although a leadership style is based on traits and skills, the im- portant component is the behavior, because it is a relatively consistent pattern of behavior that characterizes a leader.

University of Iowa Leadership Styles In the 1930s, before behavioral theory became popular, Kurt Lewin and associates con- ducted studies at the University of Iowa that concentrated on the leadership style of the manager.11 Their studies identified two basic leadership styles:

• Autocratic leadership style. The autocratic leader makes the decisions, tells employees what to do, and closely supervises workers.

• Democratic leadership style. The democratic leader encourages participation in deci- sions, works with employees to determine what to do, and does not closely supervise employees.

The autocratic and democratic leadership styles are often placed at opposite ends of a continuum, as shown in Exhibit 3.1; thus a leader’s style usually falls somewhere between the two styles. The Iowa studies contributed to the behavioral movement and led to an era of behavioral, rather than trait, research. It started a taxonomy, or classification, of lead- ership behavior still used today.12

WORK Application 3-1 Recall a present or past manager. Which of the University of Iowa leadership styles does or did your manager use most often? Describe the behavior of your manager.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 71

University of Iowa Leadership Styles EXHIBIT 3.1

University of Michigan and Ohio State University Studies Leadership research was conducted at Ohio State and the University of Michigan at about the same time during the mid-1940s to mid-1950s. These studies were not based on prior autocratic and democratic leadership styles but rather sought to determine the behavior of effective leaders. In this section, we discuss leadership styles identified by these two universities. Before reading about these studies, complete Self-Assessment 3-1 to deter- mine your behavioral leadership style.

Your Behavioral Leadership StyleSELF-ASSESSMENT 3-1

For each of the following statements, select one of the following:

1– “I would not tend to do this.” 0– “I would tend to do this.” as a manager of a work unit. there are no right or wrong answers, so don’t try to select correctly.

1. I (would or would not) let my employees know that they should not be doing things during work hours that are not directly related to getting their jobs done.

2. I (would or would not) spend time talking to my employees to get to know them personally during work hours.

3. I (would or would not) have a clearly writ- ten agenda of things to accomplish during department meetings.

4. I (would or would not) allow employees to come in late or leave early to take care of personal issues.

5. I (would or would not) set clear goals so employees know what needs to be done.

6. I (would or would not) get involved with employee conflicts to help resolve them.

7. I (would or would not) spend much of my time directing employees to ensure that they meet department goals.

8. I (would or would not) encourage em ployees to solve problems related to their work without having to get my per- mission to do so.

9. I (would or would not) make sure that employees do their work according to the standard method to be sure it is done correctly.

10. I (would or would not) seek the advice of my employees when making decisions.

11. I (would or would not) keep good, fre- quent records of my department’s pro- ductivity and let employees know how they are doing.

12. I (would or would not) work to develop trust between my employees and me, and among the department members.

13. I (would or would not) be quick to take corrective action with employees who are not meeting the standards or goals.

Autocratic------------------------------------Democratic

Source: Adapted from K. Lewin, R. Lippett, and R. K. White. 1939. “Patterns of Aggressive Behavior in Experimentally Created Social Climates.” Journal of Social Psychology 10:271–301.

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72 part 1 InDIvIDUaLS aS LEaDErS

University of Michigan: Job-Centered and employee-Centered Behavior The University of Michigan’s Survey Research Center, under the principal direction of Rensis Likert, conducted studies to determine how leaders functioned in small groups. Researchers created a questionnaire called the Survey of Organizations and conducted interviews to gather data on leadership styles. They gave the survey, similar to the one in Self-Assessment 3-1, to employees to complete based on their managers behavior. You can give Self-Assessment 3-1 to others to determine if they perceive your leadership style the same as you assessed it.

The researchers’ goals were to (1) classify the leaders as effective and ineffective by comparing the behavior of leaders from high-producing units and low-producing units and (2) determine reasons for effective leadership.13 The researchers identified two styles of leadership behavior, which they called job-centered and employee-centered. The Uni- versity of Michigan model stated that a leader is either more job-centered or more em- ployee-centered. The University of Michigan Leadership Model thus identifies two leadership styles: job-centered and employee-centered. See Exhibit 3.2 for the University of Michigan Leadership Model: It is a one-dimensional continuum between two leadership styles.

14. I (would or would not) personally thank employees for doing their job to standard and meeting goals.

15. I (would or would not) continue to set higher standards and goals and challenge my employees to meet them.

16. I (would or would not) be open to employees to discuss personal issues dur- ing work time.

17. I (would or would not) schedule my employ- ees’ work hours and tasks to be completed.

18. I (would or would not) encourage my employees to cooperate with, rather than compete against, each other.

19. I (would or would not) focus on continually trying to improve the productivity of my department with activities like cutting costs.

20. I (would or would not) defend good employees of mine if my manager or peers criticized their work rather than agree or say nothing.

add up the number of would do this for all odd-numbered items and place it here and on the continuum below.

10 — 9 — 8 — 7 — 6 — 5 — 4 — 3 — 2 — 1 High Task Leadership Style Low Task Leadership Style

add up the number of would do this for all even- numbered items and place it here and on the continuum below.

10 — 9 — 8 — 7 — 6 — 5 — 4 — 3 — 2 — 1 High People Leadership Style Low People Leadership Style

the higher your score for task leadership, the stronger is your tendency to focus on getting the job done. the higher your score for people leadership, the stronger is your tendency to focus on meeting people’s needs and developing supportive relationships. read on to better understand these leadership styles.

Describe similarities and differences between the University of Michigan and Ohio State University leadership models.

Learning Outcome 2

Your Behavioral Leadership Style (continued)SELF-ASSESSMENT 3-1

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Chapter 3 Leadership Behavior and Motivation 73

• Job-Centered Leadership Style. The job-centered style has scales measuring two job- oriented behaviors of goal emphasis and work facilitation. Job-centered behavior refers to the extent to which the leader takes charge to get the job done. The leader closely directs subordinates with clear roles and goals, whereas the manager tells them what to do and how to do. Review the odd-numbered items in Self-Assessment 3-1 for examples of job-(task-)oriented leadership behavior.

• Employee-Centered Leadership Style. The employee-centered style has scales measuring two employee-oriented behaviors of supportive leadership and interaction facilitation. Employee-centered behavior refers to the extent to which the leader focuses on meeting the human needs of employees while developing relationships. The leader is sensitive to subordinates and communicates to develop trust, support, and respect while look- ing out for their welfare. Review the even-numbered items in Self-Assessment 3-1 for examples of employee-(people-)oriented leadership behavior.

Based on Self-Assessment 3-1, is your leadership style more job-(task-) or employee (people-)centered?

Employee-Centered Leadership Style

Job-Centered Leadership Style

Source: Adapted from R. Likert, New Patterns of Management (New York: McGraw-Hill: 1961).

EXHIBIT 3.2 The University of Michigan Leadership Model: Two

CONCept APPLICATION 3-1

University of Michigan Leadership Styles Identify each of these five behaviors by its leadership style. Write the appropriate letter in the blank before each item. a. job-centered b. employee-centered

1. A manager is motivating employees to meet a difficult deadline.

2. A manager is giving detailed instructions to the follower to ensure the job is done right.

3. A manager is quietly observing employees as they do their jobs.

4. A manager is praising an employee for a job well done.

5. A manager is in the office developing the employee work schedule for next week.

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74 part 1 InDIvIDUaLS aS LEaDErS

Ohio State University: Initiating Structure and Consideration Behavior The Personnel Research Board of Ohio State University, under the principal direction of Ralph Stogdill, began a study to determine effective leadership styles. These research- ers developed an instrument known as the Leader Behavior Description Questionnaire (LBDQ). The LBDQ had 150 examples of definitive leader behaviors, which were nar- rowed down from 1,800 leadership functions. Respondents to the questionnaire per- ceived their manager’s behavior toward them on two distinct dimensions or leadership types, which they eventually called initiating structure and consideration:14

• Initiating structure behavior. The initiating structure leadership style is essentially the same as the job-centered leadership style; it focuses on getting the task done.

• Consideration behavior. The consideration leadership style is essentially the same as the employee-centered leadership style; it focuses on meeting people’s needs and develop- ing relationships. Because a leader can be high or low on initiating structure and/or consideration, four

leadership styles are developed. The Ohio State University Leadership Model iden- tifies four leadership styles: low structure and high consideration, high structure and high consideration, low structure and low consideration, and high structure and low consider- ation. Exhibit 3.3 illustrates the four leadership styles and their two dimensions.

Leaders with high structure and low consideration behavior use one-way communica- tions, and decisions are made by the managers, whereas leaders with high consideration and low structure use two-way communications and tend to share decision making. To determine your two-dimensional leadership style from Self-Assessment 3-1, put your two separate (“task” and “people”) scores together and determine which of the four styles in Exhibit 3.3 is the closest match.

WORK Application 3-2 Recall a present or past manager. Which of the four Ohio State leadership styles does or did your manager use most often? Describe the behavior of your manager.

Low Structure

&

High Consideration

Low Structure

&

Low Consideration

High Structure

&

High Consideration

High Structure

&

Low Consideration

C on

si de

ra ti

on

Initiating Structure

Low High

Ohio State University

High

Low

EXHIBIT 3.3

The Ohio State University Leadership Model: Four Leadership Styles, Two Dimensions

Source: Adapted from R. Likert, New Patterns of Management. (New York: McGraw-Hill: 1961).

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 75

Differences, Contributions, and applications of Leadership Models

Differences between the Models The Ohio State and University of Michigan leadership models are different in that the University of Michigan places the two leadership behaviors at opposite ends of the same continuum, making it one-dimensional. The Ohio State University model considers the two behaviors independent of one another, making it two-dimensional; thus this model has four leadership styles.

Contributions of the Models There is no one best leadership style in all situations; this is the first contribution to lead- ership theory, because it has helped lead researchers to the next paradigm—that of contin- gency leadership theory (the topic of Chapter 4). Thus, the contribution of the behavioral leadership paradigm was to identify two generic dimensions of leadership behavior that continue to have importance in accounting for leader effectiveness today.

Prior to the two university leadership studies, many organizations had focused on get- ting the job done with little, if any, concern for meeting employee needs. So there was a shift to place more emphasis on the human side of the organization to increase pro- ductivity; this is a second contribution. The saying that a happy worker is a productive worker comes from this period of research, and still has research support today.15

Another important research finding was that most leadership functions can be carried out by someone besides the designated leader of a group. Thus, more organizations began training managers to use participative leadership styles. Thus, as a third contribution of these leadership models, Likert has been credited as being the first to identify the partici- pative leadership style that is commonly used today.

Applications of the Models The two models don’t tell the leader how to behave, but they do provide a classification system reminding us that our behavior affects others through the “task” we perform as well as the “relationships” we develop. Many leadership development programs are struc- tured along the behavioral styles approach, and almost all give managers a questionnaire that in some way assesses their task and relationship behavior toward followers. Manag- ers use the assessment to improve their overall leadership style.

The behavioral styles approach is easily applied to leadership by assessing our behav- ioral style. Through our ongoing self-assessment, we can determine how we are coming across to others and how we could change our behavior to be more effective in perform- ing our task and in developing our relations.

The Leadership Grid In this section, we discuss the Leadership Grid theory, including research and contri- butions of the high-concern-for-people and high-concern-for-production (team leader) leadership styles.

Discuss similarities and differences between the Ohio State University Leadership Model and the Leadership Grid.

Learning Outcome 3

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76 part 1 InDIvIDUaLS aS LEaDErS

Leadership Grid theory Robert Blake and Jane Mouton, from the University of Texas, developed the Manage- rial Grid® and published it in 1964, updated it in 1978 and 1985, and in 1991 it became the Leadership Grid® with Anne Adams McCanse replacing Mouton, who died in 1987. Blake and Mouton published numerous articles and around 40 books describing their theories.16

The Leadership Grid builds on the Ohio State and Michigan studies; it is based on the same two leadership dimensions, which Blake and Mouton called concern for pro- duction and concern for people. The concern for both people and production is mea- sured through a questionnaire on a scale from 1 to 9. Therefore, the grid has 81 possible combinations of concern for production and people. However, the Leadership Grid identifies five leadership styles: 1,1 impoverished; 9,1 authority compliance; 1,9 country club; 5,5 middle of the road; and 9,9 team leader. See Exhibit 3.4 for an adaptation of the Leadership Grid.

Following are descriptions of leadership styles in the Leadership Grid:

• The impoverished leader (1,1) has low concern for both production and people. The leader does the minimum required to remain employed in the position.

• The authority-compliance leader (9,1) has a high concern for production and a low con- cern for people. The leader focuses on getting the job done while people are treated like machines.

• The country-club leader (1,9) has a high concern for people and a low concern for production. The leader strives to maintain a friendly atmosphere without regard for production.

• The middle-of-the-road leader (5,5) has balanced, medium concern for both production and people. The leader strives to maintain satisfactory performance and morale.

• The team leader (9,9) has a high concern for both production and people. This leader strives for maximum performance and employee satisfaction. According to Blake, Mou- ton, and McCanse, the team leadership style is generally the most appropriate for use in all situations.

To estimate your Leadership Grid leadership style, using Self-Assessment 3-1, use your task score as your concern for production and your people score, and

WORK Application 3-3 Recall a present or past manager. Which of the five Leadership Grid styles does or did your manager use most often? Describe the behavior of your manager.

C on

ce rn

f or

P eo

pl e

Concern for Production

High

Low 1

Low

9

High

1,9 9,9

9,11,1

5,5

EXHIBIT 3.4 Blake, Mouton, and McCanse Leadership Grid

Source: Adapted from Robert R. Blake and Jane S. Mouton, The Managerial Grid III (Houston: Gulf, 1985); and Robert R. Blake and Anna Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 77

1. Which Ohio State University and Leadership Grid leadership style is emphasized at trader Joe’s?

Trader Joe’s emphasizes the Ohio State University high structure and high consideration style, which is called the Leader- ship Grid team leader’s high concern for people and high concern for production (9,9) leadership style. Trader Joe’s treats its employees well but at the same time stresses high levels of performance. We will provide more detail with the answers to the other case application answers.

OPENING CASE application

CONCept APPLICATION 3-2

The Leadership Grid Identify the five statements by their leader’s style. Write the appropriate letter in the blank before each item.

a. 1,1 (impoverished) c. 9,1 (authority compliance) e. 9,9 (team) b. 1,9 (country club) d. 5,5 (middle of the road)

6. A group has an average productivity level compared to the other departments in the company.

7. A group dislikes its leader and has one of the lowest levels of morale in the company, but it is a top performer.

8. A group has a leader that doesn’t seem to care about the employees or how much work gets done.

9. A group has a leader that is very supportive of the employees, while also exceeding expectations as a top performer.

10. A group has very high morale but the department is one of the lowest performers in the company.

plot them on the Leadership Grid in Exhibit 3.4. Then select the closest of the five leadership styles.

Leadership Grid and high-high Leader research The high-high leader has concern for both production and people; this is the team lead- ership style. Blake and Mouton did conduct an extensive empirical research study that measured profitability before and after a ten-year period. In the study, one company sub- sidiary used an extensive Grid Organizational Development program designed to teach managers how to be 9,9 team leaders (experimental group), whereas another subsidiary did not use the program (control group). The subsidiary using the team leadership style increased its profits four times more than the control subsidiary. Thus, the researchers claimed that team leadership usually results in improved performance, low absenteeism and turnover, and high employee satisfaction.

However, another researcher disagreed with these findings, calling high-high leader- ship a myth. A more objective meta-analysis (a study combining the results of many prior studies) found that although task and relationship behavior tends to correlate positively with subordinate performance, the correlation is usually weak.17 In conclusion, although there is some support for the universal theory, the high-high leadership style is not ac- cepted as the one best style in all situations.

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78 part 1 InDIvIDUaLS aS LEaDErS

Behavioral theory Contributions and applications Critics of behavioral theories suggested that different leadership styles are more effec- tive in different situations. Thus, a contribution of behavioral research is that it led to the shift in paradigm to contingency leadership theory. As you will learn in Chapter 4, contingency leadership theory is based on the behavioral theory of production and people leadership styles. Situational leadership models don’t agree with using the same leader- ship style in all situations but rather prescribe using the existing behavioral leadership style that best meets the situation.

A second contribution of behavioral leadership theory was the recognition that or- ganizations need both production and people leadership. A generic set of production- oriented and people-oriented leadership functions must be performed to ensure effective organizational performance.

A third related contribution of behavioral leadership theory supports coleadership. The manager does not have to perform both production and people functions. Thus, strong production-oriented leaders can be successful if they have coleaders to provide the people-oriented functions for them, and vice versa. So, if you tend to be more production- or people-oriented, seek coleaders to complement your weaker area.

Before we go on to motivation, let’s tie personality traits from Chapter 2 together with what we’ve covered so far. Complete Self-Assessment 3-2 now.

Your personality traits and Leadership StylesSELF-ASSESSMENT 3-2

We stated in the first section that traits affect leadership behavior. how does this relate to you? For the University of Michigan Leadership Model, generally, if you had a high personality score for the Big Five surgency dimension in Self- assessment 2-1 in Chapter 2 (dominance trait, high need for power), you most likely have a high score for the task (job-centered) leadership style. If you had a high score for agreeableness (sensitivity to others trait, high need for affilia- tion), you most likely have a high score for the people (employee-centered) leadership style. My U of M leadership style is primarily

For the Leadership Grid, you need to score your personality for surgency and agreeableness on a scale of 1 to 9. then you combine them on the grid, and these personality scores should generally provide about the same score as Self-assessment 3-1. My Leadership Grid style is primarily

For the Ohio State University Leadership Model, you need to score your personality for surgency and agreeableness as high or low. then you combine them, and these personality scores should generally provide the same two-dimensional behaviors corresponding to one of the four leadership styles. My OSU leadership style is primarily

If you scored a Leader Motive profile, your score for tasks should generally be higher than your score for people, because you have a greater need for power than affiliation. however, your leadership style on the Ohio State model could be high structure and high consideration, because this implies socialized power. You could also have a 9,9 team leader score on the Leadership Grid. My LMp is primarily

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 79

Leadership and Major Motivation Theories In this section, we discuss motivation and leadership, the motivation process (which ex- plains how motivation affects behavior), and three classifications of motivation theories (content, process, and reinforcement).

Motivation and Leadership Leadership success requires motivating followers,18 and leadership behavior is used to motivate followers.19 Motivation is anything that affects behavior in pursuing a certain outcome. Outcomes in business are usually organizational goals or objectives, and it takes motivation to reach our goals.20 So you have to know how to motivate yourself,21 and you have to be able to motivate others.22 To be truly successful, you have to get people to do more than the minimum required.23

So what motivates us?24 We tend to seek job satisfaction as we satisfy our self-inter- est.25 So, if we want to motivate others, we should answer their often-unasked question, “What’s in it for me?”26 If we give people what they want, they will in turn tend to give us what we want. But the truly great leaders get followers to go beyond their own self-interest for the good of the team or organization.27 Unfortunately, it’s easier said than done, but you will learn how in the rest of this chapter.

the Motivation process The motivation process results from the joint effects of personality traits and task or so- cial job characteristics that explain work behavior.28 Through the motivation process, people go from need to motive to behavior to consequence to satisfaction or dissatisfaction. For example, you are thirsty (need) and have a drive (motive) to get a drink. You get a drink (behavior) that quenches (consequence and satisfaction) your thirst. However, if you could not get a drink, or a drink of what you really wanted, you would be dissatisfied. Satisfaction is usually short-lived. Getting that drink satisfied you, but sooner or later you will need another drink. For this reason, the motivation process has a feedback loop. See Exhibit 3.5 for an illustration of the motivation process.

Some need or want motivates all behavior. However, needs and motives are complex: We don’t always know what our needs are, or why we do the things we do. Have you ever done something and not known why you did it? Understanding needs will help you bet- ter understand motivation and behavior, or you will gain a better understanding of why people do the things they do for their rational self-interest.29

Like traits, motives cannot be observed, but you can observe behavior and infer what the person’s motive is (attribution theory). However, it is not easy to know why people behave the way they do, because people do the same things for different reasons. Also, people often attempt to satisfy several needs at once. Thus, a one-size-fits-all assumption about what motives people doesn’t work.30

Behavior Consequence Satisfaction or DissatisfactionMotiveNeed

Feedback

The Motivation Process EXHIBIT 3.5

© C

en ga

ge

Le ar

ni ng

®

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80 part 1 InDIvIDUaLS aS LEaDErS

an Overview of three Major Classifications of Motivation theories There is no single, universally accepted theory of how to motivate people, or how to classify the theories. We will discuss motivation theories and how we can use them to motivate ourselves and others. In the following sections, you will learn about content mo- tivation theories, process motivation theories, and reinforcement theory. See Exhibit 3.6 for this classification, which is commonly used, with a listing of major motivation theo- ries you will learn.

After studying all of the theories separately, we can put them back together using the unifying motivation process to see the relationship between the theories. You can select one theory to use, or take from several to make your own theory, or apply the theory that best fits the specific situation.

2. What does trader Joe’s do to motivate its employees, and how does it affect performance?

Trader Joe’s primary motivator is creating an innovative fun environment to work in with good pay and benefits. Providing good compensation with above industry average salaries and great benefits to full-time crew members and store manage- ment (mates, commanders, captains) allows Trader Joe’s to hire highly self-motivated crew members.

Employees are motivated and provide a high-quality customer experience. The results are more than $8 billion in sales with around 400 stores in 30 states. Sales are estimated at $1,750 in merchandise per square foot, more than double Whole Foods. Trader Joe’s has no debt and funds all growth from its own profits.31

OPENING CASE application

Discuss similarities and differences among the three content motivation theories.Learning Outcome 4

Content Motivation Theories Before we present the content motivation theories, let’s discuss content motivation the- ories in general. Content motivation theories focus on explaining and predicting behavior based on people’s needs. The primary reason people do what they do is to meet their needs or wants—to be satisfied. Thus, it is important to understand needs (content motivation) theory. People want job satisfaction, and they will leave one organization for another to meet this need.32 The key to successful leadership is to meet the needs of employees while achieving organizational objectives.

hierarchy of Needs theory In the 1940s, Abraham Maslow developed his hierarchy of needs theory, which is based on four major assumptions. (1) Only unmet needs motivate. (2) People’s needs are ar- ranged in order of importance (hierarchy) going from basic to complex needs. (3) People will not be motivated to satisfy a higher-level need unless the lower-level need(s) has been at least minimally satisfied. (4) Maslow assumed that people have five classifica- tions of needs, which are presented here in hierarchical order from low to high level of need.33

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 81

Hierarchy of Needs The hierarchy of needs theory proposes that people are motivated through five levels of needs—physiological, safety, belongingness, esteem, and self-actualization:

1. Physiological needs: These are people’s primary or basic needs: air, food, shelter, sex, and relief from or avoidance of pain.

2. Safety needs: Once the physiological needs are met, the individual is concerned with safety and security.

3. Belongingness needs: After establishing safety, people look for love, friendship, ac- ceptance, and affection. Belongingness is also called social needs.

4. Esteem needs: After the social needs are met, the individual focuses on ego, status, self-respect, recognition for accomplishments, and a feeling of self-confidence and prestige.

5. Self-actualization needs: The highest level of need is to develop one’s full potential. To do so, one seeks growth, achievement, and advancement.

EXHIBIT 3.6 Major Motivation Theories

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CLaSSIFICatION OF MOtIVatION theOrIeS SpeCIFIC MOtIVatION theOrY

1. Content motivation theories focus on explaining and predicting behavior based on employee need motivation.

A. Hierarchy of needs theory proposes that employees are motivated through five levels of need— physiological, safety, social, esteem, and self- actualization.

B. Two-factor theory proposes that employees are motivated by motivators (higher-level needs) rather than maintenance (lower-level needs) factors.

C. Acquired needs theory proposes that employees are motivated by their need for achievement, power, and affiliation.

2. Process motivation theories focus on understanding how employees choose behaviors to fulfill their needs.

A. Equity theory proposes that employees will be motivated when their perceived inputs equal outputs.

B. Expectancy theory proposes that employees are motivated when they believe they can accomplish the task, they will be rewarded, and the rewards for doing so are worth the effort.

C. Goal-setting theory proposes that achievable but difficult goals motivate employees.

3. Reinforcement theory proposes that behavior can be explained, predicted, and controlled through the consequences for behavior.

Types of Reinforcement

• Positive

• Avoidance

• Extinction

• Punishment

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82 part 1 InDIvIDUaLS aS LEaDErS

Maslow’s hierarchy of needs is commonly taught in psychology and business courses, because it offers a very rich theory of human motivation and its determinants at the in- dividual level. However, Maslow’s work was criticized because it did not take into con- sideration that people can be at different levels of needs based on different aspects of their lives. Nor did he mention that people can revert back to lower-level needs. Today, Maslow’s followers and others realize that needs are not on a simple five-step hierarchy. Maslow’s assumptions have recently been updated to reflect this insight, and many orga- nizations today are using some of the management methods he proposed 30 years ago. Maslow has also been credited with influencing many management authors, including Douglas McGregor, Rensis Likert, and Peter Drucker.

Motivating Employees with Hierarchy of Needs Theory An important contribution of this theory is that we realize that people have a need for more than just pay. Second, even if we don’t have much money to give raises, we can have inexpensive socials, like barbecues, and there is no cost to giving compliments.34 Also, employees are more motivated when they perceive the organization supports them, which again does not have to be costly.

People want to fulfill higher-level needs,35 including self-esteem and recognition from peers,36 so a major recommendation to leaders is to meet employees’ lower-level needs so that they will not dominate the employees’ motivational process. You should get to know and understand people’s needs and meet them as a means of increasing performance. See Exhibit 3.7 for a list of ways in which managers attempt to meet all five needs.

WORK Application 3-4 On what level of the hierarchy of needs are you at this time for a specific aspect of your life (professional or personal)? Be sure to specify the level by name, and explain why you are at that level.

3-a. how does trader Joe’s meet its employees’ content motivation needs?

Trader Joe’s allows people to climb the hierarchy of needs. As stated in opening case answer to question 2, it pays well with great working conditions (physiological), with great benefits (safety). There is continual employee and customer contact (social). The job itself is interesting and challenging, with participation in decision making and employee development with opportunity for advancement through the Career Adventure path (esteem and self-actualization).

OPENING CASE application

two-Factor theory In the 1960s, Frederick Herzberg published his two-factor theory.37 Herzberg combined lower-level needs into one classification he called hygiene or maintenance; and higher- level needs into one classification he called motivators. The two-factor theory proposes that people are motivated by motivators rather than maintenance factors. Before you learn about two-factor theory, complete Self-Assessment 3-3.

Maintenance—Extrinsic Factors Maintenance factors are also called extrinsic motivators because motivation comes from outside the person and the job itself.38 Extrinsic motivators include pay, job security, working conditions, fringe benefits, and relationships. These factors are related to meet- ing lower-level needs. Review Self-Assessment 3-3, the even-numbered questions, for a list of extrinsic job factors.

Motivators—Intrinsic Factors Motivators are called intrinsic motivators because motivation comes from within the person through the work itself.39 Intrinsic motivators include achievement, recognition,

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 83

EXHIBIT 3.7 How Organizations Motivate With Hierarchy of Needs Theory

Safety Needs

Organizations meet these needs through safe working conditions, salary increases to meet inflation, job security, and fringe benefits (medical insurance/sick pay/

pensions) that protect the physiological needs.

Self-Actualization Needs

Organizations meet these needs by the development of

employees’ skills, the chance to be creative, achievement and

promotions, and the ability to have complete control over their jobs.

Social Needs

Organizations meet these needs through the opportunity to interact with others, to be accepted, to have friends. Activities include parties,

picnics, trips, and sports teams.

Physiological Needs

Organizations meet these needs through adequate salary, breaks, and working conditions.

Esteem Needs

Organizations meet these needs through titles, the satisfaction of completing the job itself, merit pay

raises, recognition, challenging tasks, participation in decision making, and change for advancement.

Job Motivators and Maintenance FactorsSELF-ASSESSMENT 3-3

here are 12 job factors that contribute to job satisfaction. rate each according to how important it is to you by placing a number from 1 to 5 on the line before each factor.

very Somewhat not important important important

5 4 3 2 1

1. An interesting job I enjoy doing 2. A boss who treats everyone the same

regardless of the circumstances

3. Getting praise and other recognition and appreciation for the work that I do

4. A job that is routine without much change from day to day

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(continued)

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84 part 1 InDIvIDUaLS aS LEaDErS

challenge, and advancement. These factors are related to meeting higher-level needs, and are better at motivating than extrinsic factors.40 Review Self-Assessment 3-3, the odd- numbered questions, for a list of intrinsic job factors.

Herzberg’s Two-Factor Motivation Model Based on research, Herzberg and associates disagreed with the traditional view that sat- isfaction and dissatisfaction were at opposite ends of one continuum (a one-dimensional model). There are two continuums: not dissatisfied with the environment (maintenance) to dissatisfied, and satisfied with the job itself (motivators) to not satisfied (a two- dimensional model). See Exhibit 3.8 for Herzberg’s motivation model.

Job Motivators and Maintenance Factors (continued)SELF-ASSESSMENT 3-3

5. The opportunity for advancement 6. A nice title regardless of pay 7. Job responsibility that gives me freedom to

do things my way 8. Good working conditions (safe environ-

ment, cafeteria, etc.) 9. The opportunity to learn new things 10. An emphasis on following the rules, regula-

tions, procedures, and policies 11. A job I can do well and succeed at 12. Job security; a career with one company

For each factor, write the numbers from 1 to 5 that represent your answer. total each column (should be between 6 and 30 points).

Motivating factors Maintenance factors

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

totals Did you select motivators or maintenance factors as being more important to you? the closer to 30 (6) each score is, the more (less) important it is to you. Continue reading to understand the difference between motivators and maintenance factors.

High Low

Maintenance Factors

(extrinsic motivators—physiological, safety, and social needs—existence and relatedness needs) pay, benefits, job security, working conditions, company policies, human relations

Dissatised(with the Maintenance Factors)Not Dissatised

Motivator Factors

(intrinsic motivators—esteem and self-actualization needs—growth needs) work itself, recognition, achievement, increased responsibility, growth, advancement

Not Satised (not motivated)

(with the Job Motivator Factors)Satised (motivated)

Two-Factor Motivation Theory EXHIBIT 3.8

Source: Adapted from F. Herzberg. “The Motivation-Hygiene Concept and Problems of Manpower.” Personnel Administrator : 3–7 (1964); and F. Herzberg. “One More Time: How Do You Motivate Employees?” Harvard Business Review (January–February 1967):53.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 85

Employees are on a continuum from dissatisfied to not dissatisfied with their en- vironment. Herzberg contends that providing maintenance factors will keep employ- ees from being dissatisfied, but it will not make them satisfied or motivate them. For example,

Herzberg believes that if employees are dissatisfied with their pay and they get a raise, they will no longer be dissatisfied. However, before long people get accustomed to the new standard of living and will become dissatisfied again. Employees will need another raise to not be dissatisfied again. The vicious cycle goes on. So, Herzberg says you have to focus on motivators.

Money as a Motivator The current view of money as a motivator is that money matters more too some people than others, and that it may motivate some employees but not others. Money, however, does not necessarily motivate employees to work harder. Have you ever gotten a raise? Were you more motivated and more productive? Money also is limited in its ability to motivate. For example, many commissioned workers get to a comfortable point and don’t push to make extra money; and some employees get to the point where they don’t want overtime work, even though they are paid two or three times their normal wage for overtime.

Motivating Employees with Two-Factor Theory Under the old management paradigm, money (and other extrinsic motivators) was con- sidered the best motivator. Under the new leadership paradigm, pay is important, but it is not the best motivator; intrinsic motivators are.41 Herzberg’s theory has been criticized for having limited research support. However, current research does support that making work more meaningful increases motivation and performance.42

Herzberg fits the new paradigm: He said that managers must first ensure that the employees’ level of pay and other maintenance factors are adequate. Once employ- ees are not dissatisfied with their pay (and other maintenance factors), they can be

WORK Application 3-5 Recall a present or past job; are you or were you dissatisfied or not dissatisfied with the maintenance factors? Are or were you satisfied or not satisfied with the motivators? Be sure to identify and explain your satisfaction with the specific maintenance and motivator factors.

3-b. how does trader Joe’s meet its employees’ content motivation needs?

Related to two-factor theory, although Trader Joe’s offers great pay and benefits (maintenance), its focus is really more on motivators so employees can grow and meet their high-level needs of esteem and self-actualization. Its motto is “Where fun, food and opportunity align.” The Trader Joe’s Career Adventure (career path) has three levels.

1. Store Crew members do a little of everything—run registers, stock shelves, merchandise products, and chat up terrific customers. They have the opportunity to advance.

2. Store Leadership. Leaders are out on the store floor with their customers and crew creating a WOW! experience. Store leadership begins at the Novitiate level (entry-level supervisor). They participate in all aspects of managing a Trader Joe’s.

3. Store Management includes working up to becoming a 2nd and 1st Mate (assistant store managers) to Commander and Captain (store managers). There is also a Regional Mobile Thriver (RMT) Training Program for fast-tracking experienced and relocatable retail store managers through its promote-from-within structure.

OPENING CASE application

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86 part 1 InDIvIDUaLS aS LEaDErS

motivated through their jobs. Herzberg also developed job enrichment, the process of building motivators into the job itself by making it more interesting and challenging. Job enrichment methods are commonly used today.43 Job enrichment has been used successfully to motivate employees to higher levels of performance at many organiza- tions,44 including AT&T, GM, IBM, Maytag, Monsanto, Motorola, Polaroid, and the Traveler’s.

acquired Needs theory acquired needs theory proposes that people are motivated by their need for achieve- ment, power, and affiliation. This is essentially the same definition given for achievement motivation theory in Chapter 2. It is now called acquired needs theory because David McClelland was not the first to study these needs. Because other management writers call McClelland’s theory acquired needs theory, a general needs theory was developed by Henry Murray, then adapted by John Atkinson, and David McClelland.45 You have al- ready learned about McClelland’s work, so we will be brief here.

Acquired needs theory says that all people have the need for achievement, power, and affiliation but to varying degrees. McClelland’s affiliation need is essentially the same as Maslow’s belongingness need; and power and achievement are related to esteem, self- actualization, and growth. McClelland’s motivation theory does not include lower-level needs for safety and physiological needs. Here are some ideas for motivating employees based on their dominant needs:

• Motivating employees with a high n Ach. Give them nonroutine, challenging tasks with clear, attainable objectives. Give them fast and frequent feedback on their performance. Continually give them increased responsibility for doing new things. Keep out of their way.

• Motivating employees with a high n Pow. Let them plan and control their jobs as much as possible. Try to include them in decision making, especially when they are affected by the decision. They tend to perform best alone rather than as team members. Try to assign them to a whole task rather than just part of a task.

• Motivating employees with a high n Aff. Be sure to let them work as part of a team. They derive satisfaction from the people they work with rather than the task itself. Give them lots of praise and recognition. Delegate responsibility for orienting and training new employees to them. They make great buddies and mentors.

WORK Application 3-6 Explain how your need for achievement, power, and/or affiliation has affected your behavior, or that of someone you work with or have worked with. What were the consequences of the behavior, and was the need satisfied?

3-c. how does trader Joe’s meet its employees’ content motivation needs?

Trader Joe’s does help employees meet all three acquired needs. It provides support they can do a good job, and it has a career path so that employees can achieve their goal of advancing. They have the power to be in control at the crew, leader, and manager positions. Employees are also encouraged to develop an affiliation with employees and customers.

OPENING CASE application

Before we discuss the need to balance professional and personal needs, see Exhibit 3.9 for a comparison of the three content theories of motivation.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 87

A Comparison of Content Motivation Theories

Self-Actualization

Esteem

Belongingness

Safety

Physiological

Needs must be met in a hierarchical order.

Motivators

Motivators

Maintenance

Maintenance

Maintenance

Maintenance factors will not motivate employees.

Achievement and Power

Achievement and Power

Affiliation

Not classified

Not classified

Employees must be motivated differently based on their acquired needs.

HIERARCHY OF NEEDS THEORY (MASLOW)

TWO-FACTOR THEORY (HERZBERG)

ACQUIRED NEEDS THEORY (MCCLELLAND)

EXHIBIT 3.9

Balancing Work–Life Needs Work–life balance is also called work–home and work–family balance. As discussed, we all have personal life needs and we have work needs, and both needs overlap and influ- ence each other. We need a healthy balance between our life and our work. However, with organizations working around the clock competing in a global marketplace, with a focus on getting more done with fewer people, and with technology making it easy to check our cell phones and work all hours of the day and night from anywhere, life and work are blurring together for many people. Negative consequences of imbalance (often called work–life conflict) include stress, burnout, absenteeism, turnover, and dissatisfac- tion with job, family, and life. Balance is a much sought-after, but rarely claimed, state of being.

Two major things organizations are doing to help employees meet their personal needs are providing on-site day care centers—or giving employees information to help them find good day and elder care—and offering flextime.46 Some leaders are also telling em- ployees to go home and “get a life” before it is too late.

Discuss the major similarities and differences among the three process motivation theories.

Learning Outcome 5

Process Motivation Theories process motivation theories focus on understanding how people choose behavior to fulfill their needs. Process motivation theories are more complex than content motivation theories. Content motivation theories simply focus on identifying and understanding people’s needs. Process motivation theories go a step further by attempting to understand the following: why people have different needs, why their needs change, how and why people choose to try to satisfy needs in different ways, the mental processes people go through as they understand situations, and how they evaluate their need satisfaction.

In this section you learn about three process motivation theories: equity theory, expec- tancy theory, and goal-setting theory.

equity theory Do you want to be treated fairly? If we perceive organizational decisions and managerial actions, such as pay, to be unfair or unjust, we are likely to experience feelings of anger, outrage, and resentment.47 Conversely, if we believe we are being treated fairly, we are

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88 part 1 InDIvIDUaLS aS LEaDErS

more willing to accept managerial authority.48 Equity theory is primarily J. Stacy Adams’s motivation theory, in which people are said to be motivated to seek social equity in the rewards they receive (output) for their performance (input).49 equity theory proposes that people are motivated when their perceived inputs equal outputs.

Rewarding People Equitably Through the equity theory process, people compare their inputs (effort, experience, loy- alty, commitment, seniority, etc.) and outputs (financial compensation and intangibles of praise, recognition, etc.) to that of relevant others.50 A relevant other could be a co- worker or group of employees from the same or different organizations, or even from a hypothetical situation. Notice that our definition says perceived and not actual inputs to outputs. Others may perceive that equity actually exists and that the person complaining about inequity is wrong.

Equitable distribution of pay is crucial to organizations.51 Unfortunately, many em- ployees tend to inflate their own efforts or performance when comparing themselves to others. Employees also tend to overestimate what others earn. A comparison with rel- evant others leads to one of three conclusions: The employee is under-rewarded, over-re- warded, or equitably rewarded. When inequity is perceived, employees attempt to correct the balance by reducing input (e.g., put forth less effort) or increasing output (e.g., get a raise).

Motivating with Equity Theory People who believe they are over-rewarded usually don’t change their behavior. Instead, they often rationalize that they deserve the outputs. One view of equity is that it is like Herzberg’s maintenance factors. When employees are not dissatisfied, they are not ac- tively motivated, but maintenance factors do demotivate when employees are dissatisfied. According to equity theory, when employees believe they are equitably rewarded, they are not actively motivated. However, when employees believe they are under-rewarded, or not being treated fairly, they are demotivated.52 Unethical leaders tend to be viewed as unfair.53 Using equity theory in practice can be difficult, because you don’t always know who the employee’s reference group is, or his or her view of inputs and outcomes. How- ever, this theory does offer some useful general recommendations: Be aware that equity is based on perception, do reward equitably, and be sure to reward high performers so they don’t decrease their performance.

WORK Application 3-7 Give an example of how equity theory has affected your motivation, or that of someone else you work with or have worked with. Be sure to specify if you were under-rewarded, over-rewarded, or equitably rewarded.

4-a. how does trader Joe’s meet its employees’ process motivation needs?

Trader Joe’s treats all employees with equity. The management style is participative so everyone shares in the management at each store. Employees who put in the effort (inputs) to climb the corporate ladder have potential rewards (outputs). However, not everyone is expected to move to leadership and store management. But even the part-time crew get good pay and benefits—yes, health insurance for all.

OPENING CASE application

expectancy theory Expectancy theory is based on Victor Vroom’s formula: motivation = expectancy × in- strumentality × valence.54 expectancy theory proposes that people are motivated when they believe they can accomplish the task, they will get the reward, and the rewards for doing the task are worth the effort. The theory is based on the following assumptions:

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 89

Both internal (needs) and external (environment) factors affect behavior; behavior is the individual’s decision; people have different needs, desires, and goals; and people make behavior decisions based on their perception of the outcome.

Three Variables All three variable conditions must be met in Vroom’s formula for motivation to take place:

• Expectancy refers to the person’s perception of his or her ability (probability) to accom- plish an objective—self-efficacy.55 Generally, the higher one’s expectancy, the better the chance for motivation. When we do not believe that we can accomplish objectives, we will not be motivated to try.56

• Instrumentality refers to belief that the performance will result in getting the reward. If employees are certain to get the reward, they probably will be motivated. When not sure, employees may not be motivated.

• Valence refers to the value a person places on the outcome or reward. Generally, the higher the value (importance) of the outcome or reward, the better the chance of motivation.

Motivating with Expectancy Theory The following conditions should be implemented to make expectancy theory result in motivation:

1. Clearly define objectives and the performance necessary to achieve them.57 2. Tie performance to rewards. High performance should be rewarded. When one

employee works harder to produce more than other employees and is not rewarded, he or she may slow down productivity.

3. Be sure rewards are of value to the employee. Managers should get to know employees as individuals. Develop good human relations as a people developer.

4. Make sure our employees believe we will do what we say we will do. For example, employees must believe we will give them a merit raise if they do work hard.

5. Founder of Walmart Sam Walton said, “High expectations are the key to every- thing.” So use the Pygmalion effect (Chapter 2) to increase expectations. Your high expectations can result in follower self-fulfilling prophecy. As the level of expectation increases, so will performance.

WORK Application 3-8 Give an example of how expectancy theory has affected your motivation, or that of someone else you work with or have worked with. Be sure to specify the expectancy and valence.

4-b. how does trader Joe’s meet its employees’ process motivation needs?

Trader Joe’s focuses on attracting people who have the expectancy that they can be successful at the level of their choice, and it provides the training to help them succeed as store crew, leader, and manager. Employees know that if they do a good job they will get rewarded (instrumentality). The valence of employees does vary, but as discussed, Trader Joe’s offers good pay and benefits.

OPENING CASE application

Goal-Setting theory Based on his extensive research, goal-setting theory is primarily attributed to Edwin Locke. Goal-setting theory proposes that specific, difficult goals motivate people. Goal setting increases commitment, motivation, energy, and persistence toward goals.58

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90 part 1 InDIvIDUaLS aS LEaDErS

Criteria for Objectives For an objective to be effective, it should include the four criteria listed in steps 3 and 4 of the writing objectives model:

1. Singular result. To avoid confusion, each objective should contain only one end result. When multiple objectives are listed together, one may be met but the other(s) may not.

2. Specific. The objective should not be vague, such as to learn a lot in this leadership course. It should state the exact level of performance expected, such as to get an A.

3. Measurable. The saying “what gets measured gets done” is true. If people are to achieve objectives, they must be able to observe and measure their progress regularly to monitor progress and to determine if the objective has been met.

4. Target date. A specific date should be set for accomplishing the objective. When peo- ple have a deadline, they usually try harder to get the task done on time.60 If people are simply told to do it when they can, they don’t tend to “get around to it” until they have to. It is also more effective to set a specific date, such as October 29, 2015, rather than a set time, such as in two weeks, because you can forget when the time began and should end. However, some objectives are ongoing and do not require a stated date. The target date is indefinite until it is changed, such as the Domino’s objective to deliver pizza within 30 minutes.

WORK Application 3-9 1. Using the writing objectives model, write one or more objectives for an organization you work for or have worked for that meet the criteria for objectives.

2. Give an example of how a goal(s) affected your motivation and performance, or those of someone else you work with or have worked with.

Writing Objectives To help you to write effective objectives that meet the criteria you will learn next, use the model. The parts of the writing objectives model are (1) To + (2) action verb + (3) singular, specific, and measurable result to be achieved + (4) target date. This is shown in Model 3.1, with and objective, that is adapted from Max E. Douglas’s model.

(1) To + (2) action verb + (3) singular, specific, and measurable result to be achieved + (4) target date.

1 2 3 4

Buffalo Wild Wings

To open 1,700 stores by year end 202059

Writing Effective Objectives Model MODEL 3.1

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 91

In addition to the four criteria from the model, there are three other criteria that do not always fit within the model:

1. Difficult but achievable. Research shows that individuals perform better with chal- lenging objectives rather than (1) easy objectives, (2) objectives that are too difficult, or (3) simply told “do your best.”61

2. Participatively set. People that participate in setting their objectives generally outper- form those that are assigned objectives, because it helps gain commitment.62

3. Commitment. For objectives to be met, employees must accept them. If employees are not committed to striving for the objective, even if they meet the other criteria, they may not meet the objective.63

Microsoft Microsoft has a long tradition of having individuals set goals as part of its high perfor- mance–based culture. All employees are trained to set “SMART” (Specific, Measurable, Achievable, Results-based, and Time-specific) written goals. Managers are trained to as- sist in the goal-setting process, including how to provide relevant performance feedback during the review process.

