Public Service College of Oromia

ORGANIZATIONAL LEADERSHIP AND MANAGEMENT

(GoDM 241)

Module One
(Organization, Leadership, Direction, Communication, and Problem Solving)

September, 2013

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Course Contents
Unit One: Organization

Unit Two: Leadership

Unit Three: Establishing Direction

Unit Four: Communications

Unit 5: Problem Solving

Unit 6: Leadership in Management

Unit 7: Coaching

Unit 8: Team Building

Unit 9: Motivation

Unit 10: Leadership Pragmatics

Unit 11: The Leader

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Course Introduction

Hello, dear distance learner! I welcome you to the course ‘Organizational Leadership and
Management’. Organizational Leadership and Management is said to be very important in this
information era of the 21st century, as it discusses very applicable issues that are relevant for
development managers, practitioners, policy analysts, governance specialists and researchers.
Organizational Leadership and Management helps organizations and development leaders in
overcoming development problems. This course provides guide on how to effectively lead
organizations. We begin by discussing about organizations and, specifically, about organization
vision, mission, purpose, organizational culture and climate, work design, and so on. Next we
examine about the concept of leadership. From there we move to the issues of establishing
direction and communications to a problem solving and Leadership in Management. We also
discuss about coaching, team building and motivation. We further deal with leadership
pragmatics which focuses on leadership and diversity, leadership and change, and leadership and
the organization, and the leader which emphasizes on the character and ethics of leader, building
excellence, emotional intelligence, leadership traits and positive and negative leaders. With the
issues clearly on the table, we introduce the Organizational Leadership and Management and how
this field helps to overcome the problems related to organizational performance, employee
motivation, and satisfying public interest.

This module is prepared in order to provide students with a material that will generate an
understanding of about organizational leadership and management. It is designed to have two
modules and eleven units. The main purpose of these modules is to allow you to be familiar with
the main concepts of the organizational leadership and management. In the first module we will
discuss in about overview of organization, management and leadership. Unit one deals with the
concept of organization. The second unit discusses about leadership. Establishing direction and
communication are discussed in the third and fourth units respectively. Unit five is about problem
solving.

In the second module, the rest of the topics will be discussed. Unit six is about leadership in
management. Coaching, teambuilding, and motivation are covered in units seven, eight and nine
respectively. The tenth unit deals with the leadership pragmatics. The last unit (unit eleven) is
concerned with the leader i.e. characteristics, traits, and ethics of the leader are elaborated in this
unit.

Dear learner, as you go through the modules you will find that each unit is comprised of different
parts that include: in text questions for you to answer from your experience, activities that you
will answer after you cover the contents of a certain section and self-assessment questions that
you are required to answer after studying the whole unit. In addition, at the end of each unit, you
will find summary and checklists.

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Course Objectives
At the end of the course, students will be able to:

 define what leadership is and how it is applied at all levels of organizational management
 understand the basics of leadership and motivation
 determine what is necessary to lead teams and organizations, and how to integrate these
with organizational management
 develop skills in communicating, influencing and negotiating with peers, subordinates and
senior managers
 become adept at assessing leadership traits and qualities in ourselves and others
 learn how to develop leadership in ourselves and others

Module Contents

Unit One: Organization

Unit Two: Leadership

Unit Three: Establishing Direction

Unit Four: Communications

Unit 5: Problem Solving

Introduction
Dear student! Welcome to the first module of the course ‘Organizational Leadership and
Management’. This module is prepared to acquaint you with the knowledge of organization and
management, and organizational Leadership and Management skills. The module introduces and
discusses five units. These are organization, leadership, establishing direction, communication
and problem solving. It aims to educate and train learners on the nature of different types of
organizations and their leadership, management, how to establish direction in the organizations,
different communication systems in the organizations, and problem solving activities in different
organizations. Unit one focuses on the concept of organization. Unit two deals with the theories
and models of Leadership. The third unit presents ways of establishing direction in organization.
The fourth unit is about communication which includes basics of effective communication,
barriers to communication and non-verbal communication. unit five focuses on problem solving.

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Objectives
At the end of this module, the students will be able to:

 Explain the concept of organization, vision, culture, behavior and structure and design.
 List the functions, skills, levels and roles of management.
 Define Leadership and discuss different models, theories and approaches of leadership.
 Discuss different types, steps, characteristics of planning and implementing them.
 Explain the concept and tactics of influence, and power in leadership.
 Define communication and mention its elements and barriers, nonverbal communication,
feedback, and meetings in communication.
 Explain the role of leaders in problem solving and steps in problem solving.

UNIT ONE
ORGANIZATION

Introduction
Dear student! Welcome to the first unit of the course. In this unit, you begin the actual study of
the course; ‘Organizational Leadership and Management’. In this unit, you will learn about the
definition of organization, management, functions, roles, skills, levels of management,
organization, organizational theory and behavior, organization vision, and purpose, organization
culture and climate, and organizational change. In addition, you will do the self assessment tests,
activities and practice by the checklists to better understand about the concepts discussed in the
module.

Objectives
After studying this unit, you will be able to:

 define organization, organization theory, organization behavior, and culture

 compare organization theory and organization behavior
 list organizational culture’s key characteristics
 explain behavioral challenges in organizational management and organizational change

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Contents of the Unit
Unit 1: Organization
1.1 Organization, vision and purpose
1.2 Organization culture and climate
1.3 Organizational structure and work design
1.4 Behavioral challenges in organizational management
1.5 Organizational Change
1.6 The managerial functions
Summary

Checklist

Self-Assessment Questions

1. What is Organization?

In text question

What precisely do we mean by organization?

______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________

An organization is a consciously coordinated social entity, with a relatively identifiable

boundary, that functions on a relatively continuous basis to achieve a common goal or set of
goals. That is a mouthful of words, so let us break it down in to its more relevant parts. The words
consciously coordinated imply management. Social entity means that the unit is composed of
people or groups of people who interact with each other. The interaction patterns that people
follow in an organization do not just emerge; rather, they are premeditated. Therefore, because
organizations are social entities, the interaction patterns of their members must be balanced and
harmonized to minimize redundancy yet ensure that critical tasks are being completed. The result
is that our definition assumes explicitly the need for coordinating the interaction patterns of
people. An organization has a relatively identifiable boundary. This boundary can change over
time, it may not always be perfectly clear, but a definable boundary must exist in order to
distinguish members from nonmembers. It tends to be achieved by explicit or implicit contracts
between members and their organizations. In most employment relationships, there is an implicit
contract where work is exchanged for pay. In social or voluntary organizations, members
contribute in return for prestige, social interaction, or the satisfaction of helping others. But every
organization has a boundary that differentiates who is and who is not part of that organization.

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People in an organization have some continuing bond. This bond, of course, does not mean
lifelong membership. On the contrary, organizations face constant change in their memberships,
although while they are members, the people in an organization participate with some degree of
regularity. For a salesperson that may require being at work eight hours a day, five days a week.
At the other extreme, someone functioning on a relatively continuous basis as a member of the
National Organization for Women may attend only a few meetings a year or merely pay the
annual dues.

Finally, organizations exist to achieve something. These “somethings” are goals, and they usually
are either unattainable by individuals working alone or, if attainable individually, are achieved
more efficiently through group effort. While is not necessary for all members to endorse the
organization’s goals fully, our definition implies general agreement with the mission of the
organization. Finally, the organization’s beyond that of any of its members. Employees can quit,
but they can be replaced so that the activities they perform can be carried on.

There are different ways looking at organizations:

1. Rational entities in pursuit of goals. Organizations exist to achieve goals, and the behavior
of organizational members can be explained as the rational pursuit of those goals.
2. Coalitions of powerful constituencies. Organizations are made up of groups, each of
which seeks to satisfy its own self interest. These groups use their power to influence the
distribution of resources within the organization.
3. Open systems. Organizations are input-output transformation systems that depend on their
environment for survival.
4. Meaning producing systems. Organizations are artificially created entities. Their goals and
purposes are symbolically created and maintained by management.
5. Loosely coupled systems. Organizations are made up of relatively independent units that
can pursue dissimilar or even conflicting goals.
6. Political systems. Organizations are composed of internal constituencies that seek control
over the decision process in order to enhance their position.
7. Instruments of domination. Organizations place members in to job “boxes” that constraint
what they can do and individuals with whom they can interact. Additionally, they are
given a boss who has authority over them.
8. Information-processing units. Organizations interpret their environment, coordinate
activities, and facilitate decision making by processing information horizontally and
vertically through a structural hierarchy.
9. Psychic prisons. Organizations constrain members by constructing job descriptions,
departments, divisions, and standards of acceptable and unacceptable behaviors. When
accepted by members, they become artificial boundaries that limit choices.
10. Social contracts. Organizations are composed of sets of unwritten agreements whereby
members perform certain behaviors in return for compensation.

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Organization theory is the discipline that studies the structure and design of organizations.
Organization theory refers to both the descriptive and prescriptive aspects of the discipline. It
describes how organizations are actually structured and offers suggestions on how they can be
constructed to improve their effectiveness. Organizational behavior takes a micro view-
emphasizing individuals and small groups. It focuses on behavior in organizations and a narrow
set of employee performance and attitude variables-employee productivity, absenteeism,
turnover, and job satisfaction are those most frequently looked at. Individual behavior topics
typically studied in OB include perception, values, learning, motivation, and personality. Group
topics include roles, status, leadership, power, communication, and conflict. In contrast,
organization theory takes a macro perspective. Its unit of analysis is the organization itself or its
primary subunits. OT focuses on the behavior of organizations and uses a broader definition of
organizational effectiveness. OT is concerned not only with employee performance and attitudes
but with the overall organization’s ability to adapt and achieve its goals. This micro-macro
distinction creates some overlap. OB and OT merely emphasize different levels of organizational
analysis.

Activity I

Attempt the following questions.

1. Compare and contrast open systems and political systems.

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__________________________________________________________________

2. Organizations exist to achieve something. What are these?

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__________________________________________________________________
________________________________________________________________

1.1. Organization, Vision and Purpose

Vision is a concise statement that defines the mid–to long–term goals of the organization. The
vision should be external and market-oriented and should express, often in colorful or “visionary”
terms how the organization wants to be perceived by the world. Vision must be compelling
(forceful, convincing, etc); be inspiring (stimulating, exciting, etc); make people want to join the
organization. The importance of a powerful mission to determine our core purpose as an
organization and the values that we consider essential to achieving that purpose should not also

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overemphasized. Based on that mission and those values, we now want to create a statement that
defines where we want to go in the future. The vision signifies the critical transition from the
unwavering mission and core values to the spirited and dynamic world of strategy. A vision
statement provides a word picture of what the organization intends ultimately to become—which
may be 5, 10, or 15 years in the future. This statement should not be abstract; it should contain as
concrete a picture of the desired state as possible and also provide the basis for formulating
strategies and objectives. A powerful vision provides everyone in the organization with a shared
mental framework that helps give form to the often abstract future that lies before us. Vision
always follows mission (purpose) and values. A vision without a mission is simply wishful
thinking, not linked to anything enduring. Typical elements in a vision statement include the
desired scope of business activities, how the corporation will be viewed by its stakeholders
(customers, employees, suppliers, regulators, etc.), areas of leadership or distinctive competence,
and strongly held values.

Shared vision is an initial force that brings people together. It inspires stakeholders and serves as
a life blood of an organization. It also helps to see what you are working towards. Clearly
articulated vision can provide energy, momentum and strength to individuals, provides bases for
partnership, binds an organization together in times of crisis and provides incentive to work
through internal conflict. Virtually every organization in every industry has a vision statement.
But despite its widespread use, it seems clear that the word “vision” is one of the most overused
and possibly least understood words in business. One of the biggest problems is that a vision
statement can mean different things to different people. Deeply held values, outstanding
achievement, societal bonds, exhilarating goals, motivational forces, and raisons d’être are some
of the many images conjured up by vision statements. Writers in the area note that a wide variety
of leaders from many walks of life have found themselves uneasy with the concept of “vision.”
They warn of vision statements that simply reflect an extension of the CEO’s ego and the
inherent danger in this approach to visioning. But they concede that every company needs a well-
articulated view about tomorrow’s opportunities and challenges. Others warn of the potential for
a “dysfunctional” vision statement. For example, a vision statement could simply be wrong.
Targeting the wrong opportunities or customers may create substantial corporate momentum
toward the wrong future, momentum that could prove difficult to change. And the lack of reality
reflected in a vision statement or a reliance on abstraction may create significant problems for the
organization. Employees will greet such statements with cynicism and question the competence
of the executives who drafted the document. The power of a shared vision that is lived by all
employees of the organization can provide a significant motivational force. John Kotter notes
three important purposes served by a vision during a change process.

1. By clarifying the general direction for change, the vision simplifies hundreds or thousands
of more detailed decisions.
2. The vision motivates people to take action in the right direction, even if the initial steps
are personally painful.
3. Actions of different people throughout the organization are coordinated in a fast and
efficient way based on the vision statement.

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Regardless of the size of your organization, a skillfully created vision statement not only
describes what you’re attempting to accomplish but will serve to inspire all employees to join you
in meeting the challenges that lie ahead. Effective vision should be concise, appeal to all
stakeholders, be consistent with mission and values, verifiable, inspirational, and feasible.

Examples of the Vision Statements with goals

 Starbucks 1998 Vision: “2000 Stores in the Year 2000”

 Vision of Ethiopia: A country of middle income… by 2020.
 Vision of federal express: “We will deliver the package by 10:30 A.M. the next morning”
 The university of Leeds( united kingdom): “by 2015, our distinctive ability to integrate
world class research, scholarship, and education will have secured as a place among the
top 50 universities in the world”.

The above examples contain each of the three critical components of vision statements. These
are: Stretch goal: to be ranked among the top50 universities, Definition of niche: to integrate
world-class research, scholarship, and education and Time horizon: such as by 2015.

Examples of Vision statements without goal

This type of vision statement doesn’t have goals included in it. For instance, the following vision
statements can be taken for grant.

 Volvo: To be the world’s most desired and successful premium car brand
 Nature Conservancy: Saving the Last Great Places on Earth
 Sears: A Compelling Place to Shop, A Compelling Place to Work, A compelling place to
invest.
Since the above vision statements do not have goals, overarching strategic result that should be
achievable, but with hard work (stretch target) must be set. This overarching strategic result
should indicate the result of successfully achieving the vision of the organization.

1.2. Organization Culture and Climate

In text question

Explain organizational culture in your own words.

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______________________________________________________________________________

This part introduces the idea that organizations have personalities. We call them organizational
cultures. We see how cultures are created and sustained and consider their impact on
organization’s effectiveness. We also address whether managers can actually change their
organization’s culture and, if so how. The idea of viewing organizations as cultures-where there

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is a system of shared meaning among members-is relatively recent phenomenon. Until the mid-
1980s, organizations were, for the most part, simply thought of as rational means by which to
coordinate and control a group of people. They had vertical levels, departments, authority
relationships, and so forth. But organizations are more. They have personalities too, just like
individuals. They can be rigid or flexible, unfriendly or supportive, innovative or conservative.
Each organization has unique feeling and character beyond its structural characteristics.
Organizational theorists now acknowledge this by recognizing the important role that culture
plays in the level of organization members. Interestingly, though, the origin of culture as an
independent variable affecting an employee’s attitudes and behavior can be traced back more than
50 years ago to the notion of institutionalization.

When an organization becomes institutionalized, it takes on a life of its own, apart from its
founders or any of its members. Additionally, when an organization becomes institutionalized, it
becomes valued for itself, not merely for the goods or services it produces. It acquires
immortality. If its original goals are no longer relevant, it doesn’t go out of business. Rather it
redefines itself. Institutionalization operates to produce common understandings among members
about what is appropriate and, fundamentally, meaningful behavior. So when an organization
takes on institutional permanence, acceptable modes of behavior become largely self-evident to
its members. So, an understanding of what makes an organization’s culture, and how it is created,
sustained, and learned will enhance our ability to explain and predict the behavior of people at
work.

There is no shortage of definitions for organizational culture. It has been described, for example,
as “the dominant values espoused an organization,” “the philosophy that guides an organization’s
policy toward employees and customers,” “the way things are done around here,” and “the basic
assumptions and beliefs that are shared by members of an organization.” A closer look at the
wide array of definitions does uncover a central theme- organizational culture refers to a system
of shared meaning. In every organization there are patterns of beliefs, symbols, rituals, myths,
and practices that have evolved over time. These, in turn, create common understandings among
members as to what the organization is and how its members should behave. So, organizational
culture refers to a system of shared meaning held by members that distinguishes the organization
from other organizations. This system of shared meaning, on closer examination, a set of key
characteristics that the organization values. Culture implies the existence of certain dimensions or
characteristics that are closely associated and interdependent. If culture exists, it should have
distinct dimensions that can be defined and measured. Toward that end, there are ten
characteristics that when mixed and matched tap the essence of an organization’s culture. While
the whole of organization’s culture maybe somewhat different from the summation of its parts,
the following represent the key characteristics along which cultures differ.

1. Individual initiative. The degree of responsibility, freedom, and independence that

individuals have.
2. Risk tolerance. The degree to which employees are encouraged to be aggressive,
innovative, and risk-seeking.

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 3. Direction. The degree to which the organization creates clear objectives and performance
expectations.
4. Integration. The degree to which units within the organization are encouraged to operate
in a coordinated manner.
5. Management support. The degree to which managers provide clear communication,
assistance, and support to their subordinates.
6. Control. The number of rules and regulations, and the amount of direct supervision that
are used to oversee and control employee behavior.
7. Identity. The degree to which members identify with the organization as a whole rather
than with their particular work group or field of professional expertise.
8. Reward system. The degree to which reward allocations (i.e., salary increases,
promotions) are based on employee performance criteria in contrast to seniority,
favoritism, and so on.
9. Conflict tolerance. The degree to which employees are encouraged to air conflicts and
criticisms openly.
10. Communication patterns. The degree to which organizational communications are
restricted to the formal hierarchy of authority.

Each of these characteristics exists on a continuum from low to high. Appraising the organization
on these characteristics, the, gives a composite picture of the organization’s culture. This picture
becomes the basis for feelings of shared understanding that members have about the organization,
how things are done in it, and the way members are supposed to behave. These ten characteristics
include both structural and behavioral dimensions. For example, management support is a
measure of leadership behavioral. Most of these dimensions, however, are closely intertwined
with an organization’s design. To illustrate, the more routine an organization’s technology and
the more centralized its decision making process, the less individual initiative employees in that
organization will have. Similarly, functional structures create cultures with more formal
communication patterns than do simple or matrix structures. Close analysis would also reveal that
integration is essentially an indicator of horizontal interdependence. What this means is that
organizational cultures are not just reflections of their members’ attitudes and personalities. A
large part of organization’s culture can be directly traced to structurally related variables.

Organizational culture is concerned with how employees perceive the characteristics of an

organization’s culture, not with whether they or not they like them. That is, it is a descriptive
term. This is important because it differentiates this concept from that of job satisfaction.
Research on organizational culture has sought to measure how employees see their organization:
Does it encourage teamwork? Does it reward innovation? Does it stifle initiative? In contrast, job
satisfaction seeks to measure affective responses to the work environment. It is concerned with
how employees feel about the organization’s expectations, reward practices, and the like.
Although the two terms undoubtedly have overlapping characteristics, the term organizational
culture is descriptive, while job satisfaction is evaluative.

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Organizational culture represents a common perception held by the organization’s members. This
was made explicit when we defined culture as a system of shared meaning. We should expect,
therefore, that individuals with different backgrounds or at different levels in the organizations
will tend to describe the organization’s culture in similar terms. Acknowledgement that
organizational culture has common properties does not mean, however, that there cannot be
subcultures within any given culture. Most large organizations have a dominant culture and
numerous sets of subcultures. A dominant culture expresses the core values that are shared by a
majority of the organization’s members. When we talk about an organization’s culture, we are
referring to its dominant culture. It is this macro view of culture that gives an organization its
distinct personality.

Subcultures tend to develop in large organizations to reflect common problems, situations, or

experiences that members face. These subcultures can form vertically or horizontally. When one
product division of a conglomerate has a culture unique from that of other divisions of the
organization, a vertical subculture exists. When a specific set of functional specialists-such as
accountants or purchasing personnel-have a set of common shared understandings, a horizontal
subculture is formed. Of course any group in an organization can develop a subculture. For the
most part, however, subcultures tend to be defined by departmental designations or geographical
separation. The purchasing department, for example, can have a subculture that is uniquely
shared by members of that department. It will include the core values of the core values of the
dominant culture plus additional values unique to members of the purchasing department.
Similarly, an office or unit of an organization that is physically separated from the organization’s
main operations may take on a different personality. Again, the core values are essentially
retained but modified to reflect the separated unit’s distinct situation. If an organization had no
dominant culture and were comprised only of numerous subcultures, the influence of culture on
organizational effectiveness would be far more ambiguous. Why? Because there would be no
consistency of perceptions or behavior. It is the ‘shared meaning’ aspect of organizational culture
that makes it such a potent concept. But we cannot ignore the reality that many organizations also
have distinct subcultures.

1.3. Organizational Structure and Work Design

In text question

What is Organizational structure?

______________________________________________________________________________
______________________________________________________________________________

An organizational structure defines how job tasks are formally divided, grouped, and coordinated.
There are six key elements that managers need to address when they design their organization’s

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structure. These are work specialization, departmentalization, chain of command, span of control,
centralization and decentralization, and formalization.

Six key Questions that managers need to answer in Designing the proper organizational Structure
To what degree are tasks subdivided into separate jobs? Work Specialization
On what basis will jobs be grouped together? departmentalization
To whom do individuals and groups report? Chain of command
How many individuals can a manager efficiently and effectively direct? Span of control
Where does decision making authority lie? Centralization and
decentralization
To what degree will there be rules and regulations to direct employees Formalization
and managers?

Work Specialization
Today we use the term work specialization or division of labor to describe the degree to which
tasks in the organization are subdivided into separate jobs. The essence of work specialization is
that, rather than an entire job being done by one individual, it is broken down into a number of
steps, each step being completed by a separate individual. In essence, individuals specialize in
doing part of an activity rather than the entire activity. By the late 1940s, most manufacturing
jobs in industrialized countries were being done with high work specialization. Management saw
this as a means to make the most efficient use of its employees’ skills. In most organizations,
some tasks require highly developed skills; others can be performed by the untrained. If all
workers were engaged in each step of, say, an organization’s manufacturing process, all would
have to have the skills necessary to perform both the most demanding and the least demanding
jobs. The result would be that, except when performing the most skilled or highly complex tasks,
employees would be working below their skill levels. And since skilled workers are paid more
than unskilled workers and their wages tend to reflect their highest level of skill, it represents an
inefficient usage of organizational resources to pay highly skilled workers to do easy tasks.

Managers also looked for other efficiencies that could be achieved through work specialization.
Employee skills at performing a task successfully increase through repetition. Less time is spent
in changing tasks, in putting away one’s tools and equipment from a prior step in the work
process, and in getting ready for another. Equally important, training for specialization is more
efficient from the organization’s perspective. It is easier and less costly to find and train workers
to do specific and repetitive tasks. This is especially true of highly sophisticated and complex
operations. Finally, work specialization increases efficiency and productivity by encouraging the
creation of special inventions and machinery. For much of the first half of the twentieth century,
managers viewed work specialization as an unending source of increased productivity. And they
were probably right. Because specialization was not widely practiced, its introduction almost
always generated higher productivity. But by the 1960s, there became increasing evidence that a
good thing can be carried too far. The point had been reached in some jobs in which the human

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diseconomies from specialization-which surfaced as boredom, fatigue, stress, low productivity,
poor quality, increased absenteeism, and high turnover-more than offset the economic
advantages. In such cases, productivity could be increased by enlarging, rather than narrowing,
the scope of job activities. Additionally, a number of companies found that by giving employees a
variety of activities to do, allowing them to do a whole and complete job, and by putting them
into teams with interchangeable skills, they often achieved significantly higher output with
increased employee satisfaction.

Most managers today see work specialization as neither obsolete nor as unending source of
increased productivity. Rather, managers recognize the economies it provides in certain types of
jobs and the problems it creates when it is carried too far. Some organizations including health
maintenance organizations have had success through high work specialization while others have
had success by broadening the scope of jobs and reducing specialization.

Departmentalization
Once you have divided jobs up through work specialization, you need to group these jobs
together so common tasks can be coordinated. The basis by which jobs are grouped together is
called departmentalization. One of the most popular ways to group activities is by functions
performed. A manufacturing manager might organize his or her plant by separating engineering,
accounting, manufacturing, personnel, and purchasing specialists in to common departments. Of
course departmentalization by function can be used in all types of organizations. Only the
functions change to reflect the organization’s objectives and activities. A hospital might have
departments devoted to research, patient care, accounting, and so forth. A professional football
franchise might have departments entitled player personnel, ticket sales, and travel and
accommodations. The major advantage to this type of grouping is obtaining efficiencies from
putting like specialists together. Functional departmentalization seeks to achieve economies of
scale by placing people with common skills and orientations with into common units.

Tasks can also be departmentalized by the type of product the organization produces. Each major
product will be placed under the authority of an executive who will have complete responsibility
for that product. The major advantage to this type of grouping is increased accountability for
product performance, since all activities related to a specific product are under the direction of a
single manager. If an organization’s activities are service rather than product related, each service
would be autonomously grouped. For instance, an accounting firm could have departments for
tax, management consulting, auditing and the like. Each would offer a common array of services
under the direction of a product or service manager. Another way to departmentalize is on the
basis of geography or territory. The sales function, for instance, may have western, southern, mid-
western, and eastern regions. Each of these regions is, in effect, a department organized around
geography. If an organization’s customers are scattered over a large geographic area and have
similar needs based on their location, then this form of departmentalization can be valuable.

If production is organized, for example, into five departments: casting, press, tubing, finishing,
inspecting and packing and shipping, it is a process departmentalization because each department

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specializes in one specific phase in the production of aluminum tubing. Since each process
requires different skills, this method offers a basis for homogeneous categorizing of activities.
Process departmentalization can be used for processing customers as well as products. A final
category of departmentalization is to use the particular type of customer the organization seeks to
reach. The assumption underlying customer departmentalization is that customers in each
department have a common set of problems and needs that can best be met by having specialists
for each. Large organizations may use all of the forms of departmentalization. Rigid, functional
departmentalization is being increasingly complemented by teams that cross over traditional
departmental lines. As tasks have become more complex and more diverse skills are needed to
accomplish those tasks, management has turned to cross-functional teams.

