Chapter 1 : Leadership Overview

As an indirect influence process, leadership has far#reaching consequences and a

leader can have an influence on many different aspects,for example:
• The goals and actions of an organizational unit,
• Employees’ motivation to achieve these goals,
• Trust and cooperation among employees,
• The allocation of resources towards goals & measures,
• The arrangement of bureaucracies and systems

Leadership Definations:

Peter Drucker:
The developer of (MBO) concept, out#lines leadership in four aspects:
1. Leadership requires employees who follow.
2. Leadership is not about being popular or admired, but about doing the things
that need to be done. It is not popularity that makes a leader —it is the results
achieved.
3. A leader must be visible and lead by example.
4. It is not rank, privilege, title, or money that makes a leader —it is their
responsibility.

John S. Kotter:
A professor at Harvard Business School, describes leadership as the definition of
how the future should be shaped, by coordinating employees and goals, and
through a force that inspires employees to achieve their goals despite any
obstacles.

Jack Welch:
The long-standing CEO of General Electric, describes the process of assuming
leadership in such a way that the first task in preparing for leadership is one’s
own growth.
As soon as a person assumes leadership responsibility, their focus must switch to
supporting the growth of others.

Von Rosenstiel's:
Understanding of leadership is established in German-speaking countries:He
describes leadership as “goal-oriented influencing” that is intended
to motivate the person being led to achieve specific goals, which are usually
derived from the goals of a company.
Concrete goals can be those already addressed, such as increasing sales, improving
the work atmosphere, or emphasizing specific quality standards.

Definition of the Leadership of Employees:

Leadership is the goal-oriented influencing of subordinates by supervisors with the
aid of communication tools.
Weibler also adds that the success of leadership depends on acceptance by
employees.

Criteria for Leadership Success:

Three different levels can be considered when assessing leadership success.

The first level is the dyad, the relationship between each individual being led and
their leader.
The second level is the group or team, and the third level is the entire
organization.

Weibler' Three efficiency criteria for assessing leadership success:

1. Economic efficiency - Typical indicators of a company’s success, such as
earnings, profitability, or sales.
2. Performance process efficiency - Tangible performance processes (e.g., rejects,
accidents, or deviations from plans) and intangible performance processes (e.g.,
problem solving)
3. Personal efficiency - Work related attitudes (satisfaction, morale, or
complaints) and individual attitudes (acceptance of influence or willingness to
cooperate)

Weibler' Three effectivness criteria for assessing leadership success:

1. Performance (quality, time savings, creative performance)

2. Cohesion (team cohesion, frustration tolerance, group performance)
3. Satisfaction (job satisfaction, commitment)

In addition to the efficiency and effectiveness criteria described above, a broader

stakeholder approach can be used.
Successful leadership can be defined as leadership that achieves the highest
possible level of satisfaction among as many stakeholders as possible
(e.g., employees, suppliers, customers, lenders, and society).

Von Rosenstiel correctly points out that it is ultimately a decision of company

policy as to which criteria are used to measure and assess supervisors.

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Chapter 2: Leadership Theories through Changing Times

Trait theory is primarily concerned with the personality of the ideal leader. It
is, therefore, based on the following question:
What traits and characteristics must a person have to be particularly qualified as
a leader?
Trait theory, also known as the “great man theory,” developed in the second half of
the nineteenth century.

As a result of trait theory, management research between 1900 and 1950 heavily
focused on the identification of key traits in the personality of leaders.
Initially, it focused on external traits, such as size, strength, and health.
Later, these were supplemented by internal traits, such as intelligence, willpower,
and decisiveness.
An early meta-analysis by Stogdill (1948) revealed the following traits as central
to leadership success:

• Ability (e.g., intelligence, judgement, and eloquence)

• Achievement (e.g., knowledge, academic success, and athletic success)
• Responsibility (e.g., reliability, initiative, and self-confidence)
• Participation (e.g., cooperation, adaptability, and humor)
• Status (e.g., socioeconomic position, background, and popularity)

Most studies use the Big Five personality test (Extraversion, Agreeableness,
Openness, Conscientiousness, and Neuroticism) or the Hogan Development Survey to
assess personality.
In recent years, there has been increasing interest in what are known as
“state#like” personality traits, i.e., personality traits that can be developed
with training such as grit.
This trait approach is described as a static approach, meaning that the leadership
situation is not considered.

Grit -This refers to perseverance, resilience, and the pursuit of long-term goals.
Leadership Style and Leadership Person -
Tannenbaum and Schmidt (1958) developed the leadership style continuum, which
considers the act of leadership in the given framework conditions.
In principle, the question of which leadership style is most effective, and in
which cases, cannot be answered. Rather, it is important to take the framework
conditions
into account, such as the personal characteristics of the leader, team size,
industry and work content, the qualifications of the employees, and the level to
which the
leader is accepted by the team, and then to exercise an appropriate leadership
style based on this.

Authoritarian - High Executive Decision Making Power & Low Employee Participation
(Issues orders and makes decisions without consulting their employees)
Paternalistic - The supervisor makes decisions on their own, but strives to
convince employees of the correctness of their decisions
Informative - The supervisor makes decisions, but questions about correctness
are allowed
Consultative - Supervisor informs their employees of planned decisions and
employees then have the opportunity to contribute their opinions before a final
decision is
made by the supervisor
Cooperative - The team develops proposals before the leader identifies the
proposal to be implemented from the pool
Delegatory - The employees’ freedom is so great that the group decides for
itself based on the leader’s specification of the problem and their established
guard rails.
Semi- Auotonomus - Low Executive Decision Making Power & High Employee
Participation (Make decisions completely on their own, with the supervisor acting
as an advisor)

Consideration of the Situation- Contingency Theory According to Fiedler:

Relationship, Power, Structuring X- Favorability of Situation Y - Employee
Performance Satisfaction
Employee Oriented (Intermidiate) & Performance Oriented Leadership Style (High,
Low)

Various models propose a consideration of the situation or framework conditions of

leadership.
Contingency theory addresses the question of which leadership style is most
promising in which situation.
The situation, which represents the sum of the framework conditions of a leadership
situation, can be further defined by the following aspects:

• Leader-Employee Relationship-
Group employees tend to be more willing to accept stimuli from their leader if
they value their leader or feel valued.
The dyadic relationship is the most important situational variable.