YOU Make the ethICaL Call

3.1 Academic Standards

Lou Holtz, former successful Notre Dame football coach, said that the power of goal setting is an incredible motivator for high performance; to be successful we need to set a higher goal. Have colleges followed his advice? Have academic standards dropped, main- tained, or increased over the years?

The academic credit-hour system was set many years ago to establish some formal standardization across colleges throughout the country so that academics and employers had the same expectations of the workload that a college student carried to earn a de- gree. This also allowed students to transfer credit from one university to another, assuming the same standards were met.

The credit-hour system was set at students doing two hours of preparation for each hour of in-class time. So, a student taking five classes should spend 15 hours in class and 30 hours preparing for class, or a total of 40+ hours per week—which is a full-time schedule.

1. How many hours outside of class, on average, do you and other students use to pre- pare for class each week?

2. Are college professors throughout the country assigning students two hours of prep- aration for every hour in class today? If not, why have they dropped the standard?

3. Are students who are putting in part-time hours (20–30 hours) during college being well prepared for a career after graduation (40–60 hours)?

4. Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees for doing less work today than 5, 10, or 20 years ago?

Using Goal Setting to Motivate employees Need we say anything more about setting objectives besides to follow the guidelines above? Yes. Setting a goal is just the first step; the next step is just as important as we need to plan how we will accomplish it.64 Relying on willpower is a horrible strategy; it’s doomed to fail,

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92 part 1 InDIvIDUaLS aS LEaDErS

Reinforcement Theory B. F. Skinner, reinforcement motivation theorist, contended that to motivate employees it is really not necessary to identify and understand needs (content motivation theories), or to understand how employees choose behaviors to fulfill them (process motivation theories). All the manager needs to do is understand the relationship between behaviors and their consequences, and then arrange contingencies that reinforce desirable behaviors and dis- courage undesirable behaviors.65 reinforcement theory proposes that through the con- sequences for behavior, people will be motivated to behave in predetermined ways.

Let’s face it; all organizations develop systems to control employee behavior,66 and that is what reinforcement theory is all about. Reinforcement theory uses behavior modifica- tion (apply reinforcement theory to get employees to do what you want them to do) and operant conditioning (types and schedules of reinforcement). Skinner stated that behav- ior is learned through experiences of positive and negative consequences. Employees learn what is, and is not, desired behavior as a result of the consequences for specific behavior. The three components of Skinner’s framework are shown with an example in Exhibit 3.10.

In this section, we have five subsections, as we discuss the two important concepts used to modify behavior (1 the types of reinforcement and 2 the schedules of reinforce- ment): 3 that you get what you reinforce, 4 how to motivate using reinforcement, and 5 how to give praise.

and this is why so few people keep their New Year’s resolutions. We will provide details on tying goals and plans in the subsection “Changing Behavior.”

CONCept APPLICATION 3-3

Objectives For each objective, state which “must” criteria is not met. a. singular result c. measurable b. specific d. target date

11. To sell 12 percent more cars and 3 percent more services in 2015

12. To increase sales in 2016

13. To be perceived as the best bar in the Houston area by the end of 2017

14. To write personal objectives within two weeks

15. To double iPad production in China

4-c. how does trader Joe’s meet its employees’ process motivation needs?

Trader Joe’s does use goal-setting theory. One of its ongoing goals is to introduce 10–15 new products a week. Some of the new products are sold nationally, and some are selected by the store to take advantage of local products, such as farm fresh produce.

OPENING CASE application

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 93

types of reinforcement The four types of reinforcement are positive, avoidance, punishment, and extinction. Ex- hibit 3.11 illustrates the four types of reinforcement.

Positive Reinforcement A method of encouraging continued behavior is to offer attractive consequences ( rewards) for desirable performance. Positive reinforcements are pay, promotions, time off, increased status, and so forth. Giving praise is a positive reinforcement, and you will learn how to give praise at the end of this section.

Motivating with rewards. There has been an ongoing debate about using the carrot (reward) or the stick (punishment), and the general consensus is to use rewards (be posi- tive not negative) when possible. Ever heard of the Angry Birds? A big part of its success is that the game gives lots of positive reinforcement, and doesn’t punish players. So when possible, use rewards to motivate yourself and others.

Avoidance Reinforcement Avoidance is also called negative reinforcement. Rules with punishment for violations are designed to get employees to avoid certain behavior. Employees don’t necessar- ily want to follow the rules, but they usually do to avoid the negative consequence of punishment.

Motivating with avoidance. Organizational leaders do need to develop rules, but rules in and of themselves are not a punishment. Punishment is given only if the rule is broken, which we hope will not happen. So note that with avoidance there is no actual punish- ment; it’s the “threat” of the punishment that controls behavior. So when needed, set rules that will contribute to performance.

Punishment Punishment is used to provide an undesirable consequence for undesirable behavior. Methods of punishment include harassing, taking away privileges, probation, fining, de- moting, firing, and so forth.

Motivating with punishment. Punishment is the most controversial and the least effec- tive method in motivating employees to do a good job. Punishment may reduce the undesir- able behavior; but its overuse may cause other undesirable behaviors, such as poor morale, lower productivity, and acts of theft or sabotage. However, leaders need to enforce the rules, so there are times when only punishment will do. So punish when rules are broken.

Explain the four types of reinforcement.Learning Outcome 6

Components of Reinforcement Theory EXHIBIT 3.10

Stimulus (legal speed limit)

Responding Behavior (speed)

Consequences of Behavior— Reinforcement (Police of�cer gives speeder a negative consequence— ticket or fine—to discourage repeat performance.)

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94 part 1 InDIvIDUaLS aS LEaDErS

Extinction Rather than encourage desirable behavior, extinction (and punishment) attempts to reduce or eliminate undesirable. Extinction also includes ignoring the behavior to get the employee to stop it. From another perspective, managers who do not reward good performance can cause its extinction. In other words, if you ignore good employee performance, good performance may stop because employees think, “Why should I do a good job if I’m not rewarded in some way?”

Motivating with extinction. When employees don’t earn rewards, withhold them. For example, the manager may withhold a reward of value, such as a pay raise, until the employee performs to set standards. Also, don’t ignore good performance.

YOU Make the ethICaL Call

3.2 Airlines

An airline often charges higher fares for one-way tickets than round-trip tickets, and for direct flight tickets to its hub than for flight connections from its hub to another destina- tion. So some travelers buy round-trip tickets and only go one way, and some end their travel at the hub instead of taking the connection (a “hidden city” itinerary), to save money. The airlines call this breach of contract: They have punished travel agencies for tickets that aren’t properly used, they sometimes demand higher fares from travelers caught, and they have seized some travelers’ frequent-flier miles, saying they were fraudu- lently obtained.

1. Not using the full travel of a ticket breaks airline rules but not the law, so it’s not illegal, unless travelers lie about what they are doing. But is it ethical and socially responsible behavior of travelers?

2. Is it ethical and socially responsible for airlines to charge more for less travel?

3. Is it ethical and socially responsible to punish people who break the ticket rules?

4. Is reinforcement theory effective (does it motivate you and others) in today’s global economy?

5. Is reinforcement theory ethical and socially responsible, or is it manipulative?

Schedules of reinforcement The second reinforcement consideration in controlling behavior is determining when to reinforce performance. The two major schedule classifications are continuous and intermittent.

Continuous Reinforcement With a continuous method, each and every desired behavior is reinforced. Examples of this method would be a machine with an automatic counter that lets the employee know (at any given moment) exactly how many units have been produced, and a sales rep who gets a commission on every sale.

Motivating with a continuous schedule. Continuous reinforcement is generally better at sustaining desired behavior. It works well as an incentive to produce. For example, a piece rate reward of $1 for each unit produced or a 10 percent commission on every sale.

Intermittent Reinforcement The reward is given based on the passage of time or output. When the reward is based on the passage of time, it is called an interval schedule. When it is based on output, it is

WORK Application 3-10 Give one or more examples of the types of reinforcement, and the schedules used, on a present or past job.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 95

called a ratio schedule. When electing to use intermittent reinforcement, you have four alternatives:

1. Fixed interval schedule. Giving a salary paycheck every week, or breaks and meals at the same time every day

2. Variable interval schedule. Giving praise only now and then, a surprise inspection, or a pop quiz

3. Fixed ratio schedule. Giving a piece rate or bonus after producing a standard rate 4. Variable ratio schedule. Giving praise for excellent work, or a lottery for employees

who have not been absent for a set amount of time

Motivating with an intermittent schedule. Continuous reinforcement is not always possible or practical, such as with giving praise. To be more effective, praise is generally only given for exceptional, not routine, performance. Otherwise, it becomes routine and tends to lose its effect. Ratios are generally better motivators than intervals. The variable ratio tends to be the most powerful schedule for sustaining behavior.

You Get What You reinforce One of the important things you should learn in this course is that people will do what they are reinforced for doing. People seek information concerning what activi- ties are reinforced, and then seek to do (or at least pretend to do) those things, of- ten to the exclusion of activities not reinforced. The extent to which this occurs, of course, depends on the attractiveness of the rewards offered and the punishment for the behavior.

For example, if the professor says, “A, B, and C from this chapter are important and I’ll test you on them, but X, Y, and Z will not be on the test,” will students spend equal time studying both groups of material? In the business setting, if the manager repeat- edly says quality is important, but there is no reward for taking the time and effort to do a quality job, or punishment for poor quality, many employees will not really care about quality.

Types of Reinforcement EXHIBIT 3.11

As a manager, you have an assistant who makes many errors when completing correspondence. Your objective, which you discussed with the assistant, is to decrease the error rate by 50 percent by Friday, June 3, 2016. Based on the assistant’s performance at that time, you have four types of reinforcement that you can use with her when you next review her work.

EMPLOYEE BEHAVIOR MODIFICATION (FUTURE)

MANAGER ACTION (CONSEQUENCE)

TYPE OF REINFORCEMENT

EMPLOYEE BEHAVIOR

Improved performance Positive Praise improvements Repeat quality work*

Improved performance Avoidance Do not give any reprimand Repeat quality work

Performance not improved Extinction Withhold praise/raise Do not repeat poor work

Performance not improved Punishment Discipline action, such as a written warning

Do not repeat poor work

*Assuming the employee improved performance, positive reinforcement is the best motivator.

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96 part 1 InDIvIDUaLS aS LEaDErS

Motivating with reinforcement General Guides Here are some general guidelines for using reinforcement:

1. Make sure employees know exactly what is expected of them. Set clear objectives— goal-setting theory.

2. Select the appropriate type of reinforcement. A reward may work better for some, and avoidance, punishment, or extinction for others. Know your employees’ needs.

3. Select the appropriate reinforcement schedule—continuous in some situations and intermittence in others.

4. Do not reward mediocre or poor performance (use extinction), and punish rule violators.

5. Look for the positive and give praise, rather than focus on the negative and criticize. Listen to people and make them feel good about themselves (Pygmalion effect).

6. Never go a day without giving sincere praise. 7. Do things for your employees, instead of to them, and you will see productivity increase.

Changing Behavior If we are going to change our behavior, we need to retrain our brain to form new habits by conditioning ourselves to new behavior. Here are some tips on using reinforcement to change our behavior. The tips include a personal example, which is the same process as for professional behavior changes.

1. Begin by setting an objective using goal-setting theory. For example, to get into shape by working out three days a week for 30 minutes starting (list a specific date).

2. Specify the who, what, when, where, and how of your plan. I will go to the gym (or walk from my home) every Monday, Wednesday, and Friday at 6:00 a.m. before going to school/work.

3. Next, further develop the plan by implementing the following ideas within your over- all plan. • Reduce other life stress, if possible, so you can focus on your new behavior without

distractions. I’m going to stop my relationship with Chris. • Think in advance about what might cause you to slip and plan how you can avoid

those things. Why would you skip a workout? • Expect setbacks and slips and how you will bounce back as part of your plan. The

next tip can help. • Plan your reinforcement. Have punishments for undesirable behavior. If I skip a

workout, I will not watch TV that day, or I will make it up on another day. Have rewards for desired behavior. After working out for the three days of the week, I will treat myself to an ice cream.

Giving praise Pay is not the only, nor necessarily the best, reinforcer for performance. Employees want to know that their organization values their contributions and cares about their well-be- ing. Giving praise sends this message as it develops a positive self-concept in employ- ees and leads to better performance—the Pygmalion effect and self-fulfilling prophecy. Praise is a motivator (not maintenance) because it meets employees’ needs for esteem and self-actualization, growth, and achievement. Giving praise creates a win–win situation, only takes a minute, and doesn’t cost anything. It is probably the most powerful, simplest, least costly, and yet most underused motivational technique there is.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 97

Ken Blanchard and Spencer Johnson popularized giving praise back in the 1980s through their best-selling book, The One-Minute Manager. They developed a technique that involves giving one-minute feedback of praise. Model 3.2, Giving Praise, is an ad- aptation. The steps in the giving praise model are (1) Tell the employee exactly what was done correctly. (2) Tell the employee why the behavior is important. (3) Stop for a mo- ment of silence. (4) Encourage repeat performance. Blanchard calls it one-minute praise because it should not take more than one minute to give the praise. It is not necessary for the employee to say anything. The four steps are described below and illustrated in Model 3.2.

Giving Praise Model 3.2

Step 4

Encourage repeat performance.

Step 1

Tell the employee exactly what was done correctly.

Step 2

Tell the employee why the behavior is important.

Step 3

Stop for a moment of silence.

Step 1. Tell the employee exactly what was done correctly. When giving praise, look the person in the eye. Eye con- tact shows sincerity and concern. It is important to be very specific and descriptive. General statements, like “you’re a good worker,” are not as effective.

Step 2. Tell the employee why the behavior is important. Brief ly state how the organization and/or person ben- efits from the action. It is also helpful to tell the em- ployee how you feel about the behavior. Be specific and descriptive.

Step 3. Stop for a moment of silence. Being silent is tough for many managers. The rationale for the silence is to give the employee the chance to “feel” the impact of the praise. It’s like “the pause that refreshes.” When you are thirsty and take the first sip or gulp of a refreshing drink, it’s not until you stop, and maybe say, “Ah,” that you feel your thirst quenched.

Step 4. Encourage repeat performance. This is the reinforce- ment that motivates the employee to continue the de- sired behavior.

As you can see, giving praise is easy, and it doesn’t cost a penny. One supermarket manager stated that an employee was taking his time stacking cans on a display. He gave the employee praise for stack- ing the cans so straight, rather than punishment for working slow. The employee was so pleased with the praise that the display went up with about a 100 percent increase in productivity. Being positive and giving praise first thing in the work day can get employees in a good mood, and it can increase performance.67

In this global environment, it is not always possible to give praise in person, so when you don’t see people face to face, use written commu- nication, including e-mail, instead. The personal handwritten note is considered to be special. Disney CEO Bob Iger writes personal, hand- written notes on Disney stationery to praise employees, even those he has never met. He says that writing a simple note goes a long way with people.

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98 part 1 InDIvIDUaLS aS LEaDErS

5. how does trader Joe’s use reinforcement theory to motivate its employees?

Trader Joe’s uses positive reinforcement with good pay and benefits and its career path opportunities. Sales are on a contin- uous reinforcement schedule as managers know the sales volume throughout the day. Paychecks are given on a fixed interval schedule. Praise and other recognition for accomplishments are given on a variable interval and ratio schedule.

OPENING CASE application

CONCept APPLICATION 3-4

Motivation Theories Identify each supervisor’s statement of how to motivate employees by the theory behind the statement. Write the appropriate letter in the blank before each item. a. hierarchy of needs d. equity f. expectancy b. two-factor e. goal setting g. reinforcement c. acquired needs

16. A manager treats everyone fairly to motivate them.

17. A manager knows Jose likes people, so she gives him jobs working with others.

18. Edie would often make a sound because he knew it bothered the manager. So the manager decided to ignore it.

19. A manager knows employees values so she can offer rewards that will motivate them when they achieve attainable task performance.

20. Shaw retail store offers good working conditions, salaries, and benefits, so Shaw is working at meeting socialization needs by having monthly barbecues.

21. A manager thanks employees using a four-step model for doing a good job everyday.

22. A manager used to focus on improving working conditions, but stopped and now focuses on making the job more interesting and challenging.

23. A manager tells employees what he want them to do, with a tough deadline that is achievable.

24. A manager now realizes that she tends to be autocratic because it helps fill her needs. But now she is giving employees more autonomy on how they do their jobs.

25. A manager motivates employees by giving them more responsibility so they can grow and develop new skills.

State the major differences among content, process, and reinforcement theories.Learning Outcome 7

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Chapter 3 Leadership Behavior and Motivation 99

1. Need

(Unmet need or want to be satisfied at work)

Content Motivation Theories Hierarchy of Needs Theory

Two-Factor Theory Acquired Needs Theory

2. Motive

(Selecting behavior to satisfy need)

Process Motivation Theories Equity Theory

Expectancy Theory Goal-Setting Theory

3. Behavior

(Employee action to satisfy need)

4. Consequence

(Manager behavior and/or natural outcome of employee action)

Reinforcement Theory

5. Satisfaction or Dissatisfaction

(Degree to which the need is met— and for how long—before

dissatisfaction recurs, creating an unmet need)

The Motivation Process with the Motivation Theories

EXHIBIT 3.12 Putting the Motivation Theories Together within the Motivation Process Motivation is important because it helps explain why employ- ees behave the way they do. At this point you may be won- dering: How do these theories fit together? Is one the best? Should I try to pick the correct theory for a given situation? Actually, the groups of theories are complementary; each group of theories refers to a different stage in the motivation process. Each group of theories answers a different question. Content motivation theories answer the question: What needs do employees have that should be met on the job? Process motivation theories answer the question: How do employees choose behavior to fulfill their needs? Reinforcement theory answers the question: What can managers do to get employ- ees to behave in ways that meet the organizational objectives?

In this chapter you learned that the motivation pro- cess went from need to motive to behavior to conse- quence to satisfaction or dissatisfaction. Now let’s make the motivation process a little more complex by incorpo- rating the motivation theories, or answers to the preced- ing questions, into the process. See Exhibit 3.12 for an illustration.

Note that step 4 loops back to step 3 because, accord- ing to reinforcement theory, behavior is learned through consequences. Step 4 does not loop back to steps 1 or 2 be- cause reinforcement theory is not concerned about needs, motives, or satisfaction; it focuses on getting employees to behave in predetermined ways, through consequences pro- vided by managers. Also note that step 5 loops back to step 1 because meeting needs is ongoing; meeting our needs is a never-ending process. Finally, be aware that according to two-factor theory, step 5 (satisfaction or dissatisfaction) is not on one continuum but on two separate continuums (satisfied to not satisfied, or dissatisfied to not dissatis- fied), based on the level of need being met (motivator or maintenance).

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100 part 1 INDIVIDUALS AS LEADERS

Chapter Summary

Key terms

The chapter summary is organized to answer the eight learning outcomes for this chapter.

1 List the University of Iowa leadership styles.

The University of Iowa leadership styles are autocratic and democratic.

2 Describe similarities and differences between the University of Michigan and Ohio State University leadership models.

The University of Michigan and Ohio State University leadership models are similar because they are both based on the same two distinct leadership behaviors, al- though the models use different names for the two be- haviors. The models are different because the University of Michigan model identifies two leadership styles based on either job- or employee-centered behavior. The Ohio State University model states that a leader uses high or low structure and consideration, resulting in four leader- ship style combinations of these two behaviors.

3 Discuss similarities and differences between the Ohio State University Leadership Model and the Leadership Grid.

Both theories are based on the same two leadership be- haviors, but they use different names for the two dimen- sions. The theories are different because the Leadership Grid identifies five leadership styles, with one being mid- dle of the road, whereas the Ohio State model identi- fies four leadership styles. The Leadership Grid also gives each combination of the two-dimensional behaviors one leadership style name.

4 Discuss similarities and differences among the three content motivation theories.

Similarities among the content motivation theories in- clude their focus on identifying and understanding em- ployee needs. The theories identify similar needs but are different in the way they classify the needs. Hierarchy of needs theory includes physiological, safety, belongingness, esteem, and self-actualization needs. Two-factor theory

includes motivators and maintenance factors. Acquired needs theory includes achievement, power, and affiliation needs, and includes no lower-level needs, as the other two theories do.

5 Discuss the major similarities and differences among the three process motivation theories.

The similarity among the three process motivation theo- ries includes their focus on understanding how employ- ees choose behaviors to fulfill their needs. However, they are very different in their perceptions of how employees are motivated. Equity theory proposes that employees are motivated when their perceived inputs equal out- puts. Expectancy theory proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort. Goal-setting theory proposes that achievable, difficult goals motivate employees.

6 Explain the four types of reinforcement.

(1) Positive reinforcement provides the employee with a reward consequence for performing the desired be- havior. (2) Avoidance reinforcement encourages employ- ees to perform the desired behavior to avoid a negative consequence. (3) Extinction reinforcement withholds a positive consequence to get the employee to stop per- forming undesirable behavior. (4) Punishment reinforce- ment gives the employee a negative consequence to get the employee to stop performing undesirable behavior.

7 State the major differences among content, pro- cess, and reinforcement theories.

Content motivation theories focus on identifying and un- derstanding employees’ needs. Process motivation goes a step farther to understand how employees choose behavior to fulfill their needs. Reinforcement theory is not as concerned about employee needs; it focuses on getting employees to do what managers want them to do through the consequences provided by managers for their behavior. The use of rewards is the means of moti- vating employees.

acquired needs theory, 86

content motivation theories, 80

equity theory, 88

expectancy theory, 88

giving praise model, 97

goal-setting theory, 89

hierarchy of needs theory, 81

Leadership Grid, 76

leadership style, 70

motivation Process, 79

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 101

review Questions

1 Why was there a shift from the trait to the behavioral theory paradigm?

2 How is leadership behavior based on traits?

3 What are the University of Iowa leadership styles?

4 What are the University of Michigan leadership styles?

5 What are the Ohio State University leadership styles?

6 What are three important contributions of the University of Michigan and Ohio State University studies?

7 What are the Leadership Grid leadership styles?

8 What are the three important contributions of the Leadership Grid and high-high research?

9 What is motivation, and why is it important to know how to motivate employees?

10 What are the content motivation theories?

11 What are the process motivation theories?

12 What are the types and schedules of reinforcement theory?

motivation process, 79

Ohio State University Leadership Model, 74

process motivation theories, 87

reinforcement theory, 92

two-factor theory, 82

University of Michigan Leadership Model, 72

writing objectives model, 90

The following critical-thinking questions can be used for class discussion and/or as written assignments to develop commu- nication skills. Be sure to give complete explanations for all questions.

1 Which leadership model do you prefer?

2 Do you agree with the University of Michigan model (with two leadership styles) or with the Ohio State model (with four leadership styles)?

3 Do you agree with the Leadership Grid’s claim that the one best leadership style is the team leader (9,9)?

4 Which of the three content motivation theories do you prefer? Why?

5 Which of the three process motivation theories do you prefer? Why?

6 What is your motivation theory? What major methods, techniques, and so on do you plan to use on the job as a manager to increase motivation and performance?

7 Reinforcement theory is unethical because it is used to manipulate employees. Do you agree with this statement? Explain your answer.

8 Which type and schedule of reinforcement do you plan to use most often as a leader?

9 Do you really get what you reinforce? Explain.

Critical-thinking Questions

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102 part 1 InDIvIDUaLS aS LEaDErS

C a S E

Facebook COO Sheryl Sandberg

Sheryl Sandberg is the chief operating officer (COO) at Facebook. Sandberg is second in command and is said to actually manage Facebook as an equal partner with CEO Mark Zuckerberg so that he can focus on what he likes to do: product development and engineering. There has never been an executive like her. Sheryl is the world’s most famous COO and a billionaire best-selling author, and is ranked fifth on the Fortune Most Powerful Women list.68 She tends to use a participative leadership style as she spends much of her time e-mailing and in meetings, with an emphasis on influencing and motivating others to achieve the Facebook mission: to make the world more open and connected.69

Sheryl Sandberg published a thought-provoking book on the role of women in the office and at their home. The book is Sheryl’s attempt to help other women be successful in business. It was an instant best seller and has already generated meaning- ful discussion about the roles of men and women at work.

What is so controversial? Sheryl titled her book Lean In: Women, Work and the Will to Lead. The book is being sold around the world under the following different titles to reflect the meaning of “Lean In” in each country. In France it is En Avant Toutes (“Forward All”), in Italy it is Facciamoci avanti (“Step Forward”), in Spanish it is Vayamos Adelante (“Let’s Go”), and in Brazil it is Faça Acontecer (“Make It Happen”).70

What does “Lean In” mean? Sandberg is calling on other women, as she puts it, to “lean in” and embrace success. Sand- berg feels that “if more women lean in, we can change the power structure of our world and expand opportunities for all. More female leadership will lead to fairer treatment for all women.”71 She also feels the half of the companies around the world should be run by women and half of the houses run by men—which is far from the reality of the situation. 72

Sandberg also states that her success was not just because she worked hard—but that she removed internal barriers that often hold women back. These barriers that women create are a lack of self-confidence, not raising their hands, and by pulling back when they should be leaning in. If women expect to crack the glass ceiling and access more powerful positions at work, they are going to have to Lean In.73

When the book was released, many newspapers and tele- vision disputed the merits of her theory. The first reply was that it is easy for a woman that is wealthy and voted the fifth most powerful woman in the world to say that a woman can be a leader at work and at home.

Is a woman successful if she opts to Lean Out and just be- come a stay-at-home mom? Or, is she less successful if she just has a good middle-level job at work without the high levels of stress often associated with executive-level positions and decisions?

One of the goals of Lean In was to bring women together to discuss the issue. Facebook, and many other social media sites, already have a large number of groups formed that are meet- ing online and in person. You can join the lean in community at www.facebook.com/leaninorg or www.leanin.org.

G O t O t h e I N t e r N e t :   To learn more about Sheryl Sandberg and Facebook, visit their Web sites www.facebook.com.

Support your answers to the following questions with spe- cific information from the case and text or with other informa- tion you get from the Web or other sources.

1. How would Sheryl Sandberg’s leadership style be de- scribed based on the four behavioral leadership styles?

2. How does Sandberg’s book Lean In emphasize the three content motivation theories?

3. How does Sandberg’s book Lean In emphasize the three process motivation theories?

4. Which type and schedule of reinforcement will help women advance in business?

C U M U L at I V e C a S e Q U e S t I O N S

5. How do the five dimensions of our leadership definition (Chapter 1) apply to Sandberg as COO of Facebook?

6. What managerial leadership skills does Sandberg need as COO of Facebook (Chapter 1)?

7. How would you describe Sandberg’s Big Five Personal- ity, and do you believe she has the personality profile of an effective leader (Chapter 2)?

C a S e e X e r C I S e a N D r O L e - p L aY

preparation: Think about reasons why women should and shouldn’t be given more opportunities to advance in organizations. In-Class Groups: Break into groups of four to six members and develop a list of reasons for and against giving women more opportunities for advancement in organizations. role-play: One person (representing him- or herself or a group) gives the reasons for giving women more opportunities to advance, and another to give the reasons against it.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 103

Founded in the late 1800s in Chicago, Washburn Guitars boasts a rich tradition of fine instrument making. Wash-burn Guitars produces a variety of acoustic and electric guitars. Washburn craftsmen also enjoy making custom guitars. In recent years, custom shop production has grown dramati- cally. Having a motivated workforce is essential because guitar making is labor intensive and requires attention to detail.

1. What motivates most employees at Washburn Guitars?

2. What kinds of guitars do employees most like to produce?

3. What is the connection between quality guitars and workforce motivation?

v I D E O C a S E

Motivation at Washburn Guitars

3-1

preparing for this exercise For this exercise, you will first work at improving objectives that do not meet the criteria for objectives. Then you will write nine objectives for yourself. part 1. For each objective below, identify the missing criteria and rewrite the objective so that it meets all essential criteria. When writing objectives, use the model: To + action verb + singular, specific, and measurable result + target date

1 To improve our company image by year-end 2018.

Criteria missing:

Improved objective:

2 To increase the number of customers by 10 percent.

Criteria missing:

Improved objective:

3 To increase profits during 2016.

Criteria missing:

Improved objective:

4 To sell 5 percent more hot dogs and 8 percent more soda at the baseball game on Sunday, June 12, 2016.

Criteria missing:

Improved objective:

part 2. Write three educational, personal, and career objectives you want to accomplish. Your objectives can be as short term as something you want to accomplish today, or as long term as 20

years from now. Be sure your objectives meet the criteria for effective objectives.

Doing this exercise in Class

Objective

To develop your skill at writing objectives.

aaCSB General Skills area

The primary AACSB learning skills developed through this exer- cise are written communications, analytic thinking, and applica- tion of knowledge.

preparation

You should have corrected the objectives in Part 1 and have written objectives in Part 2 during the preparation for this exercise.

experience

You will get feedback on how well you corrected the four objec- tives and share your written objectives with others.

Options (8–20 minutes)

a. The instructor goes over suggested corrections for the four objectives in Part 1 of the preparation, and then calls on class members to share their written objectives with the class in Part 2.

B. The instructor goes over suggested corrections for the four objectives in Part 1 of the preparation, and then the class breaks into groups of four to six to share their written objectives.

C. Break into groups of four to six and go over the correc- tions for the four objectives in Part 1. Tell the instructor when your group is done, but go on to Part 2, sharing

Writing Objectives

Developing Your Leadership Skills

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104 part 1 InDIvIDUaLS aS LEaDErS

your written objectives, until all groups are finished with the four corrections. The instructor goes over the corrections and may allow more time for sharing objec- tives. Give each other feedback for improving your written objectives during Part 2.

Conclusion

The instructor may lead a class discussion and/or make conclud- ing remarks. apply It (2–4 minutes) What did I learn from this experience? How will I use the knowledge in the future?

This training for leadership behavior modeling skills has four parts, as follows:

1 First, read how to use the model.

2 Then, view the behavior model video that illustrates how to give praise, following the four steps in the model.

3 Develop the skill in class by doing Developing Your Leadership Skills Exercise 1.

4 Further develop this skill by using the model in your per- sonal and professional life.

Giving praise Model Review Model 3.2, “Giving Praise,” in the text.

Behavior Model Skills training

Giving Praise

Objective

To assist you in giving praise that motivates others to high levels of performance.

Video (4½ minutes) Overview

You will watch a bank branch manager give praise to an employee for two different jobs well done.

Behavior Model video

Giving Praise

preparing for this exercise

Think of a job situation in which you did something well deserv- ing of praise and recognition. For example, you may have saved the company some money, you may have turned a dissatisfied customer into a happy one, and so forth. If you have never worked, interview someone who has. Put yourself in a manage- ment position and write out the praise you would give to an employee for doing what you did. Be sure to write your praise using the Giving Praise Model 3-2.

Doing this exercise in Class

Objective

To develop your skill at giving praise.

aaCSB General Skills area

The primary AACSB learning skills developed through this exercise are communication, and application of knowledge.

preparation

You will need your prepared praise.

experience

You will give and receive praise. procedure (10–15 minutes) Break into groups of four to six. One at a time, give the praise you prepared.

1 Explain the situation.

2 Select a group member to receive the praise.

3 Give the praise. (Talk; don’t read it off the paper.) Try to select the position you would use if you were actually giv- ing the praise on the job (both standing, both sitting, etc.).

4 Integration. The group gives the praise-giver feedback on how he or she did:

Step 1. Was the praise very specific and descriptive?

Did the giver look the employee in the eye?

Step 2. Was the importance of the behavior clearly stated?

Step 3. Did the giver stop for a moment of silence?

Developing Your Leadership Skills

Giving Praise

3-2

3-1

3-1

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 105

Step 4. Did the giver encourage repeat performance?

Did the giver of praise touch the receiver (optional)?

Step 5. Did the praise take less than one minute? Was the praise sincere?

Conclusion

The instructor may lead a class discussion and/or make conclud- ing remarks. apply It (2–4 minutes) What did I learn from this experience? How will I use this knowledge in the future? When will I practice?

endnotes 1 Trader Joe’s Web site (www.traderjoes.com), retrieved

January 2, 2013.

2 M.R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

3 B. Schyns, T. Kiefer, R. Kerschreiter, and A. Tymon, “Teaching Implicit Leadership Theories to Develop Leaders and Leadership: How and Why It Can Make a Difference,” Academy of Management Learning & Education 10(3) (2012): 397–408.

4 S.L. Martin and H. Liao, “Directive versus Empowering Leadership: A Field Experiment Comparing Impacts on Task Proficiency and Proactivity,” Academy of Management Journal 56(5) (2013): 1372–1395.

5 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

6 A.M. Grant, “Leading with Meaning: Beneficiary Contact, Prosocial Impact, and the Performance Effects of Transformational Leadership,” Academy of Management Journal 55(2) (2012): 458–476.

7 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2012): 66–85.

8 R. Klimoski and B. Amos, “Practicing Evidence-Based Education in Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 685–702.

9 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2012): 66–85.

10 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2012): 66–85.

11 K. Lewin, R. Lippitt, and R.K. White, “Patterns of Aggressive Behavior in Experimentally Created Social Climates,” Journal of Social Psychology 10(1939): 271–301.

12 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2012): 66–85.

13 R. Likert, New Patterns of Management (New York: McGraw-Hill, 1961).

14 R. M. Stogdill and A.E. Coons (Eds.), Leader Behavior : Its Description and Measurement (Columbus: Ohio State University Bureau of Business Research, 1957).

15 A. Edmans, “The Link between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility,” Academy of Management Perspectives 26(4) (2012): 1–19.

16 R. Blake and J. Mouton, The Managerial Grid (Houston, TX: Gulf Publishing, 1964); R. Blake and J. Mouton, The New Managerial Grid (Houston, TX: Gulf Publishing, 1978); R. Blake and J. Mouton, The Managerial Grid III: The Key to Leadership Excellence (Houston, TX: Gulf Publishing, 1985); and R. Blake and A. A. McCanse, Leadership Dilemmas— Grid Solutions (Houston, TX: Gulf Publishing, 1991). “R. Blake and J. Mouton: The Managerial Grid,” Thinkers (March 2002).

17 B. M. Fisher and J. E. Edwards, “Consideration and Initiating Structure and Their Relationship with Leader Effectiveness: A Meta-Analysis,” Proceeding of the Academy of Management (August 1988): 201–205.

18 M.A. Hogg, D. Van Knippenberg, and D.E. Rast, “Intergroup Leadership in Organizations: Leading across Group and Organizational Boundaries,” Academy of Management Review 37(2) (2012): 232–255.

19 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2012): 66–85.

20 R.L. Dufresne and E.H. Offstein, “Holistic and Intentional Student Character Development Process: Learning from West Point,” Academy of Management Learning & Education 11(4) (2012): 570–590.

21 M. Cuban, “Motivate Yourself,” BusinessWeek (April 11, 2013): online.

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106 part 1 InDIvIDUaLS aS LEaDErS

22 G.K. Stahl and M.Y. Brannen, “Building Cross-Cultural Leadership Competence: An Interview with Carlos Chosn,” Academy of Management Learning & Education 12(3) (2013): 494–502.

23 K. H. Dekas, T.N. Bauer, B. Welle, J. Kurkoski, and S. Sullivan, “Organizational Citizenship Behavior, Version 2.0: A Review and Qualitative Investigation of OCBs for Knowledge Workers at Google and Beyond,” Academy of Management Perspectives 27(3) (2013): 219–237.

24 S. Boivie, S.D. Graffin, and T.G. Pollock, “Time for Me to Fly: Predicting Director Exit at Large Firms,” Academy of Management Journal 55(6) (2012): 1334–1359.

25 L.M. Leslie, C.F. Manchester, T.Y. Park, and S. A. Mehng, “Flexible Work Practices: A Source of Career Premiums or Penalties?” Academy of Management Journal 55(6) (2012): 1407–1428.

26 L. Colan, “4 Questions to Help Build a Purpose-Driven Team,” Inc. (December 2013/January 2014): 12.

27 A.M. Grant and S.V. Patil, “Challenging the Norm of Self- Interest: Minority Influence and Transitions to Helping Norms in Work Units,” Academy of Management Review 37(4) (2012): 547–568.

28 M.R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

29 A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

30 J. Eisenberg, C. E. J. Härtel, and G. K. Stahl, “From the Guest Editors: Cross-Cultural Management Learning and Education—Exploring Multiple Aims, Approaches, and Impacts,” Academy of Management Learning & Education 12(3) (2013): 323–329; A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Learning & Education 27(2) (2013): 156–172.

31 B. Kowitt, “Inside Trader Joe’s,” Fortune (September 6, 2010): 86–96.

32 D. Liu, T.R. Mitchell, T.W. Lee, B.R. Holtom, and T.R. Hinkin, “When Employees Are Out of Step with Coworkers: How Job Satisfaction Trajectory and Dispersion influence Individual- and Unit-Level Voluntary Turnover,” Academy of Management Journal 55(6) (2012): 1360–1380.

33 A. Maslow, “A Theory of Human Motivation,” Psychological Review 50(1943): 370–396.

34 “Using the Malsow Hierarchy of Needs Theory,” Mind Tools Web site (www.mindtools.com), accessed January 17, 2014.

35 H.A. Richardson and S.G. Taylor, “Understanding Input Events: A Model of Employees’ Responses to Requests for Their Input,” Academy of Management Review 37(3) (2012): 471–491.

36 D. Ariely, “For Quick Decisions, Depend on Deadlines,” Wall Street Journal (August 3–4, 2013): C12.

37 F. Herzberg, “The Motivation-Hygiene Concept and Problems of Manpower,” Personnel Administrator (1964): 3–7; and F. Herzberg, “One More Time: How Do You Motivate Employees?” Harvard Business Review (January– February 1968): 53–62.

38 M. Kownatzki, J. Walter, S.W. Floyd, and C. Lechner, “Corporate Control and the Speed of Strategic Business Unit Decision Making,” Academy of Management Journal 56(5) (2013): 1295–1324.

39 M. Kownatzki, J. Walter, S.W. Floyd, and C. Lechner, “Corporate Control and the Speed of Strategic Business Unit Decision Making,” Academy of Management Journal 56(5) (2013): 1295–1324.

40 S. Boivie, S.D. Graffin, and T.G. Pollock, “Time for Me to Fly: Predicting Director Exit at Large Firms,” Academy of Management Journal 55(6) (2012): 1334–1359.

41 S. Boivie, S.D. Graffin, and T.G. Pollock, “Time for Me to Fly: Predicting Director Exit at Large Firms,” Academy of Management Journal 55(6) (2012): 1334–1359.

42 A.M. Grant, “Leading with Meaning: Beneficiary Contact, Prosocial Impact, and the Performance Effects of Transformational Leadership,” Academy of Management Journal 55(2) (2012): 458–476.

43 S.K. Parker, A. Johnson, C. Collins, and H. Nguyen, “Making the Most of Structural Support: Moderating Influence of Employees’ Clarity and Negative Affect,” Academy of Management Journal 56(3) (2013): 867–892.

44 M.R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

45 H. Murray, Explorations in Personality (New York: Oxford University Press, 1938); J. Atkinson, An Introduction to Motivation (New York: Van Nostrand Reinhold, 1964); D. McClelland, The Achieving Society (New York: Van Nostrand Reinhold, 1961); and D. McClelland and D. H. Burnham, “Power Is the Great Motivator,” Harvard Business Review (March/April 1978): 103.

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Chapter 3 LEaDErShIp BEhavIOr anD MOtIvatIOn 107

46 L.M. Leslie, C.F. Manchester, T.Y. Park, and S.A. Mehng, “Flexible Work Practices: A Source of Career Premiums or Penalties?” Academy of Management Journal 55(6) (2012): 1407–1428.

47 A. Edmans, “The Link between Job Satisfaction and Firm Value, with Implications for Corporate Social Responsibility,” Academy of Management Perspectives 26(4) (2012): 1–19.

48 C.R. Long, C. Bendersky, and C. Morrill, “Fairness Monitoring: Linking Managerial Controls and Fairness Judgments in Organizations,” Academy of Management Journal 54(5) (2011): 1045–1056.

49 J. S. Adams, “Toward an Understanding of Inequity,” Journal of Abnormal and Social Psychology 67 (1963): 422–436.

50 M.K. Duffy, K. L. Scott, J.D. Shaw, B.J. Tepper, and K Aquino, “A Social Context Model of Envy and Social Undermining,” Academy of Management Journal 55(2) (2012): 643–666.

51 C.O. Trevor, G. Reilly, and B. Gerhart, “Reconsidering Pay Dispersion’s Effect on the Performance of Interdependent Work: Reconciling Sorting and Pay Inequality,” Academy of Management Journal 55(3) (2012): 585–610.

52 A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

53 D.M. Mayer, K. Aquino, R.L. Greenbaum, and M. Kuenzi, “Who Displays Ethical Leadership, and Why an Examination of Antecedents and Consequences of Ethical Leadership,” Academy of Management Journal 55(1) (2012): 151–171.

54 V. Vroom, Work and Motivation (New York: John Wiley & Sons, 1964).

55 J.K. Nelson, L.W. Poms, and P.P. Wolf, “Developing Efficacy Beliefs for Ethics and Diversity Management,” Academy of Management Learning & Education 11(1) (2012): 49–68.

56 H.J. Klein, J.C. Molloy, and C.T. Brinsfield, “Reconceptualizing Workplace Commitment to Redress a Stretched Construct: Revisiting Assumptions and Removing Confounds,” Academy of Management Review 37(1) (2012): 130–151.

57 A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Perspectives 27(2) (2013): 156–172.

58 R.L. Dufresne and E.H. Offstein, “Holistic and Intentional Student Character Development Process: Learning from West Point,” Academy of Management Learning & Education 11(4) (2012): 570–590.

59 B. Southward, “The Crowd Goes Wild,” Fortune (July 22, 2013): 18.

60 D. Ariely, “For Quick Decisions, Depend on Deadlines,” Wall Street Journal (August 3–4, 2013): C12.

61 S.K. Johnson, L.L. Garrison, G.H. Bronnme, J.W. Fleenor, and J.L. Steed, “Go for the Goals: Relationship between Goal Setting and Transfer of Training Following Leadership Development,” Academy of Management Learning & Education 11(4) (2012): 555–569.

62 L.M. Leslie, C.F. Manchester, T.Y. Park, and S. A. Mehng, “Flexible Work Practices: A Source of Career Premiums or Penalties?” Academy of Management Journal 55(6) (2012): 1407–1428.

63 H.J. Klein, J.C. Molloy, and C.T. Brinsfield, “Reconceptualizing Workplace Commitment to Redress a Stretched Construct: Revisiting Assumptions and Removing Confounds,” Academy of Management Review 37(1) (2012): 130–151.

64 D. Ariely, “For Quick Decisions, Depend on Deadlines,” Wall Street Journal (August 3–4, 2013): C12.

65 B. F. Skinner, Beyond Freedom and Dignity (New York: Alfred A. Knopf, 1971).

66 M. Kownatzki, J. Walter, S.W. Floyd, and C. Lechner, “Corporate Control and the Speed of Strategic Business Unit Decision Making,” Academy of Management Journal 56(5) (2013): 1295–1324.