Chain of command
The chain of command is an unbroken line of authority that extends from the top of the
organization to the lowest echelon and clarifies who reports to whom. It answers questions for
employees such “To whom do I go if I have a problem?” and “To whom am I responsible?” Two
complementary concepts in the discussion of chain of command are authority and units of
command. Authority refers to the rights inherent in a managerial position to give orders and
expect the orders to be obeyed. To facilitate coordination, each managerial position is given a
place in the chain of command, and each manager is given a degree of authority in order to meet
his or her responsibilities. The unity of command principle helps preserve the concept of an
unbroken line of authority. It states that a person should have one and only one superior to whom
he or she is directly responsible. If the unity of command is broken, an employee might have to
cope with conflicting demands or priorities from several superiors. Times change and so do the
basic tenets of organizational design. The concepts of chain of command, authority, and unity of
command have substantially less relevance today because of advancements in computer
technology and the trend toward empowering employees.

Span of control
Span of control, to a large degree, determines the number of levels and managers an organization
has. All things being equal, the wider or larger the span, the more efficient the organization.
However, at some point wider spans reduce effectiveness. That is, when the span becomes too
large, employee performance suffers because supervisors no longer have the time to provide the
necessary leadership and support. Narrow or small spans have their advocates. By keeping the
span of control to five or six employees, a manager can maintain close control. But narrow spans
have three major drawbacks. First, they are expensive because they add levels of management.
Second, they make vertical communication in the organization more complex. The added levels
of hierarchy slow down decision making and tend to isolate upper management. Third, narrow
spans of control encourage overly tight supervision and discourage employee autonomy. The
trend in recent years has been toward wider spans of control. They are consistent with recent
efforts by companies to reduce costs, cut overhead, speed up decision making, increase
flexibility, get closer to customers, and empower to employees. However, to ensure that

16
performance doesn’t suffer because of these wider spans, organizations have been investing
heavily in employee training. Managers recognize that they can handle a wider span when
employees know their jobs inside and out or can turn to their co-workers when they have
questions.

Centralization and Decentralization

In some organizations, top managers make all decisions. Lower-lower managers merely carry out
top management’s directives. At the other extreme, there are organizations in which decision
making is pushed down to those managers who are closest to the action. The former organizations
are highly centralized; the latter are decentralized. The term centralization refers to the degree to
which decision making is concentrated at the single point in the organization. The concept
includes only formal authority, that is, the rights inherent in one’s position. Typically, it is said
that if top management makes the organization’s key decisions with little or no input from lower-
level personnel, then the organization is centralized. In contrast, the more that lower-level
personnel provide input or actually given the discretion to make decisions, the more
decentralization there is. An organization characterized by centralization is an inherently
different structural animal from one that is decentralized. In a decentralized organization, action
can be taken more quickly to solve problems, more people provide input into decisions, and
employees are less likely to feel alienated from those who make the decisions that affect their
work lives. Consistent with recent management efforts to make organizations more flexible and
responsive, there has been a marked trend toward decentralizing decision making. In large
companies, lower level managers are closer to the action and typically have more detailed
knowledge about problems than do top managers.

Formalization
Formalization refers to the degree to which jobs within the organization are standardized. If a job
is highly formalized, then the job incumbent has a minimum amount of discretion over what is to
be done, when it is to be done, and how he or she should do it. Employees can be expected
always to handle the same input in exactly the same way, resulting in a consistent and uniform
output. There are explicit job descriptions, lots of organizational rules, and clearly defined
procedures covering work processes in organizations in which there is high formalization. When
formalization is low, job behaviors are relatively nonprogrammed and employees have great deal
of freedom to exercise discretion in their work. Since an individual’s discretion on the job is
inversely related to the amount of behavior in that job that is preprogrammed by the organization,
the greater the standardization, the less input the employee has into how his or her work is to be
done. Standardization not only eliminates the possibility of employees engaging in alternative
behaviors, but it even removes the need for employees to consider alternatives. The degree of
formalization can vary widely between organizations and within organizations. Certain jobs, for
instance, are well known to have little formalization.

17
 Activity II: What are the key elements in the organizational design?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

1.4. Behavioral challenges in organizational management

The importance of understanding organizational behavior is very high in managing organizations.
Managers’ attitudes, and their ability to understand and shape the attitudes of employees, can
profoundly affect the workplace and influence employee motivation, morale, and job
performance. People differ in many ways. Some are quiet and shy while others are gregarious;
some are thoughtful and serious while others are impulsive and fun-loving. Employees—and
managers—bring their individual differences to work each day. Differences in attitudes, values,
personality, and behavior influence how people interpret an assignment, whether they like to be
told what to do, how they handle challenges, and how they interact with others. People are an
organization’s most valuable resource—and the source of some of managers’ most difficult
problems. Three basic leadership skills are at the core of identifying and solving people problems:
(1) diagnosing, or gaining insight into the situation a manager is trying to influence; (2) adapting
individual behavior and resources to meet the needs of the situation; and (3) communicating in a
way that others can understand and accept. Thus, managers need insight about individual
differences to understand what a behavioral situation is now and what it may be in the future. To
handle this responsibility, managers need to understand the principles of organizational behavior
—that is, the ways individuals and groups tend to act in organizations. By increasing their
knowledge of individual differences in the areas of attitudes, personality, perception, learning,
and stress management, managers can understand and lead employees and colleagues through
many workplace challenges. This chapter introduces basic principles of organizational behavior
in each of these areas.

Organizational behavior
Organizational behavior, commonly called OB, is an interdisciplinary field dedicated to the
study of human attitudes, behavior, and performance in organizations. OB draws concepts from
many disciplines, including psychology, sociology, cultural anthropology, industrial engineering,
economics, ethics, and vocational counseling, as well as the discipline of management. The
concepts and principles of organizational behavior are important to managers because in every
organization human beings ultimately make the decisions that control how the organization
acquires and uses resources. Those people may cooperate with, compete with, support, or
undermine one another. Their beliefs and feelings about themselves, their coworkers, and the
organization shape what they do and how well they do it. People can distract the organization

18
from its strategy by engaging in conflict and misunderstandings, or they can pool their diverse
talents and perspectives to accomplish much more as a group than they could ever do as
individuals. By understanding what causes people to behave as they do, managers can exercise
leadership to achieve positive outcomes. By creating a positive environment, for example,
managers can foster organizational citizenship, which refers to the tendency of people to help
one another and put in extra effort that goes beyond job requirements to contribute to the
organization’s success. An employee demonstrates organizational citizenship by being helpful to
coworkers and customers, doing extra work when necessary, and looking for ways to improve
products and procedures. These behaviors enhance the organization’s performance and help to
build social capital. Organizational citizenship contributes to positive relationships both within
the organization and with customers, leading to a high level of social capital and smooth
organizational functioning. Managers can encourage organizational citizenship by applying their
knowledge of human behavior, such as selecting people with positive attitudes and personalities,
helping them see how they can contribute, and enabling them to learn from and cope with
workplace challenges.

Attitudes
Most students have probably heard the expression that someone “has an attitude problem,” which
means some consistent quality about the person affects his or her behavior in a negative way. An
employee with an attitude problem might be hard to get along with, might constantly gripe and
cause problems, and might persistently resist new ideas. We all seem to know intuitively what an
attitude is, but we do not consciously think about how strongly attitudes affect our behavior.
Defined formally, an attitude is an evaluation—either positive or negative—that predisposes a
person to act in a certain way. Understanding employee attitudes is important to managers
because attitudes determine how people perceive the work environment, interact with others, and
behave on the job. Emerging research is revealing the importance of positive attitudes to both
individual and organizational success. For example, studies have found that the characteristic
most common to top executives is an optimistic attitude. People rise to the top because they have
the ability to see opportunities where others see problems and can instill in others a sense of hope
and possibility for the future. Good managers strive to develop and reinforce positive attitudes
among all employees, because happy, positive people are healthier, more effective, and more
productive.4 A person who has the attitude “I love my work; it’s challenging and fun” will
typically tackle work-related problems cheerfully, while one who comes to work with the attitude
“I hate my job” is not likely to show much enthusiasm or commitment to solving problems.
Sometimes negative attitudes can result from characteristics of the job, such as a high stress level,
but managers can find ways to help people have more positive attitudes. Managers should pay
attention to negative attitudes because they can be both the result of underlying problems in the
workplace as well as a contributor to forthcoming problems.

Components of Attitudes

19
One important step for managers is recognizing and understanding the components of attitudes,
which is particularly important when attempting to change attitudes. Behavioral scientists
consider attitudes to have three components: cognitions (thoughts), affect (feelings), and
behavior. The cognitive component of an attitude includes the beliefs, opinions, and information
the person has about the object of the attitude, such as knowledge of what a job entails and
opinions about personal abilities. The affective component is the person’s emotions or feelings
about the object of the attitude, such as enjoying or hating a job. The behavioral component of an
attitude is the person’s intention to behave toward the object of the attitude in a certain way. The
cognitive element is the conscious thought that “my job is interesting and challenging.” The
affective element is the feeling that “I love this job.” These elements, in turn, are related to the
behavioral component—an employee might arrive at work early because he or she is happy with
the job.

Often, when we think about attitudes, we focus on the cognitive component. However, it is
important for managers to remember the other components as well. The emotional (affective)
component is often the stronger factor in affecting behavior. When people feel strongly about
something, the affective component may influence them to act in a certain way no matter what
someone does to change their thoughts or opinions. When someone is passionate about a new
idea, he or she may go to great lengths to implement it, even when colleagues and superiors say
the idea is stupid. Another example is an employee who is furious about being asked to work
overtime on his birthday. The supervisor might present clear, rational reasons for the need to put
in extra hours, but the employee might still act based on his anger—by failing to cooperate,
lashing out at co-workers, or even quitting. In cases such as these, effective leadership includes
addressing the emotions associated with the attitude. Are employees so excited that their
judgment may be clouded or so discouraged that they have given up trying? If nothing else, the
manager probably needs to be aware of situations that involve strong emotions and give
employees a chance to vent their feelings appropriately.

As a general rule, changing just one component—cognitions, affect, or behavior—can contribute

to an overall change in attitude. Suppose a manager concludes that some employees have the
attitude that the manager should make all the decisions affecting the department, but the manager
prefers that employees assume more decision-making responsibility. To change the underlying
attitude, the manager would consider whether to educate employees about the areas in which they
can make good decisions (changing the cognitive component), build enthusiasm with pep talks
about the satisfaction of employee empowerment (changing the affective component), or simply
insist that employees make their own decisions (behavioral component) with the expectation that,
after they experience the advantages of decision-making authority, they will begin to like it.

High-Performance Work Attitudes: The attitudes of most interest to managers are those related
to work, especially attitudes that influence how well employees perform. To lead employees
effectively, managers logically seek to cultivate the kinds of attitudes that are associated with

20
high performance. Two attitudes that might relate to high performance are satisfaction with one’s
job and commitment to the organization.

Job Satisfaction: A positive attitude toward one’s job is called job satisfaction. In general,
people experience this attitude when their work matches their needs and interests, when working
conditions and rewards (such as pay) are satisfactory, when they like their co-workers, and when
they have positive relationships with supervisors. Many managers believe job satisfaction is
important because they think satisfied employees will do better work. In fact, research shows that
the link between satisfaction and performance is generally small and is influenced by other
factors. For example, the importance of satisfaction varies according to the amount of control the
employee has; employees doing routine tasks may produce about the same output no matter how
they feel about the job. However, one study found a clear link between employee satisfaction,
customer satisfaction, and revenue. In particular, employees’ attitudes about whether their
workloads were manageable and well organized ranked among the top 10 indicators of company
performance. Managers of today’s knowledge workers often rely on job satisfaction to keep
motivation and enthusiasm for the organization high. Organizations don’t want to lose talented,
highly skilled workers. In addition, most managers care about their employees and simply want
them to feel good about their work—and almost everyone prefers being around people who have
positive attitudes. Managers play an important role in whether employees have positive or
negative attitudes toward their jobs.

ORGANIZATIONAL COMMITMENT

Organizational commitment refers to an employee’s loyalty to and engagement with the

organization. An employee with a high degree of organizational commitment is likely to say we
when talking about the company. Such a person likes being a part of the organization and tries to
contribute to its success. Most managers want to enjoy the benefits of loyal, committed
employees, including low turnover and willingness to do more than the job’s basic requirements.
In addition, results of a survey of more than 650,000 employees in global organizations suggest
that companies with committed employees perform better. The study found that companies with
highly committed employees outperformed the industry average over a 12-month period by 6
percent, whereas those with low levels of commitment underperformed the average by 9 percent.
The high motivation and engagement that comes with organizational commitment is essential to
the success of organizations that depend on employees’ ideas and creativity. Trust in
management’s decisions and integrity is an important component of organizational commitment.
Unfortunately, in recent years, many employees have lost that trust, resulting in a decline in
commitment.
Managers can promote organizational commitment by keeping employees informed, giving them
a say in decisions, providing the necessary training and other resources that enable them to
succeed, treating them fairly, and offering rewards they value. For example, recent studies
suggest that employee commitment in today’s workplace is strongly correlated with initiatives
and benefits that help people balance their work and personal lives.

21
Conflicts among Attitudes: Sometimes people discover that their attitudes conflict with one
another or are not reflected in behavior. For example, a person’s high level of organizational
commitment might conflict with a commitment to family members. If employees routinely work
evenings and weekends, their long hours and dedication to the job might conflict with their belief
that family ties are important. This conflict can create a state of cognitive dissonance, a
psychological discomfort that occurs when individuals recognize inconsistencies in their own
attitudes and behaviors. The theory of cognitive dissonance, developed by social psychologist
Leon Festinger in the 1950s, says that people want to behave in accordance with their attitudes
and usually will take corrective action to alleviate the dissonance and achieve balance.

In the case of working overtime, people who can control their hours might restructure
responsibilities so that they have time for both work and family. In contrast, those who are unable
to restructure workloads might develop an unfavorable attitude toward the employer, reducing
their organizational commitment. They might resolve their dissonance by saying they would like
to spend more time with their kids but their unreasonable employer demands that they work too
many hours.

Perception
Another critical aspect of understanding behavior is perception. Perception is the cognitive
process people use to make sense out of the environment by selecting, organizing, and
interpreting information from the environment. Attitudes affect perceptions, and vice versa. For
example, a person might have developed the attitude that managers are insensitive and arrogant,
based on a pattern of perceiving arrogant and insensitive behavior from managers over a period of
time. If the person moves to a new job, this attitude will continue to affect the way this person
perceives superiors in the new environment, even though managers in the new workplace might
take great pains to understand and respond to employees’ needs. Because of individual
differences in attitudes, personality, values, interests, and so forth, people often “see” the same
thing in different ways. A class that is boring to one student might be fascinating to another. One
student might perceive an assignment to be challenging and stimulating, whereas another might
find it a silly waste of time. For instance, many African Americans perceive that blacks are
regularly discriminated against, whereas many white employees perceive that blacks are given
special opportunities in the workplace. Similarly, in a survey of financial profession executives,
40 percent of women perceive that women face a “glass ceiling” that keeps them from reaching
top management levels, while only 10 percent of men share that perception.

We can think of perception as a step-by-step process. First, we observe information (sensory

data) from the environment through our senses: taste, smell, hearing, sight, and touch. Next, our
mind screens the data and selects only the items we will process further. Third, we organize the
selected data into meaningful patterns for interpretation and response. Most differences in
perception among people at work are related to how they select and organize sensory data.
Perception has a lot to do with how we view workplace interactions. Someone with a large ego
will expect special treatment and would tend to see equal treatment as more-or-less unfair.

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1.5. Organizational Change

In text question

Explain change management in your own words.

______________________________________________________________________________________________
____________________________________________________________________

Change is essential to an organization’s survival. Change leads to new ideas, technology,

innovation, and improvement. Therefore, it is important that organizations recognize the need for
change and learn to manage the process effectively. To be successful, the leadership team must be
adept at taking their organization through major change by committing themselves to a better
way, challenging existing norms, and taking risks. Organizational change is any alteration of
activities in an organization. Alterations can involve the structure of the organization; the transfer
of work tasks; the introduction of new products, systems, or technologies; or behavior among
members.

A variety of elements in an organization can be changed. Which elements are chosen is partly
determined by the leaders’ abilities to diagnose the organization’s problems or opportunities
accurately. There are four primary targets for change: individual, group, organizational, and
environmental. At the individual level, organizations can target several areas. These changes fall
under the general category of human resource changes; they include changing the number and
skills of the human resource component as well as improving levels of employee motivation and
performance. A manager may ask questions such as the following: Whom do we reward and
how? On what basis will the reward be established—seniority, merit, innovation, bottom-line
results, or other considerations? Changes at the individual level may occur either as a result of
new staffing strategies or because the company has embraced the strategic goal of recognizing
and valuing diversity in the workforce. Individual targets are accomplished through employee
training or development programs. Managers may consider changing the nature of the
relationships between managers and subordinates or the relationships within work groups. This
might include change or redirection of management leadership styles, group composition, or
decision-making procedures. For example, the assembly teams may propose a change in
production scheduling. Team leaders and the plant manager suggested compressed, alternating
shifts so that all workers rotated and the distribution of workdays would be more equitable.
At the organizational level, leaders can change (1) the basic goals and strategies of the
organization, (2) the products, quality, or services offered, (3) the organizational structure, (4) the
composition of work units, (5) organizational processes such as reward, communication, or
information-processing systems, and (6) the culture. Consider whom the organization has to
please. Is it customers, owners, shareholders, regulators, the media, or others?

An organization can also work to change sectors of its environment. Sectors in the external
environment can be influenced and changed in a number of ways. It is virtually impossible to
change one aspect of an organization and not affect other aspects. Changes in products or services

23
offered may require new technology, a new distribution system, new employee skills, or different
relationships with consumers. Adopting new technology, such as using the Internet, has become
an “e-wave,” and it has changed the way organizations and customers learn about each other and
communicate. It necessitates hiring different types of employees or revamping the corporate
training system. Once again, the interconnection of systems and subsystems makes the job of
management extremely complex and challenging. In recent years, a great deal of research and
practical attention have focused on the necessity for change and the change process. If managers
could design perfect organizations and if the scientific, market, and technical environments were
stable and predictable, there would be no pressure for change. But such is not the case. We live in
the midst of constant change. Not only is change a constant of the modern business environment,
but it is also becoming more complex, especially with continuing globalization. Organizations
must manage change to be responsive to changing environments.

Managers must recognize that the forces of change are significant and pervasive. Learning to
recognize and manage change is one of the most important skills that a manager can develop.
Change is natural and managers must help their organizations work with it, not against it. The
following section examines the numerous issues involved with change. We examine the process
as a sequence although in reality it may not always occur in that way.

A FRAMEWORK FOR CHANGE

One useful tool for understanding change is called force-field analysis. That approach is a
systematic examination of the pressures that are likely to support or resist a proposed change. It is
a framework proposed by organizational researcher Kurt Lewin, whose approach recognizes that
merely introducing a change does not guarantee that the change will be successful. Force-field
analysis includes the unfreezing process, how change occurs, and the refreezing process of new
behaviors. Within the framework for bringing about change, or transformation, in the
organization are five phrases.

PHASES OF PLANNED CHANGE

The change process includes the following phases: (1) creating a vision, (2) communicating and
sharing information, (3) empowering others to act on the vision, (4) institutionalizing the new
approaches, and (5) evaluating.

Creating a Vision
Establishing a vision or goal is the first step in the process. The vision clarifies and directs the
change effort and the strategies for achievement. In setting the vision, a number of critical issues
must be considered. The vision often triggers the beginning of the unfreezing process when an
initial awareness of the need for change and the forces supporting and resisting change are
recognized. Most people and organizations prefer stability and the perpetuation of the status quo.
In such a state, forces for change, recognized as driving forces, are equally offset by forces that
want to maintain the status quo, referred to as restraining forces. Driving forces for change are

24
either internal or external. External forces are fundamentally beyond the control of management,
but internal forces generally are within management’s control. Changes in one or more of the
key environmental Sectors might be the external forces that provide the impetus for change in an
organization. The environment includes many economic, technological, political, and social
forces that can trigger the change process. For example, in the economic domain, changes in the
inflation rate, interest rates, and the money supply can affect the ability of an organization’s
managers to get needed resources. New laws and regulations, trade tariffs, and court decisions
emanating from the political domain can affect the way an organization conducts its business.

1.6. The Managerial Functions

In text question

What functions do managers perform.

______________________________________________________________________________________________
____________________________________________________________________

Management: The attainment of organizational goals in an effective and efficient manner

through planning, organizing, leading, and controlling organizational resources. Every manager is
required to spend a huge amount of time on human resources issues—recruiting, training,
appraising, mentoring, and developing leadership talent for the future. A key aspect of managing
is to recognize the role and importance of other people. Early twentieth-century management
scholar Mary Parker Follett defined management as “the art of getting things done through
people.” More recently, noted management theorist Peter Drucker stated that the job of managers
is to give direction to their organizations, provide leadership, and decide how to use
organizational resources to accomplish goals. Getting things done through people and other
resources and providing leadership and direction are what managers do. These activities apply to
top executives but also to the leader of an airport security team, a supervisor of an accounting
department, or a director of sales and marketing. Moreover, management often is considered
universal because it uses organizational resources to accomplish goals and attain high
performance in all types of profit and nonprofit organizations. Thus, our definition of
management is: the attainment of organizational goals in an effective and efficient manner
through planning, organizing, leading, and controlling organizational resources. This definition
holds two important ideas: (1) the four functions of planning, organizing, leading, and
controlling, and (2) the attainment of organizational goals in an effective and efficient manner.
Managers use a multitude of skills to perform these functions.

Management functions

Management functions are a set of interrelated activities and sometimes called management
process. They are five in number. These are planning, organizing, staffing, leading and
controlling. Diagrammatically the process is as follows.

25
 Planning Organizing

Controlling

Staffing

Directing (leading)

Managers and level of management

Managers are people in an organization who hold positions of authority and make decisions about
the allocation of resources. Managers may also be defined as those people in an organization who
are responsible to carry out major activities if management. Managers from hierarchical positions
divided in to top-level managers, middle level managers and lower level managers.

Top Management: This is the management level at the top of organizational hierarchy. Top-
level managers are involved in very broad issues of organization such as strategic planning,
policy making and other strategic issues. They do also control the activities of middle level
managers.

Top Management

Middle level Management

Lower Level

Middle level management: Found at the middle of organizational hierarchy. Middle level
managers are concerned with interpreting the strategic plans and police set down by top-level
managers and communicate down to lower level managers. They are also responsible for
organizing and controlling the activities of lower level managers and communicate with their
immediate managers (top level managers). In a nutshell they serve as a bridge between top level
and first line managers.

26
First line management: Manage the activities of the organization at the grass root level. They
are directly involved in the day-to –day activities of the organization. They are the only managers
who do not manage other managers.

Management skills

Managers to run day-today activities of their organization should posses’ managerial skills. Managerial
skills are of three types. Namely, conceptual, interpersonal (human) and technical skills. Technical
skills refers to the knowledge necessary to perform specific tasks. Human skills refer to the ability to
work with, communicate with, understand, and motivate individuals and groups in organization.
Conceptual skill represents the managers’ ability to organize information, to think in the abstract and see
the organization as a whole, and to coordinate and integrate all of an organizations interests and activities.
Successful Managers are likely to have all of the three skills. However the proportion of each skill
requirement varies by level of management. The following diagram shows the relative proportion of
management skills required at the three levels of management.

Activity III: What are the three skills of management, and the three types of managers?
_____________________________________________________________________________________
_______________________________________________________________________________

Top

Middle

First line

Technical skills Human skills Conceptual skills

27
Managerial roles

Managers should fulfill many roles in performing their duties. Managerial roles are interrelated,
and can be separated and grouped into three broad categories. Namely: interpersonal,
information, and decisional roles. The following table shows the sub division of each role and
description.

Main Role Sub Roles Description

Interpersonal role Figure head Performing symbolic or ceremonial duties

Leader Influencing others

Liaison (communication) Interacting with people both within and

outside organization

Informational role Monitor Gathering both internal & external

information

Disseminator Transmitting information internally within or

externally into organization

Spokes person Transmitting information externally into an

organization environment

Decisional role Disturbance handler Dealing with unforeseen events or crisis and
giving solution

Resource allocator Giving decisions where people, money,

material & information should be allocated.

Negotiator Bargaining with various individuals or

representatives of other units or other
organizations.

Entrepreneur Managers as entrepreneur initiate and over see

new projects that will improve their
organizational performance

Managerial Performance

Managerial performance can be measured from two important and interrelated terms called
effectiveness and efficiency. Effectiveness is the ability to set the right goals and the degree to
which these goals are achieved. In short effectiveness refers to “doing the right things.”
Efficiency refers to the economical manner in which goal oriented operations are carried out. In

28
short efficiency means “doing things right.” It is measured by comparing the resources deployed
(input) to the result obtained (output). It is the ratio of output to input.

The Management Process (Functions)

Management is series of interrelated activities usually called management functions. The

management functions include; planning, organizing, staffing, directing/ leading, and
controlling.

Planning: The management function concerned with defining goals for future organizational
performance and deciding on the tasks and resources needed to attain them.
Organizing: The management function concerned with assigning tasks, grouping tasks into
departments, and allocating resources to departments.
Leading: The management function that involves the use of influence to motivate employees to
achieve the organization’s goals.
Controlling: The management function concerned with monitoring employees’ activities,
keeping the organization on track toward its goals, and making corrections as needed.

Summary
An organization is a consciously coordinated social entity, with a relatively identifiable boundary,
that functions on a relatively continuous basis to achieve a common goal or set of goals. Shared
vision is an initial force that brings people together in an organization. It inspires stakeholders
and serves as a life blood of an organization. Organizations have personalities which are called
organizational cultures. When an organization becomes institutionalized, it takes on a life of its
own, apart from its founders or any of its members. Organizational culture refers to a system of
shared meaning. An organizational structure defines how job tasks are formally divided, grouped,
and coordinated. Managers’ attitudes, and their ability to understand and shape the attitudes of
employees, can profoundly affect the workplace and influence employee motivation, morale, and
job performance.