• Positional Power-
A leader’s influence based on their hierarchical position in the organization is
also referred to as positional power. The greater their positional
power, the more influence the leader has on the behavior of the employees being
led.

• Degree of task Structuring-

This refers to the number of recurring elements, their predictability, and the
verifiability of performance results. The more clearly the tasks
are structured, the easier it is to coordinate and control the employees being
led.

In particularly favorable and unfavorable situations alike, performance-oriented

leadership was proven to be more effective in terms of group employee performance
and satisfaction.
In contrast, a more employee-oriented leadership style should be applied in
intermediate situations.

The Maturity Model -

It makes a recommendation for leadership behavior depending on the “maturity level”
of the person being led.
Employees with lower maturity need more guidance and monitoring, while employees
with very high maturity deserve more freedom
Based on their psychological and functional (work-related) maturity:

M1 = Low Psychological and Low Functional Maturity -Supportive

M2 = High Psychological but Low Functional Maturity -Delegating
M3 = Low Psychological but High Functional Maturity -Directing
M4 = High Psychological and High Functional Maturity -Coaching

They additionally require that leaders always work to maximize the maturity level
of their employees. In this respect, a leader must master
all four leadership styles (Supportive, Delegating, Directing, and Coaching) and
use them as appropriate for the maturity model to be effectively implemented.

Vroom-Yetton Decision Model- (Optional)

The decision model by Vroom and Yetton frequently serves as the basis of leadership
training, with its validity supported by empirical studies.
As a situational leadership theory, it also addresses the question of when a leader
should allow participation by those led and to what degree.
It considers autocratic decisions, decisions based on consultation with those led,
and group decisions

Each question must be answered with yes or no and follows a decision tree:
1. Does the decision to take one action strategy or another make a difference?
2. Is the problem structured?
3. Does implementation require that employees accept the decision and its
consequences?
4. Would they also accept it if the leader made the decision on their own?
5. Do employees share the organization’s goals that the decision is intended to
achieve?
6. Is the decision likely to lead to a conflict among employees?

Once the leader has answered these questions, they are advised on whether they
should make their leadership decision alone or after consultation with those led,
or as
part of a group decision-making process.
Depending on how the questions are answered, one of the following five
recommendations is provided at the end of the decision tree:
1. Authoritarian decision by the leader
2. Authoritarian decision by the leader after gathering information from their
employees
3. Decision of the leader on their own, but after prior one-to-one consultations
with individual employees
4. Sole decision by the leader after consultation with the working group
5. Group decision
The first six questions above lead to a better leadership decision depending on the
situation, whereby the improvement is determined by three hierarchical criteria:
1. Quality of the decision
2. Acceptance of the decision
3. Economics of the decision behavior

Von Rosenstiel (2014) summarizes that despite the model’s rationalistic and
mechanistic, there is indeed evidence for its usefulness.
The learning objective here is to sensitively perceive one’s own leadership
situation in order to then be able to react flexibly in terms of leadership
behavior.

Systemic Leadership-
The core idea of systemic leadership is that leadership actions in a complex,
networked, social structure lead to a multitude of direct and indirect reactions.
Systems are understood as a number of different elements (e.g., people in a
company) that are related to and interact with each other in different ways.
For example, a gear#box is a fairly simple system in which various cogwheels engage
with each other.
A specific force occurs as input, the elements exist in different relations and
interact, and a specific force results as output.
In this respect, systemic leadership does not attempt to reduce complexity; rather,
it attempts to influence it by means of communication as a necessary component of
the system.

Symbolic Leadership-
The term used when leadership behavior symbolizes the values and beliefs of a
company.
A symbol is understood to be a representation of something that cannot be tangibly
perceived.
In the sense of symbolic leadership, it is not only what happens objectively in a
company that is important, but also how this event is perceived by the leader and
their employees.
This is because many things that occur in a company — be it a written or personal
announcement of a new strategy, an unwritten dress code, or the fact that
the management is located on the top floor of the building — also have a symbolic
character and, thus, indirectly say something about a company.

Transactional Leadership- “Carrot and Stick” Leadership

This is based on the experiments of Burrhus Frederic Skinner (1963) and is often
described in management jargon as “carrot and stick” leadership.

Positive work results are rewarded (carrot), while negative results are punished
(stick).

The concept of transactional leadership corresponds with the idea of “management by

exception” (MBE), which involves the leader not interfering until exceptions occur.
Positive exceptions can arise through special performance that the leader should
then positively reinforce, and conversely, negative exceptions should be negatively
reinforced or punished.
In addition, there is the possibility of ignoring negative exceptions, but this
contradicts the idea of management by exception

Transformational Leadership-

Transformational leadership focuses on different leadership principles than

transactional leadership. Whereas transactional leadership focuses on the
“transaction,” i.e.,
the fair exchange between leader and employee, and the leader is responsible for
achieving and monitoring goals, transformational leaders motivate their employees
by
influencing their values and feelings on four levels (known as the “4 Is”) by doing
the following:

• Convincingly Communicating Attractive Visions - Inspirational Motivation

• Credibility embodying a Role Model - Idealized Influence
• Stimulating Independent Thinking and Supporting Change - Intellectual Stimulation
• Supporting Employee Development - Individualized
Consideration

Leadership Theories through Changing Times— Leadership in a Field of Tension-

Leadership just equal & fair among theee levels.
Berkel proposes the graphic model below to depict leadership in a field of tension-

The model is based on the considerations of traditional anthropology. It

distinguishes between three spheres of human reality: the material, social, and
spiritual sides.
In relation to a company or an organization, the material side refers to what the
organization represents, such as products, processes, and services.
The social side includes all relationships among members, as well as with the
outside world, that are reflected in communication, cooperation, or customer
orientation.
The spiritual side refers to an organization’s global line of approach, its
purpose, and reason for existence.
It manifests itself in an organization’s guiding ideas, principles, and structures.

As it relates to the leadership model, responsible, loyal, and critical

organization can be applied to the spiritual side of an organization; relationships
between people should
be caring and truthful, and its performance material side should be competent, as
well as efficient and effective. Understood in this way, the goal of good
leadership is to
act equally and fairly within this field of tension among values.