67 N. Rothbard, “Put on a Happy Face, Seriously,” Wall Street Journal (October 24, 2011): R2.

68 M. Helft, “Sheryl Sandberg: The Real Story,” Fortune (October 28, 2013): 122–130.

69 C. Rose, “Charlie Rose Talks to Mark Zuckerberg and Sheryl Sandberg,” BusinessWeek (November 14–20, 2011): 50.

70 C. Suddath, “Sheryl-Sandberg’s ‘Lean In’ Brand Goes Global,” Businessweek.com, March 22, 2013.

71 S. Sandberg, Lean In (New York: Alfred A. Knopf, 2013), p. 171.

72 S. Sandberg, Lean In (New York: Alfred A. Knopf, 2013), p. 7.

73 S. Sandberg, Lean In (New York: Alfred A. Knopf, 2013), p. 8.

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108

Chapter

4

C h a p t e r O U t L I N e

Contingency Leadership Theories and Models

Leadership Theories versus Leadership Models

Contingency Theory and Model Variables

Global Contingency Leadership

Contingency Leadership Theory and Model

Leadership Style and the LPC

Situational Favorableness

Determining the Appropriate Leadership Style

Research, Criticism, and Applications

Leadership Continuum Theory and Model

Path–Goal Leadership Theory and Model

Situational Factors

Leadership Styles

Research, Criticism, and Applications

Normative Leadership Theory and Models

Leadership Participation Styles

Model Questions to Determine the Appropriate Leadership Style

Selecting the Time-Driven or Development-Driven Model for the Situation

Determining the Appropriate Leadership Style

Research, Criticism, and Applications

Putting the Behavioral and Contingency Leadership Theories Together

Prescriptive and Descriptive Models

Leadership Substitutes Theory

Substitutes and Neutralizers

Leadership Style

Changing the Situation

Research, Criticism, and Applications

Contingency Leadership Theories

Learning Outcomes After studying this chapter, you should be able to:

1 State the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories. p. 109

2 Describe the contingency leadership theory variables. p. 110

3 Identify the contingency leadership model styles and variables. p. 112

4 State the leadership continuum model major styles and variables. p. 116

5 Identify the path–goal leadership model styles and variables. p. 119

6 State the normative leadership model styles and the number of variables. p. 123

7 Discuss the major similarities and differences between the behavioral and contingency leadership theories. p. 128

8 Compare and contrast four major differences among the four contingency leadership models. p. 128

9 List which leadership models are prescriptive and descriptive, and explain why they are classified as such. p. 129

10 Explain substitutes and neutralizers of leadership. p. 131

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 109

PepsiCo has four major global business units: PepsiCo Americas Beverages (PAB) spans carbonated soft drinks (Pepsi, Mountain Dew), juices and juice drinks (Tropicana, Naked Juice), ready-to-drink teas and coffees (Lipton, Starbucks, Tazo), spor ts drinks (Gatorade), and bottled waters (Aquafina, Propel, IZZE). PepsiCo Americas Foods is the provider of many of the most popular food and snacks throughout North and Latin America. Its portfolio of busi- nesses includes Frito-Lay North America (snack foods), Quaker Foods (cereal, granola bars) Nor th America, and Latin American food and snack businesses, including Sabritas and Gamesa brands. PepsiCo Europe includes all beverage, food, and snack businesses in Europe and South Africa. PepsiCo Asia, Middle East and Africa (AMEA) includes all beverage, food, and snack businesses in these areas.1

Indra K. Nooyi is chairman and CEO of PepsiCo, and she is consistently ranked at or near the top of the Fortune 50 Most Powerful Women list.2 Nooyi is a different kind of CEO, not just because she is an Indian woman. She says her approach boils down to “Performance with Purpose,” the goal of providing sustained financial performance through human sustainability, environmental sustainability, and talent sustainability. She was one of the first executives to realize that the health and green movements were not just fads, and she demanded true innovation.3

By the numbers, PepsiCo has done well under CEO Nooyi.4 Its stock price hit an all-time high in 2013. PepsiCo is ranked in the top 50 (43rd and Coca-Cola is 57th) on the Fortune 500 Largest U.S. Corporations list, with more than $6 billion in profits,5 and it is ranked in the top 40 (37th and Coca-Cola is 4th) of the Fortune World’s Most Admired

Companies.6 But Pepsi has lost some market share to Coca- Cola. Critics say Nooyi put too much focus on healthy foods. In response, Pepsi is fighting back in the cola war with its first new ad campaign in three years.7 Can PepsiCo every win the cola war and outsell Coke? Some investors would like PepsiCo to split into two companies, separating food and beverages.8 Can Nooyi keep PepsiCo together?

OpeNING CaSe QUeStIONS:

1. What does climbing the corporate ladder to CEO of PepsiCo have to do with contingency leader- ship? What life, educational, and job experiences qualified Indra Nooyi for her job as CEO?

2. What do colleagues say about Indra Nooyi’s leadership—is it task or relationship, does she have a life outside of PepsiCo, and does she have any future career plans?

3. Which continuum leadership style does Indra Nooyi tend to use in making acquisitions at PepsiCo?

4. Which path–goal leadership styles does Indra Nooyi tend to use at PepsiCo?

5. Which normative leadership styles does Indra Nooyi tend to use at PepsiCo?

Can you answer any of these questions? You’ll find an- swers to these questions about PepsiCo and Indra Nooyi throughout the chapter.

To learn more about Indra Nooyi and PepsiCo, visit the company’s Web site at www.pepsico.com.

OPENING CASE application

Contingency Leadership Theories and Models Both the trait and behavioral leadership theories were attempts to find the one best lead- ership style in all situations. By the late 1960s, it became apparent that there is no one best leadership style in all situations. Thus, contingency leadership theory became the third major leadership paradigm (Chapter 1), and the leadership styles used in its models are based on the behavioral leadership theories.

Leadership is typically understood as taking place in a situation,9 so leaders need to change their behavior to meet the situational characteristics,10 which is called

State the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories.

Learning outcome 1

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110 part 1 InDIVIDUaLS aS LEaDErS

contingency or situational leadership.11 Duke’s basketball Coach K says you have to ad- just your leadership to the composition of your team.12 In this section, we discuss theo- ries versus models, the contingency theory factors, and the need for global contingency leadership.

Leadership theories versus Leadership Models As defined in Chapter 1, a leadership theory is an explanation of some aspect of leader- ship; theories have practical value because they are used to better understand, predict, and control successful leadership. A leadership model is an example for emulation or use in a given situation. Models are used to represent the world of managers,13 and there are many academic models of leadership.14 In this chapter, we discuss using models in a given situation to improve performance of leaders, followers, or both.

All of the contingency leadership theories in this chapter have leadership models. The leadership theory is the longer text that explains the variables and leadership styles to be used in a given contingency situation. The leadership model is the short (one-page) summary of the theory to be used when selecting the appropriate leadership style for a given situation.15 Models have been compared to baseball in this way. A model can’t teach you to get a hit every time at bat, but if you use the model, it will improve your bat- ting average.

Describe the contingency leadership theory variables.Learning outcome 2

Contingency theory and Model Variables Contingency means “it depends.” One thing depends on other things, and for a leader to be effective, there must be an appropriate fit between the leader’s behavior and style and the followers and the situation.16 Recall from Chapter 1 that contingency leadership theo- ries attempt to explain the appropriate leadership style based on the leader, followers, and situation. Much of today’s contingency research focuses on team leadership,17 as leaders find themselves reacting to situational contingencies.18

See Exhibit 4.1 for a list of general contingency leadership variables that can be used as a framework in which to place all the contingency leadership model variables for analyz- ing leadership. Throughout this chapter, each contingency leadership model’s variables are described in terms of this framework. For each model, the leader variable also in- cludes the leadership styles of each model.

EXHIBIT 4.1 Framework for Contingency Leadership Variables

FOLLOWERS

Capability

Motivation

LEADER

Personality traits

Behavior

Experience

SITUATION

Task

Structure

Environment

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 111

Global Contingency Leadership Before we get into all the theories, let’s take a minute to quickly realize how important contingency leadership is in the global economy of today.20 Leadership is critical espe- cially with the importance of the globalization of business,21 and because executives have stated that new business school graduates have a weak global perspective.22 Multinational companies have long abandoned the parochial “one-size-fits-all” assumptions in manage- ment practices.23 Global companies like McDonald’s, with restaurants all over the world, realize that successful leadership styles can vary greatly from place to place. In Europe and other parts of the world, managers have more cultural than technical variables to deal with as they encounter diverse value systems and religious backgrounds among em- ployees. Employees in some countries prefer domineering, self-centered, and autocratic leaders, whereas other countries prefer a more democratic and participative leadership style. The focus of Chapter 10 is on organizational culture, ethics, and diversity. With respect to the discussion on diversity, we emphasize that the growing cultural diversity of the workforce and the increasing globalization of the marketplace create the need for leaders with multicultural backgrounds and experiences. This reinforces the message of global contingency leadership.

Companies, including IBM, are training their managers to work with a variety of for- eigners to become successful global players. In countries that are more like the United States (such as Australia, Canada, and England), Americans have fewer adjustments to make, whereas countries with cultures that are quite different from that of the United States (such as China, India, and Japan) require greater adjustment.

GLOBE stands for Global Leadership and Organizational Behavior Effectiveness, which is an ongoing cross-cultural investigation of leadership and national culture. The GLOBE research team used data from 825 organizations, with 18,000 managers, in 62 countries to identify nine dimensions in which national cultures are diverse.24 See Chapter 10 for an expanded discussion of national culture identities using Hofstede’s Model of five di- mensions that he used to distinguish a nation’s culture from other nations.

YOU Make the ethICaL Call

4.1 Leadership Gender

Should gender be a contingency variable in leadership? Are there differences in the lead- ership of men and women? Some researchers say that women tend to be more par- ticipative, relationship-oriented leaders and men are more assertive and task oriented. However, others say that men and women leaders are more alike than different because they do the same things. Thus, there currently is no consensus in the literature that men and women lead differently or the same as men.19

1. Do you think that men and women lead the same or differently?

2. Are men or women more ethical and socially responsible leaders?

3. Would you prefer to have a man or woman for a boss?

4. Is it ethical and socially responsible to say that one gender makes better leaders?

5. Should global companies appoint women as managers in countries that believe in equal rights for women, but not allow women to be managers in countries that don’t have these beliefs?

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112 part 1 InDIVIDUaLS aS LEaDErS

Contingency Leadership Theory and Model In 1951, Fred E. Fiedler began to develop the first situational leadership theory. It was the first theory to specify how situational variables interact with leader personality and behavior. He called the theory “Contingency Theory of Leader Effectiveness.”25 Contin- gency suggests that a leader’s effectiveness depends on how well the leader’s style fits the context of the job. So he was the first to develop a model to match the leadership style to the job. Although it is dated, researchers continue to conduct studies based on contin- gency theory.26

Fiedler believed that leadership style is a ref lection of personality (trait theory–ori- ented) and behavior (behavioral theory–oriented), and that leadership styles are basically constant. Leaders should not change styles; they should change the context of their job. Because his was the first, today his term “contingency theory” is used in other contexts that have nothing to do with Fiedler’s theory and model. You may have noticed that the title of this chapter is “Contingency Leadership Theories.” The objective of all four con- tingency theories we present is to choose the leadership style that matches the situation to maximize performance.27

The contingency leadership model is used to determine if a person’s leadership style is task- or relationship-oriented, and if the situation (leader–member relationship, task structure, and position power) matches the leader’s style to maximize performance. In this section, we discuss Fiedler’s leadership styles, situational favorableness, determining the appropriate leadership style for the situation, and research by Fiedler and others. See Exhibit 4.2 to see how Fiedler’s model fits into the framework of contingency leadership variables.

1. What does climbing the corporate ladder to CeO of pepsiCo have to do with contingency lead- ership? What life, educational, and job experiences qualified Indra Nooyi for her job as CeO?

Contingency theory is about using the right style in the right situation to succeed, which Indra Nooyi continues to do. Having grown up in India, Nooyi was the right person to continue to take PepsiCo global. On special occasions, Nooyi wears a traditional Indian sari. Her South Asian heritage gives her a wide-angle view on the world. She grew up in Chennai (formerly Madras), on the southeast coast of India, the daughter of a stay-at-home mom and an accountant father. Although her family is Hindu, Nooyi attended a Catholic school, was an avid debater, played cricket and the guitar, and formed an all-girl rock band. She earned a BS degree from Madras Christian College, an MBA from the Indian Institute of Management in Kolkata (formerly Calcutta), and a master of public and private management from Yale University. Before coming to PepsiCo, Nooyi was Senior VP and Director of Corporate Strategy and Planning at Motorola from 1986 to 1990 and Senior VP of Strategy and Strategic Marketing at Asea Brown Boveri from 1990 to 1994. She spent 12 years climbing the corporate ladder at PepsiCo. Nooyi started as Senior VP of Strategic Planning in 1994, was promoted to Senior VP of Corporate Strategy and Development in 1996, was promoted to President and CFO in 2001, and was promoted to CEO in 2006.

OPENING CASE application

Identify the contingency leadership model styles and variables.Learning outcome 3

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 113

Leadership Style and the LpC Although we may be able to change your behavior with different followers (although Fiedler didn’t think we can), we also have a dominant leadership style. The first major factor in using Fiedler’s model is to determine whether your dominant leadership style is task-motivated or relationship-motivated. People primarily gain satisfaction either from task accomplishment or from forming and maintaining relationships with followers.28 To determine leadership style, using Fiedler’s model, you must complete the least- preferred coworker (LPC) scales. The LPC essentially answers the question, “Are you more task- oriented or relationship-oriented?” The two leadership styles are (1) task and (2) relationship. To determine your Fiedler leadership style, complete Self-Assessment 4-1.

EXHIBIT 4.2 Contingency Leadership Model Variables within the Contingency Leadership Framework

Leadership Style Your

Fiedler LpC

SELF-ASSESSMENT 4-1

1. Return to Chapter 3, Self-Assessment 1 on page 71, and place your score for tasks on the following Task line and your score for people on the Relationship line.

10 — 9 — 8 — 7 — 6 — 5 — 4 — 3 — 2 — 1 High Task Leadership Style

10 — 9 — 8 — 7 — 6 — 5 — 4 — 3 — 2 — 1 High Relationship Leadership Style

According to Fiedler, you are primarily either a task- or relationship-oriented leader. Your highest score is your primary leadership style. Neither leadership style is the one best style. The one appropriate leadership style to use is based on the situation—our next topic.

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FOLLOWerS LeaDer SItUatION

Leader–member relations

L e a d e r – m e m b e r relations Task structure Position power

LeaDerShIp StYLeS Task

Relationship

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114 part 1 INDIVIDUALS AS LEADERS

Situational Favorableness After determining your leadership style, determine the situational favorableness. Situational favorableness refers to the degree to which a situation enables the leader to exert influence over the followers. The more control the leader has over the followers, the more favorable the situation is for the leader. The three variables, in order of importance, are as follows.

1. Leader–member relations. Is the relationship good (cooperative and friendly) or poor (antagonistic and difficult)? Do the followers trust, respect, accept, and have confidence in the leader (good)? The better the relations, the more favorable the situation.

2. Task structure. Is the task structured or unstructured? Do employees perform re- petitive, routine, unambiguous, standard tasks that are easily understood? The more structured the jobs are, the more favorable the situation.

3. Position power. Is position power strong or weak? Does the leader have the power to assign work, reward and punish, hire and fire, give raises and promotions? The more power, the more favorable the situation.

The relative weights of these three factors together create a continuum of situ- ational favorableness of the leader. Fiedler developed eight levels of favorableness, go- ing from 1 (highly favorable) to 8 (very unfavorable). See Exhibit 4.3 for an adapted model.

Determining the appropriate Leadership Style To determine whether task or relationship leadership is appropriate, you answer the three questions pertaining to situational favorableness, using the Fiedler contingency theory model (Exhibit 4.3). Start with question 1 and follow the decision tree to Good or Poor depending on the relations. Next, answer question 2 and follow the decision tree to Repetitive or Non repetitive. When answering question 3, you end up in one of eight possible situations. If the LPC leadership style matches, you do nothing, since you may be successful in that situation because your leadership style matches the situation.

Changing the Situation However, if the leadership style does not match the situation, the leader may be ineffec- tive. One option is to change to a job that matches the leadership style. Fiedler recom- mends (and trained people to) change the situation, rather than their leadership styles. Here are a few general examples of how to change the situation variables to make a more favorable match for the leader’s style:

• If relations are poor, the leader can work to improve them by showing interest in follow- ers, listening to them, and spending more time getting to know them personally.

• The task can be more or less structured by stating more or less specific standards and procedures for completing the task, and giving or not giving clear deadlines.

• Leaders with strong position power do not have to use it; they can empower employees.29 Leaders with weak power can try to get more power from their manager and play up the power by being more autocratic.

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 115

1. Are leader– followers rela- tions good or poor?

Appropriate Style for Situation

Situation3. Is the leader’s power strong or weak?

2. Is the task repetitive or nonrepetitive?

Start

Repetitive

Repetitive

Nonrepetitive

Nonrepetitive

Good

Poor

Strong

Weak

Strong

Weak

Strong

Weak

Strong

Weak

Task

Task

Task

Relationship

Relationship

Relationship

Relationship

Task

1

2

3

4

5

6

7

8

EXHIBIT 4.3 Fiedler Contingency Leadership Model

CONCept APPLICATION 4-1

Contingency Leadership Theory Using the contingency model in Exhibit 4.3, answer the three questions at the top of the model to get to the situation

(numbered 1–8). Follow the situation to the appropriate style in the last column of the model to determine the situation number with its corresponding appropriate leadership style (task or relationship). Select two answers below based on the answers you get from the model, writing the appropriate two letters in the blanks before each item.

Situation number a. 1 b. 2 c. 3 d. 4 e. 5 f. 6 g. 7 h. 8

Leadership style A. task-oriented B. relationship-oriented

1. Shawn, the manager, is from the human resources department. He helps the other departments write job descriptions. Shawn is viewed as not understanding the various departments. Employees tend to be rude in their dealings with Shawn.

2. Juan, the manager, oversees the processing of canceled checks for the bank. He is well liked by the employees. Juan’s manager enjoys hiring and evaluating his employees’ performance.

3. Sally, the principal of a school, assigns teachers to classes and has various other duties. The school atmosphere is tense. She hires and decides on tenure appointments.

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116 part 1 InDIVIDUaLS aS LEaDErS

research, Criticism, and applications Despite its groundbreaking start to contingency theories, Fiedler’s work was criticized for weak statistical results.30 However, two meta-analyses concluded that the research tends to support the model, although not for every situation and not as strongly for field studies as for laboratory studies.31 Fiedler disagreed with some of the criticism and pub- lished two rejoinders.32 Thus, the debate continues over the validity and usefulness of the model.

Another major criticism is of Fiedler’s view that we leaders should not change our style, but rather the context of our job should be changed. It is generally agreed that it is much easier to change our style to meet the context of the job than to change the job context. Fiedler’s model also doesn’t really teach us how to change our job context. The other situational writers in this chapter suggest changing leadership styles, not our job context.

Despite the critics, Fiedler has helped contribute to the other contingency theories. It has application as it can be used to answer questions about the leadership of individuals in different types of organizations. It can help explain why a hard-working manager is not effective in a specific job—no match of style to context.

CONCept APPLICATION 4-1(continued)

4. Carlos, the chairperson of the HR committee, is highly regarded by its volunteer members from a variety of departments. The committee members are charged with recommending ways to increase minority hiring and promotions.

5. Tania, the manager, oversees the assembly of mass-produced pens. She has the power to reward and punish, and is viewed as a highly demanding manager.

WOrk Application 4-1 Select a present or past manager. Which LPC leadership style is, or was, dominant for that manager? Using the Fiedler model (see Exhibit 4.3 on page 115), which situation number is the manager in? What is the appropriate leadership style for the manager in this situation? Does it match his or her style? How successful a leader is your manager? Do you think there is a relationship between the manager’s leadership style and the situation?

If you are a manager, you may want to repeat this work application, using yourself as the manager.

2. What do colleagues say about Indra Nooyi’s leadership—is it task or relationship, does she have a life outside of pepsiCo, and does she have any future career plans?

Indra Nooyi’s colleagues say she is intense, decisive, an excellent negotiator, very open and very direct, demanding, and she challenges you. Nooyi is charismatic. She can rouse an audience and rally them around any project. Although she is task oriented, Nooyi also has strong relationships with her colleagues. She insists that everybody’s birthday be celebrated with a cake. She has a supportive husband (Raj) and two daughters (Preetha and Tara), and she enjoys being a soccer mom. Nooyi is a karaoke fan, and her karaoke machine is the ubiquitous party game at every PepsiCo gathering. Being CEO of PepsiCo will not be Nooyi’s last job. She says that she eventually wants to give back by going to Washington to work for the government.

OPENING CASE application

State the leadership continuum model major styles and variables.Learning outcome 4

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 117

Leadership Continuum Theory and Model Robert Tannenbaum and Warren Schmidt also developed a contingency theory in the 1950s.33 They stated that leadership behavior is on a continuum from boss-centered to subordinate-centered leadership. Their model focuses on who makes the decisions. They noted that a leader’s choice of a leadership pattern should be based on forces in the boss, forces in the subordinates, and forces in the situation. Look at Exhibit 4.4 to see how Tannenbaum and Schmidt’s variables fit within the framework of contingency leadership variables.

Leadership Continuum Model Variables within the Contingency Leadership FrameworkEXHIBIT 4.4

Tannenbaum and Schmidt identify seven major styles the leader can choose from. Ex- hibit 4.5 is an adaptation of their model, which lists the seven styles. The leadership continuum model is used to determine which one of seven styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) to maximize performance.

Before selecting one of the seven leadership styles, the leader must consider the follow- ing three forces or variables:

• Boss. The leader’s personality and behavioral preferred style—based on experience, ex- pectation, values, and confidence in the subordinates—are considered in selecting a leadership style. Based on personality and behavior, some leaders tend to be more auto- cratic and others more participative.34

• Subordinates. The followers’ preferred style for the leader is based on personality and behavior, as with the leader. Generally, the more willing and able the followers are to participate, the more freedom of participation should be used, and vice versa.

• Situation (time). The environmental considerations, such as the organization’s size, structure, climate, goals, and technology, are considered in selecting a leadership style.

The time available is another consideration. It takes more time to make participative decisions. Thus, when there is no time to include followers in decision making, the leader uses an autocratic leadership style.

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Subordinates Boss Situation (time)

LeaDerShIp StYLeS

Boss-centered to subordinate-centered leadership with seven leadership styles along the continuum

in Exhibit 4.5

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118 part 1 InDIVIDUaLS aS LEaDErS

Although the leadership continuum model was very popular, it did not undergo research testing like the contingency leadership model. One major criticism of this model is that the three factors to consider when selecting a leadership style are very subjective. In other words, determining which style to use, and when, is not clear in the model. The Situational Leadership® Model and Normative Leadership Model (to be discussed later in this chapter) thus took over in popularity, most likely be- cause they clearly identified which leadership style to use in a given, clearly defined situation.

You will determine your major leadership continuum style later in Self-Assessment 4-4 on page 143, which puts together three of the contingency leadership styles (contin- uum, path–goal, and normative).

Autocratic 1. State the decision that is not open to discussion

2. Make the decision and convince employees that it is a good idea

3. Present decision and ask if there are any questions

4. Present a decision that is subject to change based on input

5. State the situation, ask for a recommended decision, then makes the decision

6. Let employees make a decision within set limits

Participative 7. Let employees make ongoing decisions

Source: Adapted from How to Choose a Leadership Pattern by Robert Tannenbaum and Warren H. Schmidt, May–June 1973.

EXHIBIT 4.5 tannenbaum and Schmidt’s Leadership Continuum Model

Leadership Continuum Using the continuum model in Exhibit 4.5, identify these five statements by their leadership style (numbered 1–7 in the model). Select each answer, writing the appropriate letters in the blank before each item. a. 1 b. 2 c. 3 d. 4 e. 5 f. 6 g. 7

6. “This is the way I think we should do the job. Does anyone have any other ideas for how to do it?”

7. “Here is list of holidays you can get paid for. Tania, you get seven paid, so you can pick the ones you want.”

8. “I’d like your ideas on how to solve the problem. But I have the final say on the solution we implement.”

9. “Tony, I selected you to take on the new assignment. Do you have any questions about this assignment?”

10. “Helen, I like your report. Send it to the VP right away.”

WOrk Application 4-2 Using the leadership continuum model (Exhibit 4.5), identify your manager’s most commonly used leadership style by number and description. Would you say this is the most appropriate leadership style based on the leader, the followers, and the situation? Explain.

CONCept APPLICATION 4-2

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 119

Path–Goal Leadership Theory and Model The path–goal leadership theory was developed by Robert House, based on an early ver- sion of the theory by M. G. Evans, and published in 1971 and other articles over years.35 His theory specified a number of situational moderators of relationships between task- and person-oriented leadership and their effects. House attempted to explain how the behavior of a leader influences the performance and satisfaction of the followers (subor- dinates). Look at Exhibit 4.6 to see how House’s model fits into the framework of contin- gency leadership variables. Note that unlike the earlier contingency leadership models, House’s model does not have a leader trait and behavior variable. The leader is supposed to use the appropriate leadership style (one of four), regardless of preferred traits and be- havior to motivate employees to enhance their performance.

The path–goal leadership model is used to select the leadership style (directive, sup- portive, participative, or achievement-oriented) appropriate to the situation (subordinate and environment) to maximize both performance and job satisfaction. Note that path–goal leadership theory is based on motivation theories of goal-setting and expectancy theory. The leader is responsible for increasing followers’ motivation to attain personal and orga- nizational goals. Motivation is increased by (1) clarifying the follower’s path to the rewards that are available or (2) increasing the rewards that the follower values and desires. Path clarification means that the leader works with followers to help them identify and learn the behaviors that will lead to successful task accomplishment and organizational rewards.

3. Which continuum leadership style does Indra Nooyi tend to use in making acquisitions at pepsiCo?

Nooyi tends to use #5—the leader presents the problem, gets suggested solutions, and makes the decision. She has others look into possible acquisition targets and gets recommendations from them, but Nooyi has the final say on which companies will be acquired.

OPENING CASE application

Identify the path–goal leadership model styles and variables.Learning outcome 5

Path–Goal Leadership Model Variables within the Contingency Leadership FrameworkEXHIBIT 4.6

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Subordinates (authoritarianism, locus of control, ability)

None Environment (task structure, formal authority, and work group)

LeaDerShIp StYLeS Directive

Supportive Participative

Achievement-oriented

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120 part 1 InDIVIDUaLS aS LEaDErS

The path–goal model is used to determine employee objectives and to clarify how to achieve them using one of four leadership styles. It focuses on how leaders influence employees’ perceptions of their goals and the paths they follow toward goal attainment. As shown in Exhibit 4.7 (an adaptation of the model), the situational factors are used to determine the leadership style that affects goal achievement through performance and satisfaction.

Situational Factors

Subordinate Subordinate situational characteristics are:

1. Authoritarianism is the degree to which employees defer to others, and want to be told what to do and how to do the job.

2. Locus of control (Chapter 2) is the extent to which employees believe they control goal achievement (internal) or if goal achievement is controlled by others (external).

3. Ability is the extent of the employees’ ability to perform tasks to achieve goals.

Environment Environment situational factors are:

1. Task structure is the extent of repetitiveness of the job. 2. Formal authority is the extent of the leader’s position power. Note that task structure

and formal authority are essentially the same as Fiedler’s. 3. Work group is the extent to which coworkers contribute to job satisfaction or the re-

lationship between followers. Note that House identifies work group as a situational variable. However, under the contingency framework, it would be considered a fol- lower variable.

House Path–Goal Leadership Model EXHIBIT 4.7

SITUATIONAL FACTORS (determine)

Subordinate (follower)

Authoritarianism Locus of control Ability

Environment

Task structure Formal authority Work group

LEADERSHIP STYLES (affect)

Directive Supportive Participative Achievement-oriented

GOAL ACHIEVEMENT

Performance Satisfaction

Source: Adapted from R. J. House, “A Path-Goal Theory of Leader Effectiveness,” Administrative Science Quarterly 16(2), 1971: 321–329.

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 121

Leadership Styles Based on the situational factors in the path–goal model, the leader can select the most ap- propriate leadership style by using the following general guidelines for each style.

Directive The leader provides high structure. Directive leadership is appropriate when the followers want authority leadership and have external locus of control, and when the follower abil- ity is low. Directive leadership is also appropriate when the environmental task is complex or ambiguous, formal authority is strong, and the work group provides job satisfaction.

Supportive The leader provides high consideration. Supportive leadership is appropriate when the fol- lowers do not want autocratic leadership and have internal locus of control, and when fol- lower ability is high. Supportive leadership is also appropriate when the environmental tasks are simple, formal authority is weak, and the work group does not provide job satisfaction.

Participative The leader includes employee input into decision making. Participative leadership is appropriate when followers want to be involved and have internal locus of control, and when follower ability is high; when the environmental task is complex, authority is either strong or weak, and job satisfaction from coworkers is either high or low.

Achievement-Oriented The leader sets difficult but achievable goals, expects followers to perform at their highest level, and rewards them for doing so. In essence, the leader provides both high directive (structure) and high supportive (consideration) behavior. The leader tries to make the job challenging.36 Achievement-oriented leadership is appropriate when followers are open to autocratic leadership and have external locus of control, and when follower ability is high; when the environmental task is simple, authority is strong, and job satisfaction from co- workers is either high or low.

YOU Make the ethICaL Call

4.2 Drug Research

Several drug companies, including GlaxoSmithKline and Merck, have been accused of situ- ationally favorable research reporting. When results support the use of the drug, they are reported; when they don’t, results are not reported. Although all medications have side effects, some drug users have died because of medication. As a result, the Food and Drug Administration (FDA) has been criticized for its process of approving drugs and monitor- ing their safety.

1. Is it ethical and socially responsible to report only the results that help gain FDA approval of drugs?

2. If you worked for a drug company and knew that the results of a study showed negative effects but were not included in a report, what would you do?

3. If you worked for a drug company and your boss asked you to change negative results into positive results, or to make results even better, what would you do?

4. What would you do if you gave your boss a negative report on a drug and found out the results were changed to positive results?

5. Is the FDA doing a good job of monitoring the safety of drugs? If not, what else should it do?

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122 part 1 InDIVIDUaLS aS LEaDErS

research, Criticism, and applications A meta-analysis based on 120 studies examined directive and supportive behavior and showed that support for path–goal theory was significantly greater than chance, but re- sults were quite mixed. An extensive review of the research on moderator variables in leaders also had inconclusive findings.37

Although path–goal theory is more complex and specific than leadership continuum, it is also criticized by managers because it is difficult to know which style to use when. As you can see, there are many situations in which not all six situational factors are exactly as presented in the guidelines for when to use the style. Judgment calls are required to select the appropriate style as necessary. Plus, House suggests adding your own variables to the model.

Despite its limitations, the path–goal model has already made an important contribu- tion to the study of leadership by providing a conceptual framework to guide researchers in identifying potentially relevant situational variables. Path–goal leadership theory led to the development of the theory of charismatic leadership in 1976.

Path–goal theory was considerably broadened in scope, and in 1996, House referred to it as value-based leadership theory. You will learn about charismatic and values-based leadership in Chapter 9. Path–goal theory also provides a useful way for leaders to think about motivating followers. You will determine your path– goal leadership style in Self-Assessment 4-4 on page 143, which puts together the contingency leadership styles.

Path–Goal Leadership 2. Using Exhibit 4.7 on page 120 and text descriptions, identify the appropriate leadership style for the five situations. Write

the appropriate letter in the blank before each item.

a. directive c. participative

b. supportive d. achievement-oriented

11. A manager is assembling a new task force that will have an ambiguous task to complete. The members don’t know each other.

12. A manager has decided to give a new task to an employee who tends to be insecure and may feel threatened by taking on a new task.

13. The quarter just ended and the sales team easily met the quota. The manager has strong position power and has decided to increase the quota to make the job more challenging.

14. A manager has an employee who has been coming in late for work. The manager has decided to get the employee to get to work on time.

15. A manager has a new task, and he is not sure how it should be done. Employees are experienced and like to be involved.

WOrk Application 4-3 Identify your manager’s most commonly used path–goal leadership style. Would you say this is the most appropriate leadership style based on the situational factors? Explain.

CONCept APPLICATION 4-3

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 123

Normative Leadership Theory and Models An important leadership question today is, “When should the manager take charge and when should the manager let the group make the decision?” In 1973, Victor Vroom (yes, the same guy who developed expectancy theory) and Philip Yetton published a decision- making model to answer this question while improving decision-making effectiveness. Vroom and Arthur Jago refined the model and expanded it to four models in 1988. In 2000, Victor Vroom published a revised version titled “Leadership and the Decision- Making Process.” We present the latest.38

The normative leadership model has a time-driven and development-driven deci- sion tree that enables the user to select one of five leadership styles (decide, consult individu- ally, consult group, facilitate, and delegate) appropriate for the situation (seven questions/ variables) to maximize decisions. See Exhibit 4.8 to see how the normative leadership model fits into the contingency leadership framework variables. It is called a normative model because it provides a sequential set of questions that are rules (norms) to follow to determine the best leadership style for the given situation.

4. Which path–goal leadership styles does Indra Nooyi tend to use at pepsiCo?

Nooyi tends to use the achievement-oriented and participative styles. She sets high standards and expects everyone around her to measure up. She has red, green, and purple pens and uses them liberally to mark up everything that crosses her desk. Her scribbles are legendary, and include the following: “I have never seen such gross incompetence,” and “This is unacceptable,” with “unacceptable” underlined three times. Nooyi believes in people; you give them an objective and get them all to buy into it, and they can move mountains. She uses input from others, including her second-in-command, whom she treats like a partner, and her “Team Pepsi” members.

OPENING CASE application

State the normative leadership model styles and the number of variables.Learning outcome 6

EXHIBIT 4.8 Normative Leadership Model Variables within the Contingency Leadership Framework

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Development-Driven 3. Leader expertise Time-Driven

Decision Model Decision Model

2. Importance of commitment LeaDerShIp StYLeS 1. Decision significance

4. Likelihood of commitment Decide

5. Group support for objectives Consult individually

6. Group expertise Consult group

7. Team competence Facilitate

Delegate

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124 part 1 InDIVIDUaLS aS LEaDErS

To use the normative model, you must have a specific decision to make, have the author- ity to make the decision, and have specific potential followers to participate in the decision.

Leadership participation Styles Vroom identified five leadership styles based on the level of participation in the decision by the followers. Vroom’s five leadership styles follow.

Decide The leader makes the decision alone and announces it, or sells it, to the followers.

Consult Individually The leader tells followers individually about the problem, gets information and sugges- tions, and then makes the decision.

Consult Group The leader holds a group meeting and tells followers the problem, gets information and suggestions, and then makes the decision.

Facilitate The leader holds a group meeting and acts as a facilitator to define the problem and the limits within which a decision must be made. Leaders seek participation and concurrence on the decision without pushing their ideas.

Delegate The leader lets the group diagnose the problem and make the decision within stated limits. The role of the leader is to answer questions and provide encouragement and resources.

Model Questions to Determine the appropriate Leadership Style To determine which of the five leadership styles is the most appropriate for a given situ- ation, you answer a series of diagnostic questions based on seven variables. The seven variables presented in Exhibit 4.8 are repeated in Exhibit 4.9 and in Exhibit 4.10.

We now explain how to answer the questions, based on the variables, when using the two models.

1. Decision Significance. How important is the decision to the success of the project or organization? Is the decision of high (H) importance or low (L) importance to the success? When making highly important decisions, leaders need to be involved.

2. Importance of Commitment. How important is follower commitment to implement the decision? If acceptance of the decision is critical to effective implementation, importance is high (H). If commitment is not important, it’s low (L). When mak- ing highly important commitment decisions that followers may not like and may not implement, followers generally need to be involved in making the decision.

3. Leader Expertise. How much knowledge and expertise does the leader have with this specific decision? Is expertise high (H) or low (L)? The more expertise the leader has, the less need there is for follower participation.

4. Likelihood of Commitment. If the leader were to make the decision alone, is the cer- tainty that the followers would be committed to the decision high (H) or low (L)? When making decisions that followers will like and want to implement, there is less need to involve them in the decision.

5. Group Support for Objectives. Do followers have high (H) or low (L) support for the team or organizational goals to be attained in solving the problem? Higher levels of participation are acceptable with high levels of support.

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 125

EXHIBIT 4.9 Normative Leadership Time-Driven Model

Instructions: The model is a decision tree that works like a funnel. Define the problem statement and then answer the questions from left to right as high (H) or low (L), skipping questions when not appropriate to the situation and avoiding crossing any horizontal lines. The last column you come to contains the appropriate leadership participation decision-making style for the situation.

Decide

Delegate

Consult (Group)

Consult (Group)

Consult (Individually)

Consult (Individually)

Facilitate

Decide

Decide

Decide

Delegate

FacilitateL

H

Facilitate

Facilitate

P R O B L E M

S T A T E M E N T

L

H

– –

L

– –

H L

L

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1. 2. 3. 4. 5. 6. 7.

– – – –

L

H

H H

– – – –

L

H

LL

– –L

– –L

– –L

–L

–L

–L

LH H

L

LH

H H

H

H H

H

H

H L

L H

H

– – –

H

L

Leadership Style

Source: Adapted from Organizational Dynamics 28, Victor H. Vroom, “Leadership and the Decision- Making Process,” p. 87.

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126 part 1 InDIVIDUaLS aS LEaDErS

6. Group Expertise. How much knowledge and expertise do the individual followers have with this specific decision? Is expertise high (H) or low (L)? The more expertise the followers have, the greater the individual or group participation can be.

Normative Leadership Development-Driven Model EXHIBIT 4.10

Instructions: The model is a decision tree that works like a funnel. Define the problem statement, then answer the questions from left to right as high (H) or low (L), skipping questions when not appropriate to the situation and avoiding crossing any horizontal lines. The last column you come to contains the appropriate leadership participation decision-making style for the situation.

Delegate

Facilitate

Delegate

Consult (Group)

Consult (Group)

Consult (Group)

Decide

Decide

Delegate

Delegate

Facilitate

Facilitate

P R O B L E M

S T A T E M E N T

D ec

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– –

– –

– –

H H

–L

– L L – – –

– ––

H

L

H

L

––

––

––

L

– H

L

L

L

L

H

H

HL

H L

H

H

H L

H

L

Leadership Style

H

1. 2. 3. 4. 5. 6. 7.

Source: Adapted from Organizational Dynamics 28, Victor H. Vroom, “Leadership and the Decision-Making Process,” p. 88.

7. Team Competence. Is the ability of the individuals to work together as a team to solve the problem high (H) or low (L)? With high team competence, more participation can be used.

Not all seven variables/questions are relevant to all decisions. All seven or as few as two questions are needed to select the most appropriate leadership style in a given situation. The great thing about the models is that they tie the relevant variables together for us as we an- swer the questions to determine the most appropriate leadership style for the given situation.

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 127

Selecting the time-Driven or Development- Driven Model for the Situation The first step is actually to select one of the two models, based on whether the situation is driven by the importance of time or development of followers. The characteristics of the decision are focus, value, and orientation.

The Time-Driven Model See Exhibit 4.9 for the three characteristics:

1. Focus. The model is concerned with making effective decisions with minimum cost. Time is costly, as it takes longer for groups to make decisions than the leader alone.

2. Value. Value is placed on time, and no value is placed on follower development. 3. Orientation. The model has a short-term horizon.

The Development-Driven Model See Exhibit 4.10 for these three characteristics:

1. Focus. The model is concerned with making effective decisions with maximum de- velopment of followers. Follower development is worth the cost.

2. Value. Value is placed on follower development, and no value is placed on time. 3. Orientation. The model has a long-term horizon, as development takes time.

Computerized Normative Model Vroom has developed a computerized CD-ROM model that is more complex and more precise, yet easier to use. It combines the time-driven and development-driven mod- els into one model, includes 11 variables/questions (rather than seven), and has five variable measures (rather than H or L). It guides users through the process of analyz- ing the situation with definitions, examples, and other forms of help as they progress through the use of the model. The computerized model is beyond the scope of this course, but you will learn how to use the time-driven and development-driven models presented here in Exhibits 4.9 and 4.10 and used with Developing Your Leadership Skills Exercise 4-2.

Determining the appropriate Leadership Style To determine the appropriate style for a specific situation, use the best model (time- driven or development-driven) for the situation and answer the questions, some of which may be skipped based on the model used and answers to prior questions. The questions are sequential and are presented in a decision-tree format similar to the Fiedler model, in which you end up with the appropriate style to use. If we use both models for the same situations, for some decisions the appropriate style will be the same, and different for others.

research, Criticism, and applications The current normative model is based on the research of Vroom and colleagues at Yale University on leadership and decision-making processes, with more than 100,000 manag- ers making decisions.39 Numerous studies conducted by others have tested the normative leadership model. In general, the results found in the empirical research have supported the model.40 In a summary of prior research, managers—contrary to Fiedler—do change

WOrk Application 4-4 Recall a specific decision you or your boss has or had to make. Is or was the decision time-driven or development- driven? Using Exhibit 4.9 on page 125 or 4.10 on page 126, select the appropriate participation style for the situation. Be sure to state the questions you answered and how (H or L) you answered each.

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128 part 1 InDIVIDUaLS aS LEaDErS

their style to meet the situation. Managers using the decision style recommended by the normative model were almost twice as likely to be successful as were managers using de- cisions not recommended by the model. Higher-level managers use more participation in decision making. Women managers tend to use more participation than men. Almost all managers view themselves as using a higher level of participation than do their followers. Over the 25 years of research, there has been a move toward higher levels of participation, greater empowerment, and use of teams.41

The model is not without its critics. Vroom treats decisions as a single, discrete epi- sode that occurs at one point in time, but most important decisions are not made that way. Important decisions often involve multiple meetings with various people. Thus, the leader may have to use a sequence of different decision procedures with different people at different times before the final decision is made. Also, the leader is assumed to have the skills needed to use each of the five leadership styles, and the leader’s skills are not included in the model.

The Vroom and Vroom Yetton/Jago model tends to be popular in the academic community because it is based on research and it is complex. It is not very popu- lar with managers because they find it cumbersome to select models and to pull out the model and follow a seven-question decision tree every time they have to make a decision.

You will determine your major normative leadership style in Self-Assessment 4-3 on pages 138, and you will learn how to use the models in Developing Your Leadership Skills Exercise 4-1 and 4-2.

5. Which normative leadership styles does Indra Nooyi tend to use at pepsiCo?

Based on the decision to be made, Nooyi consults and facilitates others. As chairman and CEO, she has the final say in major decisions affecting PepsiCo. However, she also delegates some decisions down the chain of command that involve specific products in American and international markets.

OPENING CASE application

Discuss the major similarities and differences between the behavioral and contingency leadership theories.

Compare and contrast four major differences among the four contingency leadership models.

Learning outcome

7,8

WOrk Application 4-5 1. Identify the one

contingency leadership model you prefer to use on the job, and state why.

2. Describe the type of leader that you want to be on the job. Identify specific behavior you plan to use as a leader. You may also want to identify behavior you will not use.

Putting the Behavioral and Contingency Leadership Theories Together Exhibit 4.11 is a review of different words that are used to describe the same two leader- ship behavior concepts. It includes the number of leadership styles based on the two be- havior concepts and the different names given to the leadership styles. We should realize

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 129

prescriptive and Descriptive Models One last difference between models, not shown in any exhibits, is the difference be- tween prescriptive and descriptive models. The contingency leadership model and the normative leadership model are prescriptive leadership models: They tell the user exactly which style to use in a given situation. However, the continuum and path– goal leadership models are descriptive leadership models: They identify contin- gency variables and leadership styles without specifying which style to use in a given situation. In other words, users of the descriptive model select the appropriate style based more on their own judgment. Look at all the leadership models and you will see what we mean.

List which leadership models are prescriptive and descriptive, and explain why they are classified as such.

Learning outcome 9

that all the leadership styles are based on the same two behavior concepts. We developed Exhibits 4.11 and 4.12 to put all these contingency leadership theories together with be- havioral leadership styles. These exhibits should help you better understand the similari- ties and differences between these theories.

Names Given to the Same Two Leadership Behavior ConceptsEXHIBIT 4.11

NUMBER OF LEADERSHIP STYLES BASED ON BEHAVIOR CONCEPTS

LEADERSHIP & BEHAVIOR/STYLE

2DemocraticAutocraticUniversity of lowa

2Employee-centeredJob-centeredUniversity of Michigan

4ConsiderationStructureOhio State University

Leadership Grid® 5Concern for peopleConcern for production

Behavioral Theories

Contingency Theories

2RelationshipTaskContingency model

7Subordinate-centeredBoss-centeredLeadership continuum

4SupportiveDirectivePath-goal model

5GroupAutocraticNormative model

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130 part 1 InDIVIDUaLS aS LEaDErS

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 131

Many managers prefer prescriptive models; this is a reason why they are more com- monly used in organizational leadership training programs than the descriptive leader- ship models. On the other hand, many academic researchers scoff at prescriptive models, especially simple ones, and prefer the more complex descriptive models based on solid theoretical foundations.

Explain substitutes and neutralizers of leadership.Learning outcome

Leadership Substitutes Theory The four leadership theories presented assume that some leadership style will be effective in each situation. However, in keeping with contingency theory, there are factors outside the leader’s control that have a larger impact on outcomes than do leadership actions. Contingency factors provide guidance and incentives to perform, making the leader’s role unnecessary in some situations. Steven Kerr and John Jermier argued that certain situ- ational variables prevent leaders from affecting subordinates’ (followers’) attitudes and behaviors.42 Substitutes for leadership include characteristics of the subordinate, task, and organization that replace the need for a leader or neutralize the leader’s behavior. This is the motivation for some organizations adopting self-managed teams. Self-managed teams are discussed in Chapter 8.

Substitutes and Neutralizers Thus, substitutes for leadership make a leadership style unnecessary or redundant. Highly skilled workers do not need a leader’s task behavior to tell them how to do their job. Neu- tralizers reduce or limit the effectiveness of a leader’s behavior. For example, managers who are not near an employee cannot readily give task-directive behavior. See Exhibit 4.13 to see how the substitutes for leadership fit into the framework of contingency lead- ership variables. Then, read a description of each substitute.

10

EXHIBIT 4.13 Substitutes for Leadership Variables within the Contingency Leadership Framework

FOLLOWERS LEADER SITUATION

Subordinates None Task Organization

The following variables may substitute or neutralize leadership by providing task- oriented direction and/or people-oriented support rather than a leader.

1. Characteristics of followers. Ability, knowledge, experience, training. Need for inde- pendence. Professional orientation. Indifference toward organizational rewards.

2. Characteristics of the task. Clarity and routine. Invariant methodology. Provision of own feedback concerning accomplishment. Intrinsic satisfaction for completing the task.

3. Characteristics of the organization. Formalization (explicit plans, goals, and areas of responsibility). Inflexibility (rigid, unbending rules and procedures). Highly speci- fied and active advisory and staff functions. Closely knit, cohesive work groups. Organizational rewards not within the leader’s control. Spatial distance between leader and followers.

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132 part 1 InDIVIDUaLS aS LEaDErS

Leadership Style Leaders can analyze their situation and better understand how these three characteristics substitute or neutralize their leadership style and thus can provide the leadership and fol- lowership most appropriate for the situation. The leader role is to provide the direction and support not already being provided by the task, group, or organization. The leader fills the gaps in leadership.