The importance of understanding organizational behavior is very high in managing organizations.

Organizational behavior, commonly called OB, is an interdisciplinary field dedicated to the study
of human attitudes, behavior, and performance in organizations. An attitude is an evaluation—
either positive or negative—that predisposes a person to act in a certain way. Attitudes have three
components: cognitions (thoughts), affect (feelings), and behavior. Organizational commitment
refers to an employee’s loyalty to and engagement with the organization. Perception is the
cognitive process people use to make sense out of the environment by selecting, organizing, and
interpreting information from the environment. Organizational change is any alteration of
activities in an organization. The attainment of organizational goals in an effective and efficient
manner through planning, organizing, leading, and controlling organizational resources is
management.

29
 Checklist

Read each of the points below and tick whether or not you have understood it. If your answer
is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read again until
you have fully understood it.

Points Ye No
s

I can describe different ways of looking at organizations:

I can describe the key characteristics along which cultures differ.

I can identify the characteristics of good vision and differentiate vision

statements with goal and without goal

I can discuss the process of institutionalization of culture.

I can describe six key questions that managers need to answer in designing the
proper organizational structure

I can identify and define work specialization and departmentalization.

I can explain what organizational behavior (OB) , organizational citizenship are

I can explain the behavioral challenges in organizational management

I can discuss about attitudes and its components

I can solve various problems related with organizational change.

I can explain about Job satisfaction, and organizational commitment

I can describe about perception

I can discuss about a framework for change and phases for planned change

I can explain about the management functions, managerial roles, management

skills, managers and levels of management, and managerial performance

30
 Self-Assessment Questions-Unit One
I. Matching

I. Matching
Direction: Match the items listed under column “B” with items listed under
column “A”.

No A B
.
1 Open systems A Organizations are composed of internal constituencies that seek
control over the decision process in order to enhance their position.
2 Political systems B On what basis will jobs be grouped together?
3 Departmentalization C Organizations are input-output transformation systems that
depend on their environment for survival.
4 Organizational Behavior D To whom do individuals and groups report?
5 Chain of Command E An interdisciplinary field dedicated to the study of human
attitudes, behavior, and performance in organizations.

II. True or False Items

1. The interaction patterns that people follow in an organization are not planned, just emerge.
2. People in an organization have some continuing bond.
3. Vision is a concise statement that defines the mid–to long–term goals of the organization.
4. Organizations have personalities like individuals.
5. The affective component of an attitude includes the beliefs, opinions, and information the
person has about the object.

III. Short Answer

1. List the phases of planned change.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________

2. Managerial performance is measured in ________________ and __________________

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Unit Two: Leadership

Introduction
Dear student! Welcome to the second unit of the course. In this unit, you will study different
models and theories of leadership, leadership and power, leadership styles and framework and
practices of leadership. In the unit, you will learn about trait, behavioral, contingency, and
transformational and transactional leadership approaches. In addition, you will do the self
assessment tests, activities and practice by the checklists to better understand about the concepts
discussed in the module.

Objectives
After studying this unit, you will be able to:

 define leadership, and discuss the theories and models of leadership.

 discuss the four framework approach of leadership.
 list five practices of top leaders and the three Cs of leadership.
 explain different styles of leadership
 discuss leadership and power, and explain about positional and personal power.

Contents of the Unit

2.1 Leadership Models and theories
2.2 The four framework approach
2.3 Five practices of top leaders
2.4 The three Cs of leadership
2.5 Leadership and power
2.6 Leadership styles
Summary

Checklist

Self-Assessment Questions

Introduction to Leadership
No topic is probably more important to organizational success today than leadership. Leadership
matters. In most situations, a team, military unit, or volunteer organization is only as good as its
leader. The concept of leadership continues to evolve as the needs of organizations change.

32
Among all the ideas and writings about leadership, three aspects stand out—people, influence,
and goals. Leadership occurs among people, involves the use of influence, and is used to attain
goals. Influence means that the relationship among people is not passive. Moreover, influence is
designed to achieve some end or goal. Thus, leadership as defined here is the ability to influence
people toward the attainment of goals. This definition captures the idea that leaders are involved
with other people in the achievement of goals. Leadership is reciprocal, occurring among people.
Leadership is a “people” activity, distinct from administrative paper shuffling or problem-solving
activities. Leadership is dynamic and involves the use of power to influence people and get things
done. Role models for leadership can come from wide and varied sources, as shown in the
Spotlight on Skills.

2.1. Leadership Models and theories

Leadership models help us to understand what makes leaders act the way they do. The ideal is not
to lock you into a type of behavior discussed in the model, but to realize that every situation calls
for a different approach or behavior to be taken. Two models will be discussed, the Four
Framework Approach and the Managerial Grid.

Trait Theory of Leadership

Please, think again of some five people whom you would consider to be examples of outstanding
leaders? Write down their names and look for particular personal traits and characteristics,
which all these leaders have? The people you could have identified may include, Martin Luther
king, Adolph Hitler, Mahatma Gandhi, Napoleon Bonaparte, Nelson Mandela, Winston
Churchill, Abraham Lincoln, etc. Then, what can you conclude about the characteristics of these
leaders? Leadership is a process of influencing an organized group towards accomplishing its
goals.” Given this definition, one basic question that leadership researchers have tried to answer
over the past 100 years is whether certain personality attributes or characteristics help or hinder
the leadership process. In other words, does athletic ability, height, personality, intelligence, or
creativity, help a leader to influence a group?

Put in the context of those five or more leaders that you have listed above, are they smarter, more
creative, more ambitious, or more outgoing than their less successful counterparts? Do those
three or more leaders act in fundamentally different ways than their followers, and are these
difference in behavior due to differences in their innate intelligence ,certain personality traits, or
creative ability ? If so, then could these some characteristics also be used to differentiate
successful from unsuccessful leaders, executive from first line supervisors, or leaders from
individual contributors? Thus, it was such types of questions that led to what was perhaps the
trait approach of leadership. Trait theory of leadership attempts to identify the traits that leaders
possess. The conclusion of this theory seems to be that leaders were bigger and brighter than
those being led, but the actual is not too much so. The studies that attempt to identify these traits
have produced a lengthy list, which are grouped into six categories:

1. Physical characteristics – age, height, energy, appearance, and weight.

33
2. Background characteristics – education, social class or status, mobility, experience.
3. Intelligence – ability, judgment, knowledge.
4. Personality – aggressiveness, alertness, dominance, decisiveness, enthusiasm, extroversion,
independence, self-confidence, authoritarianism.
5. Task-related characteristics–achievement need, responsibility, initiative, and persistence.
6. Social characteristics–supervisory ability, cooperativeness, popularity, prestige, tact,
diplomacy.
One stream of research has identified several key competencies that are related to leadership
effectiveness. Seven traits (competencies) associated with leadership are mentioned here under:
1. Drive: the inner motivation to pursue goals
2. Leadership motivation: is the use of socialized power to influence others to succeed.
Effective leaders try to gain power so that they can influence others to accomplish goals
that benefit the team or organization
3. Integrity: includes truthfulness, reliability & the will to translate words into deeds
4. Self-confidence, that leads others to feel confidence, usually exhibited through various
forms of impression management directed at employees
5. Intelligence: is usually focused in the ability to process information, analyze alternatives,
and discover opportunities
6. Knowledge of the business, so that ideas that are generated help the company to survive
and thrive
7. Emotional intelligence, based on self-monitoring personality, making quality leaders
strong in situation sensitivity, and the ability to adapt to circumstances as needed. People
with high EI monitor their own and others’ emotions, discriminate among them, and use
the information to guide their thoughts and actions.

Early in the century, leaders were generally regarded as superior individuals who, because of
fortunate/lucky inheritance or social circumstance/conditions, possessed qualities and abilities
that differentiated them from other people in general. Trait approach is mainly interested in
identifying traits or qualities that leaders should possess. Trait approach to leadership based on
two assumptions, namely that:

a) all human beings can be divided into two groups leaders and followers, and

b) Leaders possess certain qualities that followers do not.

The research has been evidenced that, until the 1950s investigations to find the traits that
determine who will be leaders dominated the study of leadership. Research attempted to isolate
unique traits or characteristics of leaders that differentiated them from their followers. Frequent
studies were looked at whether certain personality traits, physical attributes, intelligence, or
personal values differentiated leaders from followers. Although, the trait researches have
examined various leadership factors, all of which were thought to predict successful leadership,
over time, recognition grew that traits can generally be affected by inheritance, learning and
environment. Among a number of the early trait approach, Stogdill(1948 ) was the first leadership

34
researcher to summarize the result of the studies and come with some conclusions. He classified
the personal factors associated with leadership in to the following five categories:

 Capacity-intelligence, alertness, verbal facility/ability, originality/innovation, judgment

 Achievement–Scholarship/learning , knowledge, athletic accomplishments
 Responsibility–Dependability, initiatives, persistence, aggressiveness, self-confidence,
desire to excel
 Participation- activity, sociability, cooperation, adaptability, humor/comedy
 Status-socioeconomic positions, popularity
Although he found that these traits are consistently differentiated leaders from non-leaders, he
concluded that the trait approach by itself had yielded negligible and confusing results. He
asserted that a person does not become a leader by virtue of the possession of some combination
of traits because the impact of traits varies widely from situation to situations. As a consequence,
he added the six factors associated with leadership-situational components. The studies on the
trait approach to leadership have not proved fruitful due to various reasons: leaders do not always
possess the same personal characteristics, they do not specify how much of each trait a leader
should have and there is no uniformity of identified traits for a leader (Koontz,2006).

Notwithstanding the lack of success in identifying general leadership traits, research persisted.
More recent trait studies, however, use a wider variety of improved measurement procedures,
including projective tests and assessment centers, and they emphasis on selection focused traits
research than on the comparison leaders and non-leaders. This distinction is a significant one.
Predicting who will become leaders and predicting who will be the more effective are quite
different tasks. Trait studies continue, but they now tend to explore the relationship between traits
and leadership effectiveness of administrators in particular types of organization and settings.
The more recent studies have reached the conclusion that traits do matter and that certain traits in
combination with various factors contribute to leader’s effectiveness.

The answer is an extended list of trait that “would -be” leaders might hope to possess or wish to
cultivate if they want to be perceived by others as leaders. Regarding this, Northouse (1997) has
identified some of the traits that are central to this list including: Intelligence, Self-confidence,
Determination, Integrity, and Sociability. Perhaps, the most viable classification of the traits and
skills variables, are that currently associated with effective leadership is that of Durbin and
Ireland (1993) which grouped such leadership qualities under three categories: cognitive skill,
personality traits and relationships with subordinates.

Cognitive Skills: The underlying assumption is that Effective leaders should have cognitive
skills, or mental abilities and knowledge. Here three cognitive skills are identified: Problem
Solving Ability, Insight into People and Situation, and Technical and Professional Competence

35
ii. Personal Traits and Characteristics: Personality traits are relatively stable dispositions in
particular ways. Personal traits and characteristics have an important influence on leadership,
although they are difficult to measure. Traits and characteristics vary with the situation. For
example, warmth may be more important for an accountant than for mechanic. The list of
personality factors associated with effective leadership is quite long. The following seem
particularly important: Self-Confidence, Need for Achievement, Sense of Humor/comedy,
Enthusiasm, and Assertiveness/boldness.

iii. Relationship with Subordinates: Some traits possessed by leaders are closely linked to
behavior involving relationships with staff members. Some of the important traits are:
Interpersonal Skills,-Leading by Example, Sensitivity/compassion and tact/diplomacy,
Supportiveness, and Maintaining High Expectations. Therefore, you can undertake self-
evaluation against the trait views, so compare your personal traits with these outlined for effective
leaders.

The Strengths and Weaknesses of Trait Approach

This is to present some major contributions of trait approach to the development of view of
leadership. Thus, although, several major studies questioning and challenging the trait approach,
it contributes a lot or several advantages to viewing leadership. Some of the major contributions
are:

a) It is intuitively appealing because it fits clearly into the popular idea that leaders are special
people who are “out front” leading the way in society
b) There is a great deal of research that validates the basis of this perspective
c) By focusing exclusively on the leader, the trait approach provides an in-depth understanding
of the leader’s component in the leadership process and
d) It has provided some benchmarks against which individuals can evaluate their own personal
leadership attributes.
On the negative side, or as a weakness:

a) The trait approach has failed to delimit a definitive list of leadership traits. In analyzing the
traits of leaders the approach has failed to take into account the impact of the situations
b) The trait approach has not adequately linked the traits of leaders with other outcomes such as
group and team performance ,and
c) This approach is not particularly useful for training and development because individuals”
personal attributes are relatively stable and fixed and therefore their traits are not amenable to
change.

To sum up, the trait approach has its roots in leadership theory that suggested that certain people
were born with special traits that made them “great” leaders, because it was believed that leaders
and non-leaders could be differentiated by a universal set of traits, throughout the century
researchers have been challenged to identify the definitive traits of leaders. Around the middle
of the century, several major studies questioned the basic premise that a unique set of traits

36
defined leadership as a result attention shifted to incorporating the impact of situations and
followers on leadership. Researchers began to study the interactions that occur between leaders
and their contact instead of focusing only on leaders’ traits. More recently there are signs that trait
research has come full circle, because there is are renewed interest in focusing directly on the
critical traits of leaders.

From the multitude of studies that have been conducted through the years on individuals’
personal characteristics. It is clear that many traits contribute to leadership some of the important
traits that are consistently identified in many of these studies are intelligence, self-confidence,
determination, integrity, and sociability. These traits, more than many of the others, are
characteristic of the people we call leaders. On a practical level the trait approach is concerned
with which traits leaders exhibit and who has these traits. Organizations employ personality
assessment instruments to identify how individual will fit within their organizations. The trait
approach is also used for personal awareness and development, as it allows managers to analyze
their strengths and weaknesses and to gain a clearer understanding of how they should try to
change to enhance their leadership. Hence, we can conclude that of interest to scholars
throughout the 20th century, the trait research was one of the first systematic attempts to study
leadership. The trait approach is alive and well. It began with an emphasis on identifying the
qualities of great person; next, it shifted to include the impact of situations on leadership; and
most currently, it has shifted back to reemphasis the critical role of trait in effective leadership.
Thus, whether you are prospective or practicing administrator, it is fundamentally important to
know your strengthen and weaknesses, to learn new skills and continue developing old ones, to
enhance deficiencies, and to compensate for weakness.

Activity I

What are the major contributions of the trait approach to the study of leadership?

__________________________________________________________________________
__________________________________________________________________________

Behavioral Theories of Leadership

In text question
1 Did you feel that because leaders differ in appearance and personality/trait, are similar in
their behavior? Or Are certain ways of behaving as a leader more effective than others?
______________________________________________________________________________________
_____________________________________________________________________________

The results of the trait studies were inconclusive. Traits, amongst other things, were hard to
measure. How, for example, do we measure traits such as honesty, integrity, loyalty, or
diligence? So, the kinds of questions that led researchers to begin the study of behavior approach
are found the failure of trait approach to identify a universal set of leadership trait i.e. another
approach in the study of leadership had to be found. These theories are called behavioral theories.

37
They concentrate on what leaders actually do rather than on their qualities. Different patterns of
behavior are observed and categorized as 'styles of leadership'. This area has probably attracted
most attention from practicing managers.

Focus of Behavior approach: It looks at what a leader does, rather than who he/she is (concern
of trait approach). Here one line of research is focused on what leaders actually do on the job,
which relates to the content of managerial activities, roles, and responsibilities. Emphasized on
how managers spend their time and the typical pattern of activities, responsibilities, and function
for managerial jobs. Trait approach emphasizes the personality characteristics of the leader.
While the behavior approach emphasized the behavior of leaders and how it might contribute to
leadership success or failure. It says that anyone who adopts the appropriate behavior can be a
good leader. In Trait approach leadership is conceptualized in terms of traits that someone
‘has’), While in behavior approach leadership is conceptualization as a form of activity’.
Moreover, the behavior approach focuses exclusively on what leaders do and how they act. Also
in behavior approach the leadership study is expanded to include the action of leaders toward
subordinates in various contexts. According to the behavior approach leadership is comprised
of essentially two general kinds of behaviors: task behaviors and relationship behaviors. Task
behaviors facilitate goal accomplishment: they help group members to achieve their objectives.
Relationship behaviors help subordinates feel comfortable with themselves, with each other, and
with the situation in which they find themselves.

Activity II. What is the central purpose of behavioral approach?__________________________

The Central Purpose/idea of behavioral approach is to explain how leaders combine these two
kinds of behaviors to influence subordinates in their efforts to reach a goal. Different Studies that
have been conducted in Behavioral Approach: The first studies were conducted at Ohio State
University in the late 1940s (analyze how individuals acted when they were leading a group or
organization). Another group of researchers were from a University of Michigan (that explored
how leadership functioned in small groups). Blake and mouton in the early 1960s (explored how
managers used task and relationship behaviors in the organizational setting). Although there are
many research studies that could be categorize under the heading of the behavior approach the ff
studies are strongly representative of the ideas in this approach, or can serve our purpose.

The Ohio State Studies: It begins due to the failure of trait approach (due to the fact that
personality traits appeared fruitless. The focus of researchers was to analyze how individuals
acted when they were leading a group or organization (By distributing question to
subordinate) .i.e. what they developed were Leaders Behavior Description Questionnaire.
Although leadership is defined as the behavior of an individual when directing the activities of
group toward goal attainment, they eventually narrowed the description of leader behavior in
to two dimensions: initiating structure and consideration.
a) Initiating structure behaviors: It refers to the task behaviors, organizing work, giving
structure/arrangement/organizing to the work context, defining role, responsibilities and
scheduling work activates.

38
b) Consideration behaviors: It refers to the relationship behaviors and including camaraderie
respect/friendship/solidarity, trust and liking between leaders and followers.

Behavioural Theories assume that leaders have behaviours that may encourage or discourage
their followers. They classify leaders' behaviours into task oriented and relationship (people)
oriented. And effective leader bears both behaviours.
Ohio State Studies and Blake Mouton's Managerial
Grid are among the behavioural theories to be cited.
These theories magnify the role of leaders' behaviours
in leadership effectiveness.

Ohio State Studies: This is a two dimension

leadership theory: initiating structure and consideration.
Consideration is the extent to which leaders are likely
to have job relationships characterized by mutual trust,
two-way communication, respect for subordinates’
ideas, and consideration for their feelings. Leaders who
are high with this dimension help the group members
with personal problems, are friendly and approachable,
and threat all group members as equals and shows concern to creating comfort, wellbeing, status
and satisfaction to the followers. They typically find time to listen to subordinates, are willing to
make changes, look out for the personal welfare of subordinates and are friendly and
approachable. A high degree of consideration indicates psychological closeness between leader
and subordinate; a low degree indicates greater psychological distance and a more impersonal
leader.

Initiating structure is the extent to which leaders are likely to define and structure their roles
and those of subordinates in search for accomplishing the group’s goals. Leaders with this style
emphasize direction of group activities through planning, communicating information,
scheduling, assigning tasks, emphasizing deadlines, and giving directions. They maintain definite
standards of performance and ask subordinates to follow standard rules and regulations. Leaders
with a high degree of initiating structure concern themselves with accomplishing tasks by giving
directions and expecting them to be followed. Leaders high in both initiating structure and
consideration (a "high-high" leader) tended to achieve high employee performance and
satisfaction more frequently than those who rated low on either consideration or initiating
structure, or both. However, the "high-high" style did not always result in positive consequences.
For example, leader behavior characterized as high on initiating structure led to greater rates of
grievances, absenteeism, and turnover & lower levels of job satisfaction for workers performing
routine tasks. To sum up, according to this approach, these two behaviors (initiating and
consideration behavior) are central to what leaders do: i.e. leaders provide structure for
subordinates, and they nurture them. These studies viewed these two behaviors as distinct and
independent. They were not thought of as two points along a single continuum, but as two

39
different continua. E.g. A leader could be high in setting structure and low or high in
consideration behavior. Also Quadrants were developed to show various combinations of
initiating structure and consideration (see Figure above).

The University of Michigan Studies: Here in exploring leadership behavior, they gave special
attention to the impact of leaders’ behaviors on the performance of small groups. Also the
research has identified two types of leadership behaviors: employee orientation and Production
orientation.
Employee orientation: It describes the behaviors of leaders who approach subordinates with a
strong human relation emphasis. Such leaders take an interest in workers as human beings, value
their individuality, and give special attention to their personal needs. Employee’s orientation is
very similar to the cluster of behaviors identified in the Ohio State University (OSU) studies as
consideration.
Production orientation: This stresses the technical and production aspects of a job. Here
workers are viewed as a means for getting work accomplished. Production orientation parallels
the initiating structure cluster found in the Ohio state studies (OSU). Unlike the OSU
researchers, the Michigan researchers, in their initial studies, conceptualized employee and
production orientations as opposite ends of a single continuum? As more studies were completed,
however, the researchers re-conceptualized the two constructs, similar to the Ohio state studies,
as two behaviors were treated as indecent/offensive/distinguishing orientations, leaders were see
as being able to be oriented to both production and employees at the same time. In general,
although, a multitude of studies conducted by both Ohio State and the University of Michigan,
in essence, the researchers were looking from a universal theory of leadership that would explain
leadership effectiveness in every situation. The results that emerged from this large body of
literature were found contradictory and unclear.

a) The Managerial Grid Model (Blake and Mouton Theories)

This theory states that a leadership style has two concerns: production and people. As shown on
Figure below, the concern for production is plotted on the horizontal axis of the grid and the
concern for people is plotted on the vertical. Each leader, according to this model, can be rated
somewhere along each of the axes from 1 to 9 depending on her/his orientation. The major
combination of the concerns is discussed here under. LG/MG is most well-known model of
managerial behaviors. It appeared first in the early 1960s and since that time it has been refined
and revised several times. It is a model that has been used extensively in organizational training
and development. The managerial Grid/leadership grid was designed to explain how leaders
help organizations to reach their purposes through two factors: Concern for production and
relationship leadership behaviors.

Concern for Production: It refers to how a leader is concerned with achieving organization tasks.
It involves a wide range of actives: attention to policy decisions, new product development
process issues, workload and sales volume, and so on. Not limited to things, it can refer to
whatever the organization is seeking to accomplish.

40
Concern for People: It refers to how a leader attends to the people within the organization who
are trying to achieve its goals. It includes building organization commitment and trust, promoting
the personal worth of employees, providing good working conditions, maintaining a fair salary
structure, and promoting good social relations. The leadership (managerial) grid joins concern
for production and concern for people in a model that has two intersecting axes as indicated
in the figure below (see Fig. Below). The horizontal axis represents the leader’s concern for
production and the vertical axis represents the leader’s concern for people. Each of the axes is
drawn as a 9- point scale on which a score of 1 represents minimum concern and 9 represents
maximum concern.

Figure: The Managerial Grid

(9, 1) Task management (Authority Compliance): - If a leader is primarily concerned with

production and shows little concern for people, he or she would be a 9, 1 leader (9 in production
concern and 1 in people concern). The 9, 1 leader is one who structures the work, delegates as
little as possible, and usually is an autocrat in getting work accomplished. This style is called task
management. This style of leadership places heavy emphasis on task and job requirements, and
less emphasis on people, except to the extent that people are tools for getting the job done i.e.
Communicating with subordinates is not emphasized except for the purpose of giving
instruction about the task. This style is results-driven, and people are regarded as tools to that

41
end. Also leader is often seen as controlling, demanding/serious, hard-driving, and
overpowering.
(1, 9) Country club management: - Conversely, if a leader shows primary concern for people
and little concern for production, he or she would be a 1, 9 leader. The 1, 9 leader is supportive
and somewhat permissive, emphasizing the need to keep employees happy and satisfied. Leaders
of this type tend to avoid pressure in getting the work done. It represents low concern for task
accomplishment coupled with a high concern for interpersonal relationships. Deemphasizing
production, here leaders stress the attitudes and feeling of people, making sure the personal and
social needs of followers are met. They try to create a positive climate by being agreeable, eager
to help, comforting, and uncontroversial.
(5, 5) Middle-of-the-road management: - Such leader represents a middle-of-the-road
management style by placing some emphasis on production and some emphasis on people.
Usually the unstated agreement in this style is: "If you give me reasonable production, I will be
reasonable in my demands on you." It describes leaders who are compromisers, have an
intermediate concern for the task and intermediate concern for the people. Their compromising
style givens up some of the push for production as well as some of the attention to employee
needs. To arrive at equilibrium, such leader avoids conflict and emphasizes moderate levels of
production and interpersonal relationships. This type of leader is often described as one who is
expedient/measure, prefers the middle group, soft–pedals disagreement, and swallows/down
convictions/confidence in the interest of “progress”
(1, 1) Impoverished management: The 1, 1 leader reflects the poorest of all styles on the grid
which is called impoverished management. This type of leader has completely abdicated the
leadership role. Leaders following this style are on-job-retired leaders. It represents a leader who
is unconcerned with both the task and interpersonal relationships. He acts uninvolved and
withdrawn. Such leaders often have little contact with followers and could be described as
indifferent/irresponsive, noncommittal/, resigned, and apathetic/uninterested.
(9, 9) Team management: The (9, 9) leader believes that the heart of work direction lies in
mutual understanding and agreement about what organizational and unit objectives are, and the
means of attaining them. This type of leader has a high concern for both people and production
and uses a participative approach called team management in getting the work done. The theory
ignores the possibility that best leadership style may depend on the situation. It places a strong
emphasis on both tasks and interpersonal relationships. It promotes a high degree of participation
and teamwork in the organization, and satisfies a basic need in employees to be involved and
committed to their work.
Some of the phrases that could be used to describe such styles of leader are: stimulates
participation, acts determined, gets issues into the open, makes priorities clear, follows through,
behaves open-mindedly, and enjoys working. In addition to the 5 styles stated above, Blake and
his colleagues have identified two other styles that incorporate multiple aspects of the grid:
Paternalism /Materialism and opportunism.

42
a) Paternalism /Materialism: It refers to a leader who uses both 1,9 and 9,1 styles but does not
integrate the two. This is the “benevolent/caring dictator” who acts
gracious/pleasant/cordial but does so for the purpose of goal accomplishment. In essence
this style treats people as if they were disassociated with the task.
b) Opportunism: It refers to a leader who uses any combination of the basic five styles from
the purpose of personal advancement. As Blake and mouton (1985such person usually has a
dominant grid style, which he or she uses in most situations, and a backup style. The backup
style is what leader reverts to when under pressure, when the usual way of accomplishing
things does not work.
To sum up, the leadership grid is an example of a practical model of leadership that is based on
the two major leadership behaviors: task and relationship. It closely parallels to the ideas and
findings that emerged in the OSU and UM studies. It is used in consulting for organizational
development throughout the world.