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Chapter 3: New Leadership Approaches

VUCA is an acronym applied to environments and times characterized by Volatility,

Uncertainty, Complexity, & Ambiguity. (Lawrence, 2013).

Johansen’s VUCA Prime Model proposes the following qualifications for management to
counter the threats posed by VUCA (Lawrence, 2013):
• A strong vision can counter volatility. Managers with a strong vision can better
guide companies if they have long-term goals and are able to withstand unforeseen
events.
• Uncertainty can be met with understanding, which can be paraphrased as the
ability to look inward, look carefully, and listen.
• Complexity can be met with clarity by facing chaos using deliberative thinking.
• Ambiguity can be countered by agility, which is defined as the ability to
communicate throughout the entire organization and apply speed in implementing
solutions.

In this context, vision, understanding, agility, and clarity are not understood as
completely independent of each other, but rather as intertwined.
Lawrence suggests the same points as recommendations for action in talent
management:

Firstly, Hire Agile leaders by taking agility and the ability to think through
complex issues into account as early as the selection process.
Secondly, Develop managers to be Agile leaders by promoting adaptivity,
innovativeness, collaboration, communication, and openness to change, as well as
critical thinking strategies.
Finally, Develop an organizational culture that fosters Agile capabilities and
retains Agile leaders.
To this end, Lawrence suggests creating incentives for innovation, Agile behavior,
and taking calculated risks while being flexible in their design.
This can be done by offering leaders inducements that appeal to them, such as
vacation days, bonuses, and stock options, in order to communicate agility in the
design of incentives.

Empowering Leadership:
Leaders who have a strong focus on empowerment “share power with their employees by
delegating authority to employees, holding employees accountable, involving
employees in decision-making,
encouraging self-management of work, and conveying confidence in employees &
capabilities to handle challenging work”.
If leaders show a low willingness to empower, they tend to micromanage and monitor.

In turn, empowerment by a leader results in self-confidence, a sense of self-

determination, and an awareness of creating value, autonomy,opportunities for
development,
and self-efficacy with regard to the required work results.

Sociocracy and Holacracy:

Sociocracy and holacracy describe "Organizational Structures" that represent

alternatives to the conventional hierarchy.

Sociocracy is based on four corner stones:

1. Consensus takes precedence:

Decisions are made when there are no serious reservations in the decision-making
body. Reservations and counterarguments are highly valued and must be presented
rationally.

2. Organization in circles:
The organization consists of semi-autonomous circles, each of which is responsible
for the implementation, measurement, and monitoring of their respective processes.
They are also responsible for the development of the circle and its members. The
circle should find its own knowledge gaps and close them autonomously.

3. Double link:
The operational leader of each circle is automatically a member of the next circle
up. In addition, each circle elects another representative who is also a member of
the next circle up.
Thus, there are two “links” up (and down, if there are subordinate circles).

4. Election by consensus:
This principle complements the first principle in that individuals are elected for
responsibilities by consensus, as described above.
Members of the circle may nominate themselves or others. After discussion,
nominations may be changed and then leader proposes the person with the strongest
nominations for election.
Holacracy, which emerged from the software industry in the 2000s, can be understood
as a further development of sociocracy
Holacracy was developed by Brian Robertson, the founder of a tech company in
Pennsylvania. It is strongly based on the ideas of sociocracy and follows these
principles:

1. Roles instead of job descriptions:

Here, holacracy distinguishes between person and role, meaning that one person can
hold multiple roles.
A role follows a unique format with title, purpose, control domains (if
applicable), and responsibilities that are updated on a regular basis.

2. Circular structure:
Holacracy consists of several circles that are hierarchically structured. Each
circle is assigned a clear purpose and responsibility by the superordinate circle.
Circles are
self-organized and determine their own deadlines, the assignment of roles within
the circle, and the execution of work.
The circles are linked with each other by a “rep link” and a “lead link” who
represent their respective circles in meetings with higher-level circles to
ensure communication flow and ensure strategic alignments.

3. Management Guidelines: Each circle is free to formulate its own management

guidelines.

4. Operational Processes:
In holacracy, processes are designed around operational constraints and keep all
members of the respective circle working together effectively and efficiently.
In this process, each member has a high degree of autonomy and self-determination
in their roles, as well as permission to innovate.
Instead of asking for extra, holacracy gives people a blank check to do and
initiate everything to fulfill their roles in the best possible way.
The principle of holacracy is freedom and autonomy, which is only restricted in the
event of misconduct.

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Chapter 4: Stresses, Work-Life Balance, and Self#Management

Work and family have always been integral parts of adult life. A growing number of
challenges to a healthy work-life balance have emerged with the rising employment
of women, decline of extended families, and increasing mobility.

Dissolution of work boundaries:

Technological progress, in the form of smartphones, has contributed to the
dissolution of work boundaries by progressively mixing work with private life.

Work intensification: What were previously several separate jobs are combined and
assigned to one employee.

Stress can be defined as a negative emotional condition in connection with

increased (work) demands.
The occurrence of stress can be explained by means of the Job Demands-Resources
Model (JD-R model) below:

Professional Requirenments: Emotional, Cognitive, Physical (Effort Driven) -

Satisfaction

Occupational Requirenment: Social Support, Felxible, Feedback (Motivation Driven) +

Satisfaction

Stock-Homburg and Bauer (2007) define the facets of work-life balance as follows:

• Work describes the value of work for the employee, job satisfaction, and the
potential conflict between work and private life.
• Life describes the value of private life, life satisfaction, and the conflict
between private life and work.
• Balance describes the extent to which the work-life interface is adequately
structured, as well as satisfaction with the work-life balance.

A work-family conflict occurs when private life is neglected due to the employee’s
workload, while
A family-work conflict occurs when private commitments (e.g., illness of a child)
cause problems with the performance of occupational duties.

The different approaches to avoiding these conflicts are summarized in the figure
below:
Behavioral
Physical
Timing
Communication Related

The work-life balance of employees and leaders is becoming increasingly relevant

with the recent dissolution of work boundaries and work intensification.
If the work-life balance tips to one side, to the damage of private life and
recreation, the risk of burnout quickly arises.