Changing the Situation Like Fiedler suggested, leaders can change the situation rather than their leadership style. Thus, substitutes for leadership can be designed in organizations in ways to complement existing leadership, to act in leadership absence, and to otherwise provide more compre- hensive leadership alternatives. After all, organizations have cut middle-management numbers, and something has to provide the leadership in their absence. One approach is to make the situation more favorable for the leader by removing neutralizers. Another way is to make leadership less important by increasing substitutes such as job enrich- ment, self-managing teams, and automation.

research, Criticism, and applications A meta-analysis was conducted to estimate bivariate relationships among leadership be- haviors, substitutes for leadership, followers’ attitudes, and role perceptions and perfor- mance, and to examine the relative strengths of the relationships among these variables. It was based on 435 relationships obtained from 22 studies containing 36 independent samples. Overall, the theory was supported.43

However, the theory does have its critics. As with the other theories, results are mixed. Research has found support for some aspects of the theory, but other aspects have not been tested or supported. Critics point out that for many of the substitutes, the behavior of the formal leader is merely replaced by similar leadership behavior carried out by peers or other informal leaders—so leadership still exists anyway.

Applications of leadership substitute theory include its strong evidence that situational variables can directly affect job satisfaction and motivation. As already discussed, chang- ing the situation is a major application of substitute theory.

To close this chapter, complete Self-Assessment 4-2 to determine how your personality influences your use of contingency leadership theory.

WOrk Application 4-6 Identify your present or past manager. Can the characteristics of followers, task, and/ or the organization substitute for this leader? In other words, is his or her leadership necessary?

Your personality and Contingency Leadership theoriesSELF-ASSESSMENT 4-2

In Self-Assessment 4-1 on page 113 were you more task or relationship oriented? Your being more task- or relationship-oriented is based very much on your personality.

Based on surgency, if you have a high need for power, you may tend to be more task oriented. Based on agree- ableness, if you are a real “people” person with a high need for affiliation, you may tend to be more relationship oriented. Based on conscientiousness, if you have a high need for achievement, you may tend to be more task oriented to make sure the job gets done, and done your way.

Based on your personality profile, does it match Fiedler’s contingency leadership theory, as presented in Self-Assessment 1? If you have a higher need for power, do you tend to use the autocratic (1–3) leadership continuum styles, the directive and achievement path–goal leadership styles, and then decide and consult norma- tive leadership styles?

If you have a higher need for affiliation, do you tend to use more participative leadership continuum styles, the supportive and participative path–goal styles, and the facilitate and delegate normative leadership styles?

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 133

You will better be able to understand which leadership style you do tend to use when you complete Self- Assessment 4-3 on page 138, “Determining Your Preferred Normative Leadership Style.” The leadership con- tinuum and path–goal styles are explored in Self-Assessment 4-4 on page 143. It is important to realize that your personality does affect your leadership style. However, you can use the leadership style that is most appropriate for the situation. You will learn how in Developing Your Leadership Skills Exercises 4-1 and 4-2.

Chapter Summary

The chapter summary is organized to answer the 11 learning outcomes for this chapter.

1 State the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories.

Behavioral theories attempt to determine the one best leadership style for all situations. Contingency leadership theories contend that there is no one best leadership style for all situations. Behavioral theories contributed to contingency theories because their basic leadership styles are used in contingency leadership models.

2 Describe the contingency leadership theory variables.

The contingency leadership variables used to explain the appropriate leadership style are the leader, followers, and situation. The leader factor is based on personality traits, behavior, and experience. The followers factor is based on capability and motivation. The situational factor is based on task, structure, and environment.

3 Identify the contingency leadership model styles and variables.

The contingency leadership model styles are task and relationship. The variables include (1) the leader– follower relationship, (2) the leadership styles—task or relationship, and (3) the situation—task structure and position power.

4 State the leadership continuum model major styles and variables.

The two major continuum leadership model styles are boss centered and subordinate centered. The variables include (1) the boss, (2) the subordinates, and (3) the situation (time).

5 Identify the path–goal leadership model styles and variables.

The path–goal leadership model styles include direc- tive, supportive, participative, and achievement-oriented.

Variables used to determine the leadership style are the subordinate and the environment.

6 State the normative leadership model styles and the number of variables.

The five normative leadership model styles are decide, consult individually, consult group, facilitate, and delegate. The model has seven variables.

7 Discuss the major similarities and differences between the behavioral and contingency leader- ship theories.

The primary similarity between these theories is that their leadership styles are all based on the same two leadership concepts, although they have different names. The major difference is that the contingency leadership models identify contingency variables on which to select the most appropriate behavioral leadership style for a given situation.

8 Compare and contrast four major differences among the four contingency leadership models.

Using Exhibit 4.12 on page 130, note that the first dif- ference is in the number of leadership styles used in the four models, which ranges from 2 (contingency) to 7 (continuum). The second difference is in the number of contingency variables used to select the appropriate leadership style, which ranges from 2 (path–goal) to 7 (normative). The third difference is what is changed when using the model. When using the contingency as example for emulation or use in a given model, the leader changes the situation; with the other three mod- els, the leader changes behavior (leadership style). The last difference is the desired outcome. Contingency and continuum leadership models focus on performance, and the path–goal model adds job satisfaction. The normative model focuses on decisions.

“Take It To The Net”. Access student resources at www.cengagebrain.com. Search for Lussier, Leadership 6e to find student study tools.

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134 part 1 InDIVIDUaLS aS LEaDErS

9 List which leadership models are prescriptive and descriptive, and explain why they are classified as such.

The contingency and normative leadership models are prescriptive models, because they specify exactly which leadership style to use in a given situation. The contin- uum and path–goal leadership models are descriptive

models, because users select the appropriate leadership style for a given situation based on their own judgment.

10 explain substitutes and neutralizers of leadership.

Substitutes for leadership include characteristics of the subordinate, task, and organization that make leadership behavior unnecessary or redundant; neutralizers reduce or limit the effectiveness of a leader’s behavior.

Key terms contingency leadership model, 112

descriptive leadership models, 129

leadership continuum model, 117

leadership model, 110

normative leadership model, 123

path–goal leadership model, 119

prescriptive leadership models, 129

substitutes for leadership, 131

1 What is the difference between a theory and a model?

2 What contingency leadership variables are common to all of the theories?

3 How does the global economy relate to contingency leadership?

4 What are the two contingency leadership theory leader- ship styles?

5 Do the three situational favorableness factors of the con- tingency leadership model (see Exhibit 4.3 on page 115) fit in only one of the three variables (follower, leader, situ- ation) or all contingency leadership variables (see Exhibit 4.1 on page 110)? Explain.

6 What is the difference in the outcomes of the contingency leadership and the continuum leadership models and that of the path–goal model?

7 What are the three subordinate and environment situ- ational factors of the path–goal model?

8 What are the path–goal theory leadership styles?

9 What are the normative leadership theory leadership styles?

10 What is the primary difference between the contingency leadership model and the other leadership models (lead- ership continuum, path–goal, and normative leadership)?

11 What are the three substitutes for leadership?

review Questions

Critical-thinking Questions The following critical-thinking questions can be used for class discussion and/or as written assignments to develop commu- nication skills. Be sure to give complete explanations for all questions.

1 Do you agree with Fiedler’s belief that people have one dominant leadership style and cannot change styles? Explain.

2 Do you believe that managers today are using more boss- or more subordinate-centered leadership styles?

3 Do you agree that time is an important situational factor to consider in selecting a leadership style for the situation? Explain.

4 The normative leadership model is the most complex. Do more variables improve the model?

5 One group of authors believes that Fiedler’s contingency leadership model is the model best supported by research. However, a different author believes that it is the norma- tive leadership model. Which model do you believe is best supported by research? Why?

6 Which contingency leadership theory do you think is the best?

7 Which contingency leadership theory do you actually plan to use, and how? If you don’t plan to use any, give a detailed reason for not wanting to use any of the models.

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 135

C A S E

Foxconn Technology Group

Have you ever heard of Foxconn Technology Group and its founder and CEO Terry Gou? It is the larg-est expor ter out of China. Gou star ted Hon Hai Precision Industry Company, the anchor company of Foxconn Technology Group, in 1974 at age 23 with a $7,500 loan from his mother to provide the lowest “total cost” solution to increase the affordability of electronics products for everyone. Foxconn has been the most trusted name in contract manu- facturing services.44 Some of the major companies Foxconn makes contracted products for include IBM, Cisco, Microsoft, Nokia, Sony, Dell, Hewlett-Packard, and Apple. If you have a PlayStation, computer, or smart phone, there is a good chance that all or part of it was made by Foxconn.

Terry Gou has been characterized as always thinking about a way to shave another nickel off the cost of a product, as a charming salesman, as a daring strategist, as a ruthless taskmas- ter, and as a reincarnated Henry Ford. Gou is a billionaire, but he says, “I think for me, I am not interested in knowing how much I have. I don’t care. I am working not for the money at this moment, I am working for society, I am working for my employees.”45

Although Terry Gou’s story is interesting, in this case we focus on lower-level manager Li Chang. (Please note: Foxconn is an existing company. However, Chang and Jackie Lee are not the names of actual managers at Foxconn; they are used to illustrate contingency leadership.)

Li Chang worked her way up to become the manager in a department making parts for the iPad. Chang’s job was to supervise the production of one part that is used as a com- ponent in other products. Running the machines to make the standard parts is not complicated, and her employees gener- ally find the job to be boring with low pay. Chang closely su- pervised the employees to make sure they kept production on schedule. She believed that if she did not watch the em- ployees closely and keep them informed of their output, they would slack off and miss production goals. Chang’s employees viewed her as an okay boss to work for, as she did take a per- sonal interest in them, and employees were productive. Chang did discipline employees who did not meet standard produc- tivity, and she ended up firing some workers.

Jackie Lee, the manager of a larger department that made instruments to customer specifications, retired, and Chang was given a promotion to manage this department because she did

a good job running her old department. Chang never did any design work, nor supervised it. The designers are all engineers who are paid well and who were doing a good job according to their prior supervisor Lee. As Chang observed workers in her usual manner, she realized that all of the designers did their work differently. So she closely observed their work and looked for good ideas that all her employees could follow. It wasn’t long be- fore Chang was telling employees how to do a better job of de- signing the custom specifications. Things were not going too well, however, as employees told Chang that she did not know what she was talking about. Chang tried to rely on her authority, which worked while she was watching employees. However, once she left one employee to observe another, the workers went back to doing things their own way. Chang’s employees were com- plaining about her being a poor manager behind her back.

The complaints about Chang being a poor manager got to Terry Gou. Gou also realized that performance in the design department had gone down since Chang took over as man- ager. Gou decided to call Chang into his office to discuss how things are going.

G O t O t h e I N t e r N e t :   To learn more about Terry Gou and Foxconn, visit its Web site (http://www. foxconn.com).

Support your answers to the following questions with spe- cific information from the case and text or with other informa- tion you get from the Web or other sources.

1. Which leadership style would Fiedler say Li Chang uses?

2. Using Exhibit 4.3 on page 115, Fiedler’s contingency leadership model, what situation and leadership style are appropriate for the production department and for the custom design department?

3. Why isn’t Chang doing an effective job in the design department?

4. What would Fiedler and Kerr and Jermier recommend that Chang do to improve performance?

5. Which of the two basic continuum leadership styles would Tannenbaum and Schmidt recommend for Chang and other managers of the design department?

6. Which path–goal leadership style would House rec- ommend for Chang and other managers of the design department?

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136 part 1 InDIVIDUaLS aS LEaDErS

C U M U L at I V e C a S e Q U e S t I O N S

7. Describe Chang’s personality based on the Big Five model of personality (Chapter 2). How does Chang’s personality influence her leadership style?

8. How is Chang’s leadership style and behavior affecting employee needs and motivation (Chapter 3)?

C a S e e X e r C I S e a N D r O L e - p L aY

preparation: Put yourself in the role of Terry Gou. (1) Which normative leadership style would you use with Chang during the meeting? (2) How would you handle the meeting with Chang? (3) What will you say to her?

In-Class Meeting: Break into groups of four to six members, and discuss the three preparation questions.

role-play: One person (representing themselves or a group) meets with Chang to role-play the meeting for the class

to observe. The person does not identify which normative leadership style they are using. You can discuss the role-play, as discussed next. More than one role-play may also take place.

observer role: As the rest of the class members watch the role-play, they should: (1) Identify the leadership style used by the person playing the role of Gou. (2) State if it is the appropriate leadership style for this situation. (3) Look for things that Gou does well, and does not do so well. For your suggested improvements, be sure to have alternative behaviors that are coaching.

Discussion: After the first role-play, the class (1) votes for the leadership style used by the person role-playing Gou, (2) deter- mines the appropriate leadership style, and (3) discusses good behavior and better behavior that could be used. If additional role-plays are used, skip step 2.

McDonald’s has achieved the status of one of the most recognizable franchises across the globe through a mixture of successful marketing, consistent service and products, and strong leadership. Ray Kroc was a visionary leader who inspired others through his charisma. He saw the potential for standardizing an efficient, systematized restaurant model and replicating it across the country. Kroc is quoted as saying, “If you’ve got time to lean, you’ve got time to clean,”

which highlights his goal-oriented and task-focused leadership style that still exists in the corporation today.

1. What kind of normative leadership style do you think Ray Kroc, as a leader in the first years of McDonald’s, likely used? Explain your answer.

2. What are the benefits of a corporate leadership strategy?

V I D E o C a S E

Leadership at McDonald’s

SELF-ASSESSMENT 4-3

Following are 12 situations. Select the one alternative that most closely describes what you would do in each situ- ation. Don’t be concerned with trying to pick the right answer; select the alternative you would really use. Circle a, b, c, or d. Ignore the S part, which will be explained later in Developing your Leadership Skills Exercise 1.

1. Your rookie crew seems to be developing well. Their need for direction and close supervision is diminishing. What do you do?

a. Stop directing and overseeing performance un- less there is a problem. S

b. Spend time getting to know them personally, but make sure they maintain performance lev- els. S

c. Make sure things keep going well; continue to direct and oversee closely. S

d. Begin to discuss new tasks of interest to them. S

Determining Your preferred Normative Leadership Style

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 137

2. You assigned Jill a task, specifying exactly how you wanted it done. Jill deliberately ignored your direc- tions and did it her way. The job will not meet the customer’s standards. This is not the first problem you’ve had with Jill. What do you decide to do?

a. Listen to Jill’s side, but be sure the job gets done right. S

b. Tell Jill to do it again the right way, and closely supervise the job. S

c. Tell her the customer will not accept the job, and let Jill handle it her way. S

d. Discuss the problem and possible solutions to it. S

3. Your employees work well together; the depart- ment is a real team. It’s the top performer in the organization. Because of traffic problems, the pres- ident okayed staggered hours for departments. As a result, you can change your department’s hours. Several of your workers have suggested changing. You take what action?

a. Allow the group to decide its hours. S

b. Decide on new hours, explain why you chose them, and invite questions. S

c. Conduct a meeting to get the group members’ ideas. Select new hours together, with your ap- proval. S

d. Send around a memo stating the hours you want. S

4. You hired Bill, a new employee. He is not perform- ing at the level expected after one month’s train- ing. Bill is trying, but he seems to be a slow learner. What do you decide to do?

a. Clearly explain what needs to be done and oversee his work. Discuss why the procedures are important; support and encourage him. S

b. Tell Bill that his training is over and it’s time to pull his own weight. S

c. Review task procedures and supervise Bill’s work closely. S

d. Inform Bill that his training is over, and tell him to feel free to come to you if he has any prob- lems. S

5. Helen has had an excellent performance record for the last five years. Recently you have noticed a drop in the quality and quantity of her work. She has a family problem. What do you do?

a. Tell Helen to get back on track and closely su- pervise her. S

b. Discuss the problem with Helen. Help her real- ize that her personal problem is affecting her

work. Discuss ways to improve the situation. Be supportive and encourage her. S

c. Tell Helen you’re aware of her productivity slip, and that you’re sure she’ll work it out soon. S

d. Discuss the problem and solution with Helen, and supervise her closely. S

6. Your organization does not allow smoking in certain areas. You just walked by a restricted area and saw Joan smoking. She has been with the organization for 10 years and is a very productive worker. Joan has never been caught smoking be- fore. What action do you take?

a. Ask her to put it out, and then leave. S

b. Discuss why she is smoking, and ask what she intends to do about it. S

c. Give her a lecture about not smoking, and check up on her in the future. S

d. Tell her to put it out, watch her do it, and tell her you will check on her in the future. S

7. Your department usually works well together with little direction. Recently a conflict between Sue and Tom has caused problems. As a result, you take what action?

a. Call Sue and Tom together and make them realize how this conflict is affecting the depart- ment. Discuss how to resolve it and how you will check to make sure the problem is solved. S

b. Let the group resolve the conflict. S

c. Have Sue and Tom sit down and discuss their conflict and how to resolve it. Support their efforts to implement a solution. S

d. Tell Sue and Tom how to resolve their conflict and closely supervise them. S

8. Jim usually does his share of the work with some encouragement and direction. However, he has migraine headaches occasionally and doesn’t pull his weight when this happens. The others resent doing Jim’s work. What do you decide to do?

a. Discuss his problem and help him come up with ideas for maintaining his work; be supportive. S

b. Tell Jim to do his share of the work and closely watch his output. S

c. Inform Jim that he is creating a hardship for the others and should resolve the problem by himself. S

d. Be supportive, but set minimum performance levels and ensure compliance. S

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138 part 1 InDIVIDUaLS aS LEaDErS

9. Barbara, your most experienced and productive worker, came to you with a detailed idea that could increase your department’s productivity at a very low cost. She can do her present job and this new assignment. You think it’s an excellent idea; what do you do?

a. Set some goals together. Encourage and sup- port her efforts. S

b. Set up goals for Barbara. Be sure she agrees with them and sees you as being supportive of her efforts. S

c. Tell Barbara to keep you informed and to come to you if she needs any help. S

d. Have Barbara check in with you frequently, so that you can direct and supervise her activities. S

10. Your boss asked you for a special report. Frank, a very capable worker who usually needs no direc- tion or support, has all the necessary skills to do the job. However, Frank is reluctant because he has never done a report. What do you do?

a. Tell Frank he has to do it. Give him direction and supervise him closely. S

b. Describe the project to Frank and let him do it his own way. S

c. Describe the benefits to Frank. Get his ideas on how to do it and check his progress. S

d. Discuss possible ways of doing the job. Be sup- portive; encourage Frank. S

11. Jean is the top producer in your department. However, her monthly reports are constantly late and contain errors. You are puzzled because she does everything else with no direction or support. What do you decide to do?

a. Go over past reports with Jean, explaining ex- actly what is expected of her. Schedule a meet- ing so that you can review the next report with her. S

b. Discuss the problem with Jean, and ask her what can be done about it; be supportive. S

c. Explain the importance of the report. Ask her what the problem is. Tell her that you expect the next report to be on time and error free. S

d. Remind Jean to get the next report in on time without errors. S

12. Your workers are very effective and like to partici- pate in decision making. A consultant was hired to

develop a new method for your department using the latest technology in the field. What do you do?

a. Explain the consultant’s method and let the group decide how to implement it. S

b. Teach them the new method and closely su- pervise them. S

c. Explain the new method and the reasons that it is important. Teach them the method and make sure the procedure is followed. Answer questions. S

d. Explain the new method and get the group’s input on ways to improve and implement it. S

To determine your preferred normative leadership style, follow these steps:

1. In this chart, circle the letter you selected for each situation.

The co lumn head ings (S1 through S4) represent the s ty le you se lected .

S1 = Dec ide , S2 = Consu l t ( Ind iv idua l ly or Group) , S3 = Fac i l i ta te , S4 = Delegate

S1D S2C S3F S4DL 1 c a d a 2 b a d c 3 d b c a 4 c a d b 5 a d b c 6 d c b a 7 d a c b 8 b d a c 9 d b a c 10 a c d b 11 a c b d 12 b c d a Tota l s

2. Add up the number of circled items per col- umn. The column with the highest total is your preferred leadership style. There is no correct or best normative leadership style. Below is an expla- nation about each style.

S1 Decide Leadership Style. The decide style includes making the decision alone. as a decider, you autocratically tell people how to implement your decision and follow up to make sure performance is maintained, or you tell people what to do and make sure they continue to do it.

S2 Consult (Individually or Group) Leadership Style. as they are both consult styles, we combine individual and group styles for this exercise. The consult style includes talking to individuals or groups for input in a support- ive way before you make the decision. as a consulter,

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 139

after making the decision, you also tell people how to implement your decision and follow up to make sure per- formance is maintained, while you support and encourage them as they implement your decision.

S3 Facilitate Leadership Style. The facilitate style includes having a group meeting to get input from members as you attempt to support the group to agree on a deci- sion within boundaries set by you; in other words, you still have the final say on the decision. as a facilitator, you are supportive and encouraging to the group members to both make the decision and implement the decision.

S4 Delegate Leadership Style. The delegate style includes letting the group make the decision within limits. as a delegator, you don’t tell the group what to do or facilitate the group during the decision making and its implementation.

To determine your flexibility to change styles, do the follow- ing. Look at your total score for each column leadership style. The more evenly distributed the totals (for example 4, 4, 4, 4), the more flexible you appear to be at changing your leadership style. having high numbers in some col- umns and low in others indicates a strong preference to use or avoid using one or more leadership styles.

Note: There is no right, correct, or best normative leadership style. What this self-assessment exercise does is allow you to know your preferred leadership style and your flexibility at changing styles. In Developing your Leadership Skills Exercise 1, you will develop your skill to identify the normative leadership styles. In Skill- Development Exercise 2, you will learn to use the nor- mative leadership models to select the most appropriate leadership style for a given situation.

4-1

preparing for this exercise Return to the 12 situations in Self-Assessment 3. This time, instead of selecting one of the four options, a–d, identify the normative leadership style used in each option, with the aid of the leadership style definitions in Self-Assessment 3 above. Let’s do the following example.

example

Your rookie crew seems to be developing well. Their need for direction and close supervision is diminishing. What do you do?

1 Stop directing and overseeing performance unless there is a problem. S_DL_

2 Spend time getting to know them personally, but make sure they maintain performance levels. S_C_

4 Make sure things keep going well; continue to direct and oversee closely. S_D_

4 Begin to discuss new tasks of interest to them. S_F_

answers

5 As indicated on the S_DL_line, this is the delegate leader- ship style. As in the definition of delegate, you are leaving the group alone—unless there is a problem (limits)—to make and implement its own decisions about work.

6 As indicated on the S_C_ line, this is the consult leader- ship style. As in the definition of consult, you are being

supportive by getting to know them, yet you are still fol- lowing up to make sure they get the job done.

7 As indicated on the S_D_ line, this is the decide leader- ship style. As in the definition of decide, you are following up to make sure performance is maintained.

8 As indicated on the S_F_ line, this is the facilitate leader- ship style. As in the definition of facilitate, you are facilitat- ing a group decision on possible new tasks for the group to perform.

Now, complete situation numbers 2–12 by determining the leadership style and placing the letters D, C, F, and DL on each of the a–d S_ lines as illustrated above. All four alternative behaviors do represent a different normative leadership style.

Doing this exercise in Class

Objective

To develop the skill of identifying normative leadership styles.

aaCSB General Skills area

The primary AACSB competencies developed through this exercise are communication, analytic skills, and application of knowledge.

procedure (5–30 minutes) Select an option:

9 The instructor goes over the answers.

10 The instructor calls on students and goes over the answers.

Identifying Normative Leadership Styles

Developing your Leadership Skills

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140 part 1 InDIVIDUaLS aS LEaDErS

4-2

preparing for this exercise You should have studied the normative leadership model text material. Using Exhibits 4.9 and 4.10 on pages 125 and 126, determine the appropriate leadership style for the given prob- lem statements below. Follow these steps:

1 Determine which normative leadership model to use for the given situation.

2 Answer the variable questions (between 2 and 7) for the problem.

3 Select the appropriate leadership style from the model.

1. Production department manager. You are the manager of a mass-produced manufactured product. You have two major machines in your department with 10 people working on each. You have an important order that needs to be shipped first thing tomorrow morning. Your boss has made it very clear that you must meet this deadline. It’s 2:00 and you are right on schedule to meet the order deadline. At 2:15 an employee comes to tell you that one of the machines is smoking a little and making a noise. If you keep running the machine, it may make it until the end of the day and you will deliver the important shipment on time. If you shut down the machine, the manufacturer will not be able to check the machine until tomorrow and you will miss the deadline. You call your boss and there is no answer, and you don’t know how else to contact the boss or how long it will be before the boss gets back to you if you leave a message. There are no higher-level managers than you or anyone with more knowledge of the machine than you. Which leadership style should you use?

Step 1 Which model should you use? (____ time-driven ____ development-driven)

Step 2 Which questions on the normative model Exhibit 4.9 or 4.10 did you answer and how? (H = high, L = low, NA = not answered/skipped)

1. h L or na 3. h L or na 5. h L or na 7. h L or na 2. h L or na 4. h L or na 6. h L or na

Step 3 Which leadership style is the most appropriate? ____ decide ____ consult individually ____ consult ____ group ____ facilitate delegate

2. Religious leader. You are the top religious leader of your church with 125 families and 200 members. You have a doctor of religious studies degree with just two years’ experience as the head of a church, and no business courses. The church has one paid secretary, three part-time program directors for religious instruction, music, and social activities, plus many volunteers. Your

paid staff serves on your advisory board with 10 other church members who are primarily top-level business leaders in the community. You make a yearly budget with the board’s approval. The church source of income is weekly member donations. The board doesn’t want to operate in the red, and the church has very modest surplus funds. Your volunteer accountant (CPA), who is a board member, asked to meet with you. During the meeting, she informed you that weekly collections are 20 per- cent below budget and the cost of utilities has increased 25 percent over the yearly budget figure. You are running a large deficit, and at this rate your surplus will be gone in two months. Which leadership style will you use in this crisis?

Step 1 Which model should you use? (____ time-driven ____ development-driven)

Step 2 Which questions did you answer and how? (H = high, L = low, NA = not answered/skipped)

1. h L or na 3. h L or na 5. h L or na 7. h L or na 2. h L or na 4. h L or na 6. h L or na

Step 3 Which leadership style is the most appropriate? ___ decide ___consult individually ___ consult group___ facilitate ___ delegate

3. School of business dean. You are the new dean of the school of business at a small private university. Your faculty includes around 20 professors, only two of whom are nontenured, and the aver- age length of employment at the school is 12 years. Upon taking the job, you expect to leave for a larger school in three years. Your primary goal is to start a business school faculty advisory board to improve community relations and school alumni rela- tions, and to raise money for financial aid scholarships. You have already done this in your last job as dean. However, you are new to the area and have no business contacts. You need help to develop a network of alumni and other community leaders fairly quickly if you are to show achieved results on your resume in two-and-a-half years. Your faculty gets along well and is talk- ative, but when you approach small groups of them they tend to become quiet and disperse. Which primary leadership style would you use to achieve your objective?

Step 1 Which model should you use? (___ time-driven ___ development-driven)

Step 2 Which questions did you answer and how? (H = high, L = low, NA = not answered/skipped)

1. h L or na 3. h L or na 5. h L or na 7. h L or na 2. h L or na 4. h L or na 6. h L or na

Using the Normative Leadership Models

Developing your Leadership Skills

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 141

Step 3 Which leadership style is the most appropriate?

1. h L or na 3. h L or na 5. h L or na 7. h L or na 2. h L or na 4. h L or na 6. h L or na

Step 3 Which leadership style is the most appropriate? ___ decide ___ consult individually ___ consult group ___ facilitate ___ delegate group ___ facilitate ___ delegate

4. Dot.com president. You are the president of a dot.com com- pany that has been having financial problems for a few years. As a result, your top two managers left for other jobs. One left four months ago and the other two months ago. With your network- ing contacts you replaced both managers within a month; thus, they don’t have a lot of time on the job and haven’t worked together for very long. Plus, they currently do their own thing to get their jobs done. However, they are both very bright, hard- working, and dedicated to your vision of what the company can be. You know how to turn the company around and so do your two key managers. To turn the company around, you and your two managers will have to work together, with the help of all your employees. Virtually all the employees are high-tech special- ists who want to be included in decision making. Your business partners have no more money to invest. If you cannot turn a profit in four to five months, you will most likely go bankrupt. Which primary leadership style would you use to achieve your objective?

Step 1 Which model should you use? (___ time-driven development-driven)

Step 2 Which questions did you answer and how? (H = high, L = low, NA = not answered/skipped)

1. h L or na 3. h L or na 5. h L or na 7. h L or na 2. h L or na 4. h L or na 6. h L or na

Step 3 Which leadership style is the most appropriate? ____ decide ____ consult individually ____ consult group ____ facilitate ____ delegate

Doing this exercise in Class

Objective

To develop your skill at determining the appropriate leadership style to use in a given situation using the normative leadership models, Exhibits 4.9 and 4.10.

aaCSB General Skills area

The primary AACSB competencies developed through this exercise are communications, analytic skills, and application of knowledge.

experience

You will use the normative leadership models in four given problem situations.

procedure 1 (5–8 minutes) The instructor goes over the normative leadership models and uses the models to illustrate how to select the appropriate leadership style for problem situation 1.

procedure 2 (10–20 minutes) Break into groups of two or three and use the models to determine the appropriate lead- ership style for situations 2–4 in the preparation above. This is followed by the instructor going over or just stating the an- swers to situations 2–4.

Conclusion

The instructor may lead a class discussion and/or make conclud- ing remarks.

apply It (2–4 minutes) What did I learn from this experience? How will I apply normative leadership in the future?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

Your Leadership Continuum and path–Goal Leadership StylesSELF-ASSESSMENT 4-4

you have already determined your preferred LpC contingency leadership style (Self-assessment 4-1 on page 113) and your preferred normative leadership style (Self-assessment 4-3 on pages 138–141). Using Self-assessment 4-4, you can determine your other preferred styles by checking your preferred normative leadership style in the first column. In the same row, the columns to the right show your continuum and path–goal preferred leadership styles. Does your preferred leadership style match your personality for Self-assessment 4-2 on page 132?

NOrMatIVe LeaDerShIp StYLe

LeaDerShIp CONtINUUM StYLe

path–GOaL LeaDerShIp StYLe

Decide 1 Boss-centered Directive

Consult (individually or group) 2 or 3 Achievement-oriented

Facilitate 4 or 5 Supportive

Delegate 6 or 7 Subordinate-centered Participative

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142 part 1 InDIVIDUaLS aS LEaDErS

1 PepsiCo Web site (www.pepsico.com), accessed January 28, 2014.

2 “The 50 Most Powerful Women,” Fortune (October 28, 2013): 133–138.

3 PepsiCo Web site (www.pepsico.com), accessed January 28, 2014.

4 G. Colvin, “Indra Nooyi’s Challenge,” Fortune (June 11, 2012): 149–156.

5 “Largest U.S. corporations—Fortune 500,” Fortune (May 20, 2013): 1–20.

6 “The World’s Most Admired Companies,” Fortune (March 18, 2013): 137–148.

7 M. Esterl and V. Baurlein, “PepsiCo Wakes Up and Smells the Cola,” Wall Street Journal (June 28, 2011): B1, B2.

8 M. Esterl, “PepsiCo Board Stands by Nooyi,” Wall Street Journal (January 13, 2012): B1.

9 M.A. Hogg, D. Van Knippenberg, and D.E. Rast, “Intergroup Leadership in Organizations: Leading across Group and Organizational Boundaries,” Academy of Management Review 37(2) (2012): 232–255.

10 H.R. Greve, “Microfoundations of Management: Behavioral Strategies and Levels of Rationality in Organizational Action,” Academy of Management Perspectives 27(2) (2013): 103–119.

11 A.M. Grant and S.V. Patil, “Challenging the Norm of Self- Interest: Minority Influence and Transitions to Helping Norms in Work Units,” Academy of Management Review 37(4) (2012): 547–568.

12 S.B. Sitkin and J.R. Hackman, “Developing Team Leadership: An Interview with Coach Mike Krzyzewski,” Academy of Management Learning & Education 10(3) (2011): 494–501.

13 J.D. Harris and S.G. Sounder, “Model-Theoretic Knowledge Accumulation: The Case of Agency Theory and Incentive Alignment,” Academy of Management Review 38(3) (2013): 442–454.

14 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

15 B.P. Owens and D.R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal 55(4) (2012): 787–818.

16 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

17 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

18 G. Toegel, M. Kilduff, and N. Anand, “Emotion Helping by Managers: An Emergent Understanding of Discrepant Role Expectations and Outcomes,” Academy of Management Journal 56(2) (2013): 334–357.

19 M.C. Sonfield and R.N. Lussier, “Gender in Family Business Ownership and Management: A Six Country Analysis,” International Journal of Gender and Entrepreneurship 1(2) (2009): 96–117.

20 J. Eisenberg, C.E.J. Härtel, and G.K. Stahl, “From the Guest Editors: Cross-Cultural Management Learning and Education—Exploring Multiple Aims, Approaches, and Impacts,” Academy of Management Learning & Education 12(3) (2013): 323–329; A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Learning & Education 27(2) (2013): 156–172.

21 Y. Zhu and F.B. Chiappini, “Balancing Emic and Etic: Situated Learning and Ethnography of Communication in Cross-Cultural Management Education,” Academy of Management Learning & Education 12(3) (2013): 380–395.

22 M.E. Mendenhall, A.A. Arnardottir, G.R. Oddou, and L.A. Burke, “Developing Cross-Cultural Competencies in Management Education via Cognitive-Behavior Therapy,” Academy of Management Learning & Education 12(3) (2013): 436–451.

23 J. Eisenberg, C.E.J. Härtel, and G.K. Stahl, “From the Guest Editors: Cross-Cultural Management Learning and Education—Exploring Multiple Aims, Approaches, and Impacts,” Academy of Management Learning & Education 12(3) (2013): 323–329; A.H. Van De Ven and A. Lifschitz, “Rational and Reasonable Microfoundations of Markets and Institutions,” Academy of Management Learning & Education 27(2) (2013): 156–172.

24 R.J. House; et al., eds. Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies (Thousand Oaks, CA: Sage, 2004).

25 F.E. Fiedler, A Theory of Leadership Effectiveness (New York: McGraw-Hill, 1967); F.E. Fiedler and M.M. Chemers, Improving Leadership Effectiveness: The Leader Match Concept, 2nd ed. (New York: Wiley, 1982).

26 P. Puranam, M. Raveendran, and T. Knudsen, “Organization Design: The Epistemic Interdependence Perspective,” Academy of Management Review 37(3) (2012): 419–440.

endnotes

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Chapter 4 ConTIngEnCy LEaDErShIp ThEorIES 143

27 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

28 G. Toegel, M. Kilduff, and N. Anand, “Emotion Helping by Managers: An Emergent Understanding of Discrepant Role Expectations and Outcomes,” Academy of Management Journal 56(2) (2013): 334–357.

29 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

30 G. Yukl, “Effective Leadership Behavior : What We Know and What Questions Need More Attention,” Academy of Management Perspectives 26(4) (2011): 66–85.

31 M.J. Strube and J.E. Garcia, “A Meta-Analytical Investigation of Fiedler’s Contingency Model of Leadership Effectiveness,” Psychology Bulletin 90 (1981): 307–321; and L.H. Peters, D.D. Hartke, and J.T. Pohlmann, “Fiedler’s Contingency Theory of Leadership: An Application of the Meta-Analysis Procedure of Schmidt and Hunter,” Psychological Bulletin 97 (1985): 274–285.

32 F.E. Fiedler, “A Rejoinder to Schriesheim and Kerr’s Pre- mature Obituary of the Contingency Model,” in J.G. Hunt and L.L. Larson, eds., Leadership: The Cutting Edge (Carbondale, IL: Southern Illinois University Press, 1977): 45–50; and F.E. Fiedler, “The Contingency Model: A Reply to Ashour,” Organizational Performance and Human Behavior 9 (1973): 356–368.

33 R. Tannenbaum and W.H. Schmidt, “How to Choose a Leadership Pattern,” Harvard Business Review (March–April 1958): 95–101; R. Tannenbaum and W.H. Schmidt, “How to Choose a Leadership Pattern,” Harvard Business Review (May–June 1973): 166. R. Tannenbaum and W.H. Schmidt, excerpts from “How to Choose a Leadership Pattern,” Harvard Business Review (July–August 1986): 129.

34 B.P. Owens and D.R. Hekman, “Modeling How to Grow: An Inductive Examination of Humble Leader Behaviors, Contingencies, and Outcomes,” Academy of Management Journal 55(4) (2012): 787–818.

35 R.J. House, “A Path-Goal Theory of Leader Effectiveness,” Administrative Science Quarterly 16(2) (1971): 321–329; M.G. Evans, “The Effects of Supervisory Behavior on the Path-Goal Relationship,” Organizational Behavior and Human Performance 5 (1970): 277–298; and R.N. House and R.J. Aditya, “The Social Scientific Study of Leadership: Quo Vadis?” Journal of Management 23 (May–June 1997): 409–474.

36 M.R. Barrick, M.K. Mount, and N. Li, “The Theory of Purposeful Work Behavior : The Role of Personality, Higher-Order Goals, and Job Characteristics,” Academy of Management Review 38(1) (2013): 132–153.

37 J.C. Wofford and L.Z. Liska, “Path-Goal Theories of Leadership: A Meta-Analysis,” Journal of Management 19 (1993): 858–876; and P.M. Podsakoff, S.B. MacKenzie, M. Ahearne, and W.H. Bommer, “Searching for a Needle in a Haystack: Trying to Identify the Illusive Moderators of Leadership Behavior,” Journal of Management 21 (1995): 423–470.

38 V.H. Vroom and P.W. Yetton, Leadership and Decision Making (Pittsburgh: University of Pittsburgh Press, 1973); V.H. Vroom and A.G. Jago, The New Leadership: Managing Participation in Organizations (Englewood Cliffs, NJ: Prentice Hall, 1988); and V.H. Vroom, “Leadership and the Decision- Making Process,” Organizational Dynamics 28 (Spring 2000): 82–94.

39 V.H. Vroom, “Leadership and the Decision-Making Process,” Organizational Dynamics 28 (Spring 2000): 82–94.

40 J.B. Miner, “The Uncertain Future of the Leadership Concept: An Overview,” in J.G. Hunt and L.L. Larson, eds., Leadership Frontiers (Kent, OH: Kent State University, 1975); R.H.G. Field, “A Critique of the Vroom-Yetton Contingency Model of Leadership Behavior,” Academy of Management Review 4 (1979): 249–257; R.H.G. Field, “A Test of the Vroom-Yetton Normative Model of Leadership,” Journal of Applied Psychology (October 1982): 523–532; and R.H.G. Field, P.C. Read, and J.J. Louviere, “The Effect of Situation Attributes on Decision Method Choice in the Vroom-Jago Model of Participation in Decision Making,” Leadership Quarterly 1 (1990): 165–176.

41 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

42 S. Kerr and J. Jermier, “Substitutes for Leadership: Their Meaning and Measurement,” Organizational Behavior and Human Performance 22 (1978): 375–403.

43 P.M. Podsakoff, S.B. MacKenzie, and W.H. Bommer, “Meta- Analysis of the Relationships between Kerr and Jermier’s Substitutes for Leadership and Employee Job Attitudes, Role Perceptions, and Performance,” Journal of Applied Psychology 81 (August 1996): 380–400.

44 Foxconn Web site (www.foxconn.com), accessed February 4, 2014.

45 F. Balfour and T. Culpan, “Chairman Gou,” BusinessWeek (September 13–19, 2010): 58–69.

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144

Chapter

5

C h a p t e r O U t L I N e

Power

Sources of Power

Types of Power and Influencing Tactics, and Ways to Increase Your Power

Organizational Politics

The Nature of Organizational Politics

Political Behavior

Guidelines for Developing Political Skills

Networking

Perform a Self-Assessment and Set Goals

Create Your One-Minute Self-Sell

Develop Your Network

Conduct Networking Interviews

Maintain Your Network

Social Networking at Work

Negotiation

Negotiating

The Negotiation Process

Ethics and Influencing

Influencing: Power, Politics, Networking, and Negotiation

Learning Outcomes After studying this chapter, you should be able to:

1 Explain the differences between position power and personal power. p. 145

2 Discuss the differences among legitimate, reward, coercive, and referent power. p. 146

3 Discuss how power and politics are related. p. 154

4 Describe how money and politics have a similar use. p. 154

5 List and explain the steps in the networking process. p. 160

6 List the steps in the negotiation process. p. 166

7 Explain the relationships among negotiation and conflict, influencing tactics, power, and politics. p. 166

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 145

Serial entrepreneur Mark Cuban has ventured into many diverse businesses. Cuban’s first step into the business world occurred at age 12, when he sold garbage bags door to door. Soon after, he was selling stamps, coins, and baseball cards, which paid for his business degree at Indiana University (IU). While attending IU, Cuban bought a Bloomington bar and named it Motley’s, raising the money by selling shares to his friends. Cuban and Martin Woodall founded MicroSolutions, and they sold the company for $6 million. With Woodall, he also invested in the Landmark Theatres, Magnolia Pictures, AXS TV (formerly HDNet), and audio and video portal Broadcast.com; he was also a day trader. Cuban also took acting lessons and was on the TV show Shark Tank. But Cuban is most famous, however, for his 90 percent ownership and controversial, zealous management of the NBA team Dallas Mavericks. Cuban is listed on the Forbes 400 Richest People in America, with a net worth of $2.5 billion.1

OpeNING CaSe QUeStIONS:

1. What sources and types of power does Mark Cuban have, and why has he had problems with power?

2. Why are organizational politics important to Mark Cuban’s enterprises?

3. How has Mark Cuban used networking?

4. What types of negotiations does Mark Cuban engage in?

5. Is Mark Cuban ethical in influencing others?

Can you answer any of these questions? You’ll find answers to these questions and learn more about Mark Cuban’s businesses and leadership style throughout the chapter.

To learn more about Mark Cuban, do an Internet search.

OPENING CASE application

Besides excellent work, what does it take to get ahead in an organization? To climb the corporate ladder, you will have to inf luence people2—to gain power, play organizational politics, network, and negotiate to get what you want. These related concepts are the topics of this chapter. Recall from our definition of leadership (Chapter 1) that leadership is the “influencing” process of leaders and followers to achieve organizational objectives through change. Leaders and followers influence each other. This chapter focuses on leadership behavior by explaining how leaders influence others at the individual level of analysis. Let’s begin with power because if you want to make a difference, you need to have power.3

Power Power is the fundamental concept in social science,4 and power skills can be taught and developed.5 If we want to understand why organizations do the things they do, we must consider the power of managers and how power differences affect team and organiza- tional performance.6 Power is about achieving influence over others. However, power is the leader’s potential influence over followers. Because power is the potential to influ- ence, you do not actually have to use power to influence others. Often, it is the perception of power, rather than the actual use of power, that influences others. In this section, we discuss sources of power, types of power, influencing tactics, and ways to increase your power.

Explain the differences between position power and personal power.Learning outcome 1

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146 part 1 INDIVIDuaLs as LEaDErs

Sources of power There are different sources of power,7 and here we discuss position power and personal power.

Position Power Position power is derived from top management, and it is delegated down the chain of command. Position status can give you power.8 Thus, a person who is in a management position has more potential power to influence than an employee who is not a manager.9 Some people view power as the ability to make people do what they want them to do or the ability to do something to people or for people. These definitions may be true, but they tend to give power a manipulative, negative connotation, as does the old saying by Lord Acton, “Power corrupts. Absolute power corrupts absolutely.” Power can also make people more self-focused.10

Within an organization, power should be viewed in a positive sense. Without power, managers could not achieve organizational objectives, so leadership and power go hand in hand. Managers rely on position power to get the job done.11 Dr. Martin Luther King Jr. said, “Power properly understood is nothing but the ability to achieve purpose. It is the strength to bring about change.”

Personal Power Personal power is derived from the followers based on the leader’s behavior. Charismatic leaders have personal power. Again, followers do have some power over leaders. So you don’t have to be a manager to have power.

A manager can have only position power or both position and personal power, but a nonmanager can have only personal power. Today’s successful leaders share power (empowerment) by pushing power and decision making down the organization.12 As former NBA coach Phil Jackson puts it, you need to empower your players.13

Discuss the differences among legitimate, reward, coercive, and referent power.Learning outcome 2

types of power and Influencing tactics, and Ways to Increase Your power Seven types of power are illustrated, along with their source and inf luencing tactics, in Exhibit 5.1. In the late 1950s, French and Raven distinguished five types of power (reward, coercive, legitimate, expert, and referent).14 Connection (politics) and information power have been added to update the important types of power. We will discuss these seven types of power and explore ways to increase each type with influencing tactics, or actions.15 You can acquire power, without taking it away from others. Generally, power is given to those who get results and have good human relations skills that are useful to those in power.16

Legitimate Power Legitimate power is based on the user’s position power, given by the organization. It is also called the legitimization influencing tactic. Managers assign work, coaches decide who plays, and teachers award grades. These three positions have formal authority from the organization. Without this legitimate authority, they could not influence followers in the same way.17 Employees tend to have a felt obligation and feel that they ought to do what their manager says within the scope of the job.18

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 147

Appropriate Use of Legitimate Power. Employees agree to comply with management authority in return for the benefits of membership. The use of legitimate power is appropriate when asking people to do something that is within the scope of their job. Most day-to-day manager–employee interactions are based on legitimate power.