Strengths and Weakness of the behavior Approach

Some of the positive contributions are: It broadened the scope of leadership research to include
the concern for behaviors of leaders and what they do in various situations. Its doctrine has
validated and given creditability by wide range of studies. On a conceptual level, researchers
from the behavior approach have ascertained/established that a leader’s style is composed of
primarily two major types of behaviors: task and relationship occurs, the leader is acting out both
task and relationship behaviors; and the key to being an effective leader often rests on how the
leader balances these two behaviors. The style approach is heuristic. It provides us with a broad
conceptual map that is worthwhile to use in our attempts to understand the complexities of
leadership. Also based on this approach, leaders can assess their action and determine how they
may wish to change to improve their leadership style.
Some of its limitations/weaknesses are: The research on behavior approach has not adequately
shown leaders’ styles are associated with performance outcomes. Another criticism is that this
approach has failed to find a universal style of leadership that could be effective in almost every
situation, and a last criticism is that the behavior approach research has implied that the most
effective leadership style is the high-high style (i.e. high task and high relationship). However,
certain situation may require different leadership styles; may be complicated and require high
task behavior, and other may be simple and require supportive behaviors.
Activity II: What are the major contributions/strengths of behavior approach, in particular to
understand the leadership process? __________________________________________________
Style Approach: Styles Based on the Use of Authority
The behavior approach focuses on decision making in the group or in group dynamics, while
styles approach focuses on how leaders use their authority. There are many dimensions to
leadership and many possible ways of describing leadership approaches , such as for example,
dictatorial, unitary, bureaucratic, benevolent, charismatic, consultative, participative, and

43
abdicator. The style of managerial leadership toward subordinate staff and the focus of power
can however be classified within a broad three fold heading. According style approach leaders are
seen as applying three basic styles namely: Autocratic, Democratic, and Laissez fair or free-rain
authority.

Authoritarian Leadership: Authoritarian (Autocratic) Style is where focus of the power is with
the manager, and all interactions within the group moves towards the manager. The manager
alone exercises decision making and authority to determine policy, procedures for achieving
goals, work tasks and relationships, control rewards and punishments. According to the view of
this style, leadership is characterized by very directive and does not allow participation in
decisions. They structured the complete work situation for their subordinates, and they took full
authority (assumed full responsibility from initiation to task completion).

Disadvantages of autocratic leadership: The knowledge, skills and experience of the staff cannot
be fully used, this leadership style suppresses staff members’ initiative, employees cannot
develop to their maximum potential, and absence of the leader may mean that important work is
not completed. Some other basic problem of this style is that staff is made aware of what to do,
but not why they should do it. It often results in: (1) Low staff morale, and (2) Staff following
leader directions to the letter/communication, while knowing that the directions are wrong.

Democratic Leaders: Democratic Style is where the focus of power is more with the group as a
whole and there is greater interaction within the group. The leadership functions are shared with
members of the group and the manager is more part of a team. The group members have a great
say in decision making, determination of policy, implementation of systems and procedures.
Leaders encourage group discussion and decision making and subordinates are informed about
condition affecting their jobs and encouraged to express their ideas and make suggestions.

Advantages of this style are: Staff involvement can improve staff morale (involvement in
planning, decision making and control, job satisfaction of staff maybe increased (because it
allows them wider responsibilities and making their work more interesting), the expert knowledge
and problem solving skills of members of staff can be utilized, allow setting reasonable goals:
because it involves the implementers during formulation.

Disadvantages are: decision making may be time consuming, disagreements can occur and staff
may not wish to become involved in a tug /pull of war, lack of positive and clear direction may
hinder the attainment of objectives and there might be some members of staff who are not
capable of working without close supervision.

Laissez-faire leadership: Laissez-faire (Genuine) Style) is where the manager observes that
members of the group are working well on their own. The manager consciously makes a decision
to pass the focuses of power to members, to allow them freedom of action “to do as they think
best” and not to interfere; but is steadily available if help is needed. The leader manager is
genuine in that he/she is not in a position to desert the subordinates by the time of troubled
decision making, rather interferes whenever assistance is needed from the subordinates. He/ she

44
always remain standby. Leaders give complete freedom to the group and left it up to subordinates
to make individual decisions on their own. Essentially, leaders provide no leadership. See (Table
1.3 ) below it shows a complete description of the three leadership styles. It summarizes typical
behaviors performed by leaders using the three different leadership styles in variety of
dimensions of leadership behavior.

Major advantages of the style:

1) Subordinates have complete freedom on their jobs

2) Staff morale can be high.
3) Managers save time which can be used for some other organizational purposes
4) Knowledge, skills and experience of staff fully used.

Disadvantages:

1. The manager may loose control

2. Objectives of the organization may not be achieved
3. The organization might lack order

Activity III: What advantages do you think a democratic leadership style might have?
_______________________________________________________________________

45
 BEHAVIOR AUTHORITARIAN DEMOCRATIC LAISSEZFAIRE

Policy determination exclusively by leader By group’s No policy

decision complete ,freedom for
group or individual
decision

Establishment of job exclusively by leader Leader suggests Up to individual

techniques and group chooses
activities

planning exclusively by leader Group receives No systematic planning

sufficient
information to
obtain perspective
needed to plan

Establishment of labor Dictated by leader Left to group Leader uninvolved

& job assignment decision

Evaluation Leader personal in praise Evaluation against No appraisal &

and criticism objective spontaneous/unstructure
standards d evaluation by other
group member

Table: 2.1 Summaries of Differences in Leader Behavior Style

In text question: Which approach do you think is better or more preferable? Why?
______________________________________________________________________________

As evidenced by various research studies, of the three styles of leadership, subordinate preferred
the democratic style as the best, which makes intuitive/sensitive sense. In fact this day the trend is
toward wider use of participatory management practices (because it is consistent with the
supportive and collegial modern organization). Subordinates preferred the laissez-faire leadership
style over the authoritarian one .For subordinates; even chaos/disorder is preferable to rigidity.
Authoritarian leaders elicited either aggressive or apathetic behavior that deemed to by reactions
to the frustration caused by the authoritarian leader. Apathetic behavior change to aggressive
behavior when the leadership style changed from authoritarian to laissez-faire, then the laissez-
faire leader produce the greatest amount of aggressive behavior. Productivity is slightly higher
under the authoritarian leader than under the democratic one, but it is lowest under the laissez-
faire leader.

The Contingency or Situational Theories of Leadership

Whilst behavioral theories may help managers develop particular leadership behaviors they give

46
little guidance as to what constitutes effective leadership in different situations. Indeed, most
researchers today conclude that no one leadership style is right for every manager under all
circumstances. Instead, contingency-situational theories were developed to indicate that the style
to be used is contingent upon such factors as the situation, the people, the task, the organization,
and other environmental variables. The major theories contributing towards this school of thought
are described below.

Situation: All the earlier approaches have seen that aspects of the situations determine the role
requirements for leaders. But those entire attempts were only an indirect approach for discovering
what type of leadership is optimal in a given situation. For instance the comparative
research/style approaches on the way managerial/leaders behavior varies across situations
provides some useful insights, but it is only an indirect. Therefore, a more direct approach is to
determine how leader behaviors are related to indicators of leadership effectiveness in different
situations (which is the characteristic of contingency/situational approaches). According to the
view of contingency theory, aspects of the situation that enhances or invalidates the effect of a
leader’s behavior are called “situational moderator variables” and those theories that explain
leadership effectiveness in terms of situational moderator variables are called “contingency
theories” of leadership. This type of theory is most useful when it includes intervening variables
to explain why the effect of behavior on outcomes varies across situation. The base or what
motivated the researchers or that led researchers in new directions (initiate contingency) was the
failure of behavior approach to find universal traits or behaviors that would always determine
effective leadership.

Focus: Although leader behavior is still examined, the central focus of this new research was
towards the situation in which leadership occurred.

Assumptions: The basic tenet/beliefs/ principles of this approach are that leadership behavior
effective in some circumstances might be ineffective under different conditions, i.e. effectiveness
of the leader behavior is contingent up on organizational situations.

Classification of Contingency Approaches/Researches: There are several models of contingency

leadership approaches that can represent this approach. To suite some: Fiedler’s
Contingency/situational model, House-Mitchell Path Goal theory, Tannebaum-Schmidt
Continuum of leadership behavior, Veroom-Yetten Contingency Model.

a) Fiedler’s contingency leadership model (LPC–Least Preferred Co-workers

Contingency Model)

Contingency means that 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 conditions in the
situations. The assumption is that a leadership style that works in one situation might not work in
another situation, or there is no one best way of leadership. Contingency means also “it depends”.
Basically the focus of this model was to describe how the situation moderates the relationship
between leadership effectiveness and a trait/behavior measures called the “least Preferred

47
Coworker (LPC) score” i.e. it was an attempt to match leaders to appropriate situations. It
suggests that a leader’s effectiveness depends on how well the leader’s style fits the context.
According to this approach, to understand the performance of leaders it is essential to understand
the situations in which they lead. Effective leadership is contingent on matching a leader’s style
to the right setting.

The contingency model of leadership effectiveness was developed by Fiedler and postulates that
the performance of groups is dependent on the interaction between leadership style and
situational favorableness. The contingency model proposes that effective group performance
depended on the proper match between the leader’s style of interacting with his followers and the
degree to which the situation allowed the leader to control and influence. Fielder proposes three
factors, which determine how favorable the leadership environment is, or the degree of situational
favorableness.

1. Leader-member relations: the degree of confidence, trust, and respect the followers have
in their leader. This is the most important factor.
2. Task structure: the extent to which the tasks the followers are engaged in are structured.
3. Position power: the power inherent in the leadership position. It is the degree of influence
a leader has over power variables such as hiring, firing, discipline, promotions, and salary
increases. Generally, greater authority equals greater position power.

The best (high) the three factors are, the best the situation will be to the leader. That is, if the
leader is generally accepted and respected by the followers, if the task is very structured and
everything is spelled out, and if great deal of authority and power are attributed to the leader’s
position the situation is favorable to the leader. Good leader-member relations, high task
structure, and strong position power constitute the most favorable situation. Fiedler has
developed contingency theory by studying the styles of many different leaders who worked in
different contexts. He assessed leader’s styles-traits or behavior, the situations in which they
worked/ moderating variables, and leaders effectiveness-whether or not leaders were effective.

Finally after analyzing the styles of hundreds of leaders which were both good and bad,
Fiedler’s and his colleagues were able to make empirically grounded generations about which
styles of the leadership were best and which styles were worst for a given organizational
context . To sum up, Fiedler’s situational contingency model was concerned with styles-traits or
behaviors & situations/environments-moderating situational variables and leadership
effectiveness. It provides the framework for effectively matching the leaders traits/behavior
&situation. In short Least Preferred Co-Worker Theory /Fiedlers Contingency models have
constructed the first major theory to propose specific contingency relationships in the study of
leadership. Lacking a behavior component, the least preferred co-workers /Fiedlers models
uses/based on: leaders style as a trait, three indicators of situational control/moderating
situational variables, and effectiveness

48
Effectiveness:

In the LPC theory is straight forward –namely, the extent to which the group accomplishes its
primary tasks. Objective measures are used to measure group effectiveness which include: net
profit, cost per unit, percentages of wins, number of problems solved and so forth. But in all cases
leaders’ effectiveness is determined by the degree to which the task is judged to be achieved.
Finally in his examination, Fiedler has concluded that:

Task-oriented leaders tend to perform best in group situations that are either very
favorable/high control situation or very unfavorable/low control situations to the leader. That
means they perform best in situations of high and low control, while relationship-oriented
leaders perform best in moderate control situations. Relationship-oriented leaders tend to
perform best in situations that are intermediate in favorableness/control situations. There are
only two ways in which to improve leader effectiveness. First, you can change the leader to fit the
situation. Second alternative would be to change the situation to fit the leader. Based in
expectancy motivation theory ,the model’s core assumption is that followers will be motivated if
they are capable of doing the work, that their effort will produce desired outcomes ,and that the
rewards for doing the work will be worthwhile. In conclusion in this his single continuum of
leaders behavior, may be suggesting that there are only two basic leadership behavior styles,
task oriented and relationship oriented. Most evidence indicates that leader behavior must be
plotted on two separate axes rather than on a single continuum. Thus, a leader who is high on
task behavior is not necessarily high or low on relationship behavior. Any combination of the
two dimensions may occur.

49
b) Hersey-Blanchard: Situational Leadership Theory (SLT)

The Hersey-Blanchard Leadership Model also takes a situational perspective of leadership. This
model posits that the developmental levels of a leader's subordinates play the greatest role in
determining which leadership styles (leader behaviors) are most appropriate. Their theory is
based on the amount of direction (task behavior) and socio-emotional support (relationship
behavior) a leader must provide given the situation and the "level of maturity" of the followers.

Task behavior is the extent to which the leader engages in spelling out the duties and
responsibilities to an individual or group. This behavior includes telling people what to do, how
to do it, when to do it, where to do it, and who's to do it. In task behavior the leader engages in
one-way communication. Relationship behavior is the extent to which the leader engages in
two-way or multi-way communications. This includes listening, facilitating, and supportive
behaviors. In relationship behavior the leader engages in two-way communication by providing
socio-emotional support. Maturity (readiness) is the willingness and ability of a person to take
responsibility for directing his or her own behavior. People tend to have varying degrees of
maturity, depending on the specific task, function, or objective that a leader is attempting to
accomplish through their efforts. Task behavior and relationship behavior are separate and
distinct dimensions. They can be placed on separate axes of a two dimensional graph, and the
four quadrants can be used to identify four basic leadership styles. The fallowing descriptions
apply to the four styles. Style-1/S1/. This leadership style is characterized by above average
amounts of task behavior and below- average amounts of relationship behavior. Style-2-/S2/.
This leadership style is characterized by above average amounts of both task and relationship
behavior. Style-3/S3/. This style is characterized by above average amounts of relationship
behavior and below average amounts of task behavior. Style-4/S4/. This style is characterized by
below-average amounts of both relationship behavior and task behavior.

The Four Leadership style and Effective Leader Behavior


 High relationship High task and High
 relationship S2
and low task S3
(Providing supportive


Low relationship High task low


behavior)

and low task S4 relationship S1


 (Low) TASK BEHAVIOR (High)
(Providing guidance)

50
 i. Leadership Style:
Leader’s style is used as trait. It is determined by the motivational system of the leaders, that is,
the underlying needs structure that motivates behavior in various interpersonal situations. The
LPC scale is used to measure this trait. Using, the LPC, respondent selects the person with whom
he/she works least well(least preferred co-worker) and then describes that individual on the scale.
A person scoring high on the LPC describes the least preferred co-workers positively as being
pleasant, loyal, warm, kind, efficient, and so forth. In contrast, the individual scoring low on the
PLC describes the least preferred co-workers negatively as being unpleasant, backbiting, cold,
unkind, inefficient, and so forth. Therefore, the LPC score indicates the extent to which the
individual sets a high priority or value on task accomplishment (task-motivated) or on
maintaining good interpersonal relations (relationship-motivated). In short the two basic
leadership styles are task-motivated, or relationship-motivated. The underlying assumption is that
Task-motivated leaders are concerned primarily with reaching a goal, or task accomplishment.
Whereas relationship-motivated leaders are concerned with developing close interpersonal
relations, or maintaining relationship. To measure leader’s styles, Fiedler developed the Least
Preferred Co-worker (LPC) scale. According to this theory leaders who score high on this scale
are described as positively relationship-motivated, and who score low on this scale negatively
described as unpleasant ,inefficient ---.

ii. Situational Control /Moderating situational Variables:

It refers to the degree of power and influence that leaders have to implement plans, decisions, and
actions strategies. Situational control/variables is determined by three factors, or three major
situational variables determine whether a given situation is favorable to leaders:
a) Leader-member relations: leader’s personal relations with the members of their groups.
Leader-member Relations: refer to the atmosphere and to the degree of confidence, loyalty, and
attraction that followers feel for their leader i.e. if group atmosphere is positive and subordinates
trust, like and get along with their leader, the leader-member relations are defined as good; on
other hand, if the atmosphere is unfriendly and friction exists within the group, the leader-
member relations defined as poor.

b) Task structure: the degree of structure in the task that their group has been assigned to
perform. Task structure: which is the second situational variable refers to the degree to which
the requirements of a task are clear and spelled out. Tasks that are completely structured tend to
give more control to the leader, whereas vague and unclear tasks lessen the leader’s control and
influence. A task is considered structured when the requirements of the task are clearly stated and
known by the individuals required to perform them, the path to accomplishing the task has few
alternatives, the completion of the task can be clearly demonstrated, and only a limited number of
correct solutions to the task exist.

c) Position power: the power and authority that their positions provide, or it is the third
characteristic of situations, refers to the amount of authority a leader has to reward or to punish
followers. It includes the legitimate power individuals acquire as result of they hold in
organization. Position power is strong if an individual has the authority to hire and or give raises

51
 in rank or pay; it is weak if a leader does not have the right to do these things. as Fiedlers has
defined :

Favorableness of a Situation is “the degree to which the situation enables the leader to exert
influence over the group”. The most favorable situation for the leaders to influence their groups
is one in which they are well liked by the members (good leader-member relations),have a
powerful position(strong position power),and are directing a well-defined job(high task
structure);for example ,a well –liked general making an inspection in any army camp. On the
other hand, the most unfavorable situations for the leaders is one in which they are disliked,
have little position power, and face an unstructured task–such as an unpopular head of a
voluntary hospital fund-raising committee. Because, running a fund-raiser would not have any
clear set of rules to follow; there would be many alternative ways of doing it, one could not verify
the correctness of the way you did it; and no single best way exists to do the fund-raising.

Figure : Leadership styles Fiedler concluded are appropriate for various group situations.

Task-oriented style Relationships-oriented Task-oriented style

considerate style

Favorable leadership situation Situation intermediate in favorableness for leader

unfavorable leadership situation

To sum up, according to this theory, together, these three situational factors determine the
“favorableness “of various situations in organizations. Situations that are rated “most favorable”
are those having good leader-follower relations. Situations that are “least favorable” have poor
leader-follower relations, unstructured tasks, and weak leader position power.

Selecting Appropriate Style

Style Style 4(S4): LR/LT Style 3 (S3): HR/LT Style 2(S2): HR/HT Style1(S1) HT/LR

52
 - Delegating tasks - Encourage input - Providing who, - Providing who,
- Big picture - Actively listen what, when, what, when, where,
- Follower-made - Follower-made where, how and how and why
decisions decisions why - Explain decision
- Relatively light - Two-way - Explain decision and allow
supervision communications and allow opportunity for
Appropriate Leader Behaviors

- Monitor activities and involvement opportunity for clarification

- Reinforce results - Support risk-taking clarification - Tow-way dialogue
- Remain accessible - Compliment work - Tow-way - Leader-made
- Praise and build dialogue decision
confidence. - Leader-made - Explain follower’s
decision role
- Explain - Ask questions to
follower’s role clarify ability level
- Ask questions to - Reinforce small
clarify ability improvements
level
- Reinforce small
improvements
Effective Delegating - Participating - Selling - Telling
Leadershi - Observing - Encouraging - Explaining - Guiding
p Style - Entrusting - Supporting - Clarifying - Directing
- Assigning - Empowering - Persuading - Establishing

Readiness Level: Readiness in situational leadership is defined as the extent to which a follower
demonstrates the ability and willingness to accomplish a specific task. Readiness is how ready a
person is to perform a particular task. This concept of readiness has to do with specific situation-
not with any total sense of readiness. All persons tend to be more or less ready in relation to a
specific task, function, or objective that a leader is attempting to accomplish. In addition to
assessing the level of readiness of individuals with in a group, a leader may have to assess the
readiness level of the group as a group, particularly if the group interacts frequently in the same
work area. So leaders have to understand that they may have to behave differently one on one
with members of their group from the way they do with the group as a whole. The two major
components of readiness are ability and willingness. Ability is the knowledge, experience, and
skill that an individual or group brings to a particular task or activity. Knowledge is demonstrated
understanding of a task. Skill is demonstrated proficiency in a task. Experience is demonstrated
ability gained from performing a task. When considering the ability level of others, one must be
task-specific. It is essential to focus on the specific outcome desired and to consider the ability of
the followers in light of that outcome. Willingness is the extent to which an individual or a group
has the confidence, Commitment, and motivation to accomplish a specific task. Confidence is
demonstrated assurance in the ability to perform a task. Commitment is demonstrated duty to
perform a task. Motivation is demonstrated desire to perform a task. The term unwilling might be

53
most appropriate when, for some reason, the individuals have slipped, or lost some of their
commitment and motivation.
The continuum of follower readiness can be divided into four levels. Each represents a different
combination of follower ability and willingness or confidence.

High Moderate Low

R4 R3 R2 R1

Able and
Able but unwilling or Unable but willing or Unable and
willing or
insecure confident unwilling or insecure
confident

1. Readiness level 1 (R1): Unable and unwilling. The follower is unable and lacks commitment
and motivation, or, Unable to insecure. The follower is unable and lacks confidence.
2. Readiness level 2 (R2): Unable but willing. The follower lacks ability but is motivated and
making an effort. Or Unable but confident. The follower lacks ability but is confident as long
as the leader is there to provide guidance.
3. Readiness level 3(R3): Able but unwilling. The follower has the ability to perform the task
but is not willing to use that ability. Or Able but insecure. The follower has the ability to
perform the task but is insecure or apprehensive about doing it alone.
4. Readiness level 4 (R4): Able and willing. The follower has the ability to perform and is
committed. Or Able and confident. The follower has the ability to perform and is confident
about doing it.
Behavioral indicators of the four readiness level represent a different combination of follower
ability and willingness or confidence.
1. Unable and unwilling R1 would exhibit defensive, argumentative, complaining behaviors, sate
completion of tasks, performance only to exact request, intense frustration, and body language
expressing discomfort: furrowed brow, shoulders lowered, leaning back, confused, unclear
behavior, concern over possible outcomes and fear of failure.
2. R2’s an unable but willing or confident R2 would speak quickly and intensely, seek clarity, nod
head; make “yes, I know” type comments, seem eager, listen carefully, accept tasks, answer
questions superficially, act quickly and be preoccupied with end result rather than incremental
steps.
3. R3’s an able but unwilling would be hesitant or resistant, feel over-obligated and overworked,
eek reinforcement, be concerned performance is somehow punishing, question own ability, focus
on potential problems, lack self-esteem and encourage leader to stay involved.
4. R4’s an able and willing or confident R4 would keep boss informed of task progress, make
efficient use of resources, be responsible and results-oriented, be knowledgeable; share
information to streamline operational tasks, be willing to help others, share creative ideas, “take
charge” of tasks and complete responsibilities on time and perhaps early.

54
Furthermore, indicators of followers’ behavior at different readiness levels can be revealed as:

R4 R3 R2 R1
Able and willing or Able but unwilling or Unable but willing or Unable and unwilling or
confident Indicators insecure Indicators:- confident indicators insecure indicators
- Keeps boss  Has demonstrated  Anxious or excited  Not performing task
informed of task Knowledge and  Interested and to acceptable level
progress ability responsive  Being intimidated
- Can operate  Appears hesitant to  Demonstrating by task
autonomously  Being unclear about
finish or take next moderate ability
- Is results-oriented direction
step  Receptive to input
- Shares both good  Procrastinating
 Seems scared  Attentive
and bad news  Not finishing tasks
overwhelmed,  Enthusiastic
- Makes effective  Asking questions
decisions regarding confused.  New task, no about tasks
tasks  Seems reluctant to experience  Avoiding task or
- Performs to high perform alone. “passing the buck”
standards  Solicits frequent  Being defensive or
- Is aware of feedback uncomfortable
expertise.

Selecting Appropriate Styles

1. Matching Readiness level-1 with Leadership Style-1: TELLING:

For a follower or group that is at readiness level-1 for a specific task, it is appropriate to provide
high amounts of guidance but little supportive behavior. A word that describes this specific
leadership style is telling - telling the follower what to do, where to do it, and how to do it. This
style is appropriate when an individual or group is low in ability and willingness and needs
directions. Other one-word descriptors for this leadership style include guiding, directing, or
structuring. The appropriate leader style behaviors for an unable and unwilling R1 would be to
directly state specific facts, positively reinforce small improvements, consider consequences for
nonperformance and keep emotional level in check. For an unable and insecure R1 provide task
information in digestible amounts, be sure not to overwhelm follower, reduce fear of mistakes,
help step by step and focus on instructions.

2. Matching readiness level 2 with leadership style-2: SELLING.

Readiness level two is an individual or group that is still unable, but they are trying. They are
willing or confident. The high probability styles are combinations of high amounts of both task
and relationship behaviors. The task behavior is appropriate because people are still unable. But
since they are trying, it is important to be supportive of their motivation and commitment. This
style is selling. It is different from telling in that the leader is not only providing the guidance but

55
it also providing the opportunity for dialogue and for clarification in order to help the person “buy
in” psychologically to what the leader wants.

In other words for style 2 include explaining, persuading, and clarifying. The appropriate leader
behaviors for an unable but willing or unable but confident R 2 would be to Seek “buy-in”
through persuading, Check understanding of the task, encourage questions, discuss details,
explore related skills, explain “ why”, give Follower incremental steps (not” run with it”),
emphasize “how to”.

3. Matching readiness level 3-with leadership style 3-PARTICIPATING

Readiness level 3 would include a person or group that’s able but has just developed ability and
hasn’t had an opportunity to gain confidence in doing it on his or her own. Readiness level 3
could also be a person or group that was able and willing, but for one reason or another is
slipping in terms of maturation. The appropriate behavior would be high amounts of two-way
communication and supportive behavior but low amounts of guidance. Because the group has
already shown that they are able to perform the task, it is not necessary to private high amounts of
what to do, where to do it, or how to do it. Discussion, supportive, and facilitating behaviors
would tend to be more appropriate for solving the problem or soothing the apprehension. In
participating the leader's major role becomes encouraging and communicating. Other descriptors
for this style of leadership include Collaborating, Facilitating, and Committing. Each of these
terms implies high relationship, low task behaviors. The appropriate leader behaviors for an able
but unwilling R3 would be to: share responsibility for decision making with follower, feed
follower’s “need to know”, Focus on results, and Involve follower in consequences of task to
increase commitment, and motivation. For an able insecure R3 Combine leader follower
decision- making, determine next steps, encourage and support and discuss apprehension.