Three components are typical of burnout:

Emotional Exhaustion
Reduced Performance
Depersonalization

The latter includes perceptions of being outside oneself, as if the body is heavier
than usual, or as if memory is failing.
It also includes a derogatory or cynical attitude toward the occupational
environment.

Self-Management:

Stress through Perceived Musts: The pressure for perfection creates stress. This
drive is expressed through perceived musts.

What are known as perceived musts are at the core of many stress-related problems.
These can relate to an Individual, Other People, or Society.

A perceived must in relation to an individual could read as follows: I must be

perfect, perform at a high level and not show weaknesses,
I must always be entirely certain when making decisions. If something does not
work out for me, I should conceal it”.
Perfection, however, is an abstraction of the mind and more of an object of desire
and a goal than something that is realistically attainable. Wanting to be perfect
is not expedient.

Instead, it is beneficial to utilize one’s own personal strengths wherever

possible.
In the long term, an occupational environment that makes use of each individual’s
strengths will be healthier and create greater occupational satisfaction.
Mistakes should be interpreted as learning opportunities rather than failures
because they often turn out to be helpful for development in the long run.

Perceived musts in relation to other people can be expressed in thoughts such as:
“Other people must always behave well, decently, considerately, and fairly. They
must fulfill their tasks and obligations perfectly”.
This perceived must is inextricably connected to stress because there is no global
definition of what constitutes good, decent, or considerate behavior.
Rather, it depends heavily on subjective ideas. Other people are also not perfect
and make mistakes, too.

Perceived musts in relation to society or the environment often refer to safety

culture:
My living environment must be completely intact, or at least develop positively,
and this must be assured for the foreseeable future.
I can only enjoy life and be happy under these conditions” . In order to cope with
such thought patterns, it is helpful to keep in mind that people pay more
attention to negative news than positive news, and negative aspects tend to linger
more strongly in the memory.
Attention must be very consciously directed toward positive messages in order to
avoid stress.

Furthermore, in the Buddhist philosophy of mindfulness,

The solution to these thought patterns is to pay more attention to the moment at
hand instead of brooding about the past or the future.

Prioritization and Time Management for Stress Management:

Stephen Covey’s book The 7 Habits of Highly Effective People describes a successive
approach to more effective self-management by means of stress reduction and
prioritization.

The first habit, is to separate the circle of concern from their circle of
influence.
The second habit describes the importance of having a clear goal or vision.

The third habit relates to clearly prioritizing goals and tasks, with the
Eisenhower Matrix proposed for this
Tasks and Goals are prioritized by assigning them to one of the following four
fields:
1. Important and urgent
2. Important, but with less time pressure
3. Urgent, but not so important
4. Not particularly important and with little time pressure
5-6. The fourth through sixth habits revolve around relationships with others,
7. In the seventh habit, Principle of self-renewal, which is about sustaining work
performance over the long term through healthy and strategic choices.

Handling Stresses:
Kastner (2014) developed starting points for handling stresses on three levels as
shown in the table below:

Level & Starting points: Work Situation, Individuals, Organization

Work Situation -
• Facilitate work activity, workload, work intensity, and scope of action
• Improve work organization, information, and participation
• Eliminate harassment and disturbances in the workplace
• Reduce time pressure
Individuals-
• Promote internal resources such as health awareness, control
convictions/perceived musts, and competencies
• Promote well-being, life and work satisfaction, and health
• Create coherence for a sense of purpose, manageability, and explicability

Organization-
• Creation of a culture of health, systemic leadership, social support, and fair
work distribution
• Increasing autonomy in work scheduling and self-determination of workplace
• Job security
• Recognition of performance and effort, opportunities for advancement

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Chapter 5: Motivation, Communication, and Appraisal

Motivation: Human action is characterized by a striving for effectiveness and is

based on a variety of individual and temporal motives.
Motives refer to characteristic value systems and dispositions toward action, which
can be related to experience, performance, power, or aggression.

Needs According to Maslow:

The hierarchy of needs or motives concept distinguishes between deficiency and
growth needs, which can be classified into five levels of needs.

The four deficiency needs: are Physiological Needs, such as food, sleep, and a safe
living or working environment.
These are followed by Safety Needs, such as protection from danger, stable living
conditions, and minimum income.
Safety needs are followed by Social Needs, such as group belonging, and
communication.
The deficiency needs finish with Esteem Needs, self-confidence, competence,
respect, opportunities for advancement, and status symbols.

Growth needs: Motives for self-actualization. These include, for example, the
desire for personal development, a challenging job, top performance, participation,
and cooperative leadership.

The idea of a hierarchy among needs comes from the assumption that needs at the
lowest levels must first be satisfied before the needs on the next level up gain
relevance. So, hunger
and thirst must be satisfied before job security gains importance. It is only when
all the deficiency needs have been met that the desire for self-actualization comes
to the forefront.

ERG Theory:

Alderfer’s existence, relatedness, and growth (ERG) theory represents a further

develop#ment of Maslow’s hierarchy of needs.
It does not distinguish between five classes of needs; instead, it identifies a
mere three categories:

1. Existence needs
2. Relatedness needs
3. Growth needs
In addition to these relationships, which are also hierarchically arranged,
Alderfer presumes that the lower the degree of fulfillment, the more strongly those
needs are activated.

Basic Motivation Model:

Situation -> Incentives

Individual Motive Stuructre - > Motives
Incentives + Motives -> Motivation
Pscychological Resources -> Free Will
Motivation + Free Will = Behavior

Motivation can be understood as an individual’s activating willingness to behave in

such a way that enables them to achieve specific goals.
It is merely a hypothetical construct and cannot be measured.
In aptitude diagnostics, however, the strongest motives of a person can be
determined through psychological testing.

Situations that address needs or motives are called incentives, and a behavioral
tendency can be expressed through a drive or avoidance tendencies.
As shown in the figure above, the environment in question provides certain
incentives in a given situation, such as performing at a high level in the case of
variable
compensation or postponing unpleasant tasks in the absence of control.
The motivational structure anchored in an individual’s personality provides the
motives, which can be related to power, status, leisure, performance, or
aggression,
depending on the individual.
The combination of incentives and motives creates motivation, i.e., the reasoned
intention to act. When free will is added, these intended actions are carried out
and manifested in behavior.

Intrinsic Motivation -
If an activity is performed for its own sake, it is intrinsically motivated.