When using legitimate power, it is also helpful to use the consultation inf luencing tactic. With consultation, you seek others’ input about achieving an objective and are open to developing a plan together to achieve the objective. This process is also known as participative management and empowering employees. We will talk more about participa- tive management throughout the book.

Legitimate Use of Rational Persuasion. When we as managers are meeting objectives through our employees or dealing with higher-level managers and people over whom we have no authority, it is often helpful to use the rational persuasion influencing tactic. Rational persuasion includes logical arguments with factual evidence to persuade others to implement your recommended action.

When we use rational persuasion, we need to develop a persuasive case based on the other party’s needs, not ours. What seems logical and reasonable to you may not be to others. With multiple parties, a different logical argument may be made to meet indi- vidual needs. Logical arguments generally work well with people whose behavior is more influenced by thinking than by emotions. It works well when the leader and follower have the same shared interest and objectives.

When trying to persuade others to do something for us, it is helpful to use the ingratiation inf luencing tactic. Be friendly and praising others before you ask them for what you want—complements cost you nothing19 (use the giving praise model in Chapter 3).

Using Rational Persuasion. When you develop a rational persuasion, follow these guidelines:

• Explain the reason why the objective needs to be met. • Explain how the other party will benefit by meeting the objective. Try to think of the

other party’s often-unasked question: what’s in it for me? • Provide evidence that the objective can be met. • Explain how potential problems and concerns will be handled. Know the potential

problems and concerns and deal with them in the rational persuasion.

Increasing Legitimate Power. To increase legitimate power, follow these guidelines:

• To have legitimate power, we need management experience, which could also be a part of the job—for example, being in charge of a team project with peers.

• Exercise authority regularly. Follow up to make sure that objectives are achieved.

Source Personal Power

Types

Tactics

Legitimate

Legitimization

Consultation Rational persuasion Ingratiation

Reward

Exchange

Coercive

Pressure

Connection

Coalitions

Information

Rational persuasion

Expert

Rational persuasion

Referent

Inspirational appeal Personal appeal

Position Power

Inspirational appeal

EXHIBIT 5.1 Sources and Types of Power with Influencing Tactics

© C

en ga

ge L

ea rn

in g®

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148 part 1 INDIVIDuaLs as LEaDErs

• Follow the guidelines for using rational persuasion, especially when authority is questioned.

• Back up your authority with rewards and punishment,20 our next two types of power, which are primarily based on having legitimate power.

Reward Power reward power is based on the user’s ability to influence others with something of value to them. In a management position, use positive reinforcements to influence behavior, with incentives such as praise, recognition (with pins, badges, hats, or jackets), special assign- ments or desirable activities, pay raises, bonuses, and promotions. Many organizations, including Kentucky Fried Chicken (KFC), have employee-of-the-month awards. Tupper- ware holds rallies for its salespeople, and almost everyone gets something—ranging from pins to lucrative prizes for top performers. A leader’s power is strong or weak based on ability to punish and reward followers. An important part of reward power is having con- trol over getting and allocating resources.21

Appropriate Use of Reward Power. When employees do a good job, they should be rewarded, as discussed with reinforcement motivation theory (Chapter 3). When dealing with higher-level managers and people over whom we have no authority, we can use the exchange influencing tactic by offering some type of reward for helping meet our objective. The incentive for exchange can be anything of value, such as scarce resources, information, advice or assistance on another task, or career and political support. Exchange is common in reciprocity22 (you do something for me and I’ll do something for you—or you owe me one, for a later reward), which we will discuss in a later section on organizational politics.

Increasing Reward Power. To increase reward power, follow these guidelines:

• Gain and maintain control over evaluating employees’ performance and determining their raises, promotions, and other rewards.

• Find out what others value, and try to reward people in that way. • Let people know you control rewards, and state our criteria for giving rewards.

Coercive Power The use of coercive power involves punishment and withholding of rewards to inf lu- ence compliance. It is also called the pressure influencing tactic. From fear of reprimands, probation, suspension, or dismissal, employees often do as their manager requests. Other examples of coercive power include verbal abuse, humiliation, and ostracism. Group members also use coercive power (peer pressure) to enforce group norms.

Appropriate Use of Coercive Power. Coercive power is appropriate to use in maintain- ing discipline and enforcing rules. When employees are not willing to do as requested, coercive power may be the only way to gain compliance. Employees tend to resent man- agers’ use of coercive power. So keep the use of coercive power to a minimum by using it only as a last resort.

Increasing Coercive Power. To increase coercive power, follow these guidelines.

• Gain authority to use punishment and withhold rewards. • Don’t make rash threats; do not use coercion to manipulate others or to gain personal

benefits. • Be persistent. If we request that followers do something, we need to follow up to make

sure it is done.

WORk Application 5-1 Select a present or past manager who has or had coercive power. Give a specific example of how he or she uses or used reward and punishment to achieve an objective. Overall, how effective is (or was) this manager at using rewards and punishment?

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 149

Referent Power referent power is based on the user’s personal relationships with others. It is also called the personal appeals influencing tactic based on loyalty and friendship. Power stems pri- marily from relationships with the person using power. Charismatic leaders tend to use referent power.

Leaders can also use the inspirational appeals inf luencing tactic. You appeal to the follower’s values, ideals, and aspirations, or increase self-confidence by displaying your feelings to appeal to the follower’s emotions and enthusiasm. So rational persuasion uses logic, whereas inspirational persuasion appeals to emotions and enthusiasm. Thus, inspi- rational appeals generally work well with people whose behavior is more influenced by emotions than logical thinking.

To be inspirational, we need to understand the values, hopes, fears, and goals of fol- lowers. We need to be positive and optimistic and create a vision of how things will be when the objective is achieved. You can also include the ingratiation influencing tactic within your inspirational appeal.

Appropriate Use of Referent Power. The use of referent power is particularly appro- priate for people with weak, or no, position power, such as with peers. Referent power is needed in self-managed teams because leadership should be shared.

Increasing Referent Power. To increase referent power, follow these guidelines:

• Develop people skills, which are covered in all chapters. Remember that we don’t have to be a manager to have referent power.

• Work at relationships with managers and peers.

Expert Power expert power is based on the user’s skill and knowledge. Being an expert makes other people dependent on you. People often respect an expert, and the fewer people who pos- sess an expertise and knowledge, the more power the expert individual has.23

The more people come to us for advice, the greater is our expert power. Experts com- monly use the rational persuasion influencing tactic because people believe they know what they are saying and that it is correct.

YOU Make the ethICaL call

5.1 Following Orders

The armed forces are hierarchical by rank, based on power. Officers tend to give orders to troops by using legitimate power. When orders are followed, reward power is common. When orders are not followed, coercive power is commonly used to get the troops to implement the order. The conditioning of the military is to respect the power of authority and to follow orders, usually without questioning authority.

1. Is it ethical and socially responsible to teach people to follow orders without ques- tioning authority in the military or any other organization?

2. What would you do if your boss asked you to follow orders that you thought might be unethical? (Some options include the following: just do it; don’t say anything but don’t do it; question the motives; look closely at what you are asked to do; go to your boss’s boss to make sure it’s okay to do it; tell the boss you will not do it; ask the boss to do it him- or herself; blow the whistle to an outside source like the government or media; etc.)

3. Is following orders a good justification for unethical practices?

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150 part 1 INDIVIDuaLs as LEaDErs

Appropriate Use of Expert Power. Managers, particularly at lower levels, are often— but not always—experts within their departments. New managers frequently depend on employees who have expertise in how the organization runs and know how to get things done politically. Thus, followers can have considerable influence over the leader. Expert power is essential to employees who are working with people from other departments and organizations.

Increasing Expert Power. To increase expert power, follow these guidelines:

• To become an expert, take all the training and educational programs the organization provides.

• Attend meetings of your trade or professional associations, and read their publications (magazines and journals) to keep up with current trends in your field. Write articles to be published. Become an officer in the organization.

• Keep up with the latest technology. Volunteer to be the first to learn something new. • Project a positive self-concept (Chapter 2),24 and let people know about your expertise

by developing a reputation for having expertise.

Information Power Information power is based on the user’s data desired by others. Information power involves access to vital information and knowledge and control over its distribution to others.25 Managers often have access to information that is not available to subordinates, giving them power. Managers also rely on employees for information, giving them some power. Some administrative assistants have more information and are more helpful in answering questions than the managers they work for.

Appropriate Use of Information Power. An important part of the manager’s job is to convey information. Employees often come to managers for information on what to do and how to do it. Leaders use information power when making rational persuasion and often with inspirational appeals.

Increasing Information Power. To increase information power, follow these guidelines:

• Have information flow through you. • Know what is going on in the organization. Serve on committees because it gives both

information and a chance to increase connection power. • Develop a network of information sources, and gather information from them.26 You

will learn how to network later in this chapter.

Connection Power Connection power is based on the user’s relationships with inf luential people. Connection power is also a form of politics, the topic of our next major section. The right connections can give power or at least the perception of having power. If people know you are friendly with people in power, they are more apt to do as you request.

Sometimes it is difficult to inf luence others all alone. With a coalition inf luencing tactic you use influential people to help persuade others to meet your objective. The more people you can get on your side, the more influence you can have on others. Coalitions are also a political strategy—a tactic that will be discussed again later in this chapter.

Appropriate Use of Connection Power. When you are looking for a job or promotions, connections can help. There is a lot of truth in the statement “It’s not what you know; it’s who you know.” Connection power can also help you get resources you need.27

WORk Application 5-2 Select a past or present job. Who did (or do) you usually go to for expertise and information? Give examples of when you went to someone for expertise and when you went to someone for information.

WORk Application 5-3 1. Think of a present

or past manager. Which type of power does (or did) the manager use most often? Explain.

2. Which one or two suggestions for increasing your power base are the most relevant to you? Explain.

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 151

Increasing Connection Power. To increase connection power, follow these guidelines:

• Expand your network of contacts with important managers who have power. • Join the “in-crowd” and the “right” associations and clubs. Participating in sports like

golf may help you meet influential people. • Follow the guidelines for using the coalition influencing tactic. When you want some-

thing, identify the people who can help you attain it, make coalitions, and win them over to your side.

• Get people to know your name. Get all the publicity you can. Have your accomplish- ments known by the people in power; send them notices without sounding like a bragger. Now that you have read about nine influencing tactics within seven types of power, see

Exhibit 5.1 for a review, and test your ability to apply them in Concept Applications 5-1 and 5-2. Then, complete Self-Assessment 5-1 to better understand how your personality traits relate to how you use power and influencing tactics to get what you want.

WORk Application 5-4 Give three different influencing tactics you or someone else used to achieve an objective in an organization you have worked for.

CONCept APPLICATION 5-1

Influencing Tactics For each situation, select the most appropriate individual tactic that will enhance your chances of getting a desired outcome. Write the appropriate letter in the blank before each item. a. rational persuasion d. ingratiation g. coalition b. inspirational appeals e. personal appeals h. legitimization c. consultation f. exchange i. pressure

1. Sonia is resisting helping a coworker thinking, “What’s in it for me?”

2. You have an employee Hank with a big ego and who is very moody at times. You want Hank to complete an assignment ahead of schedule.

3. You believe you have accomplished things deserving a pay raise. So you decide to ask your manager for it.

4. Next week the committee you serve on will elect officers. Nominations and elections will be done at the same time. You are interested in being the president. But you don’t want to nominate yourself and you don’t want to run and lose.

5. Your employee Nikki regularly passes in assignments late. The assignment you are giving her now is very important and must be done on time.

6. You have an idea about how to increase performance of your department. But you are not too sure if it will work or if the employees will like the idea.

7. You are a production manager and heard rumors that the company will be purchasing some new high-tech manufacturing equipment. You would like to know if it is true, and, if so, are you getting it. You know a person in the purchasing department, so you decide to contact that person to try to find out.

8. The purchasing person from situation 7 gave you the information you were looking for. She is calling to ask you for some information.

9. Some of your workers did not come in to work today. You have a large order that a sales rep said would go out today. It will be tough for the small crew to meet the deadline.

10. Although the crew members in situation 9 have agreed to push to meet the deadline, you would like to give them some help besides your own. You have an administrative assistant who doesn’t work on processing orders. You decide to talk to this nonunion employee about working with the crew today.

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152 part 1 INDIVIDuaLs as LEaDErs

Using Power Identify the relevant type of power to use in each situation to get the best results. Write the appropriate letter in the blank before each item. a. coercive d. referent b. connection e. information or expert c. reward or legitimate

11. One of your best workers, Carl, who needs little direction from you, is not performing to standard. You believe that a personal problem is affecting his work.

12. A committee, which is very political, allocates money for resources. You want a new larger truck to help your crew be more productive.

13. One of your best workers, Latoya, wants to be a manager. Latoya is asking you to help prepare her for a promotion.

14. Shawn is not doing much work today. As occasionally happens, he claims that he does not feel well but cannot afford to take time off without pay. There is work that needs to be done today.

15. You gave Helen an assignment specifying exactly how it had to be done. She ignored your directives and the assignment doesn’t meet the customer’s request. This is not the first time this has happened.

Influencing tactics, power, and personality traitsSELF-ASSESSMENT 5-1

review the nine influencing tactics. which ones do you tend to use most often to help you get what you want? also review your personality profile self-assessment exercises in chapter 2.

Surgency/high Need for power If you have a high need for power (n Pow), you are apt to try to influence others, and you enjoy it. You tend to hate to lose, and when you don’t get what you want, it bothers you. thus, you are more likely to use harder methods of influence and power, such as pressure, exchange, coalitions, and legitimization, than other personality types. You probably also like to use rational persuasion and don’t understand why people don’t think or see things the way you do. Be careful; use socialized, rather than personalized, power to influence others.

agreeableness/high Need for affiliation If you have a high need for affiliation (n aff), you are apt to be less concerned about influencing others and gaining power than about getting along with them. thus, you are more likely to use softer methods of influence, such as personal and inspirational appeals and ingratiation, as well as rational appeals. You may tend not to seek power, and even avoid it.

Conscientiousness/high Need for achievement If you have a high need for achievement (n ach), you tend to be between the other two approaches to influencing others. You tend to have clear goals and work hard to get what you want, which often requires influencing others to help you. so, you don’t want power for its own sake, only to get what you want. But you like to play by the rules and may tend to use rational persuasion frequently.

Based on the preceding information, briefly describe how your personality affects the ways you attempt to influence others.

CONCept APPLICATION 5-2

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 153

Organizational Politics Just as the nine inf luencing tactics (see Exhibit 5.1) are used within the seven types of power, these tactics are also used in organizational politics. In this section, we discuss the nature of organizational politics, political behavior, and guidelines for developing political skills. But first, determine your own use of political behavior by completing Self-Assessment 5-2.

1. What sources and types of power does Mark Cuban have, and why has he had problems with power?

Mark Cuban is used to getting his own way, and he wants to be famous and influential as he attempts to reorder the land- scape of professional sports and entertainment. He has position power as an owner of multiple businesses. As a business owner, Cuban has legitimate power, and he rewards his employees for doing a good job. He has used coercive power (he fired the Mavericks coach), he has some referent power, and he is viewed as an expert in business. He also has informa- tion power and has connections with some influential people.

On the dark side, Cuban’s behavior has cost him money and respect. Cuban is not your typical pro sports team owner who watches the games from the owner’s box. He sits next to the Mavericks team bench and yells at the players. He has gone out on the court during games and listens in on team huddles. Cuban has stormed into the locker room and cursed out the players when they lost. He has berated the referees, which has led to fines and problems with the NBA.

OPENING CASE application

Use of political BehaviorSELF-ASSESSMENT 5-2

select the response that best describes your actual or planned use of the following behavior on the job. Place a number from 1 to 5 on the line before each statement.

1 — 2 — 3 — 4 — 5 Rarely Occasionally Usually

1. I use my personal contacts to get a job and promotions.

2. I try to find out what is going on in all the organizational departments.

3. I dress the same way as the people in power and take on the same interests (watch or play sports, join the same clubs, etc.).

4. I purposely seek contacts and network with higher-level managers.

5. If upper management offered me a raise and promotion requiring me to move to a new location, I’d say yes even if I did not want to move.

6. I get along with everyone, even those con- sidered to be difficult to get along with.

7. I try to make people feel important by complimenting them.

8. I do favors for others and use their favors in return, and I thank people and send them thank-you notes.

9. I work at developing a good working rela- tionship with my manager.

10. I ask my manager and other people for their advice.

11. When a person opposes me, I still work to maintain a positive working relationship with that person.

12. I’m courteous, pleasant, and positive with others.

13. When my manager makes a mistake, I never publicly point out the error.

14. I am more cooperative (I compromise) than competitive (I seek to get my own way).

15. I tell the truth.

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154 part 1 INDIVIDuaLs as LEaDErs

Use of political Behavior (Continued)SELF-ASSESSMENT 5-2

16. I avoid saying negative things about my manager and others behind their backs.

17. I work at getting people to know me by name and face by continually introducing myself.

18. I ask some satisfied customers and people who know my work to let my manager know how good a job I’m doing.

19. I try to win contests and get prizes, pins, and other awards.

20. I send notices of my accomplishments to higher-level managers and company newsletters.

to determine your overall political behavior, add the 20 numbers you selected as your answers. the number will range from 20 to 100. the higher your score, the more political behavior you use. Place your score here and on the continuum below.

20 — 30 — 40 — 50 — 60 — 70 — 80 — 90 — 100 Nonpolitical Political

to determine your use of political behavior in four areas, add the numbers for the following questions and divide by the number of questions to get the average score in each area.

A. Learning the organizational culture and power players

Questions 1–5 total: divided by 5 =

B. Developing good working relationships, especially with your boss

Questions 6–12 total: divided by 7 =

C. Being a loyal, honest team player

Questions 13–16 total: divided by 4 =

D. Gaining recognition

Questions 17–20 total: divided by 4 =

the higher the average score of items a–D, the more you use this type of political behavior. Do you tend to use them all equally, or do you use some more than others?

Discuss how power and politics are related.Learning outcome 3

the Nature of Organizational politics Organizations are political,28 as they are a social process,29 and power and politics are related.30 politics is the process of gaining and using power. Some managers believe that playing the political game is not necessary and that they will advance based just on job performance. But they couldn’t be more wrong because research findings support that political skills are needed to climb the corporate ladder, or at least avoid getting thrown off it as many promising managers’ careers were derailed because of poor political skills.31 The amount and importance of politics vary from organization to organization. How- ever, larger organizations tend to be more political, and the higher the level of manage- ment, the more important politics becomes.

Describe how money and politics have a similar use.Learning outcome 4

Politics Is a Medium of Exchange Like power, politics often has a negative connotation because of people who abuse politi- cal power. A positive way to view politics is to realize that it is simply a social medium of exchange. Social exchange theory regards exchanges between people as “social,” as opposed to economic, in nature.

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 155

Like money, politics in and of itself is inherently neither good nor bad. Politics is sim- ply a system of getting things done, or getting what we want. In our economy, money is the medium of exchange (tangible currency); in an organization, social politics is the medium of exchange (political behavior). Favors are the currency by which productivity is purchased and goodwill is gained. Political behavior creates energy and commitment, a valuable currency.32

Politically effective leaders marshal resources to accomplish personal and professional goals through the power and influence of their relationships. So political skill is not about taking advantage of others or backstabbing to enhance self-interest at the expense of others, it’s about building relationships to help you meet your objectives.33

political Behavior How well you play politics directly affects your success.34 Networking, reciprocity, and coalitions are common organizational political behaviors.

Networking Networking is a critical facet of political skills.35 Networking is the process of devel- oping relationships for the purpose of socializing and politicking. Successful managers spend more time networking than average managers, so reach out to establish an ongoing network of contacts to help you bring about change to meet your objectives.36 Because networking is so important to career success, we are going to discuss it as our next major section, after we finish our other political skills discussions.

Reciprocity Using reciprocity involves creating obligations and developing alliances, and using them to accomplish objectives. Notice that the exchange influencing tactic is used with reciprocity. When people do something for you, you incur an obligation that they may expect to be repaid. When you do something for people, you create a debt that you may be able to collect at a later date when you need a favor. Isn’t part of relationships doing things (favors) for each other?37 Thus, ongoing reciprocal relationships build commu- nity needed to meet your objectives,38 and reciprocity builds trust in social exchange relationships.39

Here is a tip to increase your chances of getting help from others. When asking for help, use the word favor, because the mere mention of that word can persuade people to help you. People have a modal, rote response to a favor request, which is, “Yeah, sure, what is it?” So start with the phrase “Will you please do me a favor?”

Coalitions Using coalitions as an inf luencing tactic is political behavior. Each party helps the others get what they want. Reciprocity and networking are commonly used to achieve ongoing objectives, whereas coalitions are developed for achieving a specific objec- tive. A political tactic when developing coalitions is to use co-optation. Co-optation is the process of getting a person whose support you need to join your coalition rather than compete.

The reality of organizational life is that most important decisions are made by coali- tions outside of the formal meeting in which the decision is made. For example, let’s say you are on a team and the captain is selected by a nomination and vote of the team mem- bers. If you want to be captain, you can politic by asking close teammates who they will vote for to try to get their votes, and if they are supportive, you can ask them to promote you for captain to others. If the majority of the team says they will vote for you, you have

WORk Application 5-5 Give a job example of how networking, reciprocity, or a coalition was used to achieve an organizational objective

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156 part 1 INDIVIDuaLs as LEaDErs

basically won the election before the coach even starts the meeting, nominating, and vot- ing by building a coalition. If you don’t get any support from your close teammates and others, you can drop the effort to build a coalition, knowing that you will lose. This same coalition-building process is used to influence all types of decisions.

The upcoming guidelines can be used with any of the three political behaviors. Before considering how to develop political skills, review Exhibit 5.2 for a list of political behav- iors and guidelines.

2. Why are organizational politics important to Mark Cuban’s enterprises?

Mark Cuban has clearly used politics to gain and use power in creating his business empire. For the owner of multiple businesses, organizational politics is not as important as using political skills outside the organization. The NBA is an orga- nization of multiple team owners, so politics is important for making changes in the league. Because of Cuban’s behavior, the NBA owners voted to pass rules of conduct that were really meant for Cuban. The NBA commissioner said that the more stringent rules were called for to prevent individual owners from overshadowing the games. Cuban was so upset that he walked out of the meeting before the vote. So Cuban can improve on his organizational politics skills.

OPENING CASE application

Guidelines for Developing political Skills Researchers have found that women and minorities tend to have weak political skills and will have many more opportunities for advancement if they expand and exercise their political skills.40 Carly Fiorina stated that she lost her job as CEO of HP because of politics. Successfully implementing the behavior guidelines presented here can result in increased political skills. However, if you don’t agree with a particular political behavior, don’t use it. You do not have to use all of the political behaviors to be successful. Learn what it takes in the organization where you work as you follow the guidelines.

Understand the Organizational Culture and Power Players Develop your connection power through politicking. It is natural, especially for young people, to take a purely rational approach to a job without considering politics. But many

Political Behavior and Guidelines for Developing Political Skills EXHIBIT 5.2

Understand the organizational culture

• Learn the organizational culture and power player.

• Develop good working relationships, especially with your manager.

• Be a loyal, honest team player.

• Gain recognition.

Networking

Reciprocity Coalitions

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business decisions are not very rational; they are based on power and politics. Learn the cultural (Chapter 10) shared values and beliefs and how business and politics operate where you work. Learn to read between the lines.

In all organizations, there are some powerful key players. Your manager is a key player to you.41 Don’t just find out who the managers are; gain an understanding of what makes each of them tick. By understanding them, you can tailor the presentation of your ideas and style to fit each person’s needs.42 For example, some managers want to see detailed financial numbers and statistics, while others don’t. Some managers expect you to con- tinually follow up with them, while others will think you are bugging them.

Review Self-Assessment 2, questions 1 through 5. You can use these tactics to increase your political skills. Network with power players. Try to do favors for power players to help them.43 When developing coalitions, get key players on your side. When selecting a mentor, try to get one who is good at organizational politics to teach you. Also try to observe people who are good at politics, and copy their behavior.

Develop Good Working Relationships, Especially with Your Manager The ability to work well with others is critical to your career success, and it’s an important foundation of politics.44 The more people like and respect you, the more power you will gain. Managers often promote informal leaders to supervise their peers. Let’s focus on the relationship with our boss because it is a major indicator of job satisfaction today.

Advancement. If we want to get ahead, we need to have a good supportive working relationship with our manager—your manager says you’re a top performer. Your boss usually gives you formal performance appraisals, which are the primary bases for raises and promotions. Fair or not, many evaluations are influenced by the manager’s relation- ship with the employee. If your manager likes and supports you, you have a better chance of getting a good review, raises, and promotions. If you lose your bosses support, you will most likely lose your advancement with the organization.45 It helps to phrase your own ideas as if they were your managers, and to complement your boss.46

Do more than what is required. Supervisors also give higher ratings to employees who share their goals (goal congruence) and priorities than they give to those who don’t.47 Thus, get to know what your manager expects from you (key performance indicators and objectives), and do it.48 Beat or at least meet deadlines, and don’t miss them. Impress your boss by doing more than you are asked to do.

Share bad news. It’s common to put off telling the manager bad news. But if you are having a problem on the job, don’t put off letting your manager know about it. Most managers, and peers, like to be asked for advice. If you are behind schedule to meet an important deadline and your manager finds out about it from others, it is embarrassing, especially if your manager finds out from his or her manager. Also avoid showing up your manager in public, such as during a meeting.

Don’t go to your boss’s manager. If you cannot get along with your manager and are in conflict, avoid going to his or her manager to resolve the conflict. There are two dangers in going over the manager’s head. First, chances are your manager has a good working relationship with his or her manager, who will side with your manager. Even if the higher-level manager agrees with you, you will most likely hurt your relationship with your manager. He or she may consciously or unconsciously take some form of retaliation, such as giving you a lower performance review, which can hurt you in the long run.

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158 part 1 INDIVIDuaLs as LEaDErs

Review Self-Assessment 2, questions 6 through 12. You can use these tactics to increase your political skills. Include your manager in your network, try to do favors for your manager, and include your manager in your coalitions. Use the ingratiation tactic with everyone. When was the last time you gave anyone, including your manager, a compliment? When was the last time you sent a thank-you or congratulations note?

Be a Loyal, Honest Team Player Many managers reward loyalty.49 Ethical behavior is important in organizational power and politics.50 Some backstabbing gossips may get short-term benefits from such behav- ior, but in the long run they are generally unsuccessful because others gun them down in return. In any organization, you must earn others’ respect, confidence, and trust.51 There are very few, if any, jobs in which objectives can be achieved without the support of a group or team. The trend is toward teamwork,52 so if you’re not a team player, work at it.

Review Self-Assessment 2, questions 13 through 16. You can use these tactics to increase your political skills. Be a loyal, honest team player in your network, in your reciprocity, and with your coalition members.

Gain Recognition Doing a great job does not help you get ahead in an organization if no one knows about it or doesn’t know who you are. Author Ken Blanchard says, “It’s not who you know that counts; it’s who knows you and what they think of you.”53 Recognition and knowing the power players go hand in hand. You want people higher in the organization to know your expertise and the contributions you are making to them and the organization.54

Review Self-Assessment 2, questions 17 through 20. You can use these tactics to increase your political skills. Let people in your network and coalitions, and people you reciprocate with, know of your accomplishments. You can also serve on committees and try to become an officer, which gives you name recognition.

WORk Application 5-6 Which one or two suggestions for developing political skills are the most relevant to you? Explain.

Political Behavior Identify the behavior in each situation as effective or ineffective political behavior. Write the appropriate letter in the blank before each item. a. effective b. ineffective

16. The manager, Breonna, has to drop off a daily report by noon. She delivers the report at around 11:00 a.m. on Friday, so that she can run into some executives who meet at that time. On the other days, Breonna drops the report off at around noon on her way to lunch.

17. Jamal is taking golf lessons so he can join the company golf group, which includes some executives.

18. A manager made a poor decision, and Chris told his manager’s boss about it.

19. Sonia really wants to do an excellent job, so she avoids socializing at work.

20. Juan sent a very positive performance report to three executives who did not request copies.

CONCept APPLICATION 5-3

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Networking Recall that networking is part of politics, and through networking you can develop your power and influence to get others to help you reach your objectives.55 Through network- ing you develop relationships,56 and the relationships build a community support system to help you in your career.57 There are many benefits to networking.58 For example, more people find jobs through networking than all the other methods combined. Companies have been recruiting talented workers through social media site LinkedIn for years,59 and more companies are now also using Facebook to recruit as well as to increase sales.60 Assess your networking skills now in Self-Assessment 5-3 before reading on.

NetworkingSELF-ASSESSMENT 5-3

Identify each of the 16 statements according to how accurately it describes your behavior. Place a number from 1 to 5 on the line before each statement.

5 — 4 — 3 — 2 — 1

Describes me Does not describe me

1. When I start something (a new project, a career move, a major purchase), I seek help from people I know and seek new contacts for help.

2. I view networking as a way to create win– win situations.

3. I like to meet new people; I can easily strike up a conversation with people I don’t know.

4. I can quickly state two or three of my most important accomplishments.

5. When I contact business people who can help me (such as with career information), I have goals for the communication.

6. When I contact business people who can help me, I have a planned short opening statement.

7. When I contact business people who can help me, I praise their accomplishments.

8. When I contact people who can help me, I have a set of questions to ask.

9. I know contact information for at least 100 people who can potentially help me.

10. I have a file/database with contact infor- mation of people who can help me in my career, and I keep it updated and continue to add new names.

11. During communications with people who can help me, I ask them for names of oth- ers I can contact for more information.

12. When seeking help from others, I ask them how I might help them.

13. When people help me, I thank them at the time and for big favors with a follow-up thanks.

14. I keep in touch with people who have helped or can potentially help me in my career at least once a year, and I update them on my career progress.

15. I have regular communications with people in my industry who work for different organizations, such as members of trade professional organizations.

16. I attend trade/professional/career types of meetings to maintain relationships and to make new contacts.

add up your score and place it here ____ and on the continuum below.

80 — 70 — 60 — 50 — 40 — 30 — 16 Effective Networking Ineffective Networking

If you are a full-time student, you may not score high on networking effectiveness, but that’s okay as you can develop networking skills by following the steps and guidelines in this chapter.

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160 part 1 INDIVIDuaLs as LEaDErs

Networking is not about asking everyone you know for a job (or whatever you need assistance with). How would you react if someone directly said “Can you give me a job?” Although the same networking process applies to broad career development, we focus more on the job search. Whenever you start something—a new project, a career move, a car or house purchase—use your networks.

You may have a social networking account, like Facebook, to communicate with your friends, but “career” networking is more than this. This section provides a how-to network process that can enhance career development.61 The process is summarized in Exhibit 5.3.

1. Perform a self-assessment and set goals.

2. Create your one-minute self-sell.

3. Develop your network.

4. Conduct networking interviews.

5. Maintain your network.

The Networking Process EXHIBIT 5.3

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List and explain the steps in the networking process.Learning outcome 5

perform a Self-assessment and Set Goals The self-assessment includes writing down your skills, competencies, and knowledge. Self-assessment gives you insight into your transferable skills and the criteria that are important to you in a new job. Listing the major criteria that are most important to you in the new job and prioritizing these can help to clarify your ideal next position.

Factors to consider are industry, company size and growth, location, travel and com- muting requirements, compensation package/benefits, job requirements, and promotion potential. Other factors to assess are the style of management, culture, and work style of the organization. Critical to career satisfaction is the ability to use your talents, grow in your field, and do what you do best in your job. Although many tools exist to assess skills and preferences, a simple list with priorities can suffice to clarify your talents and the characteristics of an ideal new career or job.

Accomplishments After completing a self-assessment, you are ready to translate your talents into accom- plishments. The results you achieved in your jobs and/or college are the best evidence of your skills. Your future employer knows that your past behavior helps predicts your future behavior and that if you achieved results in the past, you will likely produce simi- lar results again. Accomplishments are what set you apart and provide evidence of your skills and abilities. We must articulate what we have accomplished in a way that is clear, concise, and compelling. Write down your accomplishments (at least two or three) and include them in your résumé. Whether you are looking for a job or not, you should always have an updated résumé handy.

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Tie Your Accomplishments to the Job Interview You want to be sure to state your accomplishments that are based on your skill during the job interview. Many interviews begin with a broad question such as “Tell me about your- self.” Oftentimes candidates do not reveal anything compelling. Sell yourself by elaborat- ing on a problem that was solved or an opportunity taken and how you achieved it using your skills.

Set Networking Goals For example: to get a mentor; to determine the expertise, skills, and requirements needed for XYZ position; to get feedback on my résumé and job and/or career preparation for a career move into XYZ; or to attain a job as XYZ. Be sure to write objectives using the setting objectives Model 3.1 from Chapter 3.

Create Your One-Minute Self-Sell Our next step is to create a one-minute sell to help accomplish your goal. The one- minute self-sell is an opening statement used in networking that quickly summarizes your history and career plan and asks a question. It is also referred to as an elevator pitch. To take 60 seconds or less, your message must be concise, but it also needs to be clear and compelling. It gives the listener a sense of your background, identifies your career field and a key result you’ve achieved, plus provides the direction of your next job. It tells the listener what you plan to do next and why. It also stimulates conversation by asking your network for help in the area of support, coaching, contacts, or knowledge of the industry.

Part 1. History: Start with a career summary, the highlights of your career to date. Include your most recent career or school history and a description of the type of work/internship or courses you have taken. Also include the industry and type of organization.

Part 2. Plans: Next, state the target career you are seeking, the industry you prefer, and a specific function or role. You can also mention names of organizations you are tar- geting as well as let the acquaintance know why you are looking for work.

Part 3. Question: Last, ask a question to encourage two-way communication. The question will vary depending on the person and your goal or the reason you are using the one-minute self-sell, for example:

• In what areas might there be opportunities for a person with my experience? • In what other fields can I use these skills or this degree? • In what other positions in your organization could my skills be used? • How does my targeted future career sound to you? Is it a match with my education and

skills? • Do you know of any job openings in my field?

Write and Practice Your One-Minute Self-Sell Write out your one-minute self-sell. Be sure to clearly separate your history, plans, and question, and customize your question based on the contact with whom you are talking. For example, Hello, my name is Will Smith. I am a senior at Springfield College majoring in marketing, and I have completed an internship in the marketing department at the Big Y supermarket. I am seeking a job in sales in the food industry. Can you give me some ideas on the types of sales positions available in the food industry? Practice delivering it with family and friends and get feedback to improve it. The more opportunities you find to use this brief introduction, the easier it becomes.

WORk Application 5-7 Write a networking goal.

WORk Application 5-8 Write a one-minute self-sell to achieve your networking goal from Work Application 7.

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162 part 1 INDIVIDuaLs as LEaDErs

Develop Your Network Begin with who you know. Everyone can create a written network list of about 200 people consisting of professional and personal contacts. You may already have a network on an online social networking site, such as Facebook or LinkedIn, and you most likely have phone and an e-mail account with an address book. Address books and rolodexes are written network lists, but you need to continually develop and expand them. An e-mail or Facebook/LinkedIn account is a good place to store your network list and information on each person because you can easily contact one or more people.

One word of caution regarding social networking and other Web sites: Be careful with what is online. If a potentially helpful person or employer looks you up online and finds unflattering pictures of you (under the influence of drugs or alcohol, not fully dressed, doing embarrassing things, etc.), it may cost you a contact or potential job. You may want to do a search on yourself to make sure that others don’t have unflattering pictures or other things of you posted.

Professional contacts include colleagues (past and present), professional organizations, alumni associations, vendors, suppliers, managers, mentors, and many other professional acquaintances. On a personal level, your network includes family, neighbors, friends, religious groups, and other personal service providers (doctor, dentist, insurance agent, stock broker, accountant, hairstylist, politician). Compose a list of your network using the above categories, and continually update and add to your list with referrals from oth- ers. You will discover that your network grows exponentially and can get you closer to the decision makers in a hiring position. In today’s job market, it is critical to engage in a “passive job hunt” using your network and having your résumé ready.

Now expand your list to people you don’t know. Who do you want to build a tie to? Where should you go to develop your network? Anywhere people gather. Talk to every- one because you never know who’s connected to whom. To be more specific, get more involved with professional associations. Many have special student memberships, and some even have college chapters. If you really want to develop your career reputation, become a leader in your associations and not just a member. Volunteer to be on com- mittees and boards, to give presentations, and so on. Other opportunities to network with people you don’t know include the chamber of commerce, college alumni clubs/ reunions, civic organizations (Rotary, Lions, Kiwanis, Elks, Moose, Knights of Colum- bus, etc.), courses of any type, trade shows and career fairs, community groups, charities and religious groups (Goodwill, American Cancer Society, your local church), and social clubs (exercise, boating, golf, tennis, etc.).

Another important point is to work at developing your ability to remember people by name. If you want to impress people you have never met or hardly know, call them by their name. Ask others who they are, then go up and call them by name and introduce yourself with your one-minute self-sell. When you are introduced to people, call them by name during the conversation two or three times. If you think the person can help you, don’t stop with casual conversation; make an appointment at a later time for a phone conversation, personal meeting, coffee, or lunch. Get their business cards to add to your network list, and give your business card and/or résumé when appropriate.

Conduct Networking Interviews Even though the trend is toward more online communications, networking in person is important. Based on your goal, use your network list of people to set up a networking interview to meet your goal. It may take many interviews to meet a goal, such as to get a job. An informational interview is a phone call or preferably a meeting that you initiate to

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meet a goal, such as to gain information from a contact with hands-on experience in your field of interest.

You are the interviewer (in contrast to a job interview) and need to be prepared with specific questions to ask the contact regarding your targeted career or industry based on your self-assessment and goal. Keep your agenda short; focus on what is most important. Ask for a 15- to 20-minute meeting, and, as a result, many people will talk to you.

These meetings can be most helpful when you have accessed someone who is in an organization you’d like to join or has a contact in an industry you are targeting. A face- to-face meeting of 20 minutes can have many benefits. Your contact will remember you after a personal meeting, and the likelihood of getting a job lead increases. Keeping the person posted on your job search progress as well as a thank-you note after the meeting also solidifies the relationship. The interviewing steps are the following:

Step 1. Establish Rapport: Provide a brief introduction and thank the contact for his or her time. Clearly state the purpose of the meeting; be clear that you are not asking for a job. Don’t start selling yourself; project an interest in the other per- son. Do some research and impress the person by stating an accomplishment, such as “I enjoyed your presentation at the Rotary meeting on….”

Step 2. Deliver Your One-Minute Self-Sell: Even if the person has already heard it, say it again. This enables you to quickly summarize your background and career direction.

Step 3. Ask Prepared Questions: As stated above, do your homework before the meeting and compose a series of questions to ask during the interview. Your questions should vary depending on your goal, the contact, and how he or she may help you with your job search. Sample questions include the following:

• What do you think of my qualifications for this field? • With your knowledge of the industry, what career opportunities do you see

in the future? • What advice do you have for me as I begin/advance in my career? • If you were exploring this field, who else would you talk with?

During the interview, if the interviewee mentions anything that could hinder your search, ask how such obstacles could be overcome. Take notes during the interview.

Step 4. Get Additional Contacts for Your Network: As mentioned previously, always ask who else you should speak with—a referral.62 Most people can give you three names, so if you are only offered one, ask for others—seek more refer- rals.63 Add the new contacts to your network list; be sure to write them down. When contacting new people, be sure to use your network person’s name. Be sure not to linger beyond the time you have been offered, unless invited to stay. Leave a business card and/or résumé so the person can contact you in case something comes up.

Step 5. Ask Your Contacts How You Might Help Them: Offer a copy of a recent journal article or any additional information that came up in your conversa- tion. Remember, it’s all about building relationships, and making yourself a resource for other people.

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164 part 1 INDIVIDuaLs as LEaDErs

Step 6. Follow Up with a Thank-You Note and Status Report: By sending a thank- you note, along with another business card/résumé, and following up with your progress, you are continuing the networking relationship and maintain- ing a contact for the future.

Be sure to assess the effectiveness of your networking meetings using the six steps as your criteria. Did you implement all of the steps successfully? How can you improve next time? It is always helpful to create a log of calls, meetings, and contacts to maintain your network as it expands.

Maintain Your Network After you build your network, you should maintain it.64 If an individual was helpful in finding your new job, be sure to let him or her know the outcome. Saying thank you to those who helped in your transition will encourage the business relationship; providing this information will increase the likelihood of getting help in the future.

It is also a good idea to notify everyone in your network that you are in a new position and provide contact information. Go to trade shows and conventions, make business friends, and continue to update, correct, and add to your network list. Always thank others for their time.

Networking is also about helping others, especially your mentor.65 As you have been helped, you should help others. You will be amazed at how helping others comes back to you. Jack Gherty, former CEO of Land O’Lakes, said that he got ahead by helping other people win.

Try to contact everyone on your network list at least once a year (calls, e-mail, and cards are good). Send congratulations on recent achievements. By contacting everyone, we don’t mean sending a note to your 500 friends at the same time. You need to maintain regular personal contact, which is generally limited to around 150 people.

Social Networking at Work Once you land that new position, should you network on or off the job—or both? With increasing technology advances, people are blurring the differences between their personal and professional lives, including the use of social networking media, including LinkedIn, Facebook, and Twitter.66 Although many companies are encouraging employ- ees to use social networking media on the job, it brings new challenges. Is it business or personal? Will employees get the company into legal problems? To deal with potential problems, many companies are developing social media policies and rules. So on the new job, be sure to know the policy on social media and follow the rules, and be careful what you say about your boss and company.

3. how has Mark Cuban used networking?

Mark Cuban first started networking by selling garbage bags door to door and then by selling stamps and baseball cards before the Internet was available. As the owner of Motley’s, between bartending and spinning records, he schmoozed customers. In fact, people came to see him, and when he wasn’t there, business wasn’t as good. When Cuban was selling computers, he was constantly socializing and trading business cards. To be successful in the entertainment business, you have to network with the right people.

OPENING CASE application

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Negotiation We negotiate to secure a more favorable outcome,67 so negotiating is an essential career skill,68 because good negotiators get more favorable outcomes, such as more pay.69 Let’s face it, whether you realize it or not, and whether you like it or not, we are all nego- tiators because we attempt to get what we want everyday. Negotiating is a process in which two or more parties have something the other wants and attempt to come to an agreement.

Influence tactics, power, and politics are commonly used during the negotiation pro- cess. Walmart keeps its everyday low prices because it is such a good negotiator. In this section, we focus on getting what we want by inf luencing others through negotiation. Before we get into the details of negotiating, complete Self-Assessment 5-4.

NegotiatingSELF-ASSESSMENT 5-4

Identify each of the 16 statements according to how accurately it describes your behavior. Place a number from 1 to 5 on the line before each statement.

5 — 4 — 3 — 2 — 1

Describes me Does not describe me

1. Before I negotiate, if possible, I find out about the person I will negotiate with to determine what they want and will be will- ing to give up.

2. Before I negotiate, I set objectives. 3. When planning my negotiating presenta-

tion, I focus on how the other party will benefit.

4. Before I negotiate, I have a target price I want to pay, a lowest price I will pay, and an opening offer.

5. Before I negotiate, I think through options and trade-offs in case I don’t get my target price.

6. Before I negotiate, I think of the questions and objections the other party might have, and I prepare answers.

7. At the beginning of negotiations, I develop rapport and read the person.

8. I let the other party make the first offer. 9. I listen to what the other parties are say-

ing and focus on helping them get what they want, rather than focusing on what I want.

10. I don’t give in too quickly to others’ offers.

11. When I compromise and give up some- thing, I ask for something in return.

12. If the other party tries to postpone the negotiation, I try to create urgency and tell them what they might lose.

13. If I want to postpone negotiation, I don’t let the other party pressure me into mak- ing a decision.

14. When I make a deal, I don’t second-guess, wonder whether I got the best price, and check prices.

15. If I can’t make an agreement, I ask for advice to help me with future negotiations.

16. During the entire business negotiating pro- cess, I’m trying to develop a relationship, not just a onetime deal.

add up your score and place it here ____ and on the continuum below.

80 — 70 — 60 — 50 — 40 — 30 — 16 Effective Networking Ineffective Networking

If you did not score high on negotiating effective- ness, that’s okay, as you can develop negotiating skills by following the steps and guidelines in this chapter.

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166 part 1 INDIVIDuaLs as LEaDErs

Negotiating At certain times, negotiations are appropriate, such as when conducting management– union collective bargaining, buying and selling goods and services, accepting a new job and compensation offer, and getting a raise—all situations without a fixed price or deal. If there’s a set, take-it-or-leave-it deal, there is no negotiation.

All Parties Should Believe They Got a Good Deal Negotiation is often a zero-sum game in which one party’s gain is the other party’s loss. For example, every dollar less that you pay for a car is your gain and the seller’s loss. But it doesn’t have to be an “I win and you lose” negotiation. Like power and politics, negotiat- ing is not about taking advantage of others, it’s about building relationships and helping each other get what we want.

To get what we want, we have to sell our ideas and convince the other party to give us what we want. However, negotiation should be viewed by all parties as an opportunity for everyone to win. When possible, make the pie larger rather than fight over how to split it. If union employees believe they lost and management won, employees may experience job dissatisfaction, resulting in lower performance in the long run. If customers believe they got a bad deal, they may not give repeat business.