4. Matching readiness level 4 with leadership style 4-DELEGATING

Readiness level 4 is where the individual or group is both able and willing or able and confident.
They have had enough opportunity to practice, and they feel comfortable without the leader
providing direction. It is unnecessary to provide direction about where, what, when, or how
because the followers already have the ability. Similarly, above- average amounts of encouraging
and supportive behaviors are not necessary because the group is confident, committed, and
motivated. The appropriate style involves giving them the ball and letting them run will it. Other
words for this leadership style include observing and monitoring. Remember that some
relationship behavior is still needed, but it tends to be less than average. It is still appropriate to
monitor what is going on, but it is important to give these followers an opportunity to take
responsibility and implement on their own. The appropriate leader behaviours for an able and
willing or confident R4 would be to listen to updates, resist overloading, encourage autonomy,
practice overall hands- off management; observe, reinforce follower-led communications, provide
support and resources, delegate activities, encourage freedom for risk taking.
Leadership Styles Appropriate for Various Readiness Levels.

56
READINESS LEVELS APPROPRIAIT STYLES

R1, Low Readiness S1, Telling.

Unable and unwilling or insecure. High task- low relationship.

R2, Low to moderate readiness S2, Selling

Unable, but willing or confident. High task- high relationship.

R3, Moderate to High Readiness S3, Participating

Able, but unwilling or insecure. High relationship- low task.

R4, High Readiness S4, Delegating.

Able and willing or confident. Low relationship-low task.

Transactional and Transformational Leadership

Transactional and transformational leadership are seen to be in a continuum rather than being
mutually exclusive (Bass & Avolio, 1994; Yammarino, 1993). Bass (1985) viewed the
transformational/transactional leadership as being comprised of complementary rather than polar
constructs. The transformational leadership style is complementary to the transactional style and
likely to be ineffective in the total absence of a transactional relationship between leaders and
subordinates (Bass & Avolio, 1990; Goodwin, Wofford&Whittington, 2001). The difference is
that transactional leaders use rewards as a control mechanism to carry out the exchange
relationship explicitly established to externally motivate followers, whereas transformational
leaders use rewards as a component of a system designed to increase followers’ commitment and
internally motivate followers (Goodwin,Wofford&Whittington,2001; Rafferty& Griffin, 2004).

Comparison of transactional and transformational leadership

Transactional Leadership Transformational Leadership

• Builds on man’s need to get a job done and • Builds on a man’s need for meaning

make a living • Is preoccupied with purposes and values, morals,

and ethics
• Is preoccupied with power and position, politics
and perks • Transcends daily affairs

• Is mired in daily affairs • Is orientated toward long-term goals without

compromising human values and principles
• Is short-term and hard data orientated
• Focuses more on missions and strategies
• Focuses on tactical issues
• Releases human potential – identifying and
• Relies on human relations to lubricate human developing new talent

57
interactions • Designs and redesigns jobs to make them
meaningful and challenging
• Follows and fulfils role expectations by striving to
work effectively within current systems • Aligns internal structures and systems to reinforce
overarching values and goals
• Supports structures and systems that reinforce the
bottom line, maximize efficiency, and guarantee
short-term profits

58
James MacGregor Burns writing in his book ‘Leadership’ was the first to put forward the
concept of “transforming leadership”. To Burns transforming leadership “is a relationship of
mutual stimulation and elevation that converts followers into leaders and may convert leaders
into moral agents”. Burns went on to also further define it by suggesting that: “[Transforming
leadership] occurs when one or more persons engage with others in such a way that leaders and
followers raise one another to higher levels of motivation and morality…” Burns draws upon the
humanistic psychology movement in his writing upon ‘transforming leadership’ by proposing
that the transforming leader shapes, alters, and elevates the motives, values and goals of
followers achieving significant change in the process. He proposed that there is a special power
entailed in transforming leadership with leaders “armed with principles [that] may ultimately
transform both leaders and followers into persons who jointly adhere to modal values and end-
values”.

Burns sees the power of transforming leadership as more noble and different from charismatic
leadership, which he terms ‘heroic’ leadership, and executive or business leadership. Despite this
it is surprising that most of the application of Burns’ work has been in these two types of
leadership. Bernard Bass developed Burns’ concept of transforming leadership in ‘Leadership
and Performance Beyond Expectations’ into ‘transformational leadership’ where the leader
transforms followers – the direction of influence to Bass is thus one-way, unlike Burns’ who sees
it as potentially a two-way process. Bass, however, deals with the transformational style of
executive leadership that incorporates social change, a facet missing from Burns’ work. For Bass
‘transformational leaders’ may expand a follower’s portfolio of needs, transform a follower’s
self-interest, increase the confidence of followers, elevate followers’ expectations, heighten the
value of the leader’s intended outcomes for the follower, encourage behavioral change and
motivate others to higher levels of personal achievement (Maslow’s ‘self-actualization’). The
goal of transformational leadership is to ‘transform’ people and organizations in a literal sense –
to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes;
make behavior congruent with beliefs, principles, or values; and bring about changes that are
permanent, self-perpetuating, and momentum building”.

According to Bass and Avolio, transformational leaders display behaviors associated with five
transformational styles:

Transformational Leader Behavior

Style

1) Idealized Behaviors: • Talk about their most important values and beliefs
living one's ideals
• Specify the importance of having a strong sense of purpose

• Consider the moral and ethical consequences of decisions

• Champion exciting new possibilities

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 • Talk about the importance of trusting each other

2)Inspirational • Talk optimistically about the future

Motivation:
• Talk enthusiastically about what needs to be accomplished
inspiring others
• Articulate a compelling vision of the future

• Express confidence that goals will be achieved

• Provide an exciting image of what is essential to consider

• Take a stand on controversial issues

3) Intellectual • Re-examine critical assumptions to question whether they are appropriate

Stimulation:
• Seek differing perspectives when solving problems
stimulating others
• Get others to look at problems from many different angles

• Suggest new ways of looking at how to complete assignments

• Encourage non-traditional thinking to deal with traditional problems

• Encourage rethinking those ideas which have never been questioned before

4)Individualized • Spend time teaching and coaching

Consideration: coaching
and development • Treat others as individuals rather than just as members of the group

• Consider individuals as having different needs, abilities, and aspirations from others

• Help others to develop their strengths

• Listen attentively to others' concerns

• Promote self development

5) Idealized Attributes: • Instill pride in others for being associated with them
Respect, trust, and faith
• Go beyond their self-interests for the good of the group

• Act in ways that build others' respect

• Display a sense of power and competence

• Make personal sacrifices for others' benefit

• Reassure others that obstacles will be overcome

Some of the major strengths of the Fiedler’s Contingency theory include:

The strength of contingency theory include that it is backed by a considerable amount of

research, it is the first leadership theory to emphasize the impact of situations on leaders not to
be effective in all situations, and it can provide useful leadership profile data. On the negative

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side, contingency theory can be criticized because it has not adequately explained the link
between styles and situations, and it relies heavily on the LPC scale, which has been questioned
for its face validity and workability.

The following are criticisms /limitations of contingency theory:

First, it has been criticized because it fails to explain fully why individuals with certain
leadership styles are more effective in some situations than in others. The second criticism of this
theory concerns the LPC scale. The LPC scale has been questioned because it does not seem
valid on the surface, it does correlate well with other standard leadership measures; and it is not
easy to complete correctly. The LPC scale measures person to characterize another person’s
behavior. Because projection is involved in the measure, it is difficult for responds to understand
how their descriptions of another individual on the scale are a reflection of their own leadership
style. It does not make sense on the Cates that leaders engaged in “situational engineering”
which means in essence changing situations to fit the leader.

Third criticism of contingency theory is that it is cumbersome to use in real-world settings. It is

cumbersome because it requires assessing the leader’s style as well as three relatively complex
situational variables (leader-member relations, task structure, and position power), each of which
require a different instrument. Administering a battery of questionnaires in ongoing
organizational can be difficult because it breaks up the normal flow of organizational
communication and operations. The final criticism of contingency theory is that fails to explain
adequately what organizations should do when there is mismatch between the leader and the
situation in the workplace. Because, contingency theory does not advocate teaching leaders how
to adapt their styles to various situations as means to improve leadership in an organization.
Rather, it advocates that leader engaged in “situational engineering” which means in essence
changing situations to fit the leader. In fact, situation is always easily changed to match the
leader’s style. For example, if a leader‘s style does not match an unstructured, low-power
situation, it may be impossible to make the task more structured and increase the position power
to fit the leader’s style. Similarly, progression up management ladder in organizations may mean
that a leader moves in to a new situation in which her or his does not fit. Overall, changing the
situations can result in positive outcomes, but this does present significant workability problems
for organizations. Basically contingency theory represents a shift in leadership research from
focusing in on only the leader to looking at leader in conjunction with the situation in which the
leader works. It is a leader-match theory that emphasizes the importance of matching a leader’s
style with the demand of situation.

In general, to measure leadership style, a personally-like measure least preferred co-workers

(LPC) scale is used in contingency theory. It delineates-individuals who are highly task
motivated (low LPC), those who are socio -independent (middle LPCs), and those are
relationship motivated (high LPCs). To measure situations, three variables are assessed: leader-
member relations, task structure, and position power. Taken together these variables point to the

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style of leadership that has the best chance of being successful. In general, contingency theory
suggests that low LPCs are effective in extremes, and that high LPCs are effective in moderately
favorable situations. Contingency theory is not easily used on going organizations. Lastly, it does
not fully explain how organizations can use the results off this theory in situational engineering.
Regardless of these criticisms, contingency theory has made a substantial contribution to our
understanding of the leadership process.

MODERN AND CONTEMPORARY APPROACHES TO LEADERSHIP

PROCESS
The concept of leadership continues to grow and change. A significant influence on leadership
styles in recent times is the turbulence and uncertainty of the environment in which most
organizations are operating. Ethical and economic difficulties, corporate governance concerns,
globalization, changes in technology, new ways of working, shifting employee expectations, and
significant social transitions have all contributed to a shift in how we think about and practice
leadership. Of particular interest for leadership during these turbulent times is a post-heroic
approach that focuses on the subtle, unseen, and often unrewarded acts that good leaders perform
every day, rather than on the grand accomplishments of celebrated business heroes. During the
1980s and 1990s, leadership became equated with larger-than-life personalities, strong egos, and
personal ambitions. In contrast, the post-heroic leader’s major characteristic is humility.
Humility means being unpretentious and modest rather than arrogant and prideful. Humble
leaders do not have to be in the center of things. They quietly build a strong, enduring company
by developing and supporting others rather than touting their own abilities and
accomplishments.53 Five approaches that are in tune with post-heroic leadership for turbulent
times are servant leadership, Level 5 leadership, interactive leadership, e-leadership, and moral
leadership.

Servant Leadership
There have always been leaders who operate from the assumption that work exists for the
development of the worker as much as the worker exists to do the work. For example, a young
David Packard, who co-founded Hewlett-Packard, made a spectacle of himself in 1949 by
standing up in a roomful of business leaders and arguing that companies had a responsibility to
recognize the dignity and worth of their employees and share the wealth with those who helped
to create it. The concept of servant leadership, first described by Robert Greenleaf, is leadership
upside-down because leaders transcend self-interest to serve others and the organization.
Servant leaders operate on two levels: for the fulfillment of their subordinates’ goals and needs
and for the realization of the larger purpose or mission of their organization. Servant leaders give
things away: power, ideas, information, recognition, credit for accomplishments, and money.
Harry Stine, founder of Stine Seed Company in Adel, Iowa, casually announced to his
employees at the company’s annual post-harvest luncheon that they would each receive $1,000

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for each year they had worked at the company. For some loyal workers, that amounted to a
$20,000 bonus. Servant leaders value other people. They are trustworthy, and they trust others.
They encourage participation, share power, enhance others’ self-worth, and unleash people’s
creativity, full commitment, and natural impulse to learn and contribute. Servant leaders can
bring their followers’ higher motives to the work and connect their hearts to the organizational
mission and goals. Servant leaders often work in the nonprofit world because it offers a natural
way to apply their leadership drive and skills to serve others. Consider the example of Susie.
Scott Krabacher, a former Playboy Playmate, who sold a thriving restaurant business and
mortgaged her house to set up a network of schools and orphanages in Haiti.58 But servant
leaders can succeed in the business world. George Merck believed the purpose of a corporation
was to do something useful. At Merck & Co., he insisted that people always come before profits.
By insisting on serving people rather than profits, Merck shaped a company that averaged 15
percent earnings growth for an amazing 75 years.

Level 5 Leadership
A recent five-year study conducted by Jim Collins and his research associates identified the
critical importance of what Collins calls Level 5 leadership in transforming companies from
merely good to truly great organizations. Level 5 leadership refers to the highest level in a
hierarchy of manager capabilities. A key characteristic of Level 5 leaders is an almost complete
lack of ego. In contrast to the view of great leaders as larger-than-life personalities with strong
egos and big ambitions, Level 5 leaders often seem shy and unpretentious. Though they accept
full responsibility for mistakes, poor results, or failures, Level 5 leaders give credit for successes
to other people. Yet, despite their personal humility, Level 5 leaders have a fierce determination
to do whatever it takes to produce great and lasting results for their organizations. They are
ambitious for their companies rather than for themselves. This becomes most evident in the area
of succession planning. Level 5 leaders develop a solid corps of leaders throughout the
organization, so when they leave the company it can continue to thrive and grow even stronger.
Egocentric leaders, by contrast often set their successors up for failure because it will be a
testament to their own greatness if the company does not perform well without them. Rather than
an organization built around “a genius with a thousand helpers,” Level 5 leaders build an
organization with many strong leaders who can step forward and continue the company’s
success. These leaders want everyone in the organization to develop to their fullest potential.

Level 5: The Level 5 Leader: Builds an enduring great organization through a combination of
personal humility and professional resolve.
Level 4: The Effective Executive Builds widespread commitment to a clear and compelling
vision; stimulates people to high performance.
Level 3: Competent Manager sets plans and organizes people for the efficient and effective
pursuit of objectives.

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Level 2: Contributing Team Member contributes to the achievement of team goals; works
effectively with others in a group.
Level 1: Highly Capable Individual productive contributor; offers talent, knowledge, skills,
and good work habits as an individual employee.

Interactive Leadership
The focus on minimizing personal ambition and developing others is a hallmark of interactive
leadership, which has been found to be common among female leaders. Recent research
indicates that women’s style of leadership is particularly suited to today’s organizations.61 Using
data from actual performance evaluations, one study found that when rated by peers,
subordinates, and bosses, female managers score significantly higher than men on abilities such
as motivating others, fostering communication, and listening. Women’s leadership skills are
often different than men’s. Interactive leadership means that the leader favors a consensual and
collaborative process, and influence derives from relationships rather than position power and
formal authority. For example, Nancy Hawthorne, former chief financial officer at Continental
Cablevision Inc., felt that her role as a leader was to delegate tasks and authority to others and to
help them be more effective. “I was being traffic cop and coach and facilitator,” Hawthorne says.
“I was always into building a department that hummed.” Men can be interactive leaders as well.
The characteristics associated with interactive leadership are emerging as valuable qualities for
male and female leaders in today’s workplace Values associated with interactive leadership
include personal humility, inclusion, relationship building, and caring. D. Michael Abrashoff
illustrates characteristics of both interactive and servant leadership, as well as the potential to
become a Level 5 leader, showing that a leader can become more effective.

E-Leadership
In today’s workplace, many people may work from home or other remote locations, connected to
the office and one another through IT. People from all over the world participate in virtual teams
and rarely or never meet face to face. Leaders sometimes lead a complete project from a
distance, interacting with followers solely online. This new way of working brings new
challenges for leadership. In a virtual environment, leaders face a constant tension in balancing
structure and accountability with flexibility. They have to provide enough structure and direction
so people have a clear understanding of what is required of them, but they have to trust virtual
workers will perform their duties responsibly without close control and supervision. Effective e-
leaders set clear goals and timelines and are explicit about how people will communicate and
coordinate their work. However, the details of daily activities are left up to employees. This does
not mean, however, that virtual workers are left on their own. Leaders take extra care to keep
people informed and involved with one another and with the organization.68 People who excel at
e-leadership tend to be open-minded and flexible, exhibit positive attitudes that focus on
solutions rather than problems, and have superb communication, coaching, and relationship-
building skills. Good e-leaders never forget that work is accomplished through people and not

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technology. Though they must understand how to select and use technology appropriately, e-
leaders emphasize human interactions as the key to success. Building trust, maintaining open
lines of communication, caring about people, and being open to subtle cues from others are
crucial leadership qualities in a virtual environment.

Moral Leadership
Since leadership can be used for good or evil, to help or harm others, all leadership has a moral
component. Leaders carry a tremendous responsibility to use their power wisely and ethically.
Sadly, in recent years, too many have chosen to act from self-interest and greed rather than
behaving in ways that serve and uplift others. The disheartening ethical climate in American
business has led to a renewed interest in moral leadership. Moral leadership is about
distinguishing right from wrong and choosing to do right. It means seeking the just, the honest,
the good, and the decent behavior in the practice of leadership. Moral leaders remember that
business is about values, not just economic performance. Distinguishing the right thing to do can
be difficult and doing it is sometimes even harder. Leaders are often faced with right-versus-right
decisions, in which several responsibilities conflict with one another. Commitments to superiors,
for example, may mean a leader feels the need to hide unpleasant news about pending layoffs
from followers. Moral leaders strive to find the moral answer or compromise rather than taking
the easy way out. Clearly, moral leadership requires courage, the ability to step forward through
fear and act on one’s values and conscience. Leaders often behave unethically because they lack
courage. Most people want to be liked, and it is easy to do the wrong thing to fit in or impress
others. One example might be a leader who holds his tongue to “fit in with the guys” when
colleagues are telling sexually or racially offensive jokes. Moral leaders summon the fortitude to
do the right thing even if it is unpopular. Standing up for what is right is the primary way in
which leaders create an environment of honesty, trust, and integrity in the organization.

Charismatic Leadership
Charismatic leadership theory says that followers make attributions of heroic or extraordinary
leadership abilities when they observe certain behaviors. Charismatic leader is an enthusiastic,
self confident leader whose personality and actions influence people to behave in a certain way.
Such leaders have vision, are able to articulate that vision, are willing to take risks to achieve
that vision, are sensitive to both environmental constraints and followers needs and exhibit
behaviors that are out of the ordinary. Charismatic leadership is a throwback to the old
conception of leaders as being those who “by the force of their personal abilities are capable of
having profound and extraordinary effects on followers.” Although the charismatic concept, or
charisma, goes as far back as the ancient Greeks and is cited in the bible, its modern
development is often attributed to the work of Robert House. On the basis of the analysis of
political and religious leaders, House suggested that charismatic leaders are characterized by
self-confidence and confidence in subordinates, high expectations for subordinates, ideological
vision, and the use of personal example. Followers of charismatic leaders identify with the
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leader and the mission of the leader, exhibit extreme loyalty to and confidence in the leader,
emulate the leader’s values and behavior, and derive self-esteem from their relationship with the
leader. Bass has extended the profile of charismatic leaders to include superior debating and
persuasive skills as well as technical expertise and the fostering of attitudinal, behavioral, and
emotional changes in their followers.

Because of the effects that charismatic leaders have on followers, the theory predicts that
charismatic leaders will produce in followers’ performance beyond expectations as well as
strong commitment to the leader to his or her mission. Weber also used the term charisma to
describe a form of influence based not on tradition or formal authority but rather on follower
perceptions that the leader is endowed with exceptional qualities. Studies on charismatic
leadership have, for the most part, been directed as identifying those behaviors that differentiate
charismatic leaders from their non-charismatic counterparts. Some examples of individuals
frequently cited as being charismatic leaders include John F. Kennedy, Martin Luther King, Jr.
Mary Kay Ash, etc. There have been a number of studies that have attempted to identify
personal characteristics of the charismatic leader. The best-documented study has isolated five
such characteristics-charismatic leaders have a vision, are willing to take risks to achieve that
vision, are sensitive to both environmental constraints and follower need, and exhibit behaviors
that are out of the ordinary-that differentiate charismatic leaders from non-charismatic ones.
Recent research also indicates that the impact of such charismatic leaders will be enhanced
when the followers exhibit higher levels of self-awareness and self-monitoring, especially when
observing the charismatic leaders’ behaviors and activities and when operating in a social
network. House and his colleagues provide some support for charismatic theory and recent
research finds a positive effect on desirable outcomes such as cooperation but as with the other
leadership theories, complexities are found and more research is needed. For example, one study
that assessed charismatic leader behaviors, individual level correlates, and unit-level correlates
(outcomes) in military yielded only limited support for the theory’s propositions and led the
researchers to conclude that greater sensitivity to multiple constituencies of leaders is needed in
theories and studies focused on charismatic leadership. Also, extensions of the theory are being
proposed. For example, Conger and Kanungo treat charisma as an attributional phenomenon and
propose that it varies with the situation. Leader traits that foster charismatic attributions include
self-confidence, impression-management skills, social sensitivity, and empathy. Situations that
promote charismatic leadership include a crisis requiring dramatic change or followers who are
very dissatisfied with the status quo. For example, recent study in a university setting revealed a
situation in which a charismatic leader was able to successfully implement a technical change,
but at the same time suffered through major political turmoil, which appeared to be side effects
of technical change. According to Weber theory, charisma occurs when there is a social crisis, a
leader emerges with a radical vision that offers a solution to the crisis, the leader attracts
followers who believe in the vision; they experience some success that makes the vision appear
attainable, and the followers come to perceive the follower as extraordinary. This suggests that
studies of charismatic leadership must be considered in the context in which the leader operates
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and the nature of the task or work being performed should be included in the analysis. Included
in the extensions of charismatic leadership is also the recognition of a dark side.

How do charismatic leaders actually influence followers? The evidence suggests a four-step
process. It begins by the leader articulating an appealing vision. This vision provides a sense of
continuity for followers by linking the present with a better future for the organization. The
leader then communicates high performance expectations and expresses confidence that
followers can attain them. This enhances follower self-esteem and self-confidence. Next, the
leader conveys, through words and actions, a new set of values and, by his or her behavior, sets
an example for followers to imitate. Finally, the charismatic leader makes self-sacrifices and
engages in unconventional behavior to demonstrate courage and convictions about the vision.
What can we say about the charismatic leader’s effect on his or her followers? There is an
increasing body of research that shows impressive correlations between charismatic leadership
and high performance and satisfaction among followers. People working for charismatic leaders
are motivated to exert extra work effort and, because they like and respect their leader, express
greater satisfaction. If charisma is desirable, can people learn to be charismatic leaders? Or are
charismatic leaders born with their qualities? While small minority still think charisma cannot
be learned, most experts believe that individuals can be trained to exhibit charismatic behaviors
and can, thus, enjoy the benefits that accrue to being labeled “a charismatic leader.” One set of
authors proposes that a person can learn to become charismatic by following a three-step
process. First, an individual needs to develop the aura of charisma by maintaining an optimistic
view; using passion as a catalyst for generating enthusiasm; and communicating with the whole
body, not just with words. Second an individual draws others in by creating a bond that inspires
others to follow. And third, the individual brings out the potential in followers by tapping in to
their emotions.

This approach seems to work as evidenced by researchers who have succeeded in actually
scripting undergraduate business students to “play” charismatic. The students were taught to
articulate an overarching goal, communicate high performance expectations, exhibit confidence
in the ability of followers to meet these expectations, and emphasize with the needs of their
followers; they learned to project a powerful, confident, and dynamic presence; and they
practiced using a captivating and engaging vice tone. To further capture the dynamics and
energy of charisma, the students were trained to evoke charismatic nonverbal characteristics;
they alternated between pacing and sitting on the edges of their desks, learned toward the
subjects, maintained direct eye contact, and had relaxed postures and animated facial
expressions. These researchers found that these students could learn how to project charisma.
Moreover, followers of these student leaders had higher task performance, task adjustment, and
adjustment to the leader and to the group than did followers who worked under groups led by
non charismatic leaders.

Charismatic leadership may not always be needed to achieve high levels of employee performance.

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Charisma appears to be most appropriate when the follower’s task has an ideological component or when
the environment involves a high degree of stress and uncertainty. This may explain why, when
charismatic leaders surface, it is more likely to be in politics, religion, wartime; or when a business firm
is in its infancy or facing a life-threatening crisis. In 1930s, Franklin D. Roosevelt offered a vision to get
Americans out of the Great Depression. In the early 1970s, when Chrysler Corp. was on the brink of
bankruptcy, it needed a charismatic leader with unconventional ideas like Lee Iacocca to reinvent the
company. In contrast, General Motor’s failure to directly address its problems in the late 1990s-such as
GM’s inability to launch new vehicles on time, deep-seated aversion to change, and lackluster financial
performance-were frequently attributed to CEO John Smith Jr. and his lack of charisma.

Charismatic leaders tend to be portrayed as wonderful heroes, but there can also be unethical
characteristics associated with charismatic leaders. With regard to meeting the challenge of being ethical,
it has been noted that charismatic leaders deserve this label only if they create transformations in their
organizations so that members are motivated to follow them and to seek organization objectives not
simply because they are ordered to do so, and not merely because they calculate that such compliance is
in their self-interest, but because they voluntarily identify with the organization, its standards of conduct
and willingly seek to fulfill its purpose. This transformation idea is also picked up by Bass, who suggests
that charismatic leadership is really just a component of the broader-based transformational leadership.