Extrinsic motivation
If an activity performed for external incentives, it is extrinsically motivated.

If an activity has a strong intrinsic motivation, the person can also enter what is
referred to as the flow state.
This is described as the oblivious, pleasurable absorption in a smoothly running
activity.

VIE Theory: Valence, Instrumentality, and Expectancy

In the valence, instrumentality, and expectancy (VIE) model, motivation is viewed
as a function of the components of goal achievement. This means that efforts are
only
accepted if they appear to generate a reward in terms of goal achievement.
According to Vroom, three factors have an effect on the motivation situation:

1. Valence describes the value of an action outcome in terms of a positive or

negative affective meaning of the outcome.
Anything that has positive valence for a person is pursued, while outcomes with
negative valence are avoided.

2. Instrumentality describes a value for the degree of connection between action

outcome and action consequence.
3. Expectancy describes the probability of a specific action outcome. This expected
probability lies between 0 (completely improbable) and 1 (certain to occur).

The theory assumes a connection between the three factors, which then make it
possible to draw a conclusion about a person’s motivation or action tendency.

Motivation OR Action Tendency = Valence of Result (Positive Outcome) X Expectancy

(Greater Than 0)

This makes it clear that a motivating effect requires an outcome with a positive
valence and an expectancy greater than zero.
This mathematical connection has made VIE theory one of the most interesting
motivation theories. It is widely used in empirical research.

Communication -
Conversations represent the most essential form of human communication and are
central to any relationship.

The Iceberg model postulates that only about one-seventh of all communication is
conscious and spoken, comparable to the tip of an iceberg sticking out of the
water.
The remaining six-sevenths of communication remain unspoken.

The Communication Square -

Friedemann Schulz von Thun further developed the iceberg model into what is known
as the communication square.
The intention is that communication and messages not only contain a factual
statement, but also three other levels:

1. Factual content. Satement

2. Relationship
3. Self-disclosure
4. Appeal

Transactional Analysis:

Transactional Analysis:
It Offers starting points for clarifying conflicts and also provides insight into
how misunderstandings or conflicts occur in interactions.
Eric Berne developed this model by observing that people communicate from three
different “ego states” and react to specific ego states of their counterparts when
communicating with them.
There are three ego states with a total of six characteristics-

1. Parent Ego state- Learned value judgments are applied - The critical parent ego,
The caring parent ego

2. Childhood Ego state- The focus is on a person’s feelings and needs. It is about
getting what is wanted and less about giving something
The free childhood ego state, The rebellious childhood ego
state, The conservative childhood ego state

3. Adult ego state- Is predominantly concerned with fact-gathering, weighing

probabilities, and decision-making

Congruent Transaction - Adult to Adult Ego

Crossover Transaction - Adult to Adult but Answers in Childhood to Parent Ego
Concealed Transaction - Thinking on Adult to Adult but Actully on Parent to Parent.

Appraisals:

The objective of appraisal interviews is to make the performance and potential of

both leaders and employees transparent.
The appraisal interview is a thorough feedback discussion that is conducted
according to a set plan and usually carried out at periodic intervals.
Appraisals also play a significant role for employees without negotiated
remuneration agreements.

Appraisal interviews fulfill various following functions:

Information Function: According to Section 82 (2) every employee has the right to
learn the extent to which their own performance contributes to the success of the
company from their supervisor
Diagnostic Function: Performance and potential, as well as strengths and
weaknesses, of the person to be appraised are analyzed.
Coordination Function: Defining uniform quantitative and qualitative performance
standards facilitates coordination between leaders and employees and enables
employees’ performance to be compared
Motivational Function: Coordination makes employees’ needs and motives more
transparent, enabling leaders to identify effective incentives to achieve goals
Control & Monitoring Function: Appraisal interviews offer an opportunity for differ
entiated insights into the activity of employees and allow comparative appraisals
(coordination function).
Decision Support Function: Appraisals provide information for other human resource
(HR) management processes, such as compensation, personnel development, or team and
employee leadership

Requirements: Personnel appraisal measures must also meet several requirements

including:
• Systematic Implementation
• Clear Reference Values
• Relevant Content Covered
• High Acceptance by those Appraised
• Adaptation to different Reference Objects
• High competence of the Individuals performing the Appraisal

360-degree feedback is a “process for assessing leaders in which the led

employees,colleagues, superiors, and customers provide structured feedback with
regard to selected
behaviors of the person being assessed”

Time Reference:
The performance potential matrix. Appraisal interviews often refer to the past,
i.e., the employee’s performance since their most recent appraisal is taken into
account, but they should
also make reference to the future, to be fair in terms of the motivational and
coordinating functions. Employee potential is a typical criterion that is assessed
in relation to the future.

Problem cases
Stable Performers Y- Potential X-
Performance
Question Marks
High performers with potential
Talent
High Potential Employees
Reference Values for Personnel Appraisal:
In practice, companies use the employee’s performance in the period since the most
recent appraisal, the goals to be met, and the performance of other employees for
comparison.
When assessing past performance, the goal is to identify positive or negative
deviations compared to previous periods.
An appraisal model as shown in the figure below is suitable for an appraisal and
can, for example, be applied to support the appraisal of a sales manager.

Charaterstics - Knowledge, Productivity, Customer Satisfaction, Behaviour

Performance (Before)
Performance (Current)
Deviation
Weight
Points

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Chapter 6: Teams

Team Leadership -
Not every collection of individuals can be considered a team. Specialized
literature applies constituent and descriptive characteristics to distinguish teams
from groups.