Negotiation Skills Can Be Developed Not everyone is born a great negotiator. Taking the time to learn how to negotiate before entering a deal is the best way to arrive at a successful settlement.70 Following the steps in the negotiation process can help develop negotiation skills.

List the steps in the negotiation process.

Explain the relationships among negotiation and conflict, influencing tactics, power, and politics.

Learning outcome

6

7

the Negotiation process The negotiation process has three, and possibly four, steps: plan, negotiations, possibly a postponement, and an agreement or no agreement. These steps are summarized in Model 5.1 and discussed in this section. Like the other models in this book, Model 5.1 is meant to give us step-by-step guidelines. However, in making it apply to varying types of nego- tiation, you may have to make slight adjustments.

Plan The key to any negotiation is preparation, so develop a plan. Know what’s negotiable and what’s not. Be clear about what it is you are negotiating over. Is it price, options, delivery time, sales quantity, or all four? Ask yourself “What exactly do I want?” Planning has four steps.

Step 1. Research the other party(ies). Put yourself in the other party’s shoes. Try to find out what the other parties want, and what they will and will not be willing to give up, before you negotiate. Find out their personality traits and negotiation style by networking with people who have negotiated with the other party before. If possible, establish a personal relationship before the negotiation. If you have experience working with the other party (e.g., your manager or a potential customer), what worked and did not work in the past?

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 167

Step 2. Set objectives. Based on your research, what can you expect from the nego- tiation—what is your objective? Set a lower limit, a target objective, and an opening objective. The objective may be price, but it could be working condi- tions, longer vacation, job security, and so on. Follow steps a, b, and c: (a) Set a specific lower limit and be willing to walk away; do not come to an agree- ment unless you get it. You need to be willing to walk away from a bad deal. (b) Set a target objective of what you believe is a fair deal. (c) Set an opening objective offer that is higher than you expect; you might get it.71 Remember that the other party is probably also setting three objectives. So don’t view their opening offer as final. The key to successful negotiations is for all parties to get between their minimum and target objective. This creates a win–win; everyone got a good deal situation.

Step 3. Try to develop options and trade-offs. In purchasing something as well as in looking for a job, if you have multiple sellers and job offers, you are in a stron- ger power position to get your target price. It is common practice to quote other offers and to ask if the other party can beat them.

If you have to give up something, or cannot get exactly what you want, be prepared to ask for something else in return. If you cannot get the higher raise you want, maybe you can get more days off, more in your retirement account, a nicer office, an assistant, and so on. Based on your research, what trade-offs do you expect from the other party?

Step 4. Anticipate questions and objections, and prepare answers. The other party may want to know why you are selling something, looking for a job, how the product or service works, or what are the features and benefits. You need to be prepared to answer the unasked question “What’s in it for me?” Don’t focus on what you want but on how your deal will benefit the other party.

There is a good chance that you will face some objection—reasons why the negotiations will not result in agreement or sale. Be prepared to overcome the

1. Research the other party(ies).

2. Set objectives.

3. Try to develop options and trade-offs.

4. Anticipate questions and objections, and prepare answers.

1. Develop rapport and focus on obstacles, not the person.

2. Let the other party make the first offer.

3. Listen and ask questions to focus on meeting the other party’s needs.

4. Don’t be too quick to give in, and ask for something in return.

• Other party is postponing, and you may create urgency.

• You want to postpone, and the other party may create urgency.

NegotiationsPlan

Postponement

Agreement

Close the deal.

No Agreement

Find out why for future negotiations.

The Negotiation Process MODEL 5.1

© C

en ga

ge L

ea rn

in g®

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168 part 1 INDIVIDuaLs as LEaDErs

no’s you are bound to encounter. Unfortunately, not everyone comes out to state their real objections. So we need to listen and ask open-ended questions to get them talking so we can find out what is preventing the agreement.

Negotiations After we have planned, we are now ready to negotiate the deal. Face-to-face negotiations are generally preferred because you can see the other person’s nonverbal behavior and better understand objections. However, telephone and written negotiations (e-mail) work too. Again, know the other party’s preference. Handling negotiations also has four steps.

Step 1. Develop rapport and focus on obstacles, not the person. The first thing we sell in any negotiation is ourselves. The other party needs to trust us. Smile and call the other party by name as you greet them. Open with some small talk, like the weather, to get to know them. Deciding on how much time to wait until you get down to business depends on the other party’s style. Some people like to get right down to business; others want to get to know you first. However, you usually want the other party to make the first offer, so don’t wait too long or you may lose your chance.

“Focus on the obstacle, not the person” means never to attack the other’s personality or put others down with negative statements like “You are being unfair to ask for such a price cut.” If we do so, the other party will become defensive, we may end up arguing, and it will be harder to reach an agreement. So even if the other person starts it, refuse to fight on a name-calling level. Make statements like “You think my price is too high” to calm them down.

Step 2. Let the other party make the first offer. This usually gives you the advantage, because if the other party offers you more than your target objective, you can close the agreement. For example, if you are expecting to be paid $35,000 a year (your target objective) and the other party offers you $40,000, are you going to reject it? On the other hand, if you are offered $30,000 you can real- ize that it may be low and work at increasing the compensation. Ask questions like “What is the salary range?” or “What do you expect to pay for such a fine product?” Some say there are exceptions to the rule, such as salary negotia- tions for experienced professionals because if you state your requested salary first, the first number influences the rest of the negotiation.72

Try to avoid negotiating simply on price. When others pressure you to make the first offer with a common question like “Give us your best price, and we’ll tell you whether we’ll take it,” try asking them a question such as “What do you expect to pay?” or “What is a reasonable price?” When this does not work, say something like “Our usual (or list) price is xxx. However, if you make me a proposal, I’ll see what I can do for you.”

If things go well during steps 1 and 2, you may skip to closing the agree- ment. If you are not ready to agree, proceed to the next step or two.

Step 3. Listen and ask questions to focus on meeting the other party’s needs. Create an opportunity for the other party to disclose reservations and objections. When you speak, you give out information, but when you ask questions and listen, you receive information that will help you overcome the other party’s objections.

If you go on and on about the features you have to offer, without finding out what features the other party is really interested in, you may be killing

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 169

the deal. Ask questions such as “Is the price out of the ballpark?” or “Is it fast enough for you?” or “Is any feature you wanted missing?” If the objection is a “want” criteria, such as two years of work experience and you have only one, play up the features you know they want and that you do have, and you may reach an agreement.

If the objection is something you cannot meet, at least you found out and don’t waste time chasing a deal that will not happen. However, be sure the objection is really a “must” criterion: What if the employer gets no applicants with two years’ experience and you apply? You may get the job offer.

Step 4. Don’t be too quick to give in, and ask for something in return. Those who ask for more get more. Be persistent, don’t just give up.73 If our competitive advantage is service, and during negotiation we quickly give in for a lower price, we lose all the value in a minute. We want to satisfy the other party without giving up too much during the negotiation. Remember not to go below your minimum objective. If it is realistic, be prepared to walk away.

When we are not getting what we want, having other planned options can help give us bargaining power. If we do walk away, we may be called back, and, if not, we may be able to come back for the same low price—but not always. If other parties know we are desperate or just weak and will accept a low agree- ment, they will likely take advantage of us. Have you ever seen a sign on a product saying “must sell—need cash”? What type of price do you think that seller gets? You also need to avoid being intimidated by comments such as this said in a loud voice: “Are you kidding me, that’s too much.” Many people will quickly drop the price, but you don’t have to be intimidated.

However, when you are dealing with a complex deal, such as a management– union contract negotiation with trade-offs, be willing to be the first to make a concession. The other party tends to feel obligated, and then we can come back with a counter trade-off that is larger than the one we gave up.

Avoid giving unilateral concessions. Recall your planned trade-offs. If the other party asks for a lower price, ask for a trade-off such as a large-volume sale to get it, or a longer delivery time, a less popular color, and so on. We need to send the message that we don’t just give things away.

Postponement Take your time. When there doesn’t seem to be any progress, it may be wise to postpone the negotiations.

The Other Party Is Postponing, and You May Create Urgency. The other party says, “I’ll get back to you.” When we are not getting what we want, we may try to create urgency. For example, “This product is on sale, and the sale ends today.” However, hon- esty is the best policy. The primary reason people will negotiate with you is that they trust and respect you. If we do have other options, we can use them to create urgency, such as saying “I have another job offer pending; when will you let me know if you want to offer me the job?”

But what if urgency does not apply—or does not work—and the other party says, “I’ll think about it?” You might say, “That’s a good idea.” Then at least review the major features the other party liked about our proposed deal and ask if it meets their needs. The other party may decide to come to an agreement or sale. If not, and they don’t tell you when they will get back to you, ask, for example, “When can I expect to hear if I got the job?” Try to pin the other party down for a specific time; tell the person that if you don’t hear from them by then, you

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170 part 1 INDIVIDuaLs as LEaDErs

will call them. If you are really interested, follow up with a letter (mail/e-mail) of thanks for their time and again highlight the features you think they liked. If you forgot to include any specific points during the negotiation, add them in the letter.

One thing to remember when the other party becomes resistant to making the agree- ment is that the hard sell will not work. Take the pressure off. Ask something like “Where do you want to go from here?” If we press for an answer, it may be no agreement; however, if we wait, we may have a better chance. To your manager, you might say, “Why don’t we think about it and discuss it some more later?” (Then pick an advantageous time to meet with your manager.)

We also need to learn to read between the lines, especially when working with people from different cultures. Some people will not come right out and tell us there is no deal. We should be persistent in trying to come to an agreement, but we also don’t want to waste our time chasing a deal that will not happen.

You Want to Postpone, and the Other Party May Create Urgency. Don’t be hurried by others, and don’t hurry yourself. If we are not satisfied with the deal, or want to shop around, tell the other party you want to think about it. You may also need to check with your manager or someone else, which simply may be for advice, before you can finalize the deal. If the other party is creating urgency, be sure it really is urgent. In many cases, we can get the same deal at a later date; don’t be pressured into making a deal you are not satisfied with or may regret later. If we do want to postpone, give the other party a specific time that we will get back to them, and do so with more prepared negotiations or simply to tell them we cannot make an agreement.

Agreement Once the agreement has been made, restate it and/or put it in writing when appropriate. It is common to follow up an agreement with a letter of thanks, restating the agreement to ensure the other parties have not changed their mind about what they agreed to. Also, after the deal is made, stop selling it. Change the subject to a personal one and/or leave, depending on the other person’s preferred negotiations. If they want a personal relation- ship, stick around; if not, leave.

No Agreement Our goal is to come to an agreement, but rejection, refusal, and failure happen to us all, even the superstars. The difference between the also-rans and the superstars lies in how they respond to the failure. The successful people keep trying, learn from their mistakes, and continue to work hard; failures usually don’t persevere. When there is no agreement, analyze the situation and try to determine what went wrong to improve in the future. We may also ask the other party for advice, such as “I realize I did not get the job; thanks for your time. Can you offer me any suggestions for improving my résumé and interview skills, or other ideas to help me to get a job in this field?”

WORk Application 5-9 8. How would you rate your negotiation skills? How can you improve?

4. What types of negotiations does Mark Cuban engage in?

A large part of Mark Cuban’s job is negotiating. He had to negotiate to buy the Dallas Mavericks and to get HDNet and HDNet Movies on DirecTV. Cuban still needs to negotiate to distribute his 2929 Productions and Magnolia Pictures through big studios. The Mavericks won the championship in 2011 and many of the fans like Mark Cuban.

OPENING CASE application

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 171

Ethics and Influencing Recall that leadership is the influencing process of leaders and followers to achieve orga- nizational objectives through change (Chapter 1). We usually influence others to get what we want. Power, politics, networking, and negotiating are all forms of influencing that can be used by leaders and followers. When influencing, recall that it pays to be ethical74 (Chapter 2). The number 1 reason people will help you is because you have integrity—you are honest and they can trust you.75 With deception comes loss of trust and influence. 76

People respond to incentives and can usually be motivated for good or bad if we find the right levers.77 So influence is neither good nor bad; it’s what we do with it. Power is ethical when it is used to help meet organizational objectives and those of its members, as well as to get what we want (socialized power, Chapters 2 and 9). Power is unethical when used to promote self-interest and manipulate others at their expense (personalized power).78

YOU Make the ethICaL call

5.2 Facebook Hired Firm to Target Google

The social networking company secretly hired the public-relations firm Burson-Marsteller to push stories critical of Google’s privacy practices to shift the online privacy spotlight away from itself and onto rival Google. But the controversial strategy backfired when bloggers and journalists disclosed Facebook’s behind-the-scenes role, forcing the company to explain its tactic.

Facebook said that it didn’t authorize or intend to run a “smear campaign” but wanted to highlight that Facebook didn’t approve of Google’s data collection from its social- network accounts.

The nonprofit Public Relations Society of America said that Burson-Marsteller’s lack of disclosure of Facebook is “deceptive” and violated its ethical standards.

Burson-Marsteller said that Facebook requested that its name be withheld because it was merely asking to bring publicly available information to light. But withholding Facebook’s name was against its policy and the assignment on those terms should have been declined.

Google did not respond to a request for a comment on the newspaper story.79

1. Was Facebook’s hiring of Burson-Marsteller to shift the online privacy spotlight away from itself and onto rival Google ethical and socially responsible? Do you believe that Facebook was or was not really trying to run a “smear campaign” to get itself out of the headline and Google into the news for lack of privacy? If your boss asked you to be the one to hire Burson-Marsteller, what would you have done?

2. Do you agree with the Public Relations Society of America’s statement that Burson- Marsteller’s lack of disclosure of Facebook is “deceptive” and is an unethical business tactic?

3. Was Burson-Marsteller ethical and socially responsible in taking the job from Facebook? Do you believe that the company simply made a mistake in taking the job or that it took the job knowing it was against company policy? If your boss asked you to be the one to smear Facebook against company policy, what would you have done?

4. Was it ethical and socially responsible of Google not to respond on this story when asked to do so? If you were the CEO of Google, what would your comment be about the behavior or your rival Facebook and Burson-Marsteller?

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172 part 1 INDIVIDuaLs as LEaDErs

The chapter summary is organized to answer the eight learning outcomes for this chapter.

1 explain the differences between position power and personal power.

Position power is derived from top management and is delegated down the chain of command. thus, people at the top of the organization have more power than those at the bottom of the organization. Personal power is derived from the followers based on the lead- er’s behavior. all managers have position power, but they may or may not have personal power. Nonmanagers do not have position power, but they may have personal power.

2 Discuss the differences among legitimate, reward, coercive, and referent power.

Legitimate, reward, and coercive power are all related. a leader with position power usually has the power to reward and punish (coercive). However, a person with referent power may or may not have position power to reward and punish, and the leader influences followers based on relationships.

3 Discuss how power and politics are related. Power is the ability to influence others’ behavior. Politics is the process of gaining and using power. therefore, political skills are a part of power.

4 Describe how money and politics have a similar use.

Money and politics have a similar use, because they are mediums of exchange. In our economy, money is the medium of exchange. In an organization, politics is the medium of exchange.

5 List and explain the steps in the networking process.

the first step in the networking process is to perform a self-assessment to determine accomplishments and to set goals. second, create a one-minute self-sell that quickly summarizes history and career plans and asks a question. third, develop a written network list. fourth, conduct networking interviews to meet your goals. finally, maintain your network for meeting fu- ture goals.

Chapter Summary

When playing organizational politics (and to a lesser extent networking), it can be tempting to be unethical, but don’t do it. Even if others are using unethical behavior, don’t stoop to their level. We should confront others if we believe they are being unethical and try to resolve the issues. You will learn how to resolve conflict in Chapter 6.

An ethical challenge in negotiation is telling the truth or not lying to the other party or being lied to. There is a difference between not giving extra information that is not asked for and lying to the other party. The person who caught us lying may tell others, and we can lose even more friends and business.

So when influencing others, try to use the stakeholders’ approach to ethics by creating a win–win situation for relevant parties.

5. Is Mark Cuban ethical in influencing others?

As discussed, Mark Cuban’s behavior has not always been appropriate and thus has gotten him into some trouble in sports and entertainment. Cuban is aware of this shortcoming, and only time will tell if he will earn the respect he believes he deserves as he strives to be famous and influential.

OPENING CASE application

“Take It To The Net”. Access student resources at www.cengagebrain.com. Search for Lussier, Leadership 6e to find student study tools.

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 173

1 What are the seven types of power?

2 What are the nine influencing tactics?

3 What is ingratiation influencing?

4 What is the difference between inspirational appeal and personal appeal influencing?

5 What are the three political behaviors and four guidelines for developing political skills?

6 How many interview questions should you bring to a networking interview?

7 Which step of “conduct networking interviews” involves getting additional contacts for your network?

8 What type of situation (win/lose) is the goal of negotiation?

9 What are the steps in negotiations?

10 What are the steps in planning a negotiation?

review Questions

coercive power, 148

connection power, 150

expert power, 149

information power, 150

legitimate power, 146

negotiating, 165

networking, 155

one-minute self-sell, 161

politics, 154

power, 145

reciprocity, 155

referent power, 149

reward power, 148

Key terms

The following critical-thinking questions can be used for class discussion and/or as written assignments to develop commu- nication skills. Be sure to give complete explanations for all questions.

1 Is power good or bad for organizations?

2 Which influencing tactics do you tend to use most and least? How will you change and develop the ability to influ- ence using influencing tactics?

3 How would you rate your political skills, and which political behavior do you use most often? How will you change and develop your political skills?

4 How would you rate your relationship with your current or past boss? What will you do differently in the future to improve your relationship with your boss?

5 Can management stop the use of power and politics in their organizations?

6 Should people be judged based on their social skills?

7 How would you rate your networking skills? What will you do differently in the future to improve your networking skills?

8 Do people really need a written networking list?

9 How would you rate your negotiation skills? What will you do differently in the future to improve your negotiation skills?

10 Do you believe that most managers use influencing (power, politics, networking, and negotiating) for the good of the organization or for their own personal benefit? What can be done to help managers be more ethical in influencing others?

Critical-thinking Questions

6 List the steps in the negotiation process. the first step in the negotiation process is to plan for the negotiation. the second step is to conduct the actual negotiation, which can be postponed and results in an agreement or no agreement.

7 explain the relationships among negotiation and conflict, influencing tactics, power, and politics.

Negotiations take place when there is a conflict, and influencing tactics, power, and politics can be used during the negotiation process.

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174 part 1 INDIVIDuaLs as LEaDErs

C A S E

Organizational Power and Politics

Jose Gonzalez, a Hispanic man, was highly sought after receiving his PhD in accounting. Today, he is a tenured professor at a small teaching college in the Midwest.80 The Department of Accounting (DA) has nine faculty members;

it is one of five departments in the School of Business (SB). The accounting department chair is Helen Canton, who is in her first year as chair. Six faculty members, including Jose, have been in the department longer than Helen. Helen likes to have policies in place so that faculty members have guides for their behavior. On the college-wide level, however, there is no policy about the job of graduate assistant. Helen asked the dean of the SB about the policy. After a discussion with the vice presi- dent for academic affairs, the dean told Helen that there is no policy. The vice president and dean suggested letting the individual departments develop their own policy regarding what graduate assistants can and cannot do in their position. So, Helen made developing a policy for graduate assistants an agenda item for the department meeting.

During the DA meeting, Helen asked for members’ views on what graduate assistants should and should not be allowed to do. She was hoping that the department could come to a consensus on a policy. It turns out that Jose was the only faculty member using graduate assistants to grade exams. Two other faculty members speak out against having graduate assistants grade exams. They believe it is the professor’s job to grade exams. Jose makes a few statements in hopes of not having to correct his own exams. Because his exams are objec- tive, requiring a correct answer, Jose believes it’s not necessary for him to personally grade the exams. He also points out that across the campus, and across the country, other faculty mem- bers are using graduate assistants to teach entire courses and to correct subjective papers and exams. Jose states that he does not think it fair that he can no longer use graduate as- sistants to grade objective exams when others are doing so. He also states that the department does not need to have a policy and requests that the department not set a policy. However, Helen states that she wants a policy. Jose is the only one to speak in favor of allowing graduate assistants to grade exams, although three others made no comments either way. But, after the meeting, one other member, Joel Corman, who said nothing during the meeting, tells Jose he agrees that it is not fair to deny him this use of a graduate assistant.

There was no depar tment consensus, as Helen hoped there would be. She said that she would draft a department

policy, which will be discussed at a future DA meeting. The next day, Jose sent a memo to department members asking if it is ethical and legal to deny him the same resources as others are using across the campus. Jose also states that if the depart- ment sets a policy stating that he can no longer use graduate assistants to correct objective exams, he will appeal the policy decision to the dean, vice president, and president.

Support your answers to the following questions with spe- cific information from the case and text, or with other infor- mation you get from the Web or other sources.

1. (a) What source of power does Helen have, and (b) what type of power is she using? (c) Which influencing tactic is Helen using during the meeting? (d) Is negotia- tion and/or the (e) exchange tactic appropriate in this situation?

2. (a) What source of power does Jose have, and (b) what type of power is he using during the meeting? (c) Which two influencing tactics is Jose primarily using during the meeting? (d) Which influencing tactic is Jose using with the memo? (e) Is the memo a wise political move for Jose? What might he gain and lose by sending it?

3. What would you do if you were Helen? (a) Would you talk to the dean, letting her know that Jose said he would appeal the policy decision? (b) Which influ- encing tactic would this discussion involve? (c) Which political behavior would the discussion represent? (d) Would you draft a policy directly stating that gradu- ate assistants cannot be used to grade objective exams? (e) Would your answer to (d) be influenced by your answer to (a)?

4. (a) If you were Jose, knowing you had no verbal sup- porters during the meeting, would you have continued to defend your position or agreed to stop using a gradu- ate assistant? (b) What do you think of Jose sending the memo? (c) As a tenured full professor, Jose is secure in his job. Would your answer change if you (as Jose) had not received tenure or promotion to the top rank?

5. (a) If you were Jose, and Helen drafted a policy and depar tment members agreed with it, what would you do? Would you appeal the decision to the dean? (b) Again, would your answer change if you had not received tenure or promotion to the top rank?

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 175

6. If you were the dean of the School of Business (SB), knowing that the vice president does not want to set a college-wide policy, and Jose appealed to you, what would you do? Would you develop a school-wide policy for SB?

7. At what level (college-wide, by schools, or by depart- ments within each school) should a graduate assistant policy be set?

8. (a) Should Joel Corman have spoken up in defense of Jose during the meeting? (b) If you were Joel, would you have taken Jose’s side against the other seven members? (c) Would your answer change if you were or were not friends with Jose, and if you were or were not a tenured full professor?

C U M U L at I V e C a S e Q U e S t I O N S

9. Which level(s) of analysis of leadership theory is (are) presented in this case (Chapter 1)?

10. Is it ethical for graduate students to correct undergrad- uate exams (Chapter 2)?

11. Which of the four Ohio State University leadership styles did Helen use during the depar tment meeting (Chapter 3)?

C a S e e X e r C I S e a N D r O L e - p L aY

Preparation: Read the case and think about whether you agree or disagree with using graduate assistants to correct objective exams. If you do this exercise, we recommend that you complete it before discussing the questions and answers to the case.

In-class Da Meeting: A person who strongly agrees with Jose’s position volunteers to play this role (can be female) during a DA meeting. A second person who also agrees with the use of graduate assistants correcting exams plays the role of Joel (can be a male). However, recall that Joel cannot say anything during the meeting to support Jose. One person who strongly disagrees with Jose—who doesn’t want graduate assistants to correct exams and who also feels strongly that there should be a policy stating what graduate assistants can and cannot do—volunteers to play the role of the department chair (Helen) who runs the DA meeting. Six others who are neutral or disagree with graduate assistants grading exams play the roles of other department members.

The ten role-players sit in a circle in the center of the room, with the other class members sitting around the outside of the circle. Observers just quietly watch and listen to the meeting discussion.

role-Play: (about 15 minutes) Helen opens the meeting by simply stating that the agenda item is to set a graduate assistants policy stating what they can and cannot do and that he or she hopes the department can come to a consensus on a policy. Helen states his or her position on why graduate students should not be allowed to correct exams and then asks for other views. Jose and the others, except Joel, jump in anytime with their opinions.

Discussion: After the role-play is over, or when time runs out, the person playing the role of Jose expresses to the class how it felt to have everyone against him or her. Other department members state how they felt about the discussion, followed by observers’ statements as time permits. A discussion of the case questions and answers may follow.

Since 1911, Whirlpool Corporation has grown from a small company to a global corporation, with manufactur-ing locations on every major continent worldwide. Like many organizations, one of Whirlpool’s strategies for creating a culture of pluralism is encouraging the formation of employee network groups. These are voluntary groups formed around primary dimensions such as gender and ethnicity, which meet regularly to focus on business issues. The groups are also a resource to the employees by providing a supportive com- munity, decreasing social isolation, and promoting career

development. Further, they help retain employees by provid- ing them a forum for expressing ideas. These discussions often spark new ideas that benefit the company as a whole.

1. Using the Whirlpool Corporation Web site (http:// www.whirlpoolcorp.com), identify the employee net- work groups at Whirlpool and the mission of each.

2. Do you think Whirlpool’s encouragement of employee networks works for or against creating a culture of diversity? Explain your answer.

V I D E o c a s E

Employee Networks at Whirlpool Corporation

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176 part 1 INDIVIDuaLs as LEaDErs

Influencing Tactics

preparing for this exercise Following are three situations. For each situation, select the most appropriate influencing tactic(s) to use. Write the tactic(s) on the lines following the situation. At this time, don’t write out how you would behave (what you would say and do).

1 You are doing a college internship, which is going well.

You would like to become a full-time employee in a few weeks, after you graduate.

Which influencing tactic(s) would you use? ______

Who would you try to influence? ______

How would you do so (behavior)? ______

2 You have been working at your job for six months, and you are approaching the elevator. You see a powerful person who could potentially help you advance in your career waiting for the elevator. You have never met her, but you do know that her committee has recently completed a new five-year strategic plan for the company and that she plays tennis and is active at the same religious organization (church, synagogue, mosque) as you. Although you only have a couple of minutes, you decide to try to develop a connection.

Which influencing tactic(s) would you use? ______

How would you strike up a conversation? What topic(s) do you raise? ______

3 You are the manager of the production department. Some of the sales staff has been scheduling deliver- ies for your product that your department can’t meet. Customers are blaming you for late delivery. This is not good for the company, so you decide to talk to the sales staff manager about it over lunch.

Which influencing tactic(s) would you use? _________

How would you handle the situation (behavior)? _________

Now select one of the three situations that seems real to you—you can imagine yourself in the situation. Or briefly write in a real-life situation that you can quickly explain to a small group. Now, briefly write out the behavior (what you would do and say) that you would use in the situation to influence the person to do what you want.

Situation # ______Or, my situation: ______

Influencing tactic(s) to use: ______

Behavior : ______

Doing this exercise in Class

Objective

To develop your persuasion skills by using influencing tactics

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic skills and application of knowledge—students learn to achieve their goals by influencing others.

experience

You will discuss which influencing tactics are most appropriate for the preparation situations. You may also be given the oppor- tunity to role-play how you would handle the one situation you selected; you will also play the role of the person to be influenced and observer.

procedure 1 (10–20 minutes)

Break up into groups of three, with one or two groups of two if needed. Try not to have two members in a group who selected the same situation; use people who selected their own situation. First, try to quickly agree on which influencing tactics are most appropriate in each situation. Select a spokes- person to give group answers to the class. In preparation to role-play, have each person state the behavior selected to han- dle the situation. The others give feedback for improvement: suggestions to delete, change, and/or add to the behavior (e.g., I would not say … , I’d say it this way … , I’d add … to what you have now).

procedure 2 (5–10 minutes)

One situation at a time, each group spokesperson tells the class which influencing styles it would use, followed by brief remarks from the professor. The professor may also ask people who selected their own situation to tell the class the situation.

Conclusion

The instructor may lead a class discussion and/or make conclud- ing remarks.

apply It (2–4 minutes)

What did I learn from this exercise? How will I use this knowl- edge in the future?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

Developing Your Leadership skills 5-1

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 177

Developing Your Leadership skills

Influencing, Power, and Politics

preparing for this exercise Your instructor will tell you to select one, two, or all three of the fol- lowing topics (influencing, power, and/or politics) for this preparation.

To get what you want, you need to develop your ability to influence others and gain power through politics. It is helpful to read about these topics and how to improve your skills, but unless you apply the concepts in your personal and professional life, you will not develop these skills.

This preparation covers three skills, each with two activities. The first activity is to develop a general guide to daily actions you can take to increase your influence, power, and/or under- standing of politics. The second is to think of a specific situation in the future, and develop a plan to get what you want. Use additional paper if you need more space to write your plan.

Influencing

• Write down the influencing tactic that you are the stron- gest at using:____. The weakest: ____. The one you would like to improve on: ____ (it does not have to be your weakest). Review the ideas for using this tactic, and write down a few ways in which you will work at developing your skill.

• Think of a specific situation in the near future in which you can use this type of power to help you get what you want. Briefly describe the situation, and explain how you will use this tactic—what you will say and do, and so on.

power

• Write down the one type of your power you would like to improve on:____. Review the ideas for increasing this type of power, and write down a few ways in which you will work at developing your power.

• Think of a specific situation in the near future in which you can use this tactic to help you get what you want. Briefly describe the situation, and explain how you will use this tactic—what you will say and do, and so on.

politics

• Write down the one area of politics you would like to improve on:____. Review the ideas for using this type of politics, and write down a few ways in which you will work at developing your skill.

• Think of a specific situation in the near future in which you can use this type of politicking to help you get what you want. Briefly describe the situation, and explain how you will use this tactic—what you will say and do, and so on.

Doing this exercise in Class

Objective

To develop your ability to influence others and gain power through politics

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic skills and application of knowledge—students learn to achieve their goals by influencing others.

experience

You will develop a general guide to daily actions you can take to increase your influence, power, and/or understanding of politics. You’ll also develop a plan to get what you want.

preparation

You should have completed the preparation for this exercise, unless told not to do so by your instructor.

procedure 1  (10–20 minutes) Break into groups of three, with some groups of two if necessary. If group members developed plans for more than one skill area, select only one to star t with. One group member volunteers to share first and states his or her preparation for influencing, power, or politics. The other members give input into how effective they think the plan is and offer ideas on how to improve the plan. After the first member shares, the other two have their turn, changing roles with each round. If there is time remain- ing after all have shared, go on to another skill area until the time is up.

procedure 2 (2–3 minutes) Each member commits to imple- menting his or her plan by a set time, and to telling the others how well the influence, power, or politics went by a specific date—before or after the class ends.

Name ______

Date of implementation ______

Date to report results ______

Name ______

Date of implementation ______

Date to report results ______

Name ______

Date of implementation ______

Date to report results ______

Conclusion

The instructor may make concluding remarks.

apply It (2–4 minutes) What did I learn from this experience? How will I use this knowledge in the future?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

5-2

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178 part 1 INDIVIDuaLs as LEaDErs

Developing Your Leadership skills

Networking Skills*

preparing for this exercise Based on the section “Networking” and the subsection on the networking process, complete the following steps.

1 Perform a self-assessment and set goals. List two or three of your accomplishments and set a goal. The goal can be to learn more about career opportunities in your major ; to get an internship, part-time, summer, or full-time job; and so on.

2 Create your one-minute self-sell. Write it out. See page 161 for a written example.

History: ______________

Plan: _________________

Question: ______________

3 Develop your network. List at least five people to be included in your network, preferably people who can help you achieve your goal.

4 Conduct networking interviews. To help meet your goal, select one person for a personal 20-minute interview or to interview by phone if it is difficult to meet in person. List the person and write questions to ask during the interview. This person can be a person in your college career center or a professor in your major.

*Source: This exercise was developed by Andra Gumbus, professor of management, College of Business, Sacred Heart University. © Andra Gumbus, 2002. It is used with Dr. Gumbus’s permission.

Doing this exercise in Class

Objective

To develop networking skills by implementing the steps in the networking process

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic skills and application of knowledge—students learn to achieve their goals by networking.

experience

You will deliver your one-minute self-sell from the preparation and get feedback for improvement. You will also share your network list and interview questions and get feedback for improvement.

procedure 1  (7–10 minutes) A. Break into groups of two. Show each other your written

one-minute self-sell. Is the history, plan, and question clear (do you understand it), concise (60 seconds or less to say), and compelling (does it promote interest to help)? Offer suggestions for improvement.

B. After perfected, each person states (no reading) the one- minute self-sell. Was it stated clearly, concisely, and with confi- dence? Offer improvements. State it a second and third time, or until told to go on to the next procedure.

procedure 2  (7–10 minutes) Break into groups of three with people you did not work with during proce- dure 1. Follow procedures A and B above in your triad. Repeating your self-sell should improve your delivery and confidence.

procedure 3  (10–20 minutes) Break into groups of four with people you did not work with during procedures 1 and 2, if possible. Share your answers from steps 3 (your network list) and 4 (your interview questions). Offer each other improvements to the questions and new questions. You should also get ideas for writing new questions for your own interview.

applications (done outside of class)

Expand your written network list to at least 25 names. Conduct the networking interview using the questions developed through this exercise.

Conclusion

The instructor may make concluding remarks, including requir- ing the network lists and/or networking interview in the “Applications” section. Written network lists and/or interview questions and answers (following the name, title, and organiza- tion of interviewee; date, time, and type of interview—phone or in person) may be passed in.

apply It (2–4 minutes) What did I learn from this experience? How will I use this knowledge in the future?

Sharing

In groups, or to the entire class, volunteers may give their answers to the “Apply It” questions.

*Source: This exercise was developed by Andra Gumbus, professor of management, College of Business, Sacred Heart University. © Andra Gumbus, 2002. It is used with Dr. Gumbus’s permission.

5-3

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 179

Developing Your Leadership skills

Car Dealer Negotiation*

preparing for this exercise You should have read and should understand the negotiation process.

Doing this exercise in Class

Objective

To develop your negotiation skills

aaCSB General Skills area

The primary AACSB skills developed through this exercise are analytic skills and application of knowledge—students learn to achieve their goals through negotiating.

experience

You will be the buyer or seller of a used car.

procedure 1  (1–2 minutes) Break up into groups of two and sit facing each other, so that you cannot read each other’s confidential sheet. Each group should be as far away from other groups as possible, to avoid overhearing each other’s conversations. If there is an odd number of students in the class, one student will be an observer or work with the instruc- tor. Select who will be the buyer and who will be the seller of the used car.

procedure 2 (1–2 minutes) The instructor goes to each group and gives each buyer and seller their confidential sheet.

procedure 3 (5–6 minutes) Buyers and sellers read their con- fidential sheets and write down some plans (what will be your basic approach, what will you say) for the lunch meeting.

procedure 4 (3–7 minutes) Negotiate the sale of the car. Try not to overhear your classmates’ conversations. You do not have to buy or sell the car. After you make the sale, or agree not to sell, read the confidential sheet of your partner in this exercise and discuss the experience.

Integration (3–7 minutes)

Answer the following questions: 1 Which of the nine influencing tactics (see Exhibit 5.1) did

you use during the negotiations?

2 Which of the seven types of power (Exhibit 5.1) did you use during the negotiations? Did both parties believe that they got a good deal?

3 During your planning, did you (1) research the other party, (2) set an objective (price to pay or accept), (3) develop

options and trade-offs, and (4) anticipate questions and objections and prepare answers?

4 During the negotiations, did you (1) develop a rapport and focus on obstacles, not the person; (2) let the other party make the first offer ; (3) listen and ask questions to focus on meeting the other party’s needs; and (4) did you refuse to give in too quickly, and did you remember to ask for something in return?

5 Did you reach an agreement to sell/buy the car? If yes, did you get exactly, more than, or less than your target price?

6 When negotiating, is it a good practice to ask for more than you expect to receive, or to offer less than you expect to pay?

7 When negotiating, is it better to be the one to give or receive the initial offer?

8 When negotiating, is it better to appear to be dealing with strong or weak power? In other words, should you try to portray that you have other options and don’t really need to make a deal with this person? Or, should you appear to be in need of the deal?

9 Can having the power to intimidate others be helpful in negotiations?

Conclusion

The instructor leads a class discussion, or simply gives the answers to the “Integration” questions, and makes concluding remarks.

apply It (2–4 minutes)

What did I learn from this experience? How will I use this knowledge in the future? What will I do differently?

Sharing

In the group, or to the entire class, volunteers may give their answers to the “Apply It” questions.

*Source: The car dealer negotiation confidential information is from Arch G. Woodside, Tulane University. The Car Dealer Game is part of a paper, “Bargaining Behavior in Personal Selling and Buying Exchanges,” that was presented at the 1980 Eighth Annual Conference of the Association for Business Simulation and Experiential Learning (ABSEL). It is used with Dr. Woodside’s permission.

5-4

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180 part 1 INDIVIDuaLs as LEaDErs

endnotes

1 Forbes Web site (www.forbes.com/profile/mark-cuban), retrieved February 4, 2014.

2 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

3 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

4 D. Ma, Mo. Rhee, and D. Yang, “Power Source Mismatch and the Effectiveness of Interorganizational Relations: The Case of Venture Capital Syndication,” Academy of Management Journal 56(3) (2013): 711–734.

5 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

6 L.P. Tost, F. Gino, and R.P. Larrick, “When Power Makes Others Speechless: The Negative Impact of Leader Power on Team Performance,” Academy of Management Journal 56(5) (2013): 1465–1486.

7 D. Ma, Mo. Rhee, and D. Yang, “Power Source Mismatch and the Effectiveness of Interorganizational Relations: The Case of Venture Capital Syndication,” Academy of Management Journal 56(3) (2013): 711–734.

8 A.G. Acharya and T.G. Pollock, “Shoot for the Starts’ Predicting the Recruitment of Prestigious Directors at Newly Public Firms,” Academy of Management Journal 56(3) (2013): 711–734.

9 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

10 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

11 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

12 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

13 J. Saraceno, “Phil Jackson,” AARP Bulletin (January–February 2014): 10.

14 J. R. P. French and B. H. Raven, “The Bases of Social Power,” in D. Cartwright, Ed., Studies of Social Power (Ann Arbor, MI: Institute for Social Research, 1959): 150–167.

15 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

16 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

17 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

18 J. Liang, C.I.C. Farh, and J.L. Farh, “Psychological Antecedents of Promotive and Prohibitive Voice: A Two-Wave Examination,” Academy of Management Journal 55(1) (2012): 71–92.

19 M. Selman, “Manipulate Creative People,” BusinessWeek (April 11, 2013): 92.

20 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

21 G. Ertug and F. Castellucci, “Getting What You Need: How Reputation and Status Affect Team Performance, Hiring, and Salaries in the NBA,” Academy of Management Journal 56(2) (2013): 407–431.

22 Staff, “Success with Help,” Entrepreneur (December 2013): 64.

23 R. Nag and D. Gioia, “From Common to Uncommon Knowledge: Foundations of Firm-Specific Use of Knowledge as a Resource,” Academy of Management Journal 55(2) (2012): 421–457.

24 S. Shellenbarger, “Strike a Powerful Pose,” Wall Street Journal (August 21, 2013): D1, D2.

25 G. Ertug and F. Castellucci, “Getting What You Need: How Reputation and Status Affect Team Performance, Hiring, and Salaries in the NBA,” Academy of Management Journal 56(2) (2013): 407–431.

26 C. Galunic, G. Ertug, and M. Gargiulo, “The Positive Externalities of Social Capital: Benefiting from Senior Brokers,” Academy of Management Journal 55(5) (2012): 1213–1231.

27 G. Ertug and F. Castellucci, “Getting What You Need: How Reputation and Status Affect Team Performance, Hiring, and Salaries in the NBA,” Academy of Management Journal 56(2) (2013): 407–431.

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Chapter 5 INfLuENcINg: PowEr, PoLItIcs, NEtworkINg, aND NEgotIatIoN 181

28 J. Battilana and T. Casciaro, “Change Agents, Networks, and Institutions: A Contingency Theory of Organizational Change,” Academy of Management Journal 55(2) (2012): 381–398.

29 B. Schyns, T. Kiefer, R. Kerschreiter, and A. Tymon, “Teaching Implicit Leadership Theories to Develop Leaders and Leadership: How and Why It Can Make a Difference,” Academy of Management Learning & Education 10(3) (2012): 397–408.

30 L.P. Tost, F. Gino, and R.P. Larrick, “When Power Makes Others Speechless: The Negative Impact of Leader Power on Team Performance,” Academy of Management Journal 56(5) (2013): 1465–1486.

31 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

32 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

33 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

34 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

35 M. Reinholt, T. Pedersen, and N.J. Foss, “Why a Central Network Position Isn’t Enough: The Role of Motivation and Ability for Knowledge Sharing in Employee Networks,” Academy of Management Journal 54(6) (2011): 1277–1297.

36 J. Battilana and T. Casciaro, “Change Agents, Networks, and Institutions: A Contingency Theory of Organizational Change,” Academy of Management Journal 55(2) (2012): 381–398.

37 J. Liang, C.I.C. Farh, and J.L. Farh, “Psychological Antecedents of Promotive and Prohibitive Voice: A Two-Wave Examination,” Academy of Management Journal 55(1) (2012): 71–92.

38 P. Andruss, “How the Great Ones Got Great,” Entrepreneur (December 2013): 64.

39 G. Toegel, M. Kilduff, and N. Anand, “Emotion Helping by Managers: An Emergent Understanding of Discrepant Role Expectations and Outcomes,” Academy of Management Journal 56(2) (2013): 334–357.

40 P.J. Frederickson, “Political Skill at Work,” Academy of Management Perspectives 20(2) (2006): 95–96.

41 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

42 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

43 Staff, “Success with Help,” Entrepreneur (December 2013): 64.

44 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

45 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

46 M. Selman, “Manipulate Creative People,” BusinessWeek (April 11, 2013): 92.

47 B. Benjamin and C. O’Reilly, “Becoming a Leader: Early Career Challenges Faced by MBA Graduates,” Academy of Management Learning & Education 10(3) (2011): 452–472.

48 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

49 E.R. Burris, “The Risks and Rewards of Speaking Up: Managerial Responses to Employee Voice,” Academy of Management Journal 55(4) (2012): 851–875.

50 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

51 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

52 N.M. Lorinkova, M.J. Pearsall, and H.P. Sims, “Examining the Differential Longitudinal Performance of Directive versus Empowering Leadership in Teams,” Academy of Management Journal 56(2) (2013): 573–596.

53 K. Blanchard, D. Hutson, and E. Wills, The One Minute Entrepreneur (New York: Currency/Doubleday, 2008).

54 J. Pfeffer, “Don’t Dismiss Office Politics—Teach It,” Wall Street Journal (October 24, 2011): R6.

55 J. Battilana and T. Casciaro, “Change Agents, Networks, and Institutions: A Contingency Theory of Organizational Change,” Academy of Management Journal 55(2) (2012): 381–398.

56 M. Baer, “Putting Creativity to Work: The Implementation of Creative Ideas in Organizations,” Academy of Management Journal 55(5) (2012): 1102–1119.

57 P. Andruss, “How the Great Ones Got Great,” Entrepreneur (December 2013): 64.

58 C. Galunic, G. Ertug, and M. Gargiulo, “The Positive Externalities of Social Capital: Benefiting from Senior Brokers,” Academy of Management Journal 55(5) (2012): 1213–1231.

59 E. Glazer, “Problem—and—Solutions,” Wall Street Journal (October 24, 2011): R2.

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182 part 1 INDIVIDuaLs as LEaDErs

60 S. Raice, “Friends—and Possible Employee,” Wall Street Journal (October 24, 2011): R4.

61 This section is adapted from A. Gumbus and R.N. Lussier, “Career Development: Enhancing Your Networking Skill,” Clinical Leadership & Management Review 17(1) (January– February 2003).

62 V. Harnish, “Five Ways to Boost Revenue,” Fortune (September 16, 2013): 45.

63 E. Glazer, “Problem—and—Solutions,” Wall Street Journal (October 24, 2011): R2.

64 C. Galunic, G. Ertug, and M. Gargiulo, “The Positive Externalities of Social Capital: Benefiting from Senior Brokers,” Academy of Management Journal 55(5) (2012): 1213–1231.

65 P. Andruss, “How the Great Ones Got Great,” Entrepreneur (December 2013): 64.

66 S. Raice, “Friends—and Possible Employee,” Wall Street Journal (October 24, 2011): R4.

67 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

68 W.M. Murphy, “From E-Mentoring to Blended Mentoring: Increasing Students’ Developmental Initiation and Mentors’ Satisfaction,” Academy of Management Learning & Education 10(4) (2011): 606–622.

69 C. Suddath, “The Art of Haggling,” BusinessWeek (November 26–December 2, 2012): 98.

70 W.S. Helms, C. Oliver, and K. Webb, “Antecedents of Settlement on a New Institutional Practice: Negotiation of the ISO 26000 Standard on Social Responsibility,” Academy of Management Journal 55(5) (2012): 1120–1145.