Key characteristics of Charismatic Leaders

1. Vision and articulation: they have a vision-expressed as an idealized goal-that proposes a future
better than the status quo. They are able to clarify the importance of the vision in terms that are
understandable to others.
2. Personal risk: charismatic leaders are willing to take on high personal risk, incur high costs, and
engage in self-sacrifice to achieve the vision.
3. Environmental sensitivity: they are able to make realistic assessments of the environmental
constraints and resources needed to bring about change.
4. Sensitivity to follower needs: charismatic leaders are perceptive of others’ abilities and responsive
to their needs and feelings.
5. Unconventional behavior: those with charisma engage in behaviors that are perceived as novel
and counter to norms.
Ethical and Unethical Characteristics of Charismatic Leaders
Ethical Charismatic Leader Unethical Charismatic Leader
Uses power to serve others Uses power only for personal gain or impact
Aligns vision with followers’ needs and aspirations Promotes own personal vision
Considers and learns from criticism Censures critical or opposing views
Stimulates followers to think independently and to Demands own decisions be accepted without
question the leader’s view question
Open, two-way communication One-way communication
Coaches, develops, and supports followers; shares Insensitive to followers needs
recognition with others
Relies on internal moral standards to satisfy Relies on convenient, external moral standards to
organizational and societal interests satisfy self-interests

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Visionary Leadership
Visionary leadership goes beyond charisma. Visionary leadership is the ability to create and
articulate a realistic, credible attractive vision of the future for an organization or organizational
unit, which grows out of and improves upon the present. This vision, if properly selected and
implemented, is so energizing that “in effect jump-starts the future by calling forth the skills,
talents and resources to make it happen. A vision should offer clear and compelling imagery that
taps into people’s emotions and inspires enthusiasm to pursue the organization’s goals. It should
be able to generate possibilities that are inspirational and unique and offer new ways of doing
things that are clearly better for the organization and its members. Visions that are clearly
articulated and have powerful imagery are easily grasped and accepted.
What skills do visionary leaders exhibit?
Ones the vision is clearly identified, these leaders appear to have three qualities that are related
to effectiveness in their visionary role.
a. Ability to explain the vision to others by making the vision clear in terms of the required
goals and actions through clear oral and written communications.
b. Ability to express the vision not just verbally but through behavior, which requires behaving
in ways that continually convey and reinforce the vision.
c. Ability to extend or apply the vision to different leadership contexts.

2.2. The Four Framework Approach

In the Four Framework Approach, Bolman and Deal (1991) suggest that leaders display
leadership behaviors in one of four types of frameworks: Structural, Human Resource, Political,
or Symbolic. The style can either be effective or ineffective, depending upon the chosen behavior
in certain situations.

1. Structural Framework
In an effective leadership situation, the leader is a social architect whose leadership style is
analysis and design. While in an ineffective leadership situation, the leader is a petty tyrant
whose leadership style is details. Structural Leaders focus on structure, strategy, environment,
implementation, experimentation, and adaptation.

2. Human Resource Framework

In an effective leadership situation, the leader is a catalyst and servant whose leadership style is
support, advocating, and empowerment while in an ineffective leadership situation, the leader is
a pushover, whose leadership style is abdication and fraud. Human Resource Leaders believe in
people and communicate that belief; they are visible and accessible; they empower, increase
participation, support, share information, and move decision making down into the organization.

3. Political Framework

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In an effective leadership situation, the leader is an advocate, whose leadership style is coalition
and building while in an ineffective leadership situation, the leader is a hustler, whose leadership
style is manipulation. Political leaders clarify what they want and what they can get; they assess
the distribution of power and interests; they build linkages to other stakeholders, use persuasion
first, and then use negotiation and coercion only if necessary.

4. Symbolic Framework
In an effective leadership situation, the leader is a prophet, whose leadership style is inspiration.
Symbolic leaders view organizations as a stage or theater to play certain roles and give
impressions; these leaders use symbols to capture attention; they try to frame experience by
providing plausible interpretations of experiences; they discover and communicate a vision.

Forms of leadership according to the 4 frameworks:

Charismatic Leadership: Charismatic Leadership is one of the more recent theories on
leadership. Although not many studies have been done so far to test them, these theories suggest
certain different and interesting ways of looking at leadership. Charisma is a special
characteristic of some leaders. People usually feel personally attracted to a charismatic leader.
And the attraction can lead to a powerful leadership. Phenomena that can be observed in
charisma include the followers trust the correctness of the leader's believes; the followers feel
affection to the leader and obey the leader willingly; the followers feel an emotional involvement
in the mission they are led to do.

Servant Leadership “The servant-leader is servant first… It begins with the natural feeling that
one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. He or she is
sharply different from the person who is leader first, perhaps because of the need to assuage an
unusual power drive or to acquire material possessions. For such it will be a later choice to serve
– after leadership is established. The leader-first and the servant-first are two extreme types.
Between them there are shadings and blends that are part of the infinite variety of human nature.
He may be of type who asks the subordinate “How may I help you?”

Distributed Leadership It is essentially about sharing out leadership across the organization.
Referred to as "informal", "emergent", "dispersed" or "distributed" leadership, this approach
argues a less formalized model of leadership (where leadership responsibility is dissociated from
the organizational hierarchy). It is proposed that individuals at all levels in the organization and
in all roles (not simply those with an overt management dimension) can exert leadership
influence over their colleagues and thus influence the overall direction of the organization. The
case for distributed leadership is based on three ideas: the belief in leadership teams, the need for
leadership to be shared, at all levels and the creation of pools of talent for tomorrow’s leaders.

Leadership is not a new concept but over a period of time different theories, styles and
approaches to leadership have evolved. This is one of the very significant quality required to

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manage the organizations well. It is a very challenging task. The success of any organization
depends on his leaders. How they are able to influence the people and facilitate them towards
attaining the organizations objectives.

Four Frameworks for Leadership: The Bolman/Deal Model

It may be useful to approach leadership from the point of view of four different "frameworks".
Circumstances determine which approach (s) is appropriate. Effective leaders may use a number
of these approaches at the same time.

The Structural Framework 2. The Human Resource Framework

The "structural" manager tries to design and The human resource manager views people as the
implement a process or structure appropriate to the heart of any organization and attempts to be
problem and the circumstances. This includes: responsive to needs and goals to gain commitment
 to clarify organizational goals and loyalty. The emphasis is on support and
 manage the external environment empowerment. The HR manager listens well and
 develop a clear structure appropriate to task, communicates personal warmth and openness. This
and environment leader empowers people through participation and
 clarify lines of authority attempts to gain the resources people need to do a
 focus on task, facts, logic, not personality and job well. HR managers confront when appropriate
emotions but try to do so in a supportive climate.
This approach is useful when goals and This approach is appropriate when employee is
information are clear, when cause-effect relations high or increasing or when employee morale is low

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 are well understood, when technologies are strong or declining. In this approach resources should be
and there is little conflict, low ambiguity, low relatively abundant; there should be relatively low
uncertainty, and a stable legitimate authority. conflict and low diversity.
3. The Political Framework The political leader 4. The Symbolic Framework This leader views
understands the political reality of organizations vision and inspiration as critical; people need
and can deal with it. He or she understands how something to believe in. People will give loyalty to
important interest groups are, each with a separate an organization that has a unique identity and
agenda. This leader understands conflict and makes them feel that what they do is really
limited resources. This leader recognizes major important. Symbolism is important as is ceremony
constituencies and develops ties to their leadership. and ritual to communicate a sense of organizational
Conflict is managed as this leader builds power mission. These leaders tend to be very visible and
bases and uses power carefully. The leader creates energetic and manage by walking around. Often
arenas for negotiating differences and coming up these leaders rely heavily on organizational
with reasonable compromises. This leader also traditions and values as a base for building a
works at articulating what different groups have in common vision and culture that provides
common and helps to identify external "enemies" cohesiveness and meaning.
for groups to fight together. This approach seems to work best when goals and
This approach is appropriate where resources are information are unclear and ambiguous, where
scarce or declining, where there is goal and value cause-effect relations are poorly understood and
conflict and where diversity is high. where there is high cultural diversity.
Decision Making
Structural: rational
Planning Human relations: open process to produce
Structural: set objectives and coordinate resources commitment
Human relations: promote participation Political: opportunity to gain or exercise power
Political: arenas to air conflict and realign power Symbolic: ritual to provide comfrot and support
Symbolic: ritual to signal responsibility until decisions made
Reorganizing Evaluating
Structural: realign roles and responsibilities to fit Structural: formal control system for distributing
tasks rewards
Human relations: maintain a balance between Human relations: process for helping people grow
human needs and formal roles and improve
Political: redistribute power and for new coalitions Political: opportunity to exercise power Symbolic:
Symbolic: maintain an image of accountability and occasion to play roles in shared rituals
responsiveness
Conflict resolution Goal Setting
Structural:: authorities resolve conflict Structural: keep organization kneaded in right
Human relations: develop relationships direction
Political: develop power by bargaining, forcing, or Human relations: keep people involved and
manipulating others Symbolic: develop shared communications open
values Political: provide opportunities for people and
groups to make interests known
Symbolic: develop symbols and shared values
Communication Meetings

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 Structural: transmit facts and information Structural: formal occasions for making decisions
Human relations: exchange information, needs, Human relations: informal occasions for
and feelings involvement, sharing feelings
Political: vehicles for influencing or manipulating Political: competitive occasions to win points
others Symbolic: sacred occasion to celebrate and
Symbolic: telling stories transform the culture
Effective leadership Effective Leadership Process
Structural: social architect Structural: analysis and design
Human relations: catalyst and servant Human relations: support and empowerment
Political: advocate Political: advocacy, coalition building
Symbolic: prophet and poet Symbolic: inspiration, framing experience
Ineffective leadership Ineffective leadership process
Structural: petty tyrant Structural: management by detail and fiat
Human relations: pushover Human relations: management by abdication
Political: hustler Political: manipulation
Symbolic: fanatic, fool Symbolic: smoke and mirrors
Organizational Change
Structural: change causing confusion; need to
realign and renegotiate formal policies
Human relations: change can cause people to feel
Motivation
incompetent, powerless; need to develop new
Structural: economic incentives
skills, involvement, support
Human relations: growth and self-actualization
Political: change creates winners and losers; need
Political: coercion, manipulation, and seduction
to create arenas where issues can be negotiated
Symbolic: symbols and celebrations
Symbolic: change creates loss of meaning and
purpose;
people form attachments to symbols need symbolic
healing

Choosing a Frame

There are times when any of the four frames is appropriate. There are some ways of determining
when each is appropriate: Structural, Human, Resource, Political, or Symbolic.

 If commitment and motivation are important: human resources and symbolic

 If there is ambiguity and uncertainty: Structural
 If resources are scarce: structural, political, symbolic
 If there is conflict and diversity: political and symbolic
 If there is a top down approach: structural and human resources

2.3. Five practices of top leaders: The Bain Model: Five

Alternative Approaches to Leadership
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A study done by Bain and Co. of 161 top executives found that executives use just five distinct
leadership styles. None guarantees success but at various times any of these have been
successful.

Strategic Approach: The leader acts as the company's top strategist, systematically envisioning
the future and specifically mapping out how to get there.

The Human Assets Approach: The leader manages for success through people policies,
programs, and principles.

The Expertise Approach: The leader champions a specific proprietary expertise, using it to
focus the organization.

The Box Approach: The leader builds a set of rules, systems, procedures, and values that
essentially control behavior and outcomes within well-defined boundaries.

The Change Approach: The leader acts as an agent of radical change, transforming
bureaucracies into organizations that embrace the new and different.

Kouzes and Posner identified the five leadership practices outlined below.

Challenge the Process: Leaders venture out and are not afraid to challenge the status quo. They
step into the unknown, looking for opportunities to grow, innovate and inspire. All the stories
collected by Kouzes & Posner involved leaders facing a challenge – and no one claimed a
personal best by keeping things the same. Leaders who challenge the process are willing to
challenge the system to get new products, processes, services and systems adopted – even if
there is a risk of failure. And if they do fail, they learn quickly from their actions.
Inspire a Shared Vision: Leaders imagine an exciting, attractive future, and have personal
belief in those dreams and their abilities to make extraordinary things happen. Their clear vision
or dream of the future pulls them forward. They are also able to inspire their followers and bring
them with them. They do this by knowing their people, speaking their language, and having an
intimate knowledge of their people’s dreams, aspirations and values.

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Enable Others to Act: Leaders recognise they cannot change everything themselves – they must
foster collaboration and build trust in their teams and everyone who has a stake in achieving the
vision. Leaders who enable others to act make it possible for others to do good work, working
hard to make others feel strong, capable and committed. They don’t hoard power – they give it
away in order to foster commitment. Great leaders build relationships based on trust and
confidence, and make people feel strong and capable–as if they can do more than they ever
thought possible.
Model the Way: Exemplary leaders recognize that if they want to gain commitment and achieve
the highest standards, they must model the behaviors they require of others: it’s their behavior
that wins them respect. But first they must be clear themselves about their own guiding
principles, and be prepared to talk about what they hold as important. They then ‘model the way’
– demonstrating through their daily actions their deep commitment to their beliefs, and inspiring
people to follow them as a result.
Encourage the Heart: People can often become disenchanted, frustrated or exhausted: great
leaders encourage the heart of their people to carry on, no matter how hard the task. Genuine acts
of caring can lift the spirits and motivate them to continue. In practical terms, this means
showing appreciation for people’s contributions – whether the gesture is simple or grand – and
creating a culture of celebration.

2.4. The three Cs of leadership

Effective leadership in the workplace is the key to devising a functioning, efficient and effective
workforce. The culture of the workplace is determined by those decision-makers at the top.
Therefore, how these decision-makers approach their leadership mandate determines how the
division/department heads, managers or supervisors approach the task of leading their own
teams. There are many characteristics of leaders and leadership styles may vary; yet effective
leaders have much in common. As leaders they have developed, among other key traits, the
ability to Create, Communicate and, with Character.
Create - the Vision: Effective leaders have developed the ability and will to create a vision that,
through a variety of channels, creates an effective workplace environment. Creative leaders have
learned how to: Create a vision of where to take the business. Great leaders have honed the
ability to see with their mind’s eye further and grander than those they lead. Create excitement
that inspires the team. Team members feed off the energy you project. Create relationships with
your people. Since they are the ones who will carry out your vision and agenda, develop a
healthy connection with them. Create a respectful work environment. This will pave the way for
mutual trust, which will provide the platform for them to more readily follow your leadership.
Create a roadmap that includes input from your team as you formulate how best to put your
vision into action. Create a culture of creativity, which gives others the freedom to also explore
their creative aptitude within the framework of the business.

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Communicate: It’s more than just talking. Creativity without communication is worthless.
Communicating one’s vision is indispensable to the success of any business functioning, its
stability or expansion. Communication is more than just talking. It includes the more difficult
task of give and take and listening to feedback as you share or implement your vision. Leaders
who communicate effectively have learned: Effective messaging: No matter how great your
ideas are, they must be communicated in such a way that they can be understood. Since you may
have been living with your ideas for a while, give others the time to hear, comprehend and digest
your pronouncements. Objective listening: Key into the questions or feedback for the value they
contain, without being defensive or showing irritation. Active listening: Give full attention to the
feedback as opposed to being distracted as you formulate your rebuttal. Purposeful eye contact:
Your skills of observation allow you to pick up on the non-verbal cues being conveyed. This
facilitates the ability to discern, anticipate and effectively answer the unasked questions.
Understand the art of persuasion: You have to know and believe in the vision you’ve created,
even in its rudimentary stages, before you can effectively share it. Allow feedback: Even though
you may not initially ascribe to the comments or questions from the group, open communication
can’t help but refine and perfect your vision.

Character: Integrity creates trust. You may have the ability to create a remarkable business
vision, to successfully communicate your ideas with your team and to spur them to action, yet
fail in your ability to maintain their trust. Trust is lost when integrity is sacrificed on the altar of
expediency. Whether your framework comes from a legal, moral and/or ethical base, the leader
must follow a code of conduct that reinforces solid business practices and ethical conduct.
Leaders with strong character know to lead effectively. Your people will follow you even in the
face of a business miscalculation. They’re unlikely to follow (or continue following), or respect
you if they believe you to be unethical. Lead mindfully. An ethical lapse may irreparably affect
morale, create cynicism, disrupt efficiency and thereby derail the company’s bottom line. Lead
wisely. Those you lead are always observing your words and deeds. They put more stock in what
you do than in what you say. Lead with foresight. People will go on the journey with you when
there’s trust. Lead with reliability. Character creates consistency. Your team must know what
to expect of you. Lead with trust. Character in a leader creates respect and trust that influences
others to follow even in difficult economic times.

Character – Character is who you are when no one is looking. It’s your level of honesty and
integrity, and the way you deal with pride and humility. Character admits personal failure, isn’t
fake, and has genuine concern for others. Character determines who will trust you enough to
follow you.
Commitment–Commitment is what keeps you going when everyone else is quitting. That’s
what leaders do. Leaders spur momentum in times of trepidation. Leaders take people where
there know they need to go but are afraid to do so or don’t know how. All leaders will sometimes
slip and fall, but a committed leader gets back up, searches for the light at the end of the tunnel,
and moves forward again. People follow leadership with commitment.

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Competence – Competence is the wisdom to know when to say what needs to be said and when
to do what needs to be done. A competent leader is always learning, whether through books,
conferences, or other people. It’s being willing to learn even from those one is supposed to be
leading. It’s not knowing all the answers, but knowing the importance of bringing the right
people to the table of decision. Competence is gained by experience, over time, where the leader
can exude confidence others are willing to follow. The leader needs to be with the team,
nudging, encouraging, and moving the team in the right direction. The leader also needs to be
able to make adjustments on the fly and needs to know when to get out of the way. Knowing the
fundamental leadership stuff of vision casting, team building, delegation, motivation, evaluation,
accountability, etc. is only helpful when applied in the right amounts and at the right time. The
art of leadership is knowing what to do and when. Following are three C’s that should help
you in the art of leadership. Your team needs all three C’s and the art of leadership is
identifying and nudging (or pushing if needed) on different ones at different times.

Community: Do we need life, affirm effort, celebrate victory, provide support and
encouragement in the losses, Interject fun and surprise and spend time together outside the task.

Communication: Are we struggling with details? communicate regularly, communicate clearly,

agree on the major way to communicate details (email, text, Facebook, etc) within the team, but
don’t ignore the phone and face to face, know when to use which type of communication, give
and receive feedback, insist on honesty and be vulnerable.

Commitment: Are we on the same page? create and cast vision, include your team in the
creation process, remind people of the vision, set goals and agree on actions that will help fulfill
the vision, clearly define roles and responsibilities, hold each other accountable not just to the
actions, but also to the vision.

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The 3 C’s are vitally important and a team will wobble off course or fall apart without attention
to all three. If a team is strong in community and communication but weak in commitment, not
much will get done. The team will be aimless. Similarly, a team that is strong in commitment but
weak in communication will eventually suffer in the area of community. High commitment and
solid communication fosters great community, but a lack of community development and
celebration will eventually cause the team to burn out. Great leaders are great listeners and
observers. Team health is dynamic and constantly changing but can always be understood
through the 3 C’s. Listen to your team and observe how they roll. If it feels like your team is
rolling a little off-center, consider which C needs attention. Once you know what needs attention,
apply all the great leadership stuff you know and have read to the task and have fun. Clarity,
courage and connection are also the other three Cs of leadership.
Clarity: is apparent when the leader has a crystal clear vision and everyone – from staff
members to the general public – understands the vision, remembers it, operates within it and can
verbalize it.

Courage: is a necessary attribute in making that vision becomes a reality. Successful leaders
have the courage to make the difficult business decisions that are needed for execution. They are
able to express their viewpoint even when it isn’t popular.

Connection is the final key. Successful leaders have a bond with everyone involved in their
business – from peers to customers, to staff to stakeholders. They easily display their ability to be
deeply connected to the people around them.

2.5. Leadership and Power

Power gives people the ability to exert influence over others, to get them to follow; it makes
leadership possible. Leaders possess power, as do all managers whether or not they are leaders.
Possessing power can increase the effectiveness of managers by enabling them to inspire people
—to get them to perform willingly, without relying solely on formal managerial authority.
Formal authority grants a manager legitimate power; but coercive, reward, expert, and referent
power exist as well. A brief review of these five foundation stones of leadership is in order here.

Legitimate Power

Managers’ formal authority derives from their positions in their organizations, which each
position’s job description usually specifies. A manager’s formal authority grants power or
influence because it enables the holder to use organizational resources, including other
employees. An employee’s instructor, manager, or team leader has the right to assign work,
establish standards for its execution, and apply those standards to both outcomes and behaviors
of subordinates. All employees recognize that they have a fundamental duty to comply with
lawful and ethical orders, rules, and standards established by those in formal positions of
authority.

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Coercive Power
One result of the exercise of legitimate power—a person’s formal authority—is punishment for a
subordinate’s unacceptable outcomes and performances. People with authority and, therefore,
influence over others usually have the right to punish or withhold rewards from them. A few of
the possible results from the exercise of coercive powers include oral and written warnings,
suspension, and firing. If these punishments are to act as deterrents for inappropriate behaviors,
however, people subjected to them must believe that they will be administered in a timely and
appropriate manner.

Reward Power
The opposite of coercive power is reward power—the right to promise or grant rewards, such as
raises, praise, promotions, and so on. It, too, is often the result of exercising legitimate power.
People usually work hard to please those who can reward or punish them. The attractiveness of
the reward is important; it must have a strong appeal to the person being influenced or it may
have little impact on that person’s motivation. When rewards are promised and not granted in a
timely manner, however, they can actually have a negative impact on an individual’s motivation.
Finally, rewards must be earned before being granted; to do otherwise is to lessen their value and
importance to the individual.

Expert Power
A person’s abilities, skills, knowledge, and experience can exert influence when others value
them. A seasoned practitioner exercises expert power with newcomers and apprentices. A trainer
or coach uses it to impart his or her knowledge, skills, and attitudes to trainees. Physicians,
lawyers, and other licensed professionals earn their living by selling their expertise. A person in
need of legal advice, however, may find a production manager’s expertise to be of little value.
Unlike legitimate, coercive, and reward power, expert power may reside in and be exercised by
nearly everyone, whether inside or outside an organization.

Referent Power
Power that comes to people because of the kind of personality or personal attractiveness they
have to others is known as referent, or charismatic, power; it creates in people a desire to
associate with or emulate the person who has it. Your personality, sense of humor, openness,
honesty, and other endearing traits can draw others to you. Many of this chapter’s leadership
traits generate referent power in those who possess them. Like expert power, referent power is
possessed by nearly everyone to some degree; but not all people are attracted to the same
personalities or traits. Another may consider what one admires unappealing. In this chapter’s
Management in Action case, Howard Schultz understands the people he is leading. He gets to
know his followers, and the followers see him as their leader. In other words, they trust him and
he trusts them. He is accepted because he possesses legitimate, referent, and expert power.

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Managers can become leaders when they couple their formal authority (legitimate power) with
the other types of power. As the foregoing indicates, it is possible to be a leader without being a
manager and a manager without being a leader. A major goal for many organizations is to
develop and tap into the leadership potential that exists in nearly every employee. Possessing
power and using it wisely are two different things. Power gives individuals and groups the means
to influence for both good and evil. Without moral and ethical values or who disregard the law
can do others, themselves, and their organizations great harm. The use of power in any
organization must not contradict its core values.

2.6. Leadership Styles

From the discussion of leadership and its power bases, we turn now to the dynamic interaction
between a leader and other people. The perceived approaches and behaviors a manager uses to
influence others constitute the manager’s leadership style. Managers’ leadership styles result
from their philosophies about motivation, their choices of decision-making styles, and their areas
of emphasis in the work environment—whether they focus on tasks or people.

Positive versus Negative Motivation

Leaders influence others to achieve goals through their approach to motivation. Depending on
the style of the manager, the motivation can take the form of rewards or penalties. Leaders with
positive styles use positive motivators. They motivate by using praise, recognition, or monetary
rewards or by increasing security or granting additional responsibilities. A negative leadership
style incorporates coercion known as sanctions—fines, suspensions, termination, and the like.
The manager who says, “Do it my way or else” employs negative motivation. Implied in the
statement is the manager’s willingness to exercise disciplinary powers; the subordinate’s failure
to comply would be an act of insubordination. Positive leadership styles encourage development
of employees and result in higher levels of job satisfaction. Negative leadership styles are based
on the manager’s ability to withhold items of value from employees. The result of negative
leadership may be an environment of fear, where managers are viewed with distrust and seen as
dictators rather than leaders or team players.

Decision-Making Styles
Another element in a manager’s leadership style is the degree to which he or she shares decision-making
authority with subordinates. Managers’ styles range from not sharing at all to completely delegating
decision-making authority. They may include autocratic style, participative style, and free-rein style.
Which style a manager chooses should relate to the situation encountered.

Autocratic Style: A manager who uses the autocratic style does not share decision-making
authority with subordinates. The manager makes the decision and then announces it. Autocratic
managers may ask for subordinates’ ideas and feedback about the decision, but the input does not

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usually change the decision unless it indicates that something vital has been overlooked. The
hallmark of this style is that the manager, who retains all the authority, executes the entire
process. Consequently, the autocratic style is sometimes called the “I” approach. Under certain
conditions, the autocratic style is appropriate. When a manager is training a subordinate, for
instance, the content, objectives, pacing, and execution of decisions properly remain in the hands
of the trainer. (The manager should elicit feedback from the trainee, however.) During a crisis—
a hazardous materials spill or bomb threat, say—leaders are expected to take charge, issue
orders, and make decisions. When a subordinate directly challenges a manager’s authority, an
autocratic response may be needed to preclude acts of insubordination. In circumstances in
which employees have not been empowered to make decisions, supervisors must make them.
Some subordinates do not want to share authority or become involved in any way beyond the
performance of their routine duties. Managers should respect these preferences but also make
incentives and growth opportunities available. To use the autocratic style effectively, managers
must know what needs to be done, and they must possess expert power. The autocratic style is
effective when managers face issues that they are best equipped to solve, create solutions whose
implementation does not depend on others, and desire to communicate through orders and
instructions. If these conditions do not exist, one of the other two leadership styles is probably
more appropriate.

Participative Style: Managers who use the participative style share decision-making authority
with subordinates. The degree of sharing can range from the manager’s presenting a tentative
decision that is subject to change, to letting the group or subordinate participate in making the
decision. Sometimes called the “we” approach, participative management, involves others and
lets them bring their unique viewpoints, talents, and experiences to bear on an issue. This style is
strongly emphasized today because of the trends toward downsizing, employee empowerment,
and worker teams. A consultative and democratic approach works best for resolving issues that
affect more than just the manager or decision maker. People affected by decisions support them
more enthusiastically when they participate in the decision making than when decisions are
imposed on them. Also, if others in a manager’s unit know more than the manager does about an
issue, common sense urges their inclusion in decisions concerning it.