Constituent Characteristics:
Multi-personality- A team consists of at least three members.
Goal orientation- Team members work together with the purpose of achieving common
goals.
Interdependence- Team members depend on each other to achieve goals

Descriptive Characteristics:
Interpersonal Interaction- Team members exchange professional and interpersonal
information.
Perception of Membership- Team members feel they belong to a social unit within
the company.
Structured Relationships- Roles, rules, and norms exist to guide and control the
behavior of team members.
Mutual Influence- Team members influence the attitudes and behaviors of
other team members.
Individual Motivation- Membership of the team satisfies personal needs

There are various types of teams that differ in terms of their performance and
cohesion.
Based on "Expression of the Factual Level" and " Expression of the relationship
Level"

Types of Teams: Lone Wolf Group, True Team, Sociable Team, Expert Team

To create the most productive team possible, it is important to recognize group

dynamics and guide them in productive directions
One dynamic process in groups that can have a negative impact on productivity is
what is known as the groupthink process.
Groupthink: describes the dynamic of a group in which high loyalty and solidarity
prevail to give keeping peace within the team a higher priority than constructive
disagreement
Leaders can counteract groupthink among team members by:

• Preventing Excessive striving for harmony in the team

• Encouraging Critical professional discussions about the work process
• Promoting an Open approach to professional conflicts
• Changing the Team Composition Occasionally

The opportunities and risks of teamwork for a company are summarized in the table
below:

Better decision quality due to multiple individuals -Groupthink

Greater efficiency through the use of different skills and strengths -Increased
coordination effort
Bundling of competencies -Increased
risk of conflicts
Risk reduction through frequent communication and mutual control -Development
of a subculture in the team, differentiating it from the company as a whole

Leadership of Different Types of Teams-

Teams can either be divided into different types according to their phase in the
life - cycle
(i.e., according to how long the team has existed) or according to the
characteristics of the factual effectivness and relationship levels in the team.

Team life cycle concept -

Phase/Time - X Axis, Effectivness- Y Axis
Forming- Role of the leader: Relationship Manager
Stroming- Mediator
Norming- Coordinator
Performing- Coach

Organizational Culture:

The following elements can be seen as the constituent parts of an organizational

culture:
• Behaviors ( work schedules, rituals such as casual Fridays, after-work
drinks, or bringing in a cake to mark a team member’s birthday)
• Group Norms ( cell phone ban in meetings)
• Professed Values ( set down in a company’s vision)
• Philosophy ( “work hard, play hard” or “make the world a better place”)
• Rules of the game( leaders are hired from outside or must have first gone through
a “school of hard knocks” as an executive assistant)
• Climate ( formal or casual first name culture, business like or cheerful
interaction)
• Symbols ( company car policy, office furnishings, art, and gym)

The Three level system (Schein):

Visible, but subject to interpretation - Symbol System: Language Rituals,
Clothing, Manners

Partially Visible, Partially Unconscious - Values & Standards: Norms Guidelines,

Prohibitions

Public, Extermelly Proclaimed - Proclaimed basic assumption: Exteral

Attitude, Mission Statment

Invisible, Unconscious - Basic Assumption about: Enviornment,

Truth, Time, People etc. Culturer Core

Shared Leadership:

Shared leadership considers the fact that increasingly complex and highly technical
work also requires highly qualified employees.
If a team of highly qualified specialists is led, the knowledge and experience gap
between the leader and the employees is often only marginal or even non-existent.

The following aspects can be stated as prerequisites for the shared leadership
concept:
• Minimal technical and competence-based advantages of a leader
• Democratic or participative leadership style
• Willingness of employees to take responsibility
• High maturity of employees
• Positive climate in a company that promotes shared leadership instead of
attributing leadership weakness.

Change management: This describes the strategic and operational repositioning and
restructuring of a company.
A good example of change management is Apple’s successful turnaround that began
when Steve Jobs rejoined the company as CEO in 1997.

Solution Approaches in Change Management:

The first step in the change process is to identify the need for change within a
company and to collect ideas and suggestions for adaptations.
In the next step, it is important to bring along the employees and provide them
with information and training available, so they are convinced of the necessity and
meaningfulness of the change measures and accept them.

Kotter developed an eight-stage model for change management that is considered a

classic for change processes:
1. Establish and communicate urgency
2. Create Teams that initiate change
3. Create a strategic vision
4. Create a team of supporters
5. Reduce barriers and obstacles
6. Strive for quick wins
7. Maintain momentum
8. Anchor change

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Chapter 7: Current Trends and Debates

Personality and Leadership:

Trait theory, also known as the “great man theory,” was one of the early leadership
theories that shaped the focus on certain traits held by leader.
Meta-analysis due to the inconsistent results of individual studies.
In this process, the correlations of several studies are combined:
First is “leadership emergence,” i.e., the likelihood that someone will be promoted
to a leadership position, and
Second, “leadership effectiveness,” i.e., the effectiveness of a leader in their
role.

Personality abnormalities, such as narcissism and psychopathy, are being

increasingly discussed in more recent literature as traits of leaders.
Narcissism:

The term “narcissism” comes from Greek mythology, inspired by a myth about a young
man, Narcissus, who fell in love with his own reflection. Since then,
Narcissism has stood for an exaggerated love of self and the idea of thinking of
oneself as the greatest.
Campbell et al. (2011) define narcissism as a stable individual personality trait
based on some degree of self-love, and exaggerated self-worth.
Narcissism manifests itself in three ways:

1. Narcissistic self-perception is characterized by positive self-evaluations and

the perception of being special, as well as the desire for power and achievement.

2. Narcissists typically have little empathy and are incapable of establishing

genuine closeness with their fellow human beings. Instead, they often have numerous
superficial friendships, many of which are exciting, but are often also
manipulative and focused on the benefits to be expected from the other person.

3. Narcissists adopt certain strategies to maintain their exaggerated self-worth.

For example, they specifically look for opportunities to excel and show off, and
they
rarely shy away from taking credit for the work of others. When they can do this
without negative consequences, they have high self-esteem and a strong sense of
life satisfaction. However, if they cannot justify their excessive self-esteem,
they often become aggressive or their self-esteem turns into depression and anxiety

Narcissists can be divided into two subtypes:

1. Grandiose Narcissists:
Grandiose narcissists are often found among top leaders (board members, CEOs) who
are self-confident, extroverted, dominant, attention-seeking,
and charismatic, but can also be incapable of receiving criticism, as well as being
aggressive, arrogant, and exploitative.

2. Vulnerable Narcissists:
Tend to behave in a hostile manner because they feel that the whole world is
conspiring against them.
They are often also arrogant, but have low self-esteem, and are some#what depressed
and withdrawn.

Connections Between Narcissiom & Effectivness of the leader:

Recent meta-analyses have looked at the circumstances under which narcissism helps
or hinders leaders.
The results showed an inverted U-shaped progression of narcissism and leadership
effectiveness, which is also shown in the fig#ure below.