71 C. Suddath, “The Art of Haggling,” BusinessWeek (November 26–December 2, 2012): 98.

72 C. Suddath, “The Art of Haggling,” BusinessWeek (November 26–December 2, 2012): 98.

73 C. Suddath, “The Art of Haggling,” BusinessWeek (November 26–December 2, 2012): 98.

74 M. Pitesa and S. Thau, “Compliant Sinners, Obstinate Saints: How Power and Self-Focus Determine the Effectiveness of Social Influences in Ethical Decisions Making,” Academy of Management Journal 56(3) (2013): 635–658.

75 G. Colvin, “Ignore These Leadership Lessons at Your Peril,” Fortune (October 28, 2013): 85.

76 Staff, “What’s a Hero?” Entrepreneur (December 2013): 64.

77 R. Pinheiro, “Super Freakonomics,” Academy of Management Perspectives 25(2) (2011): 86–87.

78 S.S. Wiltermuth and F.J. Flynn, “Power, Moral Clarity, and Punishment in the Workplace,” Academy of Management Journal 56(4) (2013): 1002–1023.

79 G. A. Fowler and A. Efati, “Facebook Hired Firm to Target Google,” Wall Street Journal (May 13, 2011): B1, B-2.

80 This is an actual case, but the names have been changed to protect identities.

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183

Chapter

6

Communication, Coaching, and Conflict Skills

Learning Outcomes After studying this chapter, you should be able to:

1 List the steps in the oral message-sending process. p. 186

2 List and explain the three parts of the message-receiving process. p. 189

3 Describe paraphrasing and state why it is used. p. 191

4 Identify two common approaches to getting feedback, and explain why they don’t work. p.192

5 Describe the difference between criticism and coaching feedback. p. 197

6 Discuss the relationship between the performance formula and the coaching model. p. 198

7 Define the five conflict management styles. p. 201

8 List the steps in the initiating conflict resolution model. p. 206

C h a p t e r O U t L I N e

Communication

Communication and Leadership

Sending Messages and Giving Instructions

Receiving Messages

Feedback

The Importance of Feedback

Common Approaches to Getting Feedback on Messages—and Why They Don’t Work

How to Get Feedback on Messages

Coaching

How to Give Coaching Feedback

What Is Criticism—and Why Doesn’t It Work?

The Coaching Model for Employees Who Are Performing Below Standard

Mentoring

Managing Conflict

The Psychological Contract

Conflict Management Styles

Collaborating Conflict Management Style Models

Initiating Conflict Resolution

Responding to Conflict Resolution

Mediating Conflict Resolution

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184 part 2 TEAM LEADERSHIP

The Ranch Golf Club (The Ranch), where every player is a special guest for the day, opened in 2001 in Southwick, Massachusetts. The Ranch’s competitive advantage is its upscale public course with links, woods, and a variety of elevations with unsurpassed service in New England. From the star t, The Ranch strived to be the best golf club in New England. In less than a year, The Ranch earned a 4-star course rating, one of only four in New England. It has gone on to win numerous other awards.

So how did The Ranch get started? Prior to being a golf club, it was a dairy farm owned by the Hall family. The Hall family wanted to turn the farm into a golf club with the help of Rowland Bates as project coordinator. The Halls were to provide the land, and investors would provide the capital.

Peter and Korby Clark were part owners of nearly 50 Jiffy Lubes, selling most to Pennzoil in 1991. Bates offered Peter Clark the opportunity to create and help manage a new golf club. Although Clark played golf, it was not so much the golf but the challenge of creating a new course and also playing an ongoing part in its management that interested him. Bates found two more investors, Bernard Chiu and Ronald Izen, to provide the additional funding, creating a one-third ownership by the Halls, Clarks, and Chiu and Izen.

The Clarks were happy to have the professional golf management team of Willowbend run day-to-day operations because they had no experience managing a golf club and they would not have to work full time at

The Ranch. However, in 2005 Willowbend stopped manag- ing golf courses and sold its business. By then the Clarks had gained enough experience running The Ranch and no longer needed professional management. Peter Clark stopped his par t-time coaching of football and baseball and increased his management role to become the manag- ing partner, overseeing day-to-day operations, and Korby works full time too.1

OpeNING CaSe QUeStIONS:

1. Why is communication important to the management of The Ranch?

2. How does management use feedback at The Ranch?

3. Is there a difference in managing an oil change business, a golf course, and a sports team, and how does Peter Clark use coaching at The Ranch?

4. Which conflict management style does Peter Clark tend to use at The Ranch?

5. What types of conflict resolutions do the Clarks deal with at The Ranch?

Can you answer any of these questions? You’ll find answers to these questions and learn more about The Ranch and its leadership throughout the chapter.

To learn more about The Ranch, or take a vir tual tour of the course, visit its Web site at http:// www .theranchgolfclub.com.

OPENING CASE Application

Leadership success is based on interpersonal skills, 2 and the focus of this chapter is on

three important interrelated parts of interpersonal skills. They are communication, coaching, and conflict skills. We begin with sending and receiving communications, because it is the foundation for coaching and managing conflict. We also discuss

feedback as it relates to both communication and coaching. Based on this foundation, you will learn how to coach followers, and then how to manage conflicts.

Communication In this section, we discuss the importance of communication in leadership and exam- ine the communication process of sending and receiving messages. Communication is the process of conveying information and meaning. True communication takes place only when all parties understand the message (information) from the same perspective (meaning).

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 185

Communication and Leadership Leaders use communications to inf luencing others,3 so leaders need to have good communication skills.4 Formal authority affects communication and, ultimately, performance.5 Managers use communications to monitor and reinforce performance standards;6 they share information.7 Information processing is so important that organi- zations are designed as a means to meet the information processing requirements gener- ated by interdependent activities.8 Unfortunately, some managers distort information.9 Thus, managers are not trusted today, as only 17 percent of U.S. respondents stated the information provided by top leaders is credible, and this level does not exceed 30 percent in most developed countries.10

With changing technology, how we communicate has changed over the years as mo- bile technologies provide a constant pattern of communication,11 which blurs our work and nonwork lives.12 Communicating is a social process,13 and the trend is to use net- working14 and social media.15 Facebook tends to be more personal and LinkedIn more professional networking,16 and people are using Twitter to get quick answers to ques- tions.17 But no matter which technology we use to communicate, two important parts of communication remain: sending and receiving messages.

Sending Messages and Giving Instructions Leaders send a variety of messages orally, in writing, and nonverbally. An important part of a manager’s job is to give instructions, which is sending a message. As managers, how well we give instructions directly affects performance.18 Have you ever heard a manager say “This isn’t what I asked for”? This tends to happen when managers do a poor job of giving instructions. Let’s discuss how to avoid this problem.

Planning the Message Before sending a message, we should plan it, remembering that brevity rules. Answer these questions while planning. What is the goal of my message? Who should receive my message? When will my message be transmitted? Where will my message be transmitted? How will I send the message?

With the receivers in mind, plan how you will convey the message so that it will be understood. Select the appropriate method for the audience and situation19 (see Concept Application 6-1 for a list).

CONCept APPLICATION 6-1

Methods of Sending Messages For each of these ten communication situations, select the most appropriate channel for transmitting the message. Write the most appropriate letter in the blank before each item.

Written communication (includes e-mail/texting Oral communication and traditional methods)

a. face-to-face e. memo h. bulletin board

b. meeting f. letter i. poster

c. presentation g. report j. newsletter

d. telephone (continued)

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186 part 2 TEAM LEADERSHIP

The Oral Message-Sending Process Oral face-to-face communication is the richest channel because it allows for a maximum amount of information to be transmitted through dialogue between the parties.20 The big advantage over the other channels is that it allows us to read the person’s nonverbal com- munication. When using electronics, we lose the personal touch.

It is helpful to follow these steps in the oral message-sending process: (1) develop rapport; (2) state your communication objective; (3) transmit your message; (4) check the receiver’s understanding; and (5) get a commitment and follow up. Model 6.1 lists these steps.

Step 1. Develop rapport. Put the receiver at ease. It is usually appropriate to begin communications with small talk correlated to the message. It helps prepare the person to receive the message.

CONCept APPLICATION 6-1 1. You want one of your employees to stop being disruptive during meetings.

2. You have beaten the deadline on a major project and you want your boss to know about it so that it can have a positive influence on your next performance review.

3. Your child asked you to sell candy at work for a fund-raiser. However, you don’t want to ask anyone in person.

4. You have been asked for some financial information relating to your job.

5. You have been asked to speak at your union meeting.

6. You write well and want to be formally involved in sharing information throughout the organization.

7. You have been given a letter of complaint from a supplier and asked to respond.

8. You are waiting for an important letter to arrive, and you want to know if it is in the mail room yet.

9. You want workers to save electricity by shutting off the lights in the break room when no one is in it.

10. You have four employees from other departments who will be working on a new project. You need to explain the project to them.

List the steps in the oral message-sending process. Learning outcome

1

Step 2. State your communication objective. It is helpful for the receiver to know the desired end result of the communication before covering all the details.

Step 3. Transmit your message. Tell the people what you want them to do—give instructions. Be sure to set deadlines for completing tasks. Take it a step at a

1. Develop rapport.

2. State your communication

objective.

3. Transmit your

message.

4. Check the receiver’s

understanding.

5. Get a commitment and

follow up.

The Oral Message-Sending Process MODEL 6.1

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 187

time so you don’t have information overload.21 We will discuss how to delegate task in Chapter 7.

Step 4. Check the receiver’s understanding. When communicating, we should ask direct questions and/or use paraphrasing. To simply ask “Do you have any questions?” does not check understanding. In the next section of this chapter, you will learn how to check understanding by using feedback.

Step 5. Get a commitment and follow up. When giving instructions, it is important to get a commitment to the action. We need to make sure that followers can do the task and have it done by the deadline.

Written Communication and Writing Tips Because the use of mobile technology will continue to increase, your written communica- tion skills are more important than ever.22 Even if people aren’t telling you that you’re using incorrect grammar, they are evaluating you and may conclude you’re not intelligent. So we have included some simple but important tips that can help you to improve your writing.

• Lack of organization is a major writing problem. Before you begin writing, set an objec- tive for your communication. Keep the audience in mind. What do you want them to do? Make an outline, using letters and/or numbers, of the major points you want to get across. Now put the outline into written form. The first paragraph states the purpose of the communication. The middle paragraphs support the purpose of the communica- tion: facts, figures, and so forth. The last paragraph summarizes the major points and clearly states the action, if any, to be taken by you and other people.

• Write to communicate, not to impress. Keep the message short and simple. Follow the 1-5-15 rule. Limit each paragraph to a single topic and an average of five sentences. Sen- tences should average 15 words. Vary paragraph and sentence length. Write in the active voice (I recommend …) rather than the passive voice (it is recommended …).

• Edit your work and rewrite where necessary. To improve sentences and paragraphs, add to them to convey full meaning, cut out unnecessary words and phrases, and/or rear- range the words. Check your work with the computer spelling and grammar checkers. Have others edit your important work as well.

WORk Application 6-1 Recall a specific task that your manager assigned to you. Identify which steps the manager did and did not use in the oral message- sending process.

WORk Application 6-2 Select two or three of the tips that you can use to improve your written communication. Explain how using the tip will improve your writing.

YOU Make the ethICaL Call

6.1 Advertising

Companies use oral, nonverbal, and written communications to advertise their products to increase sales. Selecting the best words to sell a product or service is important. How- ever, some of the terms used in ads are misleading and even deceptive, although in some cases the words are legal.

For example, some companies use the word “natural” on foods that are highly processed, such as products including white sugar. So, some question the use of the term “natural.” Bags of chips are advertised as being “all natural,” which leads people to think they are healthy, when in fact others classify them as junk food. Because obesity has become such a major health problem, the Food and Drug Administration’s (FDA) obesity task force is trying to crack down on misleading labels and ads, and is calling for warnings and fines for violators.

1. Is it ethical and socially responsible for food companies to use terms (like “natural’’) that can be misleading to increase sales and profits?

2. Should companies use terms that are considered misleading by some but are not illegal?

3. How would you define “natural”?

4. How should the FDA define “natural’’ so that it is not used to mislead people to buy food thinking that it is healthy, when in fact it is not?

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188 part 2 TEAM LEADERSHIP

receiving Messages The second communication process that leaders are involved in is receiving messages, which includes listening23 and responding to messages.24 Responding effectively improves communications.25 Let’s begin by completing the Self-Assessment 6-1 to determine the level and quality of your listening skills, and be honest.

Listening Skills

Select the response that best describes the frequency of your actual behavior. Write the letters A, u, f, o, or S on the line before each of the 15 statements.

A—almost always u—usually f—frequently o—occasionally S—seldom

______ 1. I like to listen to people talk. I encourage others to talk by showing interest, smiling, nodding, and so forth.

______ 2. I pay closer attention to people who are more similar to me than I do to people who are different from me.

______ 3. I evaluate people’s words and their non- verbal communication ability as they talk.

______ 4. I avoid distractions; if it’s noisy, I suggest moving to a quiet spot.

______ 5. When people come to me and interrupt me when I’m doing something, I put what I was doing out of my mind and give them my complete attention.

______ 6. When people are talking, I allow them time to finish. I do not interrupt, anticipate what they are going to say, or jump to conclusions.

______ 7. I tune people out who do not agree with my views.

______ 8. While the other person is talking, or pro- fessors are lecturing, my mind wanders to personal topics.

______ 9. While the other person is talking, I pay close attention to the nonverbal commu- nication to help me fully understand what they are trying to communicate.

______ 10. I tune out and pretend I understand when the topic is difficult for me to understand.

______ 11. When the other person is talking, I think about and prepare what I am going to say in reply.

______ 12. When I think there is something missing or contradictory, I ask direct questions to get the person to explain the idea more fully.

______ 13. When I don’t understand something, I let the other person know I don’t understand.

______ 14. When listening to other people, I try to put myself in their position and to see things from their perspective.

______ 15. During conversations I repeat back to the other person what has been said in my own words to be sure I correctly under- stand what has been said.

If people you talk to regularly were to answer these questions about you, would they have the same responses that you selected? To find out, have friends fill out the questions with you in mind rather than themselves. Then compare answers.

To determine your score, give yourself 5 points for each A, 4 for each u, 3 for each f, 2 for each o, and 1 for each S for statements 1, 4, 5, 6, 9, 12, 13, 14, and 15. Place the numbers on the line next to your response letter. for items 2, 3, 7, 8, 10, and 11, the score reverses: 5 points for each S, 4 for each o, 3 for each f, 2 for each u, and 1 for each A. Place these score numbers on the lines next to the response letters. now add your total number of points. Your score should be between 15 and 75. Place your score on the continuum below. generally, the higher your score, the better your listening skills.

15–20–25–30–35–40–45–50–55–60–65–70–75 Poor listener Good listener

SELF-ASSESSMENT 6-1

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 189

If someone asks us “Are you a good listener,” most likely we would say yes. What was your score on the self-assessment? Unfortunately, a recent survey found that the number 1 thing lacking in new college grads is listening skills.26 Constant multitasking (including checking screens) is deteriorating our ability to pay attention for long and listen. For how long can you pay attention and listen effectively at school and work? Next time you begin reading a textbook, time how long you can go before you “have” to stop and multitask. By using the message-receiving process below, we can become better listeners.

The Message-Receiving Process The message-receiving process includes listening, analyzing, and checking under standing. To improve your listening skills, spend one week focusing your attention on listening by concentrating on what other people say and the nonverbal communications they send when they speak. Notice if their verbal and nonverbal communication are con- sistent. Talk only when necessary, so that you can listen and “see” what others are saying. If you apply the following tips, you will improve your listening skills. The tips are pre- sented in the depiction of the message-receiving process (Exhibit 6.1): We should listen, analyze, and then check understanding.

List and explain the three parts of the message-receiving process. Learning outcome

2

Listening Pay attention Avoid distractions Stay tuned in Don’t assume and interrupt Watch nonverbal cues Ask questions Take notes Convey meaning

Checking Understanding Paraphrase Watch nonverbal cues

Analyzing Think Wait to evaluate until after listening

The Message-Receiving Process EXHIBIT 6.1

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Listening Listening is the process of giving the speaker your undivided attention. As the speaker sends the message, you should listen by:

• Paying attention. When people interrupt, stop what you are doing and give them your complete attention before you begin the conversation.

• Avoiding distractions. Keep your eye on the speaker. Avoid distractions; let your phone “take a message.” If you are in a noisy or distracting place, suggest moving to a quiet spot.

• Staying tuned in. Do not let your mind wander. If it does, gently bring it back or repeat in your mind what the person is saying to force yourself to pay attention. Do not think about what you are going to say in reply; just listen.

• Not assuming and interrupting. Do not assume you know what the speaker is going to say, or listen to the beginning and jump to conclusions. Listen to the entire message without interrupting the speaker.

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190 part 2 TEAM LEADERSHIP

• Watching nonverbal cues. People sometimes say one thing and mean something else. So watch as you listen to be sure that the speaker’s eyes, body, and face are sending the same message as the verbal message. If something seems out of sync, get it cleared up by asking questions.

• Asking questions. When you feel there is something missing, contradictory, or you just do not understand, ask direct questions to get the person to explain the idea more fully.

• Taking notes. Part of listening is writing important things down so you can remember them later and document them when necessary. This is especially true when you’re lis- tening to instructions.

• Conveying meaning. The way to let the speaker know you are listening to the message is to use verbal clues, such as “you feel…,” “uh huh,” “I see,” and “I understand.” Use nonverbal communication such as eye contact, appropriate facial expressions, nod- ding of the head, or leaning slightly forward in your chair to indicate interest and listening.

Analyzing Analyzing is the process of thinking about, decoding, and evaluating the message. As the speaker sends the message, we should analyze by the following:

• Thinking. Listen actively by organizing, summarizing, reviewing, interpreting, and cri- tiquing often. These activities will help do an effective job of decoding the message.

• Waiting to evaluate until after listening. When we try to listen and evaluate what is said at the same time, we tend to miss part or the entire message. Just listen to the entire message, and then come to a conclusion.27

Checking Understanding Checking understanding is the process of giving feedback. After we have listened to the message—or during the message, if it’s a long one—check understanding of the message by the following:

• Paraphrasing. Begin speaking by giving feedback, using paraphrasing to repeat the mes- sage to the sender in your own words. When you can paraphrase the message correctly, you convey that you have listened and understood the other person.

• Watching nonverbal cues. As you speak, watch the other person’s nonverbal cues. If the person does not seem to understand what you are talking about, clarify the message before finishing the conversation.

Work to change your behavior to become a better listener. Review the 15 statements in Self-Assessment 6-1. To improve your listening skills, practice doing items 1, 4, 5, 6, 9, 12, 13, 14, and 15; and avoid doing items 2, 3, 7, 8, 10, and 11.

WORk Application 6-3 Refer to Self- Assessment 6-1 and the listening tips. What is your weakest listening skill area on the job? How will you improve your listening ability?

1. Why is communication important to the management of the ranch?

The key to success at The Ranch is clear, open communications of expectations. Peter Clark has to continually commu- nicate with his partners and department heads, and nothing takes the place of sitting down face-to-face during regular weekly meetings and listening to each other to continually improve operations. Meetings of department managers with

OPENING CASE Application

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 191

Feedback In this section, we discuss the importance of feedback, the common approaches to get- ting feedback (and why they don’t work), and how to get feedback. In the next section, we discuss how to give feedback as part of coaching.

the Importance of Feedback Communications influence behavior,28 as feedback motivates employees to achieve high levels of performance.29 Feedback is the process of verifying messages and determining if objectives are being met. In Chapter 7, we discuss leader–follower performance feedback. Effective leader–follower feedback focuses on the leader’s assessment of a follower’s job performance on assigned tasks and responsibilities.

The Role of Feedback in Verifying Messages Recall that checking receiver understanding is the fourth step in the oral message send- ing process. The best way to make sure communication has taken place is to get feedback from the receiver of the message through questioning and paraphrasing. paraphrasing is the process of having the receiver restate the message in his or her own words. If the receiver of the message can answer the questions or paraphrase the message, communica- tion has taken place.

The Role of Feedback in Meeting Objectives Leaders set objective for the desired level of performance.30 Thus, leaders should set spe- cific measurable objectives (Chapter 3) and monitor the process through ongoing feed- back to increase motivation toward goal accomplishment.31 Feedback is also used in recognition of good work.32 See Guidelines for Effective Leader Feedback in Chapter 7.

The Need to Be Open to Feedback—Criticism To improve our performance and get ahead in an organization, we have to be open to feedback commonly called criticism.33 We should actually solicit feedback. However, if we’re asking for personal feedback, remember that we are asking to hear things that may surprise, upset, or insult us, and even hurt our feelings. If we become defensive and emotional—and it is tough not to when we feel attacked—feedback will stop.

We do not really enjoy being criticized by our manager, peers, or others, even when it is constructive, because it tends to be painful. But keep the phrase “no pain, no gain” in mind when it comes to criticism. When criticized, whether you asked for it or not, stay calm34 (even when the other person is emotional), don’t get defensive, and don’t blame others. View it as an opportunity to improve. If the feedback is vague, ask what specific behavior they want that will improve performance. Although it is difficult to change our behavior, it is the only way we will improve.

WORk Application 6-4 Are you really open to feedback or criticism from others at work? How can you improve on accepting criticism?

Describe paraphrasing and state why it is used.Learning outcome 3

employees continually focus on the importance of communicating the philosophy of unsurpassed professional service. To communicate professionalism, all employees wear The Ranch uniforms and name tags, and they are trained with instruc- tions on how to perform high-quality service. Even the words used are chosen to communicate professionalism. For example, The Ranch has player assistants (PAs), not rangers; golf cars, not golf carts; and it has a golf shop, not a pro shop.

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192 part 2 TEAM LEADERSHIP

Common approaches to Getting Feedback on Messages—and Why they Don’t Work The first common approach is to send the entire message and then assume that the message has been conveyed with mutual understanding without getting any feedback. The second approach is to give the entire message and then ask “Do you have any questions?” Feedback usually does not follow, because people have a tendency “not” to ask questions. Asking ques- tions, especially if no one else does, is often considered an admission of not paying attention or not being bright enough to understand, or the receiver doesn’t know what to ask.

After managers send a message and ask if there are questions, they then proceed to make another common error: Managers assume that no questions means communication is complete and that there is mutual understanding of the message. In reality, the message is often misunderstood. When “this isn’t what I asked for” happens, the task often has to be done all over again. The end result is often wasted time, materials, and effort.

The most common cause of messages not resulting in communication is the lack of getting feedback that ensures mutual understanding. The proper use of questioning and paraphrasing can help you ensure that your messages are communicated.

how to Get Feedback on Messages Here are four guidelines we can use to ensure getting feedback on messages:

• Be open to feedback. There are no dumb questions. When someone asks a question, we need to be responsive, patiently answer questions, and explain things clearly. If people sense that we get upset if they ask questions, they will not ask questions.

YOU Make the ethICaL Call

6.2 Academic Grades

Grades are a form of feedback and are often criticized. (Recall Ethical Call “Academic Standards” in Chapter 3.) Successful managers set and maintain high expectations for all their employees, and as Lou Holtz said, we need to set a higher standard. While students are doing less work than in prior years, grades continue to increase, which is called grade inflation. At one time, most colleges had a set grade point average (GPA) to determine honors. But today, most colleges use a ranking system of GPA, because of grade inflation, to limit the number of students graduating with honors.

1. How do you react when you get a grade that is lower than you wanted or expected?

2. Do you use the feedback of correcting and grades to help you improve? Why or why not, and, if yes, how?

3. Why are professors giving higher grades today than were given 5, 10, or 20 years ago?

4. Are students who are putting in less time and getting higher grades being well prepared for a career with high standards after graduation?

5. Is it ethical and socially responsible for professors to drop standards and for colleges to award degrees with higher grades today than 5, 10, or 20 years ago?

Identify two common approaches to getting feedback, and explain why they don’t work.

Learning outcome 4

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 193

• Be aware of nonverbal communication. Be sure nonverbal communications encourage feedback. For example, if you say, “I encourage questions,” but when people ask ques- tions you look at them as though they are stupid, or you act impatient, people will learn not to ask questions. You must also be aware of, and read, people’s nonverbal commu- nications. For example, if you are explaining a task to Larry and he has a puzzled look on his face, he is probably confused but may not be willing to say so. In such a case, you should stop and clarify things before going on.

• Ask questions. When sending messages, it is better to know whether the messages are understood before action is taken, so that the action will not have to be changed or repeated. Ask questions to check understanding, rather than simply asking “Do you have any questions?” Direct questions dealing with the specific information you have given will indicate if the receiver has been listening, and whether he or she understands enough to give a direct reply. If the response is not accurate, try repeating, giving more examples, or elaborating further on the message.

• Use paraphrasing. The most accurate indicator of understanding is paraphrasing. How we ask the receiver to paraphrase will affect attitudes. For example, if we say “Joan, tell me what I just said so that I can be sure you will not make a mistake as usual,” this will probably result in defensive behavior on Joan’s part. Joan will probably make a mistake. Here are two examples of proper requests for paraphrasing:

“Now tell me what you are going to do, so we will be sure that we are in agreement.”

“Would you tell me what you are going to do, so that I can be sure that I explained myself clearly?”

Notice that the second statement takes the pressure off the employee. The sender is asking for a check on his or her ability, not that of the employee. These types of requests for paraphrasing should result in a positive attitude toward the message and the sender. They show concern for the employee and for communicating effectively.

360-Degree Multi-Rater Feedback The use of feedback from multiple sources, especially peers,35 is popular as a means of improving performance36 So far, we have discussed the informal methods of getting feed- back. We now turn to a formal evaluation process using 360-degree multi-rater feedback. As the name implies, 360-degree feedback is based on receiving performance evalua- tions from many people. Usually a 360-degree evaluation form is completed by the person being evaluated, his or her manager, peers, and subordinates when applicable. Customers, suppliers, and other outside people are also asked for an evaluation when applicable. See Exhibit 6.2 for an illustration of the 360-degree feedback process.

WORk Application 6-5 Recall a past or present manager. Did or does your manager use the common approach to getting feedback on messages regularly? Was or is he or she open to feedback and aware of nonverbal communication on a regular basis? Did the manager regularly ask questions and ask you to paraphrase?

360-Degree Feedback Sources EXHIBIT 6.2

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may be customers

Manager 360-degree multirater

Peers feedback form results Self

Employees

may be suppliers

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194 part 2 TEAM LEADERSHIP

Coaching Coaching is based on feedback and communications,37 and it improves performance.38 Coaching is the process of giving motivational feedback to maintain and improve perfor- mance. In this section, we discuss how to give coaching feedback, and what criticism is— and why that doesn’t work. We then present a coaching model you can use on the job, and we end by briefly discussing mentoring, which may be considered a form of coaching.

how to Give Coaching Feedback When people hear the word coaching, they often think of athletes, but managers should also be looking for steady performance and continual improvement. Here we discuss some guidelines that will help us to be effective coaches; the guidelines are also shown in Exhibit 6.3. The guidelines are designed primarily for use with employees who are doing a good job.

If you are serious about getting ahead, it is critical to focus on feedback from your manager and any other evaluators and do what it takes to receive a good formal perfor- mance evaluation. You should work together with your manager to develop and imple- ment a plan for improvement during the next evaluation period.

2. how does management use feedback at the ranch?

Feedback is critical to success at The Ranch, because it is how the Clarks and the managers know if the players are getting quality service and learn how to improve service. The Clarks, managers, and employees are open to player criticism because they realize that the only way to improve is to listen and make changes to improve performance. In fact, Peter and Korby Clark spend much of their time at The Ranch talking to players about their experience, with the focus on listening for ways to make improvements. The Clarks and managers set clear objectives and have regular meetings with employees to get and give feedback on how The Ranch is progressing toward meeting its objectives.

Although it is a small business, during the summer 80 people work at The Ranch, and it has a sophisticated information system for its three departments—golf (greens and practice, tournaments/outings, golf shop), maintenance (the course and other facilities), and food and beverage (The Ranch Grille, bar, and functions)—that include many performance measures that are monitored for continuous improvements.

OPENING CASE Application

Coaching Guidelines EXHIBIT 6.3

1. Develop a supportive working relationship.

2. Give praise and recognition.

3. Avoid blame and embarrassment.

4. Focus on the behavior, not the person.

5. Have employees assess their own performance.

Give specific and descriptive feedback.6.

7. Give coaching feedback.

8. Provide modeling and training.

9. Make feedback timely, but flexible.

10. Don’t criticize.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 195

Develop a Supportive Working Relationship Manager and employee do not have to be personal friends and socialize together—it’s about having a good working relationship. Our relationship with followers needs to con- vey concern for them as individuals and our commitment to coach them to success. We should periodically ask employees if there is anything we can do to help them do a better job. Take the time to listen to them. Our job as a manager is to run interference and to remove the stumbling blocks for the employees to improve their performance and that of the business unit.

Give Praise and Recognition In Chapter 3, you learned the importance of giving praise, and how to use the giving praise model. We cannot overemphasize the importance of giving praise and recognition. Recognition includes praise, awards, and recognition ceremonies. Awards include cer- tificates of achievement, a letter of commendation, a pin/plaque/trophy/medal, clothing, cash, trips, employee of the month, and so on.

Avoid Blame and Embarrassment The objective of coaching is to develop employees.39 Thus, any behavior that focuses on placing blame and making the person feel bad does not help.40 For example, if an employee makes a mistake and realizes it, verbalizing it is not needed; doing so only makes them feel bad. Statements like “I’m surprised that you did XYZ” or “I’m disappointed in you” should be avoided. Besides, effective leaders treat mistakes as learning experiences.

Focus on the Behavior, Not the Person Let’s use examples to illustrate the difference between coaching by focusing on changing behavior and coaching by focusing on the person. Notice that the statements focusing on the person place blame and embarrassment—or belittle the person:

• Situation 1. The employee is dominating the discussion at a meeting. Focus on person— You talk too much; give others a chance. Focus on behavior—I’d like to hear what some of the other group members have to say.

• Situation 2. The employee is late for a meeting again. Focus on person—You are always late for meetings; why can’t you be on time like the rest of us?

Focus on behavior—This is the second time in a row that you arrived late for our meet- ing. The group needs your input right from the start of the meeting.

Have Employees Assess Their Own Performance Here are some examples of criticism and of self-evaluation coaching feedback to help explain the difference:

• Situation 3. The employee has been making more errors lately. Criticism—You haven’t been working up to par lately; get on the ball. Self-evaluation—How would you assess the number of errors you have been making this week?

• Situation 4. The employee is working on a few reports, and one is due in two days. The manager believes the employee may not meet the deadline. Criticism—Are you going to meet the deadline for the report? Self-evaluation—How are you progressing on the cost-cutting report that’s due this Thursday? Is there something I can do to help?

Give Specific and Descriptive Feedback Specific feedback is needed to avoid confusion over which particular behavior needs to be improved.41 Compare the preceding criticism statements, which are not specific, to the self-evaluation statements, which are specific.

WORk Application 6-6 Recall the best and worst manager you ever had. With which manager did you have the best working relationship? Which one gave you the most encouragement, praise, and recognition for a job well done? Which one gave you the most negative criticism? Was your performance at a higher level for your best or worst manager?

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196 part 2 TEAM LEADERSHIP

Descriptive feedback can be based on facts or inferences. Facts can be observed and proven; inferences cannot. In situation 3, the manager can observe and prove that the employee made more errors this week than in prior weeks. However, the manager cannot observe or prove why. The manager may infer many reasons for the changed behavior, such as laziness, illness, a personal problem, and so on.

In situation 4, the manager cannot prove that the report will be late; the manager is inferring that it will be and attempting to coach the employee to make sure it is com- pleted on time. Give factual, rather than inferential, feedback, because factual feedback tends to be specific and more positive, while inferential feedback tends to be more nega- tive criticism.

Give Coaching Feedback Self-assessment can work well.42 However, it is not always appropriate; if overused, it can have limited success. Here are some examples of how to coach versus criticize:

• Situation 5. The manager just saw an employee, who knows how it should be done, incorrectly pick up a fairly heavy box.

• Criticism—You just picked up the box wrong. Don’t let me catch you again. Coaching feedback—If you don’t want to injure your back, use your legs—not your back.

• Situation 6. A student sees a fellow student going to the Yahoo! Web site by typing in the entire address, http://www.yahoo.com. Criticism—You just wasted time typing in the entire Yahoo! Web site address. Coaching feedback—Would you like me to show you a faster way to get to the Yahoo!

home page?

Provide Modeling and Training A good manager leads by example. If employees see the manager doing things in an ef- fective manner, they will tend to copy the manager. As illustrated in situations 4 and 5, coaching often requires some training.43 The job instructional training method is widely used (see Model 6.2). The job instructional training (JIt) steps include (1) trainee receives preparation; (2) trainer presents the task; (3) trainee performs the task; and (4) trainer follows up. Remember that tasks we know well seem very simple, but they are usu- ally difficult for the new trainee.

Step 1. Trainee receives preparation. Put the trainee at ease as you create interest in the job and encourage questions. Explain the quantity and quality requirements and why they are important.

Step 2. Trainer presents the task. Perform the task yourself at a slow pace, explain- ing each step several times. Once the trainee seems to have the steps memo- rized, have the trainee explain each step as you slowly perform the task again. For complex tasks with multiple steps, it is helpful to write them out and to give a copy to the trainee.

Step 3. Trainee performs the task. Have the trainee perform the task at a slow pace, while explaining each step to you. Correct any errors and be patiently willing to

4. Trainer follows up.

3. Trainee performs the task.

2. Trainer presents the task.

1. Trainee receives preparation.

Job Instructional Training Steps MODEL 6.2

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 197

help the trainee perform any difficult steps. Continue until the trainee is profi- cient at performing the task.

Step 4. Trainer follows up. Tell the trainee whom to ask for help with any questions or problems. Observe the trainee performing the task, and be sure to correct any errors or faulty work procedures before they become a habit. As you follow up, be sure to be patient and encouraging.

Make Feedback Timely, but Flexible Feedback should be given as soon as possible after the behavior has been observed. For example, in situation 5 you will want to give the coaching feedback as soon as you see the employee lift the box incorrectly. To tell the employee about it a few days later will have less impact on changing the behavior, and the employee could be injured by then. The f lexibility part comes into play in two ways: (1) When you don’t have the time to do the full coaching job, make an appointment to do so; (2) when emotions are high, wait until everyone calms down to discuss the issue.

Remember that you can be a good coach by following the simple guidelines presented here. These general guidelines apply to any leadership situation. So start coaching—today.

What Is Criticism—and Why Doesn’t It Work? Placing blame and embarrassment and focusing on the person are types of criticism. Criticism is rarely effective. Criticism involves a judgment, which is that either the person is right or wrong. Criticism is also the process of pointing out mistakes, which places blame and is embarrassing.

Once we tell people they are wrong or made a mistake, directly or indirectly, four things usually happen. (1) They become defensive and justify their behavior, or they blame it on someone or something. (2) They don’t really listen to so-called constructive feedback. (3) They are embarrassed and feel bad about themselves, or they view themselves as losers. (4) They begin to dislike the task or job, as well as the critic. Plus, yelling at people makes things worse, and we tend to regret yelling.44 Conversely, when people feel good about the feedback they receive; they will be more open to changing their behavior, which increases performance.45

Demotivating Employees with overly critical managers tend to develop a negative attitude: “My man- ager doesn’t care about me or appreciate my work, so why should I work hard to do a good job?” They play it safe by doing the minimum, taking no risks, focusing on not making errors, and covering up any errors so they aren’t criticized. They avoid contact with the manager and they feel stress just seeing the manager approach them. They think, “What did I do this time?”

WORk Application 6-7 Recall a present or past manager. Which of the ten guidelines does or did the manager use most frequently and least frequently?

Describe the difference between criticism and coaching feedback.Learning outcome 5

The Difference between Criticism and Coaching Feedback Coaching feedback is based on a good, supportive relationship; it is specific and descriptive; and it is not judgmental criticism. And coaching is often based on the employee doing a self-assessment of performance. Criticism makes employees feel like losers; praise and coaching feedback makes them feel like winners. And nothing breeds success like good coaches.

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198 part 2 TEAM LEADERSHIP

the Coaching Model for employees Who are performing Below Standard Coaching is needed when performance falls below expected levels.46 When giving feed- back to employees who are performing below standard, all nine of the coaching guidelines are important. They need your one-on-one coaching at its best. Be patient but persistent; don’t give up on them. Before getting into the coaching model, let’s discuss attribution theory and the performance formula because they affect the coaching model.

Attribution Theory attribution theory is used to explain the process managers go through in determining the reasons for effective or ineffective performance and deciding what to do about it. The reaction of a manager to poor performance has two stages. First, we try to determine the cause of the poor performance, and then to select an appropriate corrective action. To help determine the cause of poor performance, we provide the performance formula; and to take corrective action, the coaching model.

Determining the Cause of Poor Performance and Corrective Coaching Action The performance formula explains performance as a function of ability, motivation, and resources. Model 6.3 is a simple model that can help us determine the cause of poor performance and the corrective action to take based on the cause. When ability, motiva- tion, or resources are low, performance will be lower.

When the employee’s ability is the reason for keeping performance from being optimal, the corrective coaching action is training.47 When motivation is lacking, coach the em- ployee.48 Motivational techniques (discussed in Chapter 3) such as giving praise might help. When resources (tools, material, equipment, etc.) are the problem, look at getting the needed resources. When obstacles are getting in the way of performance, we need to overcome them.

CONCept APPLICATION 6-2

Criticism or Coaching Feedback Identify each of these five statements as criticism or coaching feedback. For each criticism only, write a coaching feedback statement to replace it. a. criticism b. coaching feedback

11. In a loud, angry voice: What are you doing?

12. Would you like to know a faster way to get it done?

13. This is still dirty. Clean it again.

14. Would you like me to tell you how you can minimize this problem in the future?

15. Make sure you don’t forget to use the spell check this time before you pass it in.

Discuss the relationship between the performance formula and the coaching model.Learning outcome 6

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 199

Improving Performance with the Coaching Model The steps in the coaching model are below.

Step 1. Describe current performance. In detail, using specific examples, describe the current behavior that needs to be changed.

For example, for an ability or motivation problem, say something like, “There is a way to lift boxes without straining our back that will decrease chances of getting injured.”

Step 2. Describe desired performance. Tell the employee exactly what the desired per- formance is, in detail. If ability is the reason for poor performance, modeling and training the employee with JIT are very appropriate. If the employee knows the proper way, the reason for poor performance is motivational. Demonstra- tion is not needed; just describe desired performance as you ask the employee to state why the performance is important.

For example: Ability—“If you squat down and pick up the box using your legs instead of your back, it is easier and there is less chance of injuring yourself. Let me demonstrate for you.” Motivation—“Why should you squat and use your legs rather than your back to pick up boxes?”

Step 3. Get a commitment to the change. When dealing with an ability performance issue, it is not necessary to get employees to verbally commit to the change if they seem willing to make it. However, if employees defend their way, and you’re sure it’s not as effective, explain why your proposed way is better. If you cannot get the employee to understand and agree based on rational persuasion, get a verbal commitment through coercive power, such as a threat of discipline. For motivation performance issues, this is important because, if employees are not willing to commit to the change, they will most likely not make the change.

For example: Ability—the employee will most likely be willing to do it cor- rectly, so skip the step. Motivation—“Will you squat rather than use your back from now on?”

Step 4. Follow up. Remember, some employees do what managers inspect, not what they expect. We should follow up to ensure that the employee is behaving as desired.

When we are dealing with an ability performance issue, the person is recep- tive, and we skip step 3, say nothing. But watch to be sure the task is done cor- rectly in the future. Coach again, if necessary. For a motivation problem, make a statement that you will follow up, and describe possible consequences for repeated poor performance.

For example: Ability—say nothing, but observe. Motivation—“You know that picking up boxes with your back is dangerous; if I catch you doing it again, I will take disciplinary action.”

See Model 6.4 for a review of the steps in the coaching model.

The Performance Formula

Performance (f )* Ability, Motivation, and Resources

*(f ) = is a function of

MODEL 6.3

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200 part 2 TEAM LEADERSHIP

Mentoring Mentoring is a form of coaching in which a more experienced manager helps a less expe- rienced protégé. Thus, the ten tips for coaching apply to mentoring. However, mentoring includes more than coaching, and it is more involved and personal than coaching. The formal mentor is usually at a higher level of management and is not the protégé’s immedi- ate manager. Family, friends, and peers can also be mentors.

The primary responsibility is to coach the protégé by providing good, sound career advice and to help develop leadership skills necessary for a successful career.49 Mentors can nurture your inner greatness.50 Mentoring is especially important in progressing from middle management to upper level management, especially for women and minori- ties because they are very underrepresented in Fortune 500 companies. We all need men- tors, so don’t wait for someone to ask you. Seek out a good mentor.51 If your organization has a formal mentoring program, try to sign up for it. If it is informal, ask around about getting a mentor, and remember that a mentor can be from another organization and in today’s global economy, e-mentoring is becoming more popular.52 Whenever you have job- or career-related questions and would like advice, contact your mentor.

Coaching Model

1. Describe current performance.

4. Follow up.3. Get a commitment to the change.

2. Describe desired performance.

MODEL 6.4

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WORk Application 6-8 Recall a person who is or was a mentor to you. Briefly describe the relationship and type of advice you got from your mentor.

3. Is there a difference in managing an oil change business, a golf course, and a sports team; and how does peter Clark use coaching at the ranch?

Peter Clark says there are more similarities than differences in running a Jiffy Lube business and a golf club and coaching sports. The focus is the same—high-quality service. You have to treat the customer or player right. Clark uses the same 3 I’s coaching philosophy for all three: You need Intensity to be prepared to do the job right, Integrity to do the right thing when no one is watching, and Intimacy to be a team player. If one person does not do the job right, everyone is negatively affected. In business and sports, you need to strive to be the best. You need to set and meet challenging goals.

Clark strongly believes in being positive and in the need to develop a supportive working relationship, which includes sitting down to talk and really listening to the other person. He also strongly believes in the need for good training. Employees at The Ranch give high-quality service because they are thoroughly trained to do so, and they are continually coached to maintain and improve performance. Although The Ranch does not have a formal mentoring program, Clark clearly sees mentoring as an important role he plays at The Ranch.

OPENING CASE Application

Managing Conflict Poor communications, feedback, and coaching can lead to conflict. A conflict exists whenever people are in disagreement and opposition. Conflict is part of everyday life in organizations;53 it affects everyone involved54 and how we manage conflict affects perfor- mance.55 With the trend toward teamwork, conflict skills are increasingly important;56 as managers spend about 25 percent of their time resolving conflicts.57 Thus, ability to resolve conflicts will have a direct effect on your leadership success.58 In this section, we discuss the psychological contract and the five conflict management styles we can use to resolve conflicts.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 201

the psychological Contract All human relations rely on the psychological contract. The psychological contract is the unwritten implicit expectations of each party in a relationship. At work, you have a set of expectations of what you will contribute to the organization (effort, time, skills) and what it will provide to you (compensation, job satisfaction, etc.). We are often not aware of our expectations until they have not been met (for example, how we are treated by a manager).

Conflict Arises by Breaking the Psychological Contract The psychological contract is broken for two primary reasons: (1) We fail to make explicit our own expectations and fail to inquire into the expectations of the other parties; and/ or (2) we further assume that the other party(ies) has the same expectations that we hold. To help form the psychological contract, organizations have values, norms, and rules to guide fair and legitimate behavior.59

So as long as people meet our expectations, everything is fine; when they don’t meet our expectations, we are in conflict. Thus, it is important to share information and nego- tiate expectations assertively. After all, how can you expect others to meet your expecta- tions when they don’t know what they are? However, we can’t confront people for every little thing that bothers us, but we should resolve conflicts that impede our work.60 It is especially important to resolve conflicts with our boss.61

Define the five conflict management styles.Learning outcome 7

Conflict Can Be Dysfunctional or Functional People often think of conflict as fighting and view it as disruptive, which it can be.62 When conflict is not resolved effectively, negative consequences occur.63 When conflict prevents the achievement of organizational objectives, it is negative or dysfunctional conflict. However, some say conflict is not only inevitable, it can be good.64 Functional conflict exists when disagreement and opposition supports change and the achievement of organizational objectives.65 The real question today is not whether conflict is dysfunc- tional or functional but how to manage conflict to benefit the organization.66

Conflict Management Styles When we are in conflict, we have five conflict management styles to choose from. The five styles are based on two dimensions of concern: concern for others’ needs and concern for our own needs. These concerns result in three types of behavior:

• A low concern for your own needs and a high concern for others’ needs results in passive behavior.

• A high concern for your own needs and a low concern for others’ needs results in aggressive behavior—only looking out for one’s own self-interest.67

• A moderate or high concern for your own needs and others’ needs results in assertive behavior.

Each conflict style of behavior results in a different combination of win–lose situa- tions. The five styles, along with concern for needs and win–lose combinations, are pre- sented in Exhibit 6.4 and discussed here in order of passive, aggressive, and assertive behavior. The conflict style that we tend to use the most is based on our personality and leadership style. There is no one best conflict management style for all situations. In this section, we present the advantages and disadvantages and the appropriate use of each of the five conflict management styles.