Before subordinates can be brought into the process, mutual trust and respect must exist between
them and their managers. The subordinates must be willing to participate and be trained to do so.
People need training in rational decision making. They must also possess the related skills and
knowledge needed to cope with the problems they are expected to solve. It takes time to give
people the confidence and competence needed to make decisions. Managers must have the time,
means, and patience to prepare subordinates to participate. When employees participate, they
devise solutions they feel they own. This sense of ownership increases their commitment to
making the solutions work. Limits on subordinates’ participation must be clearly spelled out
beforehand; there should be no misunderstandings about who holds authority to do what.
Mistakes will be made and some waste will occur, but the power of the participative style to

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motivate and energize people is great. In many organizations, managers must use this style;
corporate culture and policies demand it.

Free-Rein Style: Often called the “they” approach, or spectator style, the free rein style
empowers individuals or groups to function on their own, without direct involvement from the
managers to whom they report. The style relies heavily on delegation of authority and works best
when the parties have expert power, when participants have and know how to use the tools and
techniques needed for their tasks. Under this style, managers set limits and remain available for
consultation. The managers also hold participants accountable for their actions by reviewing and
evaluating performance. Free-rein leadership works particularly well with managers and
experienced professionals in engineering, design, research, and sales. Such people generally
resist other kinds of supervision.

In most organizations managers must be able to use the decision-making style that circumstances
dictate. Lee is new, so his manager needs to use an autocratic approach until he develops the
confidence and knowledge to perform independently or until he joins a team. Kim, experienced
in her job and better at it than anyone else, will probably do well under a participative or free-
rein approach. Because people and circumstances constantly change and because subordinates
must be prepared for change, the effective manager switches from one leadership style to another
as appropriate.

Summary
Leadership is the ability to influence people toward the attainment of goals. Leadership models
help us to understand what makes leaders act the way they do. Trait theory of leadership attempts
to identify the traits that leaders possess. The behavior approach emphasized the behavior of
leaders and how it might contribute to leadership success or failure. The managerial grid theory
states that a leadership style has production and people concerns. The styles approach of
leadership focuses on how leaders use their authority. Most researchers today conclude that no
one leadership style is right for every manager under all circumstances. Instead, contingency-
situational theories were developed to indicate that the style to be used is contingent upon such
factors as the situation, the people, the task, the organization, and other environmental variables.

Transactional and transformational leadership are seen to be in a continuum rather than being
mutually exclusive. The concept of leadership continues to grow and change. The concept of
servant leadership is leadership upside-down because leaders transcend self-interest to serve
others and the organization. The Level 5 Leader builds an enduring great organization through a
combination of personal humility and professional resolve. Interactive leadership means that the
leader favors a consensual and collaborative process, and influence derives from relationships
rather than position power and formal authority. Moral leadership is about distinguishing right
from wrong and choosing to do right. In the Four Framework Approach, leaders display
leadership behaviors in one of four types of frameworks: Structural, Human Resource, Political,

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or Symbolic. The style can either be effective or ineffective, depending upon the chosen behavior
in certain situations.

A study also shows that executives use just five distinct leadership styles: the strategic approach,
the human assets approach, the expertise approach, the box approach and the change approach.
Power gives people the ability to exert influence over others, to get them to follow; it makes
leadership possible. Formal authority grants a manager legitimate power; but coercive, reward,
expert, and referent power exist as well. The perceived approaches and behaviors a manager uses
to influence others constitute the manager’s leadership style.

Checklist

Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can define leadership,

I can describe the leadership models and styles (trait, behavioral, situational,
transactional, transformational, autocratic, democratic, free rein)

I can identify the servant leadership, level 5 leadership, interactive leadership,

moral leadership, E-leadership, charismatic leadership and visionary leadership.

I can discuss the four framework approach to leadership.

I can describe the five practices of top leaders and the three Cs of leadership.

I can identify and define legitimate power, coercive power, reward power,
referent power and expert power.

I can explain what decision making styles are.

 Self Test Exercise Unit Two

I. Say true or false

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1. According to Ohio State studies, consideration is the extent to which leaders are likely to
define and structure their roles.
2. Delegating is appropriate leadership style for unwilling but able employee.
3. Transactional and transformational leadership models are mutually exclusive.
4. According to political framework of leadership, the leader is a social architect whose
leadership style is analysis and design.
5. Exemplary leaders recognize that if they want to gain commitment and achieve the highest
standards, they must model the behaviors they require of others.

II. Matching
Direction: Match the items listed under column “B” with items listed under column “A”.

No A B
.
1 (1,9) leader A Middle of the road management
2 Social engineering B In an effective leadership situation, the leader is a prophet,
whose leadership style is inspiration.
3 Level 5 leadership C Country club management
4 Symbolic framework of D Changing situations to fit the leader
leadership
5 (5,5) leader E An almost complete lack of ego.

III. Short Answer

1. List the three Cs of leadership.
2. List positional and personal power of leadership.

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Unit 3: Establishing Direction

Introduction
Dear student! Welcome to the third unit of the course. In this third unit, you will learn different
topics such as the leader as visionary, planning, executing and influencing. The concept of
visionary leadership, and planning, steps, types, functions, and characteristics of planning,
implementing plans, and influence and influence tactics will be covered in the unit. In addition,
you will exercise the self assessment tests, activities and practice by the checklists to better
understand about the concepts discussed in the unit.

Objectives
After studying this unit, you will be able to:

 explain visionary leadership, and discuss the importance of vision in leadership.

 discuss the four framework approach of leadership.
 list the step, types and functions of planning.
 explain characteristics of good plan.
 discuss about implementation of plans
 describe influence and tactics of influence.

Contents of the Unit

3.1 The leader as visionary
3.2 Planning
3.3 Executing
3.4 Influence- leading without authority
Summary

Checklist

Self-Assessment Questions

3.1. The leader as visionary

Charismatic leadership goes beyond transactional leadership techniques. Charisma has been
referred to as “a fire that ignites followers’ energy and commitment, producing results above and

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beyond the call of duty.” The charismatic leader has the ability to inspire and motivate people
to do more than they would normally do despite obstacles and personal sacrifice. Followers
transcend their own self-interests for the sake of the department or organization. The impact of
charismatic leaders is normally from stating a lofty vision of an imagined future that employees
identify with, shaping a corporate value system for which everyone stands, and trusting
subordinates and earning their complete trust in return. Charismatic leaders tend to be less
predictable than transactional leaders. They create an atmosphere of change, and they may be
obsessed by visionary ideas that excite, stimulate, and drive other people to work hard.
Charismatic leaders are often skilled in the art of visionary leadership. Visionary leaders speak to
the hearts of employees, letting them be part of something bigger than themselves. They see
beyond current realities and help followers believe in a brighter future as well. A vision is an
attractive, ideal future that is credible yet not readily attainable. In an examination of leadership
lessons from one of history’s most famous and most successful leaders, Alexander the Great, no
factor emerges more clearly than his capacity for visionary leadership. Alexander the Great knew
what he wanted to accomplish, and he was able to communicate a vision that spoke to the
collective imagination of his followers. His vision enabled Alexander within a period of 12 years
to conquer for the Greek kingdom almost the entire known world of the time. Vision is as
powerful for less legendary leaders. Consider Michael Dell, who had a vision of conquering the
personal computer (PC) market with a new build-to-order model for making and selling PCs.
Twenty years ago, no one thought Dell stood a chance, but the company quickly rose to number
one in PC sales. Dell’s vision continues to grow and change. Today, his vision is to double sales
by 2007, with half of that coming from non-PC businesses like corporate computing and
services.

Vision is an important component of charismatic and transformational leadership. Charismatic

leaders typically have a strong vision for the future, almost an obsession, and they can motivate
others to help realize it. These leaders have an emotional impact on subordinates because they
strongly believe in the vision and can communicate it to others in a way that makes the vision
real, personal, and meaningful to others. Charismatic leaders include Mother Teresa, Adolf
Hitler, Sam Walton, Ronald Reagan, David Koresh, Martin Luther King Jr., and Osama bin
Laden. Charisma can be used for positive outcomes that benefit the group, but it can be used for
self-serving purposes that lead to deception, manipulation, and exploitation. When charismatic
leaders respond to organizational problems in terms of the needs of the entire group rather than
their own emotional needs, they can have a powerful, positive influence on organizational
performance. Visionary leaders who do not develop enough infrastructure, or who spread
themselves too thin, can run into serious problems.

3.2. Planning

Planning is the process of setting goals and choosing the means to achieve those goals. Planning
is a particular kind of decision- making that addresses the specific future that managers desire for

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their organization. It is the process of determining how the organization can get where it wants
goes. Shortly, planning means preparing for tomorrow today. In planning process mangers:
establish goals, anticipate future development, identify course of actions required to attain the
goals and determine the time frame. Planning as a key management function enables managers to
answer six basic questions in regard to any intended activity. These are: What is to be done?
(Goal); Who is to do it? (People who perform the goal); When is to be done? (Time frame);
Where is to be done? (Place); How is to be done? (steps & methods to reach goals); How Much?
(Resources required necessary to reach the goal). The planning function can be characterized as
follows:
1. Planning is the primary management function. Planning occurs before organization,
staffing, directing and controlling
2. Planning is a continuous process. Planning is the responsibility of all managers.
3. Planning concerns all mangers. Planning is the responsibility of all managers
4. Plans are arranged in hierarchy. Plans first set for the entire organization called the
corporate plan. The corporate (strategic) plan provides framework for the formulation of
divisional, departmental, and sartorial goals.
5. Planning is future oriented. All types of plans established by managers affect future
effectiveness of the organization, as decisions made activities undertaken in the present
continue to have their impact in to the future.
6. Planning is antithesis of status quo. Planning is undertaken with the conscious purpose
of attaining a position for the company that would not be accomplished otherwise.
Planning, therefore, implies change in organizational objectives, polices, procedures,
marketing strategies, and so forth. However, planning itself is affected by unforeseen
environmental changes.
7. Flexibility- planning allows managers the opportunity to adjust the organization to the
environment instead of merely to react to it.
8. Planning is action- oriented. Plans that are blue print should necessarily followed by
action they should not be paper tigers. As occasion needs, plans need to be translated in
to action.

Importance of Planning
Planning has a number of importances to organization. Without plans, manager cannot know
how to organize people and resources effectively. They may not even have a clear idea of what
they need to organize. Without a plan they cannot lead with confidence or expect other to follow
them. Without a plan, managers and their followers have little chance of achieving other goals or
knowing when and where they stray from their path.

Characteristics of a Good Plan

Sound (good) plan is characterized by the followings:

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Objectivity- Planning should, first of all be based on objective thinking and it should be factual,
logical and realistic.

Futurity- Since a plan is a forecast of some future action, it must have the quality of futurity;
otherwise it has little value as a basis for action.

Flexibility- because no one can foresee the future, plans must have flexibility. They must
smoothly and quickly adjust to changing conditions without seriously losing their effectiveness.

Stability- is related to flexibility. A stable plan will not have to be abandoned because of long-
term changes in the company's situation.

Comprehensiveness- organizations plan must be comprehensive enough to provide adequate

guidance, but not so detailed as to be unduly restrictive.

Clarity and simplicity: - although a good plan must be comprehensive, it should also be simple.
a plan should not be ambiguous. Lack of clarity makes understanding & implementation
difficult.

The Planning Process

Planning is a logical and systematic activity. The planning process indicates the major steps that
are taken in planning. The planning process consists of the following steps:

1. Understanding of the existing situation. In preparing plan for their organization managers
need to understand and have adequate knowledge about both the internal and external
environment.

2. Forecasting- since planning is deciding what is to be done in the future; managers need to
obtain necessary information about what the future will look like.

3. Establishing objectives. Organization objectives give direction to the major plans, which, by
reflecting these objectives, define the objective of every major department. Objectives specify
the expected results, and indicate the end points of what is to be done, where the primary
emphasis is to be placed, and what is to be accomplished by organizational network.

4. Determine Alternative Courses of action: Constructing a list of possible course of action

that will lead to objective/goal.

5. Evaluating the alternatives. Listing and considering the advantages and disadvantages of
each possible course of action.

6. Selecting a course of action (selecting the best solution): This step refers to selecting the
course of action that has the most advantages and fewest disadvantages. This is the point at
which the plan is adopted the real point of decision-making.

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7. Formulating derivative plan. When decision is made, planning is seldom complete, and a
seventh step indicated. Derivative plans are almost invariably required to support the basic
plan.

8. Numbering plans by budgeting: Converting the activities in plan in to budget. estimating

budget to carry out the plan.

9. Implementing the Plan. After the optimum alternative has been selected, the manager needs
to develop an action plan to implement it. the manager must determine who will be involved,
what resource will be assigned how the plan will be evaluated, what type and degree of
authority will be assigned how the plan will be evaluated, what type and degree of authority
will be granted to achieve the ends, by what date the tasks to be initiated and completed and
what reporting procedures are to be used.

10. Controlling and evaluating the results. Once the plan is implemented, the manager must
monitor the progress that is being made, evaluate the reported results, and make any
modifications if necessary.

Types of plan
Plans can be classified on different bases or dimensions. The following are the most important
ones: scope/breath dimension, repetitiveness, and time dimension.

Classification of plans based on Scope or breadth

Based on their scope or breadth plans can be classified into three categories: Strategic planning,
tactical planning and operational planning.

Strategic Planning: It is the process through which managers determine the organizations basic
mission and the set of means for achieving this mission. Strategic planning is prepared by top-
level-executives by taking in to account internal environment (strengths and weakness) and
external environment (threat and opportunities). Strategic plans are organizational wide,
establish the organizations over all goals, tend to be the long term success and direction of the
organization, mostly long-large in its time frame, mostly performed (done) by top level managers
and expressed in relatively general non-specific terms.

Tactical Planning: It is the process through which managers design coherent groups of activities
to accomplish a strategy. It is a means of translating strategies in to short-term tactics. Tactical
Plans facilitate objectives, because they are prepared as a performance targets, translate the
strategic plans into measurable tactical objectives, tend to be short-term usually not more than
two years and prepared by middle level managers who are responsible in directing departments,
divisions on order similar sub-units of the organization.

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Operational Planning: It is the process through which managers design specific activities and
steps to accomplish objectives. It is most specific and detailed. It is made at the operational level
and concerned with the day-today, week-to-week activities of the organization, First-level-
managers are responsible for accomplishing (preparing) the operational planning. Operational
Planning is narrow in scope and short lived, usually a few months. Examples are production
schedules, sales plan, lesson plans etc....The following figure summarized the scope of
organizational plans and type of managers responsible for each planning type. It is important to
note that the three types of plans (strategic, Tactical and operational) interact each other.
Managers, therefore have to ensure that there is a mutual interaction among them.

Strategic Planning

Top executives

Middle level managers T tactical Planning

Operational Planning
First level managers

Classification of plans based on Repetitiveness

Based on repetitiveness plans can be classified in to two as (1) Single use and (2) Standing
plans.

I. Single use plans: Single use plans are developed to deal with "one short" situation for a given
purpose or a given period of time and then discarded. The most common forms of single use
plans found in organization are budget, project and program.

II. Standing plans: Standing plans are those plans that can be used again and again. They are
long-range plans. They are used over and over again (frequently) to help guide the actions of the
organization. Standing plans include: Mission or purpose, goal or objectives, Policy,
Procedures, Method, and Rule.

Classification of Plans Based on Time

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All planning deals with the future and the future is measured in time. In terms of the time periods
we can classify plans into three based on time as long range plans, intermediate plans and short
range plans.

Activity I: how can we classify planning?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________

3.3. Executing
After they have completed the tactical or operational plan, their creators need to develop an
action plan to implement it. Among the issues to be resolved: Who will do what? By what date
will each task be initiated and completed? What resources will each person have to perform the
tasks? The supervisor needs to list a time frame by which all necessary activities must be
initiated or completed. He or she will do many of the activities with the assistance of the
organization’s human resources manager, if the latter exists.

Once the plan is implemented, managers must monitor the progress being made and be prepared
to make any necessary modifications. Since environmental conditions are constantly changing,
plans must often be modified. Modifications may also be required because of problems with a
plan’s implementation. The manager has developed monitoring duties to provide for control and
evaluation of the plan. The manager has another alternative ready if the first choice does not
work. All planning is based on assumptions (what planners believe to be true and real) and
forecasts (predictions about the probable state of relevant conditions over the span of time
covered in their plans). All assumptions and forecasts appear to be reasonable and valid at the
time planners make the plans. Managers examine available current data and historical records,
consult with others as appropriate, and generate required information they may need to make
their assumptions and forecasts. Contingency planning requires the same managers to plan for
the “what if?” The assumption behind contingency planning is that circumstances can and are
likely to change, and organizations must be ready for the changes.

Managers make assumptions and forecasts. They provide the leadership to grow the business by
looking for opportunities that will capitalize on the company’s reputation and expertise. Through
continual research and the help of knowledgeable outsiders, the manager can successfully predict
the future for its products and create most of the company’s long-term goals and strategies to
become a major player in its market. The top manager must create and execute several additional
strategic and tactical plans related to marketing, finance, production, and human resources
management as he or she gains wisdom and insights through experience. When done properly,
planning should enable managers to avoid making mistakes, wasting resources, and experiencing
surprises. However, all risks and threats may not be foreseen.

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 3.4. Influence- leading without authority
Basically, to clearly understand what makes leaders effective, it requires an analysis of the
complex web of power relationships and influence processes. Here the concept of power,
influence tactics, and its relation to leadership is considered. As emphasized in the definition of
leadership, the essence of leadership is influence over individuals/followers. That means power
is related to leadership because it is part of the influence process. Also the leader’s effectiveness
depends on his or her success in influencing. In other words, leadership is an ability of an
individual to influence, motivate, and make others contribute towards the effectiveness and
success of their organizations. Although many people use the terms power and influence
synonymously, it is necessary to distinguish between them.

Power is defined as the capacity to produce effects on the others or potential to influence others.
While we usually think of power belonging to the leader, it is actually a function of the leader,
the followers, and the situation. Thus, leaders have the potential to influence their followers’
behaviors and attitudes, but followers also can affect the leader’s behavior and attitude. Even the
situation itself can affect a leader’s capacity to influence his/her followers (and vice versa).
Hence, power represents an inference or attribution made on the basis of an agent’s observable
acts of influence. Also power is never directly observed but rather attributed to others on the
basis and frequency of influence tactics they use and on their outcomes.

Influence can be defined as the change in a target agents attitudes, values, beliefs, or behaviors
as the result of influence tactics. Influence can be described as “the key feature of leadership,
performed through communicating, decision making, and motivation.” At the heart of
influencing is “relationship” and influencing others to some degree is born out of the
interdependent relationships we have with other people. It is because people are interdependent
that they must communicate and develop constructive relationships with peers and stakeholders.
Strong relationships make influencing easier but they can impose constraints in that they can
create power differentials. Without an adequate understanding of the local situation, we will not
know whether our influencing measures are likely to be appropriate, and the perspectives and
interests of local stakeholders often end up being cut out. Any influencing strategy is likely to
have several different objectives at the same time, for instance, tackling budgets, managing
resources, or increasing economic opportunities. A strategic approach to influencing others is
one that recognizes that the world changes fast, and that there is much about the project
environment in which one is operating that not known. Thus, power is the capacity to cause
change, whereas influence is the degree of actual change in a target person’s attitudes, values,
believes or behaviors.

Influence tactics refer to one person’s actual behavior designed to change another person’s
attitude, beliefs, values, or behaviors. Although these concepts are typically examined from
leader’s perspectives (e.g. how a leader influences followers), we should remember that
followers can also wield power and influence over leaders as well as over each other. Thus, the

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leadership practitioners can improve their effectiveness by reflecting on the types of power they
and their followers have and the types of influence tactics that they may use or may be used on
them. The other basic question is how effectiveness of leaders influence can be measured. In
fact, the effectiveness of leaders influence can be measured by the behaviors or attitudes
manifested by followers as the result of a leader’s influence tactics. For example, a leader may
ask a follower to accomplish a particular task, and whether or not the task is accomplished is
partly a function of a leader’s requisite. The follower’s ability and skill as well as access to the
necessary equipment and resources are also important factors. In addition, subordinates’
satisfaction or motivation, group cohesiveness and climate, or unit performance indices can be
used to measure the effectiveness of leaders’ influence attempts. The degree to which leaders can
change the level of satisfaction, motivation, or cohesiveness among followers is a function of the
amount of power available to both leaders and followers.

From foregoing discussion the amount of change in the attitudes or behaviors of the targets of
influence is a function of the agent’s capacity to exert influence and the target’s capacity to resist
this influence. Thus, the influence tactics are the overt behaviors exhibited by one person to
influence another person. Leaders and followers can use a variety of tactics to influence each
other’s attitudes or behaviors. The success of an influence tactic can be distinguished by the
target’s commitment, compliance or resistance to the desired result. Leaders with a relatively
large amount of power may successfully employ a wider variety of influence tactics than those
with little power. In fact, tactic that can be used in a leadership situation is probably a function of
the power possessed by both parties. The challenge is properly assessing the situational
environment, the intended outcome, and the appropriate influence tactics to employ based on the
leader’s source and magnitude of power. Hence power is defined as the capacity or potential to
exert influence, influence tactics as the behaviors used by one person to modify the attitudes and
behaviors of another, and influence as the degree of change in person’s attitudes, values, or
behaviors as a result of another’s influence tactic. Leaders and followers can use a variety of
tactics to influence each other’s attitudes or behaviors. The influence tactic used in a leadership
situation is probably a function of the power possessed by both parties. Thus, leaders should get
awareness of these concepts and need to apply to improve their leadership effectiveness. That
means power, influence, and influence tactics are key determinant factors in the leadership
process.

Influence Process and Follower Compliance: Influence Model

With the intention of enhancing the understanding of the influence process and follower
compliance, Donnette (2009) has developed a comprehensive conceptual framework by
extending Barbuto’s (2000) influence model. His influence and compliance framework
postulates that using a particular influence tactic or combinations of tactics will result in a
desired outcome of commitment and at the very least, compliance from a target to achieve goals
and objectives and includes four variables that have the potential to moderate the process. These

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are target’s sources of motivation, the target’s zones of resistance, the target’s locus of control,
and the agent’s bases of power and thus, affect the outcome. In this context the person who is
attempting to influence another shall be referred to as the “agent” and the person who is subject
to an influence attempt shall be referred to as the “target”.

In addition, the proposed framework that expands Barbuto’s (2000) influence model, include the
addition of locus of control as a moderating variable and views commitment and/or compliance
(or lack thereof) through the lens of the agent; this varies from Barbuto’s framework which
views the influence process through the target’s lens. To be certain, a target cannot be influenced
by an agent unless the target allows the agent to do so. Sophisticated agents would be well served
to understand the psychosocial dynamics and internal mechanisms of a particular target’s sources
of motivation, zones of resistance, and locus of control in addition to their own perceived base(s)
of power so that they will understand the target and can contemplate their options when seeking
the best approach to take when choosing an influence tactic to be used with a specific target to
garner the desired outcome.

To sum up, efforts made to set forth myriad propositions explain the various possible outcomes
of a decision/influence based on the approach used by an agent in conjunction with the targets,
and the dynamics of the decision making/influencing process based on the influence tactic(s)
used and various moderating variables including the target’s sources of motivation, the target’s
zones of resistance, the target’s locus of control, and the agent’s base(s) of power.

Activity II: what are the influence tactics/methods?

______________________________________________________________________________
______________________________________________________________________________
________________________________________________________________

Influence Tactics
According to Yukl (2006), one of the most critical components of leadership effectiveness is
successfully influencing people and developing their commitment to task objectives. If it is
assumed that an agent acts rationally when choosing how best to influence a target person, then it
would follow that there must be consideration of the possible choices and the possible reactions
of a target to the particular means of influence before deciding which tactic may result in the
desired outcome. The desired outcome, of course, would be commitment to goals and tasks at
best, and compliance or resistance at least. There are nine influence tactics which cover a wide
variety of proactive influence behaviors likely to be relevant to an agent’s effectiveness in
influencing others. These tactics have been cited and used in prior research on influence
effectiveness and they are:

Rational Persuasion uses logical arguments and factual evidence to persuade the target that a
proposal or request is viable and likely to result in the attainment of task objectives. To persuade

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 another is to induce to undertake a course of action or embrace a point of view by means of
argument, reasoning, or entreaty. Persuasion is more assertive than influence, but may prove
more effective at times. Despite the definition of persuasion, argument should be avoided when
persuading. Clear reasoning is the most effective form of persuasion for getting your points
across. In persuasion, the way we use words is critical. We encourage or discourage people, open
them up or close them to us; we can motivate or inspire or dampen enthusiasm and engender
doubts. We need to engage people and ask questions that will involve people in the
communication process. In persuading people to our points of view, we have to ask the right
questions that stimulate thinking and listening to them for their ideas.

Figure 2.1: A Prescriptive Model: Influence Tactics, Moderating Variables, and

Desired Outcome(s)
Target’s Sources of
Motivation:
1. Intrinsic
2. Instrumental Target’s
3 Self-concept, internal. Locus of
4 Self-concept, external Control:
5. Goal internalization 1. Internal
Agent’s Influence Tactics: 2. External
1. Rational persuasion
2. Inspirational appeal
3. Consultation
4. Ingratiation Possible Outcomes:
5. Exchange 1. Resistance
6. Personal appeal 2. Compliance with
7. Coalition resentment
8. Legitimizing 3. Compliance
9. Pressure/coercion 4. Commitment

Agent’s Power Target’s Zones

Bases: of Resistance:
1. Referent 1. Preference
2. Legitimate 2. Indifference
3. Expert 3. Legitimate
4. Coercive 4. Influence
5. Reward 5. Non-influence

Source: Donnette Noble( 2009).Influence Process and Followers Compliance

Inspirational Appeal involves making a request or proposal that arouses the enthusiasm of the
target by appealing to the target’s values, ideals, and aspirations, or by increasing a target’s
confidence in his or ability to accomplish the goal.

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Consultation seeks the participation of others in planning a strategy, activity, or change for
which their support and assistance is desired and, which would include acknowledgement of
their concerns and/or suggestion.

Ingratiation means to work toward enhancing the mood of the target and helping the target to
believe that the agent thinks of the target favorably before asking for something to be done.