X- Axis = Low, Intermediate, High (Narcissiom of the Leader)

Y- Axis = Low, High (Effectiveness/Performance of the Leader)

Psychopathy:
Psychopathy, or antisocial personality disorder, is defined as a profound pattern
of violation of the rights of others that begins in early adolescence and
persists into adulthood. The Diagnostic and Statistical Manual of Psychiatry (DSM)
identifies seven factors, at least three of which must have occurred
before the age of 15 to make a reliable diagnosis:
1. Inability to follow the social norms, repeated criminal acts
2. Dishonesty, Repeated lying to gain advantage
3. Impulsiveness and Lack of caution
4. Aggression, Fights, or Assaults
5. Recklessness
6. Long-term irresponsibility with regard to work or financial matters
7. Lack of remorse, rationalization of one’s own missteps

Hare (1991) presented the first empirical measurement instrument for the clear
identification of psychopaths (Psychopathy Check List Revised, PCL-R).
A distinction is drawn between four dimensions:
Interpersonal - Inflated self#esteem, Constant lying
Affective - Lack of empathy, Rejection of responsibility, Superficial
feelings
Lifestyle-related - Constant feeling of boredom, Aimlessness, Impulsivity
Antisocial - Uncontrolled Behavior, Violation of instructions and
restrictions

Leadership Derailment:

Hogan and colleagues distinguish between three strategies in the interpersonal

domain with varying degrees of promise:

1. Moving Away by avoiding contact with others and using intimidation to

achieve goals
2. Moving Against by using manipulation and charm to achieve goals
3. Moving Toward by striving for goals through integration of others and
partnerships

In addition to the moving toward strategy, the following cross-cultural factors

have been shown to be protective against leadership derailment:
• Successful management of complexity
• Effective guidance and motivation of employees
• Sense of honor
• Pursuit of excellence
• Adeptness in terms of organization and management
• Self-control and dignified appearance
• Sensitivity and empathy
• Smart personnel decisions

Toxic Worker:

The reasons for toxic behavior are diverse. However, it is often due to incentive
systems that are not necessarily in line with ethical guidelines.
However, is the selection process to filter out toxic individuals from the
beginning. Houseman and Minor identify the following factors that lead to more
toxic behavior:

• Weak service orientation, reflecting disdain for others

• Excessive optimism and a particularly high opinion of oneself
• Multiple contacts with other toxic individuals
• Low supervision and monitoring of position by supervisors

Houseman and Minor (2015) provide a comparison of savings when either a superstar
performer is hired or a toxic worker is fired, based on an estimation model with
actual
company data. The savings from removing a toxic worker come from preventing a
further outflow of average or good employees, since colleagues of toxic workers
usually
feel annoyed by them and leave the company after a certain period of time.

Power in Organizations-

Power, Status, and Influence in companies and organizations can emerge in different
ways, with the various types of power available to an individual also determining
the
degree of influence they have. In essence, the concept of power in companies can be
broken down into two subdimensions:

The figure below shows the different power dimensions: Organizational Power is
divided into three subtypes:

1. Hierarchical Power- Occurs through a position in the hierarchy. The placement

of the position in the organizational chart shows the extent to which the position
is
assigned to management, coordination, or supervision
functions.

2. Power Through Rewards-Occurs when a leader has a majority or complete control

over employees variable salary components and can, therefore, directly influence
their amount.

3. Enforcing Power- Occurs through direct authority. This often results from
the organizational chart but is specifically never written in a job description.

Personal Power is also divided into three subtypes:

1. Expert Power- Occurs through broad specialist knowledge. Power is

therefore allocated on the basis of the knowledge and experience.

2. Identification Power- Is often accompanied by charisma and is described as an

influence that occurs when other people prefer to identify and
associate with this person. Identification power is a
key component of transformational leadership, which is based on the fact that
the leader is perceived by their employees as a role
model and convinces them with charisma.

3. Power Through Networking- Comes from the fact that the leader has many
sustainable relationships in different areas of the company and beyond. This can
result in
an information advantage, symbioses can arise, and
synergies can be utilized.

Generations X, Y, and Z
Leading people of different age groups with different preferences represents a
challenge for leaders.
The (real or perceived) differences between Generations X, Y, and Z are frequently
discussed.
Generation X refers to those born between approximately 1970 and 1980. The
Millennials of Generation Y are those born between 1981 and 1996,Generation Z
consists of those born after 1997

Leadership Ambitions:
Fundamentally, Generations X and Y are particularly attracted to the coaching and
mentoring required of a leader during leadership. In contrast, Generation Z is
focused on
increased responsibility.
Entrepreneurial Ambitions:
All three generations show a strong interest in their own entrepreneurial
activities.
As many as one in four Generation Z students surveyed would like to become
self#employed. Here, too, there are major regional differences

Targeted Match between Personality and Work:

For younger generations, it is more important to have a good fit with a company in
terms of personality and values (50% of Generation Z versus 40% of Generation X).

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Chapter 8: Intercultural Leadership

Intercultural Leaders:

As Steers and Osland explain, expatriates represent only one of four groups of
leaders who today face the challenges of intercultural leadership.
These days, many leaders find themselves in one, or even several, of four roles
that require them to successfully operate across cultural boundaries.
These are:
Expatriates
Frequent Flyers
Global Entrepreneurs
Home Country Managers

Culture:
It is a distinguishing characteristic of human groups and is expressed in their
values, habits, and customs.

Characteristics of Cultures:

Three characteristics that exemplify cultures:

1. Culture is shared by members of a group and often defines precisely who belongs
to that group. Cultural preferences are not the same or even universal around the
world.
At the same time, not all members of a culture necessarily have the same
preferences.
2. People learn culture through membership of a group or community. Cultures entail
rules of living together, and these are taught by parents, elders, teachers,
superiors, and society.
3. Culture influences the attitude and behavior of its members. Neuroscience has
found that cultural experience physically shapes the brain of a growing child.
Many of our attitudes, values, and behaviors are not innate, but acquired
consciously or unconsciously throughout our lives.

Understandings of Leadership in the East and West: There are entirely different
understandings of what leadership means in the East and West.