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202 part 2 TEAM LEADERSHIP

Conflict Management Styles EXHIBIT 6.4

Accommodating Conflict Style Passive Behavior You Win, I Lose

Collaborating Conflict Style Assertive Behavior

You Win, I Win

Avoiding Conflict Style Passive Behavior You Lose, I Lose

Forcing Conflict Style Aggressive Behavior

You Lose, I Win

Negotiating Conflict Style Assertive Behavior

You Win Some, I Win Some

High Concern for Others’

Needs

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High Concern for Own Needs

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Avoiding Conflict Style The avoiding conf lict style user attempts to passively ignore the conf lict rather than resolve it. When we avoid a conflict, we are being unassertive and uncooperative. People avoid conf lict by refusing to take a stance, or escape conf lict by mentally withdraw- ing and physically leaving. A lose–lose situation is created because the conflict is not resolved.

Advantages and Disadvantages of the Avoiding Conflict Style. The advantage of the avoiding style is that it may maintain relationships that would be hurt through conflict resolution. The disadvantage of this style is that conflicts do not get resolved, so avoiding is often not the best option. People tend to walk all over the consistent avoider. Avoiding problems usually does not make them go away; the problems usually get worse.68 And the longer you wait to confront others, the more difficult the confron- tation usually is.

Appropriate Use of the Avoiding Conflict Style. The avoiding style is appropriate to use when (1) the conflict is trivial, (2) our stake in the issue is not high, (3) confrontation will damage an important relationship, (4) we don’t have time to resolve the conflict, or (5) emotions are high. When we don’t have time to resolve the conflict or people are emo- tional, we should confront the person(s) later. However, it is inappropriate to repeatedly avoid confrontation until you get so upset that you end up yelling at the other person(s). This passive–aggressive behavior tends to make the situation worse by hurting human relations.69 Often people do not realize they are doing something that bothers us (that we are in conflict), and when approached properly, they are willing to change.

Accommodating Conflict Style The accommodating conflict style user attempts to resolve the conflict by passively giv- ing in to the other party. When we use the accommodating style, we are being unas- sertive but cooperative. We attempt to satisfy the other party, neglecting our own needs by letting others get their own way. A win–lose situation is created, as we try to please everyone.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 203

Differences between the Avoiding Accommodating Style. A common difference between the avoiding and accommodating styles is based on behavior. With the avoiding style, we don’t have to do anything we really do not want to do; with the accommodat- ing style, we do. For example, if you are talking to someone who makes a statement that you disagree with, to avoid a conflict you can say nothing, change the subject, or stop the conversation. However, suppose you have to put up a display with someone who says “Let’s put up the display this way.” If you don’t want to do it the other person’s way, but say nothing and put it up the other person’s way, you have done something you really did not want to do—accommodation.

Advantages and Disadvantages of the Accommodating Conflict Style. The advantage of the accommodating style is that relationships are maintained by doing things the other person’s way. The disadvantage is that giving in may be counterproductive. You may have a better solution, such as a better way to put up a display. An overuse of this style tends to lead to people taking advantage of the accommodator, and the type of relationship the accommodator tries to maintain is usually lost.

Appropriate Use of the Accommodating Conflict Style. The accommodating style is appropriate when (1) the person enjoys being a follower, (2) maintaining the relationship outweighs all other considerations, (3) the changes agreed to are not important to the accommodator but are to the other party, or (4) the time to resolve the conflict is limited. This is often the only style that can be used with an autocratic manager who uses the forcing style.

Forcing Conflict Style The forcing conflict style user attempts to resolve the conflict by using aggressive behav- ior to get his or her own way. When we use the forcing style, we are uncooperative and aggressive, doing whatever it takes to satisfy our own needs—at the expense of others, if necessary. Forcers use authority, threaten, intimidate, and call for majority rule when they know they will win. Forcers commonly enjoy dealing with avoiders and accommo- dators. If you try to get others to change without being willing to change yourself, regard- less of the means, then you use the forcing style. A win–lose situation is created.

Advantages and Disadvantages of the Forcing Style. The advantage of the forc- ing style is that better organizational decisions will be made, when the forcer is correct, rather than less-effective compromised decisions. The disadvantage is that overuse of this style leads to hostility and resentment toward its user. Forcers tend to have poor human relations.

Appropriate Use of the Forcing Style. Some managers commonly use their position power to force others to do what they want them to do.70 The forcing style is appropriate to use when (1) unpopular action must be taken on important issues; (2) commitment by others to proposed action is not crucial to its implementation—in other words, people will not resist doing what we want them to do; (3) maintaining relationships is not criti- cal; or (4) the conflict resolution is urgent.

Negotiating Conflict Style The negotiating conf lict style user attempts to resolve the conf lict through assertive, give-and-take concessions. This is also called the compromising style. When you use the compromising approach, you are moderate in assertiveness and cooperation. An “I win some, you win some’’ situation is created through compromise. As discussed in Chapter 5, negotiation skills are important in both your personal and your professional life.71

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204 part 2 TEAM LEADERSHIP

Advantages and Disadvantages of the Negotiating Conflict Style. The advantage of the negotiating style is that the conflict is resolved relatively quickly and working rela- tionships are maintained. The disadvantage is that the compromise may lead to counter- productive results, such as suboptimum decisions. An overuse of this style leads to people playing games such as asking for twice as much as they need to get what they want. It is commonly used during management and labor collective bargaining.

Appropriate Use of the Negotiating Conflict Style. The negotiating style is appropri- ate to use when (1) the issues are complex and critical, and there is no simple and clear solution; (2) parties have about equal power and are interested in different solutions; (3) a solution will be only temporary; or (4) time is short. Note that we are being assertive, not aggressive, to get what we want without being taken advantage of.

Collaborating Conflict Style The collaborating conf lict style user assertively attempts to jointly resolve the con- flict with the best solution agreeable to all parties. It is also called the problem-solving style. When we use the collaborating approach, we are being assertive and cooperative. Although avoiders and accommodators are concerned about others’ needs, and forcers are concerned about their own needs, the collaborator is concerned about finding the best solution to the problem that is satisfactory to all parties. Unlike the forcer, the collabora- tor is willing to change if a better solution is presented. While negotiating is often based on secret information, collaboration is based on open and honest communication. This is the only style that creates a true win–win situation.

Differences between the Negotiation and Collaborating Style. A common difference between negotiating and collaborating is the solution. Let’s continue with the example of putting up a display. With negotiation, the two people may trade off by putting up one display one person’s way and the next display the other person’s way. This way they each win and lose. With collaboration, the two people work together to develop one display method that they both like. It may be a combination of both, or simply one person’s idea if, after an explanation, the other person really agrees that the method is better. The key to collaboration is agreeing that the solution is the best possible one.

Advantages and Disadvantages of the Collaborating Style. The advantage of the col- laborating style is that it tends to lead to the best solution to the conflict, using assertive behavior. Again, assertiveness, not aggression, is often a good option. The disadvantage is that the skill, effort, and time it takes to resolve the conflict are usually greater and longer than the other styles. There are situations, mentioned under “Negotiating Conflict Style,” when collaboration is difficult, and when a forcer prevents its use. The collaborating style offers the most benefit to the individual, group, and organization.

CONCept APPLICATION 6-3

Selecting Conflict Management Styles For each of these five conflict situations, identify the most appropriate conflict management style. Write the appropriate letter in the blank before each item. a. avoiding c. forcing e. collaborating b. accommodating d. negotiating

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 205

Appropriate Use of the Collaborating Conflict Style. The collaborating style is appro- priate when (1) you are dealing with an important issue that requires an optimal solution, and compromise would result in suboptimizing; (2) people are willing to place the group goal before self-interest, and members will truly collaborate; (3) maintaining relation- ships is important; (4) time is available; and (5) it is a peer conflict.

Of the five styles, the relatively easiest to use are the avoiding and accommodating styles. We generally want to avoid using the forcing style. The most difficult to implement successfully, due to the complexity and level of skill needed, is the collaborative style. It is most likely to be underutilized when it would have been appropriate. Therefore, to develop your conflict skills, the collaborative style is the only one that we cover in detail in the next section. Recall that you learned how to negotiate in Chapter 5.

CONCept APPLICATION 6-3 16. You have joined a task force to meet people. Your interest in what the committee does is low. While serving on

the task force, you make a recommendation that is opposed by another member. You realize that you have the better idea. The other party is using a forcing style.

17. You are on a task force that has to select a new company smart phone. The alternatives will all do the job. It’s the brand, price, and service that members disagree on.

18. You are a sales manager. Jose, one of your competent salespeople, is trying to close a big sale. The two of you are discussing the next sales call he will make. You disagree on the strategy to use to close the sale.

19. You’re late and on your way to an important meeting. As you leave, at the other end of the work area you see one of your employees goofing off instead of working.

20. There aren’t many customers in the store, so you ask Tony, a part-time employee, to leave work early. Tony tells you he want to stay because he needs the money.

WORk Application 6-9 Select a present or past manager. Which conflict management style did that manager use most often? Explain by giving a typical example. Which one of the five conflict management styles do you tend to use most often? Explain your answer

4. Which conflict management style does peter Clark tend to use at the ranch?

At The Ranch, with partners and managers, conflict is inevitable. Peter Clark prefers to use the collaborating conflict style, which goes back to the importance he places on open communications and a good supportive working relationship. He prefers to sit down and work through problem issues together and agree on solutions. He believes that when you have a conflict problem, ignoring it using the avoiding conflict style usually does not solve the problem. When Clark is in conflict with a manager, he does not like to simply accommodate when he does not agree with what the manager wants to do, but he has accommodated.

Clark does not like to use the forcing conflict style, but there are times when he says no to managers. Clark’s guiding question is: Will spending the money clearly improve player satisfaction enough to pay for itself? Clark also has to negoti- ate with outside organizations.

OPENING CASE Application

Collaborating Conflict Management Style Models We can develop our skill to assertively confront (or be confronted by) people we are in conflict with, and in a manner that resolves the conflict without damaging relationships. In this last section, we provide a model with the steps we can follow when initiating, responding to, and mediating a conflict resolution in or out of work.

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206 part 2 TEAM LEADERSHIP

Initiating Conflict resolution We are the initiators when we confront the other person(s) to resolve the conflict. If we did or said something that was wrong and hurt the other person or when we make a mis- take, placing us in conflict, we should apologize. Telling others we are sorry is very ben- eficial for building and maintaining relationship. Apologizing to our boss, rather than trying to defend our action when we were wrong or made a mistake, can help our perfor- mance reviews.72

When initiating a conflict resolution using the collaborating style, there is a model to use. The initiating conflict resolution model steps are (1) plan a BCF statement that maintains ownership of the problem; (2) present your BCF statement and agree on the conflict; (3) ask for, and/or give, alternative conflict resolutions; and (4) make an agreement for change.

Step 1. Plan a Behavior, Consequence, and Feeling (BCF) statement that maintains ownership of the problem. Planning is the starting point. Let’s begin by stat- ing what maintains ownership of the problem means. Assume you don’t smoke, and someone visits you while smoking. Is it you or the smoker who has a prob- lem? The smoke bothers you, not the smoker. It’s your problem. So we should open the confrontation with a request for the respondent to help us solve our problem. This approach reduces defensiveness and establishes an atmosphere of problem solving that will maintain the relationship.

There are three things we should NOT do in the BCF statement: (1) Don’t make judgments that evaluate others’ behavior (“You are wrong”).

Avoid judging and trying to determine who is to blame for something or who is right and wrong. Fixing blame or correctness only makes people defensive and argue about who is right as opposed to resolving the conflict.73

(2) Don’t make threats (“I’m going to tell the boss on you”). This can hurt your relationship. Using threats should be our last, not first option.

(3) Don’t give solutions. This is done step 3, so don’t start with a solution. Don’t make statements like “You are inconsiderate of others,” “You shouldn’t

smoke” (judgmental evaluation), “You are going to get cancer, I’m going to tell on you and you will get in trouble” (threats), and “Just quit smoking” (solution).

The BCF model describes a conflict in terms of behavior, consequences, and feelings. When you do B (behavior), C (consequences) happens, and I feel F (feel- ings). The longer the statement, the longer it will take to resolve the conflict, so keep the opening BCF statement short. For example, when you smoke in my room (behavior), I have trouble breathing and become nauseous (consequence), and I feel uncomfortable and irritated (feeling). You can vary the BCF sequence. For example, I fear (feeling) that the advertisement is not going to work (behav- ior), and that we will lose money (consequences).

Try to put yourself in the other person’s position. If you were the other per- son, would you like the BCF presented? Would it make you defensive? If so, change it. After planning our BCF statement, we should practice saying it before confronting the other party. In addition, think of some possible alternatives we can offer to resolve the conflict.

List the steps in the initiating conflict resolution model.Learning outcome 8

WORk Application 6-10 Use the BCF model to describe a conflict you face or have faced on the job.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 207

Step 2. Present your BCF statement and agree on the conflict. After making the short, planned BCF statement, let the other party respond. If the other party does not understand or avoids acknowledgment of the problem, repeat the planned state- ment by explaining it in different terms until getting an acknowledgment or realizing it’s hopeless. But don’t give up too easily; be assertive. If you cannot agree on a conflict, you may have to change our approach and use one of the other four conflict management styles.

Step 3. Ask for, and/or give, alternative conflict resolutions. Begin by asking the other party what can be done to resolve the conflict. If both agree, great; if not, offer your resolution. However, remember that you are collaborating, not simply trying to change others. When the other party acknowledges the problem, but is not responsive to resolving it, appeal to common goals. Make others realize the benefits to them in resolving the conflict.

Step 4. Make an agreement for change. Our goal is not to win but to agree on a plan of action so that the same error, mistake, or problem doesn’t occur again. Try to come to an agreement on specific action you will both take to resolve the conflict. Clearly state—or, better yet for complex change, write down—the spe- cific behavior changes necessary by all parties to resolve the conflict. Again, remember that you are collaborating, not forcing. The steps are also listed in Model 6.5.

responding to Conflict resolution As the responder, an initiator has confronted you.74 Here’s how to handle the role of the responder to a conflict. Most initiators do not follow the model. Therefore, we must take responsibility for successful conflict resolution by following the conflict resolution model steps, which are also listed in Model 6.5:

1. Listen to and paraphrase the conflict using the BCF model. You need to state the con- flict in your own words to make sure you get it and agree to the conflict.

2. Agree with some aspect of the complaint. Rarely is only one party the problem. So even if you don’t think you are wrong, at least agree with something (I agree that I upset you) so the conflict can be resolved.

3. Ask for, and/or give, alternative conflict resolutions. This is the same as step 3 of ini- tiating conflict discussed above.

4. Make an agreement for change. This is the same as step 4 of initiating conflict.

Mediating Conflict resolution Frequently, conflicting parties cannot resolve their dispute alone. In these cases, a media- tor should be used. A mediator is a neutral third party who helps resolve a conflict. Some organizations have trained and designated employees as mediators. In unionized organi- zations, the mediator is usually a professional from outside the organization. However, a conflict resolution should be sought internally first.

Before bringing the conflicting parties together, we should decide whether to start with a joint meeting or conduct individual meetings. If one employee comes to complain but has not confronted the other party, or if there is a serious discrepancy in employee perceptions, meet one-on-one with each party before bringing them together. On the other hand, when both parties have a similar awareness of the problem and motivation to solve it, you can begin with a joint meeting when all parties are calm. The leader should be a mediator, not a judge. Get the employees to resolve the conflict, if possible. Remain

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208 part 2 TEAM LEADERSHIP

impartial, unless one party is violating company policies. Do a good job of coaching. Avoid blame and embarrassment. Don’t make comments such as “I’m disappointed in you two” or “you’re acting like babies.”

The Collaborating Conflict Style

Initiating Conflict Resolution

Step 1. Plan a BCF statement that maintains ownership of the problem. Step 2. Present your BCF statement and agree on the conflict. Step 3. Ask for, and/or give, alternative conflict resolutions. Step 4. Make an agreement for change.

Responding to Conflict Resolution

Step 1. Listen to and paraphrase the conflict using the BCF model. Step 2. Agree with some aspect of the complaint. Step 3. Ask for, and/or give, alternative conflict resolutions. Step 4. Make an agreement for change.

Mediating Conflict Resolution

Step 1. Have each party state his or her complaint using the BCF model. Step 2. Agree on the conflict problem(s). Step 3. Develop alternative conflict resolutions. Step 4. Make an agreement for change. Step 5. Follow up to make sure the conflict is resolved.

MODEL 6.5

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When bringing conflicting parties together, follow the mediating conflict model steps listed in Model 6.5.

If either party blames the other, make a statement such as “We are here to resolve the conflict; placing blame is not productive.” Focus on how the conflict is affecting their work. Discuss the issues by addressing specific behavior, not personalities. If a person says “We cannot work together because of a personality conflict,” ask the parties to state the specific behavior that is bothering them. The discussion should make the parties aware of their behavior and the consequences of their behavior. The mediator may ask questions or make statements to clarify what is being said. The mediator should develop one problem statement that is agreeable to all parties, if possible.

If the conflict has not been resolved, an arbitrator may be used. An arbitrator is a neutral third party who makes a binding decision to resolve a conflict. The arbitrator is like a judge; the decision must be followed. However, the use of arbitration should be kept to a minimum because it is not a collaborative conflict style. Arbitrators commonly use a negotiating style in which each party wins some and loses some.

5. What types of conflict resolutions do the Clarks deal with at the ranch?

At The Ranch, Peter Clark more often responds to conflict than initiating conflict resolutions since, when problems arise, he is asked for solutions or to approve actions. Clark also has to occasionally mediate a conflict between partners or between managers and employees.

OPENING CASE Application

As we end this chapter, you should understand how important communication, feed- back, coaching, and conflict resolution are to leadership effectiveness in all organiza- tions. Self-Assessment 6-2 will help you understand how your personality traits affect your communication, feedback, coaching, and conflict management style.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 209

Your personality traits and Communication, Feedback, Coaching, and Conflict Management Style

SELF-ASSESSMENT 6-2

Let’s tie personality traits from Chapter 2 together with what we’ve covered in this chapter. We are going to pres- ent some general statements about how your personality may affect your communication, feedback, coaching, and conflict management styles. for each area, determine how the information relates to you. This will help you better understand your behavior strengths and weaknesses, and identify areas you may want to improve.

Communication If you have a high surgency personality, you most likely are an extrovert and have no difficulty initiating and com- municating with others. However, you may be dominating during communication and may not listen well and be open to others’ ideas. Be careful not to use communi- cations simply as a means of getting what you want; be concerned about others and what they want. If you are low in surgency, you may be quiet and reserved in your communications. You may want to be more vocal.

If you are high in agreeableness personality trait, you are most likely a good listener and communicator. Your adjustment level affects the emotional tone of your com- munications. If you tend to get emotional during commu- nications, you may want to work to keep your emotions under control. We cannot control our feelings, but we can control our behavior. If you are high in conscientiousness, you tend to have reliable communications. If you are not conscientious, you may want to work at returning mes- sages quickly. People who are open to new experience often initiate communication, because communicating is often part of the new experience.

Feedback and Coaching If you have a high surgency personality, you have a need to be in control. Watch the tendency to give feedback, but not listen to it. You may need to work at not criti- cizing. If you have low surgency, you may want to give more feedback and do more coaching. If you have a high agreeableness personality, you are a people person and probably enjoy coaching others. However, as a manager,

you must also discipline when needed, which may be dif- ficult for you.

If you are high on the adjustment personality trait, you may tend to give positive coaching; people with low adjustment need to watch the negative criticism. If you have a high conscientiousness with a high need for achievement, you may tend to be more concerned about your own success. This is also true of people with a high surgency personality. Remember that an important part of leadership is coaching others. If you have a low conscien- tiousness, you may need to put forth effort to be a good coach. Your openness to experience personality affects whether you are willing to listen to others’ feedback and make changes.

Conflict Styles generally, the best conflict style is collaboration. If you have a high surgency personality, you most likely have no problem confronting others when in conflict. However, be careful not to use the forcing style with others; remem- ber to use social, not personal power. If you have a high agreeableness personality, you tend to get along well with others. However, be careful not to use the avoiding and accommodating styles to get out of confronting others; you need to satisfy your needs too.

Adjustment will affect how to handle a conflict situation. Try not to be low in adjustment and get too emotional. If you are conscientious, you may be good at conflict resolution; but again, be careful to meet others’ needs too. Openness to experience affects conflicts, because their resolution often requires change; be open to new things.

action plan Based on your personality, what specific things will you do to improve your communication, feedback, coaching, and conflict management style?

“Take It To The Net”. Access student resources at www.cengagebrain.com. Search for Lussier, Leadership 6e to find student study tools.

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210 part 2 TEAM LEADERSHIP

Key terms arbitrator, 208

attribution theory, 198

BCF model, 206

coaching, 194

coaching feedback, 197

communication, 184

conflict, 200

feedback, 191

initiating conflict resolution model, 206

job instructional training, 196

mediator, 207

mentoring, 200

message-receiving process, 189

oral message-sending process, 186

paraphrasing, 191

performance formula, 198

360-degree feedback, 193

This chapter summary is organized to answer the nine learning outcomes for Chapter 6.

1 List the steps in the oral message-sending process. The five steps in the oral message-sending process are (1) develop rapport; (2) state your communication objective; (3) transmit your message; (4) check the receiver’s understanding; (5) get a commitment and follow up.

2 List and explain the three parts of the message- receiving process.

The three parts of the message-receiving process are listening, analyzing, and checking understanding. Listening is the process of giving the speaker your undivided atten- tion. Analyzing is the process of thinking about, decoding, and evaluating the message. Checking understanding is the process of giving feedback.

3 Describe paraphrasing and state why it is used.

Paraphrasing is the process of having the receiver restate the message in his or her own words. Paraphrasing is used to check understanding of the transmitted message. If the receiver can paraphrase the message accurately, communication has taken place. If not, communication is not complete.

4 Identify two common approaches to getting feedback, and explain why they don’t work.

The first common approach is to send the entire mes- sage and to assume that the message has been conveyed with mutual understanding without getting any feedback. The second approach is to give the entire message fol- lowed by asking “Do you have any questions?” feedback usually does not follow because people have a tendency not to ask questions. Asking questions, especially if no one else does, is often considered an admission of not paying attention or not being bright enough to under- stand, or the receiver doesn’t know what to ask.

5 Describe the difference between criticism and coaching feedback.

Criticism is feedback that makes a judgment about behavior being wrong. Coaching feedback is based on a supportive relationship and offers specific and descrip- tive ways to improve performance. Criticism focuses on pointing out mistakes, while coaching feedback focuses on the benefits of positive behavior.

6 Discuss the relationship between the perfor- mance formula and the coaching model.

The performance formula is used to determine the rea- son for poor performance and the corrective action needed. The coaching model is then used to improve performance.

7 Define the five conflict management styles.

(1) The avoiding conflict style user attempts to pas- sively ignore the conflict rather than resolve it. (2) The accommodating conflict style user attempts to resolve the conflict by passively giving in to the other party. (3) The forcing conflict style user attempts to resolve the conflict by using aggressive behavior to get his or her own way. (4) The negotiating conflict style user attempts to resolve the conflict through assertive, give-and-take concessions. (5) The collaborating conflict style user assertively attempts to jointly resolve the conflict with the best solution agreeable to all parties.

8 List the steps in the initiating conflict resolution model.

The initiating conflict resolution model steps are (1) plan a BCf statement that maintains ownership of the prob- lem; (2) present your BCf statement and agree on the conflict; (3) ask for, and/or give, alternative conflict reso- lutions; and (4) make an agreement for change.

Chapter Summary

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review Questions

1 What should be included in your plan to send a message?

2 What are the three parts of a written outline?

3 As an average, how many words should a sentence have, and how many sentences should there be in a paragraph?

4 Which personality traits are associated with being closed to feedback?

5 What are the four guidelines to getting feedback on messages?

6 What is 360-degree feedback, and are many organizations using it?

7 Should a supportive working relationship be a true friendship?

8 Why doesn’t criticism work?

9 Are all managers mentors?

10 How do you know when you are in conflict?

11 What is the difference between functional and dysfunc- tional conflict, and how does each affect performance?

12 What is meant by maintaining ownership of the problem?

13 How is the BCF model used?

14 What is the difference between a mediator and an arbitrator?

Critical-thinking Questions The following critical-thinking questions can be used for class discussion and/or as written assignments to develop commu- nication skills. Be sure to give complete explanations for all questions.

1 How would you assess communications in organizations? Give examples of good and poor communications in organizations.

2 How did you score on Self-Assessment 6-1, “Listening Skills”? State your plan for improving your listening skills.

3 How would you assess managers at giving feedback? Specifically, what should managers do to improve?

4 Is 360-degree multi-rater feedback really better than a boss-based assessment? As a manager, would you elect to use 360?

5 Do you agree with the statement “Don’t criticize”? Do managers tend to give criticism or coaching feedback? How can managers improve?

6 Women and minorities are less likely to have mentors, so should they get mentors? Will you seek out career mentors?

7 What are your psychological contract expectations of your boss and coworkers? Give examples of conflicts you have had at work, listing the expectation that was not met.

8 What percentage of the time do you think a manager can actually use the collaborating conflict management style? Give detailed examples of when managers have used col- laboration at work.

C A S E

Reed Hastings—Netflix

In January 2005, Wedbush Securities stock analysts Michael Pachter called Netflix a “worthless piece of crap.” He put a price target of $3 on the stock that was trading at around $11. Doubters thought Blockbuster, Walmart, or Amazon.com, with their economies of scale and established customer bases, would simply destroy Netflix. Founder and CEO Reed Hastings

wasn’t supposed to be Fortune’s Businessperson of the Year in 2010, five years after his demise was predicted. Not only did Hasting earn the No. 1 spot; he and Netflix also killed it. Netflix was the stock of the year, up more than 200 percent in 2010, while the S&P 500 was up only 7 percent. Netflix shares ran laps around even Apple’s.75 Between 2010 and 2013

(continued)

Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 211

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212 part 2 TEAM LEADERSHIP

Netflix subscribers doubled to over 40 million and its stock price quadrupled to $375, making it again the best- performing stock on the S&P 500.76 Don’t you wish you bought it back in 2005 when it was selling for $11? In Fortune’s List of 2013’s Top People in Business, Reed Hastings was ranked #5, ahead of Amazon’s Jeff Bezos, Google’s Larry Page, Facebook’s Mark Zuckerberg, and Apple’s Tim Cook.77

So how did Hastings do it? A lot of his success is based on how he built his company on a hard-driving and risk-taking culture, and Hastings never stops looking over his shoulder to stay one step ahead of the competition. Unlike Blockbuster, which went into bankruptcy, Netflix wasn’t afraid to change its business model by abandoning the past to build its future.78 How, by cannibalizing its own mail order DVD customers to focus on streaming existing program and even to launching original series, including the highly successful House of Cards that won three Emmy awards, with more to come.79 Although the change in focus from mailing DVDs to streaming with a pricing revamping was clumsily handled, resulting in angry and lost mail customers, it clearly was a good strategic move.80 With streaming, Netflix is now stealing customers from cable and pay movie channels HBO, Showtime, and Starz, as it is the world’s largest video subscription company.81 Growth is also coming from Netflix global expansion from Canada (2010), to Latin America (2011) and most recently to Europe (2012), where streaming is new in many countries.82

Let’s talk about Hastings’s leadership style that led to suc- cess. It has changed over the years between the two compa- nies he created. As a young founding CEO of Pure Software, Hastings was considered as hard headed as they come and couldn’t take criticism. He used the autocratic style to push for his ways of doing things, and he sometimes embarrassed employees with nonverbal eye rolling and critical comments about dumb ideas. So much so that Hastings earned the nick- name “Animal.” Hastings sold Pure for $750 million, and it made him realize he had helped build a company he didn’t want to be part of.83

So when he used the money to star t Netflix, as CEO Hastings was determined to create a culture in which people enjoyed coming to every day. He wanted the company to be run differently, so he changed his style to be participative. He is more honest and direct with employees but not confron- tational, but he still has a Steve Jobs–like perfectionist streak. Instead of simply telling others what to do, he actively seeks out ideas and advice from his employees. Now when he hears ideas that seem silly, he doesn’t roll his eyes and humili- ate employees by making critical comments about the idea or person being dumb. Hastings digs deeper by responding with comments like “I don’t understand how your idea will work, so help me to understand how it will solve the problem.”84

Hastings was ahead of the technology curve. Even back in 1997 when Hastings cofounded Netflix, he anticipated that consumers would eventually prefer to get movies instantly delivered via the Internet. This is actually amazing foresight because back then less than 7 percent of U.S. homes even had broadband. Hastings actually had a team working on the technology to bring movies to the home via the Internet back in 2000. They even developed a Netflix-branded box with a hard drive that connected to your movie queue, but it took six hours to download a movie back in the early 2000s. Once Hastings saw YouTube videos, he killed the hard-drive device and put this team to work on a streaming machine, a sort of YouTube-in-a-box. This again was meant to be a branded piece of hardware produced and sold by Netflix. However, even though they built the technology, once again Hasting killed the idea in favor of software that could be embedded in all kinds of devices— the software today is known as apps. 85

No. This wasn’t wasted time. Netflix built on this base to be able to come out streaming a year and a half, in 2007, after YouTube showed the world instant viewing over the Inter- net. Also, it spun off the hardware technology into an existing company called Roku, which today makes a digital device that plays content via software from Netflix, as well as Hulu, Ama- zon, and others.

Does this mean that Netflix doesn’t face any present and future threats? As Hastings admits, there are plenty of challenges ahead. Analysts like Pachter now are warning that Netflix could be crushed or acquired by the likes of Amazon.com, Google, or Apple. Anyone can come after Netflix by streaming bits via con- tracts with data-delivery companies like Level 3, Limelight, and Akamai. Who knows what Facebook will come up with? Also, Netflix has to pay the studios for contents. Content acquisition could be denied or costs could go through the roof, and new expensive original series may not have the success of House or Cards. In February 2014, Netflix agreed to pay Comcast extra to speed up its streaming service to its customers, which could lead to having to pay other cable providers extra.86 The European media companies across the continent are girding for battle to stop Netflix from taking market share.87 But Hastings is confi- dent, as he enjoys solving subtle, yet tough, problems alongside the smartest people he can find. He said, “For me the thrill is making a contribution by solving hard problems.” Only time will tell if he can stay ahead of the competition and technology curve.

GO tO the INterNet: To learn more about Reed Hastings and Netflix, visit their Web site (http://www .netflix.com).

Support your answers to the following questions with spe- cific information from the case and text or with other informa- tion you get from the Web or other sources.

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 213

1. How did Hastings change his use of communications in sending and receiving messages from Pure Software to Netflix?

2. How did Hastings change his use of feedback from Pure Software to Netflix?

3. How did Hastings change his use of coaching guidelines (Exhibit 6.3) from Pure Software to Netflix?

4. Which conflict management style did Hastings tend to use at Pure and Netflix?

5. In making a deal with content suppliers, which conflict management style was most likely used by Netflix?

6. How would you improve Netflix’s product offerings (i.e., what things can’t you watch that you would like to watch) or processes (i.e., how can it improve its delivery or service)?

C U M U L at I V e C a S e Q U e S t I O N S

7. Which level or levels of analysis and leadership para- digm are presented in this case, and did Hastings use the management or leadership paradigm (Chapter 1)?

8. How did Hastings’s Big Five model of personality leadership traits change from Pure Software to Netflix (Chapter 2)?

9. Which University of Iowa leadership styles did Hastings use at Pure Software and Netflix (Chapter 3)?

10. Explain how power, organizational politics, networking, and negotiation are, or are not, discussed in the case (Chapter 5)?

C a S e e X e r C I S e a N D r O L e - p L aY

Preparation: An important part of success is to continually improve products and processes. So we are going to use answers to case question 6. In-Class groups: Break into groups of four to six members, and develop a list of improvements for Netflix. Select a spokesperson to record the ideas and then present them to Hastings in front of the class. Role-Play: One person from each group at a time presents the group’s suggested improvements to Hastings (played by the professor or one or more students as a committee). During and/or after the presentation, Hastings and/or committee members ask questions and make comments on the ideas. Are the ideas practical? Would you consider implementing the ideas? What research would you need to make a decision?

The decision to dedicate the resources needed to fund and suppor t the Depar tment of Communications within Navistar International sends a signal that corpo- rate communication is seen as vital to the health of this $12 billion truck and engine manufacturing and financial services corporation. The Depar tment of Communications func- tions as a business partner with the company’s three major business units. Each plant has a communications manager who reports to both the plant manager and the corporate director of the Depar tment of Communications. The role of the communications manager is to drive the message to the target audience. The manager uses different approaches

depending on the audience and the direction of the message, whether it’s heading up or down the corporate ladder or across business units.

1. Explain why the communication skills and techniques used within a business unit (department) are not always effective in communicating across business units or up and down the corporate ladder.

2. Explain why conflict resolution communication skills are not always present in everyday workplace situations and how a skilled communications professional would add value to that workplace.

V I D E o C A S E

Communication at Navistar International

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214 part 2 TEAM LEADERSHIP

Doing this exercise in Class

Objective

To develop your ability to give and receive messages (commu- nication skills)

aaCSB General Skills area

The primary AACSB skill developed through this exercise is communication.

preparation

No preparation is necessary except reading and understanding the chapter. The instructor will provide the original drawings that must be drawn.

experience

You will plan, give, and receive instructions for completing a drawing of three objects.

procedure 1  (3–7 minutes) Read all of procedure 1 twice. The task is for the manager to give an employee instructions for completing a drawing of four objects. The objects must be drawn to scale and look like photocopies of the originals. You will have up to 15 minutes to complete the task.

The exercise has four separate parts or steps:

1 The manager plans.

2 The manager gives the instructions.

3 The employee does the drawing.

4 Evaluation of the results takes place.

Rules: The rules are numbered to correlate with the four parts of the exercise.

1 Planning. While planning, the manager may write out instructions for the employee, but may not do any draw- ing of any kind.

2 Instructions. While giving instructions, the manager may not show the original drawing to the employee. (The instructor will give it to you.) The instructions may be given orally, and/or in writing, but no nonverbal hand ges- tures are allowed. The employee may take notes while the instructions are being given, but cannot do any drawing with or without a pen. The manager must give the instruc- tions for all four objects before drawing begins.

3 Drawing. Once the employee begins the drawing, the man- ager should watch but no longer communicate in any way.

4 Evaluation. When the employee is finished or the time is up, the manager shows the employee the original drawing.

Discuss how you did. Turn to the “Integration” section of this exercise, and answer the questions. The manager, not the employee, writes the answers. The employee will write when playing the manager role.

procedure 2 (2–5 minutes) Half of the class members will act as the manager first and give instructions. Managers move their seats to one of the four walls (spread out). They should be fac- ing the center of the room with their backs close to the wall.

Employees sit in the middle of the room until called on by a manager. When called on, bring a seat to the manager. Sit facing the manager so that you cannot see any managers’ drawing.

procedure 3  (Up to 15 minutes for drawing and integration) The instructor gives each manager a copy of the drawing, being careful not to let any employees see it. The manager plans the instructions. When a manager is ready, she or he calls an employee and gives the instructions. It is helpful to use the mes- sage-sending process. Be sure to follow the rules. The employee should do the drawing on an 8½ by 11 sheet of paper, not in this book. If you use written instructions, they may be on the reverse side of the page that the employee draws on or on a different sheet of paper. You have up to 15 minutes to complete the drawing and about 5 minutes for integration (evaluation). When you finish the drawing, turn to the evaluation questions in the “Integration” section.

procedure 4 (Up to 15 minutes) The employees are now the managers, and they sit in the seats facing the center of the room. New employees go to the center of the room until called for.

Follow procedure 3, with the instructor giving a different drawing. Do not work with the same person; change partners.

Integration

Evaluating Questions: You may select more than one answer. The manager and employee discuss each question; and the manager, not the employee, writes the answers to the questions.

1. The goal of communication was to:

a. influence b. inform c. express feelings

2. The manager transmitted the message through communication channel(s).

a. oral b. written c. nonverbal d. combined

3. The manager spent time planning.

a. too much b. too little c. the right amount of

Giving Instructions

Developing Your Leadership Skills 6-1

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Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 215

Questions 4 through 8 relate to the steps in the message-sending process.

4. The manager developed rapport. (Step 1)

a. true b. false

5. The manager stated the communication objective. (Step 2)

a. true b. false

6. The manager transmitted the message . (Step 3)

a. effectively b ineffectively

7. The manager checked understanding by using . (Step 4)

a. direct questions b. paraphrasing c. both d. neither

8. The amount of checking was .

a. too frequent b. too infrequent c. about right

9. The manager got a commitment and followed up. (Step 5)

a. true b. false

10. The employee did an job of listening, an job of analyzing, and an job of checking understanding through the receiving message process.

a. effective b ineffective

11. When going over this integration, the manager was and the employee was to criticism that

can help improve communication skills.

a. open b. closed

12. Were the objects drawn to approximate scale (same size)? If not, why not?

13. Did you follow the rules? If not, why not?

14. If you could do this exercise again, what would you do differently to improve communications?

Conclusion

The instructor leads a class discussion and/or makes concluding remarks.

apply It  (2–4 minutes) What did I learn from this experi- ence? How will I use this knowledge in the future? When will I practice?

Behavior Model Skills Training 6-1 Session 1

In this behavior model skills training session, you will perform four activities:

1 Complete Self-Assessment 6-3 (to determine your pre- ferred communication style).

2 Read “The Situational Communications Model.”

3 Watch Behavior Model Video 6.1, “Situational Communications.”

4 Complete Developing Your Leadership Skills Exercise 6-2 (to apply the model to various situations).

For practice, use the situational communications model in your personal and professional communication.

Determining Your preferred Communication StyleSELF-ASSESSMENT 6-3

To determine your preferred communication style, select the one alternative that most closely describes what you would do in each of the 12 situations described. Do not be concerned with trying to pick the correct answer; select the alternative that best describes what you would actually do. Circle the letter a, b, c, or d.

for now, ignore these three types of lines:

1. (before each number) time information acceptance capability communication style • S (following each letter)

They are explained later, and will be used during the n-class part of Developing Your Leadership Skills Exercise 6-2.

1. Wendy, a knowledgeable person from another de- partment, comes to you, the engineering supervisor, and requests that you design a special product to her specifications. You would:

time information acceptance capability communication style

a. Control the conversation and tell Wendy what you will do for her. S

b. Ask Wendy to describe the product. Once you understand it, you would present your ideas. Let

(continued)

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her realize that you are concerned and want to help by offering your ideas. S

c. Respond to Wendy’s request by conveying under- standing and support. Help clarify what is to

be done by you. Offer ideas, but do it her way. S

d. Find out what you need to know. Let Wendy know you will do it her way. S

2. Your department has designed a product that is to be fabricated by Saul’s depar tment. Saul has been with the company longer than you have; he knows his department. Saul comes to you to change the product design. You decide to:

time information acceptance capability communication style

a. Listen to the change and why it would be beneficial. If you believe Saul’s way is better, change it; if not, explain why the original design is superior. If neces- sary, insist that it be done your way. S

b. Tell Saul to fabricate it any way he wants to. S

c. You are busy; tell Saul to do it your way. You don’t have time to listen and argue with him. S

d. Be supportive; make changes together as a team. S

3. Upper management has a decision to make. They call you to a meeting and tell you they need some infor- mation to solve a problem they describe to you. You:

time information acceptance capability communication style

a. Respond in a manner that conveys personal support and offer alternative ways to solve the problem. S

b. Just answer their questions. S c. Explain how to solve the problem. S d. Show your concern by explaining how to solve

the problem and why it is an effective solution. S

4. You have a routine work order. The work order is to be placed verbally and completed in three days. Sue, the receiver, is very experienced and willing to be of service to you. You decide to:

time information acceptance capability communication style

a. Explain your needs, but let Sue make the order decision. S

b. Tell Sue what you want and why you need it. S

c. Decide together what to order. S d. Simply give Sue the order. S

5. Work orders from the staff department normally take three days; however, you have an emergency and need the job today. Your colleague Jim, the department su- pervisor, is knowledgeable and somewhat cooperative. You decide to:

time information acceptance capability communication style

a. Tell Jim that you need it by three o’clock and will return at that time to pick it up. S

b. Explain the situation and how the organization will benefit by expediting the order. Volunteer to help in any way you can. S

c. Explain the situation and ask Jim when the order will be ready. S

d. Explain the situation and together come to a solution to your problem. S

6. Danielle, a peer with a record of high performance, has recently had a drop in productivity. Her problem is affecting your performance. You know Danielle has a family problem. You:

time information acceptance capability communication style

a. Discuss the problem; help Danielle realize the problem is affecting her work and yours. Support- ively discuss ways to improve the situation. S

b. Tell the manager about it and let him decide what to do about it. S

c. Tell Danielle to get back on the job. S d. Discuss the problem and tell Danielle how

to solve the work situation; be supportive. S

7. You are a knowledgeable supervisor. You buy sup- pl ies from Peter regular ly. He is an excel lent salesperson and very knowledgeable about your situation. You are placing your weekly order. You decide to:

time information acceptance capability communication style

a. Explain what you want and why. Develop a supportive relationship. S

b. Explain what you want, and ask Peter to recommend products. S

c. Give Peter the order. S d. Explain your situation and allow Peter to make the

order. S

216 part 2 TEAM LEADERSHIP

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8. Jean, a knowledgeable person from another depart- ment, has asked you to perform a routine staff function to her specifications. You decide to:

time information acceptance capability communication style

a. Perform the task to her specifications without questioning her. S

b. Tell her that you will do it the usual way. S c. Explain what you will do and why. S d. Show your willingness to help; offer alternative

ways to do it. S

9. Tom, a salesperson, has requested an order for your depar tment’s services with a shor t delivery date. As usual, Tom claims it is a take-it-or-leave-it offer. He wants your decision now, or within a few minutes, because he is in the customer’s office. Your action is to:

time information acceptance capability communication style

a. Convince Tom to work together to come up with a later date. S

b. Give Tom a yes or no answer. S c. Explain your situation, and let Tom decide if you

should take the order. S d. Offer an alternative delivery date. Work on your

relationship; show your support. S

10. As a time-and-motion expert, you have been called regarding a complaint about the standard time it takes to perform a job. As you analyze the entire job, you realize that one element of the job should take longer, but other elements should take less time. The end result is a shorter total standard time for the job. You decide to:

time information acceptance capability communication style

a. Tell the operator and foreman that the total time must be decreased and why. S

b. Agree with the operator and increase the standard time. S

c. Explain your findings. Deal with the operator and/ or foreman’s concerns, but ensure compliance with your new standard. S

d. Together with the operator, develop a standard time. S

11. You approve budget allocations for projects. Marie, who is very competent in developing budgets, has come to you. You:

time information acceptance capability communication style

a. Review the budget, make revisions, and explain them in a supportive way. Deal with concerns, but insist on your changes. S

b. Review the proposal and suggest areas where changes may be needed. Make changes together, if needed. S

c. Review the proposed budget, make revisions, and explain them. S

d. Answer any questions or concerns Marie has and approve the budget as is. S

12. You are a sales manager. A customer has offered you a contract for your product, but the contract has a shor t delivery date—only two days. The contract would be profitable for you and the organization. The cooperation of the production department is essen- tial to meet the deadline. Tim, the production man- ager, and you do not get along very well because of your repeated request for quick delivery. Your action is to:

time information acceptance capability communication style

a. Contact Tim and try to work together to com- plete the contract. S

b. Accept the contract and convince Tim in a sup- portive way to meet the obligation. S

c. Contact Tim and explain the situation. Ask him if he and you should accept the contract, but let him decide. S

d. Accept the contract. Contact Tim and tell him to meet the obligation. If he resists, tell him you will go to his manager. S

To determine your preferred communication style, do the following. (1) Circle the letter you selected as the alternative you chose in situations 1 through 12. The column headings indicate the style you selected. (2) Add up the number of circled items per column. The total for all the columns should not be more than 12. The column with the highest number represents your preferred communication style. There is no one best style in all situations. The more evenly distributed the numbers are between the four styles, the more flexible are your com- munications. A total of 0 or 1 in any column may indicate a reluctance to use the style(s). You could have problems in situations calling for the use of this style. Communication has the following five dimensions, which are each on a continuum:

Chapter 6 CoMMunICATIon, CoACHIng, AnD ConfLICT SkILLS 217

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218 part 2 TEAM LEADERSHIP

autocratic (S1a)

Consultative (S2C)

participative (S3p)

empowerment (S4e)

1. a b c d

2. c a d b

3. c d a b

4. d b c a

5. a b d c

6. c d a b

7. c a b d

8. b c d a

9. b d a c

10. a c d b

11. c a b d

12. d b a c

Totals

Initiation response

• Initiation. The sender starts, or initiates, the communica- tion. The sender may or may not expect a response to the initiated message.

• Response. The receiver’s reply or action taken to the sender’s message. In responding, the receiver can become an initiator. As two-way communication takes place, the role of initiator (sender) and responder (receiver) may change.

presentation elicitation

• Presentation. The sender’s message is structured, directive, or informative. A response may not be needed, although action may be called for. (“We are meeting to develop next year’s budget.” “Please open the door.”)

• Elicitation. The sender invites a response to the message. Action may or may not be needed. (“How large a budget do we need?” “Do you think we should leave the door open?”)

Closed Open

• Closed. The sender expects the receiver to follow the message. (“This is a new form to fill out and return with each order.”)

• Open. The sender is eliciting a response as a means of considering the receiver’s input. (“Should we use this new form with each order?”)

rejection acceptance

• Rejection. The receiver does not accept the sender’s mes- sage. (“I will not fill out this new form for each order!”)

• Acceptance. The receiver agrees with the sender’s mes- sage. (“I will fill o