The foundations of Western civilization and the understanding of science that came
from them go back to ancient Greece in many aspects.
For example, they developed the concept of “eidos (ideal) as a perfect form that
humans should aspire to and achieve as telos (goal). Ideal -> Goal Eidos Telos
In this scheme, the work of a leader consists of bridging the gap between telos as
an ideal state and reality . . . with the goal of achieving perfection”

In Asia, other civilizations and traditions of thought emerged which also date back
to ancient times.
In ancient China and much of Asia, however, this did not involve a concept similar
to the Greek ideal, focusing instead of the forces of yin and yang, which oppose
and complement each other.
This concept in Eastern thinking “did not result from an ideal to be accomplished
but from a natural propensity of processes already in motion. . . .
It focused on very concrete and specific situations of everyday life, rather than
abstractions of the essence of an ideal form.

Intercultural Leadership:

Special characteristics are required of intercultural leaders emphasize three

qualities in particular:
1. A global Mindset
2. Cultural Intelligence CQ
3. Multicultural Competence.

A global mindset combines an open-mindedness toward different cultural realities

with the ability to mediate between those different cultural circumstances and
reconcile them.
It is a matter of recognizing differences in local and global realities and
strategically handling them in the right way.

Cultural Intelligence:
Steers and Osland refer to the ability to act effectively in situations
characterized by cultural diversity as cultural intelligence.
The economists Earley and Mosakowski coined the alphabetism “CQ” for this, drawing
on the abbreviation of the intelligence quotient (IQ).
CQ makes it possible to recognize cultural differences as such and to handle them
appropriately.

Researchers have identified three factors that contribute to a person’s CQ:

Cognitive Ability (head)
Physical Behavior (body)
Motivation (heart)

Multicultural Competence:
In addition to the Global Mindset and Intercultural Intelligence, it is also
important for a leader to acquire practical competence in engaging with different
cultures.
It is commonly necessary for leaders to engage with more than just one or two
cultures; this ability is referred to as “Multicultural Competence.”

Leading Multicultural Teams Four challenges: Brett, Befahr, and Kern identify four
challenges that leaders of multicultural teams often face

1. Insufficient Language Skills - Team members do not always have comparable

language skills
2. Different Communication Styles - In many Western countries, for example, very
direct and explicit communication is the norm. By contrast, in Asian countries,
communication is often indirect
3. Different Understanding of Hierarchy - In the Arab world, as well as in the USA,
superiors are often expected to give clear instructions and make clear decisions —
and they do not necessarily expect to be questioned
4. Different Standards for Decision-making -Cultures sometimes differ greatly in
the way decisions are made. This becomes clear, for example, when carrying out
group tasks in leadership workshops.

Four Intervention Options: Options available to leaders facing the challenges of

Multicultural Teams.

1. Adaptation - A team acknowledges the existing differences and consciously

attempts to find ways to handle them. Their leader encourages them to adjust and
adapt to each other.

2. Structural Intervention - If certain employees find it difficult to work

together on a sustained basis, team responsibilities and workflows can be
reorganized.

3. Management Decision- A team cannot solve a problem on its own. For example, a
team of experts with different language skills may be instructed to work only in
language-skilled
subgroups within certain teams. This should be an
exception, rather than a rule.

4. Exit - Sometimes, the last resort is the voluntary or involuntary

removal of a member from the team if, for example, too much damage has been caused
by a conflict for
reasonable cooperation to still be possible.

VIE = Valance, Insturmentality, Expectancy

ERG = Existence, Relatedness, Growth

Laws:

In this respect, companies’ exclusive orientation and incentive systems toward

quantitative goals can be viewed very critically.
Shareholder value can be seen as a value in the company, but questions can also be
raised as to whether it should be the only value pursued by the organization.
In Germany, this is already the case for legal reasons, since the country’s Basic
Law succinctly states in Article 14 that property entails obligations.
Its use shall also serve the common good.
The principles of the social market economy, which include employee participation,
are derived from this. For this reason alone, it is not possible in Germany for a
company to
be exclusively oriented toward the principles of shareholder value. The interests
of other stakeholders, such as employees, must also be taken into account and this
is
considered to be a de jure value here. In other words, it is a value that abides by
Ger#man law.

According to Section 5 of the German Occupational Health and Safety Act, employers
are obligated to conduct workplace risk assessments, i.e., to clarify which sources
of
danger could harm employees.

This not only serves to observe the general and special duty to undertake
protective measures in accordance with Section 618 of the German
Civil Code (BGB), but also to secure a company’s human capital in the long term and
to act in a socially responsible manner
Information function. According to Section 82 (2) of the German Works Constitution
Act (BetrVG), every employee has the right to learn the extent to which their own
performance contributes to the success of the company from their supervisor.

Section 82 (2) - Own Performance Contribution

Section 618 - Special duty to undertake protective measures & secure a company’s
human capital in the long term and to act in a socially responsible manner.
Section 5 of the German Occupational Health and Safety Act - employers are
obligated to conduct workplace risk assessments
Article 14 - that property entails obligations.

Leadership: Conceptual Definitions:

Peter Drucker- MBO
John S. Kotter-
Professor
Jack Welch- CEO GE
Von Rosenstiel- German Speaking Country
Weibler- Leadership of Employees, Criteria for
Leadership Success

Stogdill (1948)- Trait Theory

Tannenbaum and Schmidt (1958)- Developed the leadership style
continuum APICCDS
Fiedler, 1967- Contingency Theory
Hersey and BlanchardTitle- Maturity Model
Vroom-Yetton- Decision Model

Lawrence- VUCA
Chen et al- Empowering Leadership
French philosopher Auguste Comte(1798—1857) Sociocracy
Brian Robertson- Holacracy

Stock-Homburg Stress & JD-R Model

Stock-Homburg and Bauer (2007)- Work Life Balance
Hansch, 2009- Perceived Musts
Stephen Covey- Prioritization and Time Management for
Stress Management
Kastner (2014)- Handelling Stresses

Huber 2018- Motivation

Maslow- Motivation Model
Adlefer- ERG
Friedemann Schulz von Thun Communication Square
Eric Berne (1910–1970)- Transactional analysis
Stock-Homburg, 2013- Appraisals, Requirements for
Appraislas
Weißenrieder& Kosel, 2005- Performance Potential Matrix- Time
Refrence