Exchange is based on a process of offering an exchange of favors and indicating willingness to

reciprocate at a later time, or promising to share benefits with the target when the task is
accomplished.

Personal Appeal involves appealing to the target’s feelings of loyalty and friendship before
asking the target to do something.

Coalition involves other parties and seeks their aid before attempting to persuade the target to do
something.

Legitimating seeks to establish the legitimacy of a request by claiming the authority or right to
make it or by verifying that it is consistent with organizational policies, rules, practices,
procedures, or traditions.

Pressure is required when an agent resorts to using demands, threats, or persistent reminders to
influence a target.

Other Methods of Influencing

The influencer’s basic fear is the loss of social approval and those skilled at influencing
recognize the different topics and situations have to be handled differently. Use the wrong style,
about the wrong subject, at the wrong time and you will create resistance or get a response
entirely different to the one you wanted. When influencing others, project leaders should be
looking for win/win outcomes. After influencing, there are four general methods to win others to
your way of thinking:

a) Mental Conditioning: is a technique one often uses on oneself to change a belief or create a
feeling using repetition. Through repeated exposure, our minds are conditioned to accept the
association.
b) Manipulation: to manipulate another is to use shrewd or devious management, especially
for one’s own advantage. Simply put, the main difference between influencing another and
manipulating them is intent. Those who use manipulation do so only thinking about what
they want, not about the wants of those they manipulate. It is not easy to detect when you are
manipulated. By recognizing signs and signals-specially the non-verbal, you are helping to
reduce the risks of manipulation.
c) Brainwashing: is the process of systematically, forcibly, and intensively, indoctrinating a
person to destroy or weaken his or her beliefs and ideas so that he/she becomes willing to

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 accept different or opposite beliefs or ideas. The key element of brainwashing is the creation
of an environment where questioning, bout, reason, creativity, thinking for oneself, and
dissent are encouraged or even punished.

The ability to win others to your way of thinking is a key element of both leadership and success.
There are just as many ways to it wrong as there are to do right. As a successful leader, use
positive influence often and gentle persuasion when necessary. Use mental conditioning on
yourself to abolish limiting beliefs or instill empowering beliefs. Never use manipulation or
brainwashing in an attempt to win others to your way of thinking and be aware when others
attempt to use these techniques on you. Difficulties with organizational transformations arise
from failures to analyze an organization’s existing cultures.

Moderating Variables
The effectiveness of any of the aforementioned influence tactics on securing a target’s
commitment or compliance for achieving goals and objectives could change dramatically
depending up on the target’s particular sources of motivation.

Sources of Motivation
In text question: what is the difference between intrinsic and extrinsic motivation?
______________________________________________________________________________
______________________________________________________________________________
According to Barbuto et.al (2004), motivation (those things which energize human behavior) has
been examined from many perspectives, including psychosocial, need-based, (Maslow,
McClelland), intrinsic, social identity, value-based, goal-setting, self concept-based, and to some
extent, developmental perspectives. Here, motivation will be defined by the typology proposed
by Leonard, et. al and operationalized by Barbuto and Scholl (1998) as cited by Barbuto and
Scholl (1999). The identified sources of motivation are: 1) Intrinsic process, 2), instrumental
rewards, 3), external self concept 4) internal self concept, and 5), goal-internalization process.

Intrinsic Process: suggests people are motivated to perform certain kinds of work or engage in
certain types of behavior for the sheer fun of it. The work itself, not the outcomes, is what act as
the incentive for people who are intrinsically motivated. The term intrinsic motivation is often
used to represent the personal satisfaction derived from achievement of goals or tasks. As used
here, it refers to and emphasizes the immediate enjoyment or pleasure during the activity rather
than the satisfaction resulting from the achievement (Barbuto et.al., 2004)

Instrumental rewards: motivation and instrumental rewards will motivate people when they
perceive their behaviors will lead to certain tangible outcomes such as pay increases or
promotions. This source of motivation integrates Barnard’s exchange theory, and legal

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compliance and external rewards. Individuals motivated by instrumental motives are more likely
to seek the optimum balance of inputs and outputs.

Internal self concept: tends to be externally based and is centered on one’s attempt to meet the
expectations of others by behaving in a way that elicits social feedback consistent with their self
concept. People behave in ways that reference group members in such a way as to first gain
acceptance and then status. Bandura describes self- regulation and personal standards in terms
similar to those used to describe internal self-concept. This motive is also used to describe
intrinsic motivation to overcome challenges and intrinsic motivation to pursue personal
achievement.

External self concept: focuses on internal standards of traits, competencies, and values that are
set and ultimately become the basis for the ideal self. These people tend to engage in behaviors
that reinforce the standards and later work to achieve higher competency. Social rewards and
peer comparisons are inherent in external self concept.

Goal-internalization: behaviors and attitudes that are adopted based entirely on one’s personal
value system. Strong ideals and beliefs are paramount in this motivational source; the person
believes in the case will develop a strong sense of duty and will, therefore, be motivated to work
towards the collective/group goal.

Zones of Resistance
Barbuto (2000) argues that a key behavioral determinant in the influence process is a target’s
resistance to a particular task or tasks. Further, the likelihood that influence attempts will lead to
compliance has been proposed to depend up on the types of triggers (interpretations or reactions
to an influence attempts). Assessing a target’s resistance (compliance) requires an assessment of
how willing the target is to perform specific behaviors or pursue specific goals. To better
understand this phenomenon, Barbuto, expand Barnard’s zones of resistance. According to
Barbuto, if behaviors are plotted using a bull’s eye target design, the further from the center of
the bull’s eye that the behavior lies, the greater the target’s resistance. Each circle of the diagram
(see fig below) represents a concentric zone of the target’s resistance and, moving from the
center outward, the various zones are:
The preference zone: which is comprised of behaviors a person is intending to do without any
influence. When the desired behavior is consistent with the target’s preference zone,
inducements are not necessary.
The indifference zone: which is comprised of behaviors that a person is willing to do prior to
any exertion of influence, but does not intend to do. The absence of an influence attempt will
result in the behaviors in this zone not being performed. It refers to the range in which attempts
to influence a person will be perceived as legitimate and will be acted on without a great deal of
thought.

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The legitimate zone: This is comprised of behaviors that a target is likely to consider
reasonable. Nonetheless, the target will likely be influenced by leader/manager inducements.

The influence zone: This suggests that targets will require substantive inducements to perform a
task that would fall within this zone. This zone is comprised of behaviors a target is likely to
consider “beyond the call of duty”.

The non-influence zones: are those behaviors that a target is likely to consider “off-limits”.
Even with strong inducements, a target will typically not be likely to perform these behaviors.

Fig.2.2: Targets’ Concentric Zones of Resistance: A modern View (Barbuto, 2000).

Non-influence

Influence

Legitimate

Indifference

Preference

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Locus of Control
In terms of decision making process, another consideration and possible moderator of outcomes
is a target’s locus of control. The expansion of Barbuto’s (2000) model includes locus of control
as a moderator to the effectiveness of any given influence tactic used with a target to produce the
desired result. First introduced by Rtter (1966), the locus of control of reinforcement construct in
the psychology of the mind distinguishes between two types of people. Internals who attribute
events and outcomes to their own control, and externals who attribute events and outcomes in
their lives to external circumstances (Wikipedia, 2007). According to Neill (2006), the locus of
control reinforcement construct as conceptualized by Rotter (1996), refers to a one dimensional
continuum that bridges behavior with cognitive psychology. Expanding further on this, Neill
offers clarification of Rotter’s view that behavior is largely guided by reinforcements (rewards
and punishments) and that through contingencies such as rewards and punishments, individuals
come to hold certain beliefs about what in particular guides their actions. These actions, in turn,
are determinants of the various attitudes and behaviors that are eventually adopted and displayed.

People with an internal locus of control are believed to exhibit two essential characteristics; high
achievement and motivation, and low-outer directedness. Frequently, they are perceived to be
more stable, tolerate delays in rewards better, are typically better, and typically better equipped
to resist coercion, and tend to tolerate ambiguity better, and are more engaged in planning and
preparing to reach long-term goals. Additionally, they are perceived as placing more emphasis
on education, behaving responsibility, and as more critically thinking beings.

People with an external locus of control are perceived in a more pejorative fashion when
compared to their internal locus of control counterparts. Primarily, those with an external locus
of control are perceived as commonly coming from lower socio-economic conditions whereby
individuals are taught either through empirical situations or perceived situations that they
seldom, if ever, possess the skills or abilities to control their circumstances. They are generally
perceived as less educated, less responsible, and demonstrating fewer critical thinking skills.

Summary
The charismatic leader has the ability to inspire and motivate people to do more than they would
normally do despite obstacles and personal sacrifice. Vision is an important component of
charismatic and transformational leadership. Charismatic leaders typically have a strong vision
for the future, almost an obsession, and they can motivate others to help realize it. Planning is the
process of setting goals and choosing the means to achieve those goals. Planning is a particular
kind of decision- making that addresses the specific future that managers desire for their
organization. Without plans, manager cannot know how to organize people and resources
effectively. There are some major steps that are taken in planning. Plans can be classified on
different bases or dimensions such as scope/breath dimension, repetitiveness, and time
dimension.

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After they have completed the tactical or operational plan, their creators need to develop an
action plan to implement it. Influence can be defined as the change in a target agents attitudes,
values, beliefs, or behaviors as the result of influence tactics. Influence can be described as “the
key feature of leadership, performed through communicating, decision making, and motivation.
There are also different influence tactics which cover a wide variety of proactive influence
behaviors likely to be relevant to an agent’s effectiveness in influencing others. In terms of
decision making process, another consideration and possible moderator of outcomes is a target’s
locus of control. The expansion of Barbuto’s (2000) model includes locus of control as a
moderator to the effectiveness of any given influence tactic used with a target to produce the
desired result.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Ye No
s

I can explain the importance of vision for charismatic and transformational leadership

I can define planning and I can list the six basic questions in regard to any
intended planning activity.

I can identify the characteristics of planning functions.

I can discuss the importance of planning and characteristics of good plan.

I can describe the planning process

I can identify and define strategic planning, tactical planning, operational

planning, long range plans, intermediate plans, and short range plans,

I can identify and define single use plans, and standing plans.

I can explain what executing of plans is.

I can identify and define power, influence and influence tactics.

I can identify and define zones of resistance, locus of control.

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 Self Test Exercise Unit Three

I. Choose the correct answer

1. Which of the following is not true?
A. Transactional leaders tend to be less predictable than charismatic leaders.
B. Vision is an important component of charismatic and transformational leadership.
C. Charismatic leaders are often skilled in the art of visionary leadership.
D. Charismatic leaders typically have a strong vision for the future.
2. Which of the following is correct?
A. Planning focuses on past activities.
B. Planning is the concern of only top managers.
C. Planning is action-oriented
D. Planning is a onetime activity.
3. Which of the following characterize a sound plan?
A. Flexibility B. Futurity C. Stability D. All of the above
4. It is the process through which managers design coherent groups of activities to
accomplish a strategy. A. strategic plan B. Tactical plan C. Operational plan
5. ______________ uses logical arguments and factual evidence to persuade the target that
a proposal or request is viable and likely to result in the attainment of task objectives.
A. Consultation B. Inspirational appeal C. Rational persuasion D. Manipulation

II. Fill in the following blank spaces

1. ___________ means to work toward enhancing the mood of the target and helping the
target to believe that the agent thinks of the target favorably before asking for something
to be done.
2. ___________ tends to be externally based and is centered on one’s attempt to meet the
expectations of others by behaving in a way that elicits social feedback consistent with
their self concept.
3. ________________ refer to one person’s actual behavior designed to change another
person’s attitude, beliefs, values, or behaviors.
4. The change in a target agents attitudes, values, beliefs, or behaviors as the result of
influence tactics is called _______________
5. Plans that can be used again and again are called _____________________.

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Unit Four: Communications

Introduction
Dear student! Welcome to the unit four of the course. In this fourth unit, you will study different
topics which are related to communication. The topics that will be covered in the unit are basics
of effective communication, barriers to communications, nonverbal communication, active
listening, feedback and meetings. In addition, you will exercise the self assessment tests,
activities and the checklists to better understand about the issues raised in the unit.

Objectives
After studying this unit, you will be able to:

 explain basics of effective communications.

 discuss the components of communications.
 list the barriers to communications.
 explain the importance of active listening in communications.
 discuss about feedback.
 describe the concept of meetings in communication.

Contents of the Unit

4.1 Basics of effective communications
4.2 Barriers to communications
4.3 Non verbal communication
4.4 Active listening
4.5 Feedback
4.6 Meetings
Summary

Checklist

Self-Assessment Questions

4.7Basics of effective communications

In text question: what is the importance of communication for organizational
leadership/management?

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______________________________________________________________________________
__________________________________________________________

Communication is the process that managers use to interact with subordinates, peers,
supervisors, customers, suppliers, owners, the general public, and others. It is not surprising then
that the ability to communicate well is a critical skill in determining managerial success. This
ability involves a broad array of activities including reading, listening, managing and interpreting
information, serving clients, writing, speech making, and using symbolic gestures. All these
communication activities become more complicated with the integration of technology,
increased diversity, and more globalization. Whether it is a face-to-face meeting or an overseas
transmission, communication is a complex process that requires constant attention so that
intended messages—that is, intended meanings, understandings, and feelings—are sent and
received. Inadequate communication is the source of conflict and misunderstanding. It interferes
with productivity and profitability. Communicating effectively is much more than just saying or
writing the correct words. How we communicate is affected by frame of reference, emotional
states, the situation, and preferred styles of communication. Consider, for example, a time when
you experienced frustration because you just couldn’t get through to someone. It felt as if you
were speaking an unknown language or were on a different wavelength. Communication is
essential to management because it encompasses all aspects of an organization and pervades
organizational activity; it is the process by which things get done in organizations. Yet
communication is a complicated and dynamic process with many factors influencing its
effectiveness.

First, communication is a process in which the senders, messages, channels, and receivers do not
remain constant or static. Second, communication is complex. Even a simple two-person
interaction involves multiple variables—such as the individuals, the setting, the experiences each
person has had, and the nature of the task—that impact the efficiency and effectiveness of the
process. Third, communication is symbolic. We use a variety of arbitrary words and signs to
convey meaning to those with whom we are communicating. Although there is some agreement
about the meanings of most of our words and signs, meanings change over time. The objective of
communicating is to create some degree of accurate understanding among the participants.
Clearly then, communication skills are essential for managerial success. This chapter explores
the ways managers communicate, both formally and informally. Like the other aspects of the
business environment that we have examined, communication is affected by the changing
environment. In particular, technology, global issues, and diversity in the workforce pose
challenges to the way managers communicate, and we look at these challenges in some detail.
Throughout the chapter, emphasis is placed on ways managers use communication to support
organizational goals. A division head writes a memo and distributes it electronically. A flag flies
at half-mast at the post office. An army officer praises the accomplishments of the unit. A pilot
signals the ground crew that the flight is ready to depart. A professor writes a grade on a
student’s term paper. Employees in Seattle and Singapore attend a videoconference meeting. All

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these incidents involve some form of communication. But what exactly is meant by
communication? Communication is a complex and dynamic process, and like other management
terms, it has no universally accepted definition. For our purposes, we will define
communication as a process in which one person or group evokes an identical meaning in a
second person or group. The meaning becomes shared by, or common, to both people or groups.
Indeed, the term communication stems from the Latin root word communicare, which means, “to
make common.”Defining communication is relatively simple, but achieving effective high-
quality communication is complicated and difficult. Successful, high-quality communication
results when the receiver of the message understands the exact meaning that the sender intended.

The primary components of the communication process include the sender, the channel, the
message, the receiver, feedback, and noise. Because the communication process does not occur
in a vacuum, the social context in which the communication takes place is an influential variable.

CONTEXT: GLOBAL, DIVERSITY, AND TECHNOLOGY IMPACT

The social context is the setting in which the communication takes place. The setting has an
impact on the other components of the communication process. For example, communication
between a manager and a subordinate in the manager’s office will be more formal and reserved
than it would be if it occurred on the golf course. Fewer distractions may occur under these
circumstances. However, the subordinate may be less inclined to give the manager candid
feedback. The social context is an important consideration in light of the global nature of
business and the diversity of employees’ and customers’ cultural backgrounds and the
complexity of information technology. Conducting business in this arena presents many
challenges to managers.

SENDER
The sender initiates the communication process by encoding his or her meaning and sending the
message through a channel. The encoding process translates the sender’s ideas into a systematic
set of symbols or a language expressing the communicator’s purpose. The function of encoding,
then, is to provide a form in which ideas and purposes can be expressed as a message.
Vocabulary, language, and knowledge play an important role in the sender’s ability to encode.
But our ability to encode ideas, thoughts, and feelings is far from perfect. A manager has to learn
to encode meanings in a form that can be understood by a variety of recipients as well as other
professionals in the same field. This of course is related to a basic rule for making a speech—
analyze your audience. Knowing more about the receiver will help the sender select more
effective language and symbols.

MESSAGE

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The result of encoding is the message. Messages are the tangible forms of coded symbols that
are intended to give a particular meaning to the information or data. They are the thoughts and
feelings that the communicator is attempting to elicit in the receiver. Words and symbols have no
meaning in and of themselves. Their meaning is created by the sender and the receiver and, to a
certain extent, by the situation or context. Sometimes messages are conveyed in ways that can be
interpreted very differently.

Fig. 4.1. Basic components in the communication process

CHANNEL
Once the encoding is accomplished and a message emerges, another issue arises. How can this
information be transmitted to the receiver? The answer depends in part on how the message has
been encoded. If the message is in the form of a written report, it can be transmitted by mail,
messenger, fax machine, or increasingly, by electronic means (e-communication). If it has been
entered into computer storage, it can be sent directly to another computer over phone lines or
satellite. If it is expressed orally, it can be presented directly in a face-to-face meeting or over the
phone. The overriding consideration in choosing a channel is to ensure that the receiver can
comprehend the message.

The channel is the carrier of the message or the means by which the message is sent.
Organizations provide information to members through a variety of channels, including face-to-
face communication, websites, telephone conversations, group meetings, fax messages, memos,
policy statements, reward systems, managerial behaviors, bulletin boards, and electronic means.
One critical impact is the improvement in technology that has made it possible to send and
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receive messages thousands of times faster than was possible a few years ago. Research has
shown that the communication channels must be chosen carefully to deliver the appropriate
message in the right way to the right people. That is, appropriate channels for the message and
the receivers can have a major impact on communication effectiveness and even managerial
performance. Sometimes managers fail to understand or consider how the choice of a channel
can affect a communication’s impact.

RECEIVER
The receiving person or group must make sense of the information. Decoding involves the
translation of received messages into interpreted meanings. Once again, our abilities to
accomplish this task are limited. As the workforce becomes more diverse, managers are
challenged to decode messages accurately. Because receivers interpret the message based on
previous experience, frames of reference, vocabulary, and culture, this process is not always
successful.

FEEDBACK
In our model, communication feedback refers to the process of verifying messages and the
receiver’s attempts to ensure that the message that was decoded is what the sender really meant
to convey. Feedback is a way to troubleshoot and avoid communication failure because it
provides preliminary information to the sender. Through feedback, communication becomes a
dynamic, two-way process. As a sender of information, it is a good idea to see if the receiver
understood the meaning that you intended. It is possible to convey information to someone
without being aware that the receiver interpreted the message differently than intended.
Unfortunately, if you don’t check for shared meaning, you are likely to become aware of this
problem after a major problem or issue arises because of the confusion. Many organizations are
beginning to realize the value of feedback from their employees and customers.

NOISE
Any internal or external interference with or distraction from the intended message is considered
to be noise. Noise can cause distortion in the sending and receiving of messages due to physical
conditions and emotional states that make communication more difficult. For example, a radio
playing loud music while someone is trying to talk, a fading signal when using a mobile phone,
construction during a class lecture and stressful working conditions are examples of noise. Noise
can occur during any stage of the communication process, and it reduces the probability of
achieving common meaning between sender and receiver. Messages that are encoded poorly (for
example, are written in an unclear way), decoded improperly (for example, are not
comprehended), or transmitted through inappropriate channels may result in reduced
communication quality and effectiveness.

Activity I: what are elements/components in communication process?

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______________________________________________________________________________
______________________________________________________________________________

4.8. Barriers to communications

Despite its apparent simplicity, the communication process rarely operates flawlessly. The
information transmitted from one party to another may be distorted, and communication
problems may result. Communication barriers interfere with organizational excellence.

Cross-cultural diversity: Cultural differences may arise between people from different
geographic or ethnic groups within one country as well as between people from different national
cultures.
Trust and credibility: Without trust, the communicating parties concentrate their energies on
defensive tactics, rather than on conveying and understanding meaning.
Information overload: Individuals can experience information overload when they are asked to
handle too much information at one time.
Language characteristics: Many words or phrases are imprecise. Individuals often use different
meanings or interpretations of the same word and do not realize it.
Gender differences: Since males and females are often treated differently from childhood, they
tend to develop different perspectives, attitudes about life, and communication styles.
Other factors: Time pressures, physical distractions, differing perceptions, and noise can all
interfere with good communication.

CROSS-CULTURAL DIVERSITY
Communication as an exchange of meaning is bounded by culture. Individuals from different
cultures may encode and decode their messages differently; they have different behaviors, styles,
and ways of looking at things. All of these can lead to barriers to effective communication.
Difficulties may arise between people from different geographic or ethnic groups in the same
country, as well as between people from different national cultures. A common problem in cross-
cultural communication is ethnocentrism, or the tendency to consider one’s own culture and its
values as being superior to others. Very often such tendencies are accompanied by an
unwillingness to try to understand alternative points of view and take seriously the values they
represent. This attitude can be highly disadvantageous when trying to conduct business and
maintain effective working relationships with people from different cultures. Studies show that
the greater the differences between the sender’s and receiver’s cultures, the greater is the chance
for miscommunication.

A common criticism of some U.S. business managers is that, although they have the technology
and know the business, they are not prepared to deal with cultural differences. Among the

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cultural elements that affect cross-cultural communication are level of formality, level of
directness and explicitness, and perception of time.

TRUST AND CREDIBILITY

A very important barrier to effective communication is a lack of trust between the sender and the
receiver. This lack of trust can cause the receiver to look for hidden meanings in the sender’s
message, or it can cause the sender to try to manipulate the message. A trusting relationship is
almost a prerequisite for good communication. In the absence of trust and honesty, the
communicating parties divert their energies to defensive tactics rather than trying to convey and
understand meaning. A work environment characterized by trust does not just happen. It takes
time and effort to develop. It must be nurtured and reinforced by honesty and accuracy in
communication and mutual respect between communicating parties. Managers can develop trust
in their working relationships with subordinates by being “trustworthy.” That is, managers and
everyone can be trustworthy by making promises and keeping them—by doing what you say you
are going to do and by not telling lies. It simply means that managers get out of their offices and
communicate regularly with employees as they do their jobs. Managers who spend time walking
around can greatly reduce the perceived distance between themselves and their subordinates.
They can also create an atmosphere of open and free-flowing communication, which makes more
and better information available for decision making and makes decisions more relevant to the
needs of lower-level personnel.

INFORMATION OVERLOAD

Although information is the lifeblood of the organization, it is possible for managers and
organizations to have too much information. The increasing use of technology in organizations
often leads to information overload, which occurs when the amount of information that one can
process is exceeded. Perhaps it would be more appropriate to talk about “data” overload.
Essentially, everything is just data until and unless it has some meaning or is useful. People in
organizations must find ways to manage the data so that they do not become overwhelmed.
Instead, they need to know how to sort and analyze the data to turn it into useful information.
Information overload can be detrimental to performance unless managers develop systems for
dealing with it and learn how to implement them. Knowing everything is not as important as
knowing how to find the correct answers in a systematic way. Without a system, information
overload can lead to:
• Failing to process or ignoring some of the information.
• Processing the information incorrectly.
• Delaying the processing of information until the information overload abates.
• Searching for people to help process some of the information.
• Lowering the quality of information processing.

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 • Withdrawing from the information flow.

LANGUAGE CHARACTERISTICS
The very nature of our language constitutes a source of communication barriers. Many words are
imprecise. For example, suppose a manager tells a subordinate to do this task “right away.” Does
the manager mean for the subordinate to drop what he or she is doing and work on the new task
immediately or to finish what he or she is currently working on and then do the new task? When
two individuals are using different meanings or interpretations of the same word and do not
realize it, a communication barrier exists. For example, some words sound the same but have
multiple meanings. Write (communicate), rite (ceremony), right (not left), and right (privilege)
all sound alike, right (correct)? Don’t assume that the meaning you give a word will be the one
the receiver uses in decoding the message. Language characteristics can lead to encoding and
decoding errors and mixed messages that create semantic barriers to communication. For
example, a word may be interpreted differently depending on the facial expressions, hand
gestures, and voice inflection that accompany it.

The imprecision and multiple meanings of words are one reason why jargon develops. Jargon is
terminology, or language, specific to a particular profession or group. One of the best-known
uses of jargon is that used at Disney. There, customers are called “guests” and employees are
called “cast members.” If a cast member does a job correctly, it is called a “good Mickey”; if
he/she does a bad job, it is called a “bad Mickey.” With more and more organizations becoming
involved in e-commerce, Fortune magazine describes some of the Internet jargon created daily.
For example, even the U.S. Postal Service is one of the ten biggest businesses that have become
successful e-players or e-tailers. Or, consider “clicks-and-mortar retailers,” meaning the
organization has physical outlets and a sophisticated website to sell products directly to the
public. Although jargon is designed to avoid communication breakdowns, in some cases, it may
lead to inefficiency because not everyone will understand what is being communicated,
especially new members of the organization or group. Language characteristics, including
imprecision and multiple meanings, are posing an even greater threat to communication as
society becomes more interconnected and mobile. The probability of contact with someone from
a different background or culture who uses words differently is increasing.

GENDER DIFFERENCES

Gender differences can result in barriers and lead to distorted communication and
misunderstandings between men and women. Because males and females are often treated
differently from childhood, they tend to develop different perspectives, attitudes about life, and
communication styles. Historically, stereotypical assumptions about the differing communication
styles of males and females have stimulated discrimination against female managers. In recent
years, however, more realistic images of how professional men and women behave and
communicate have replaced the old stereotypes. Communication barriers can be explained in part

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by differences in conversation styles. Research shows that women and men listen differently.
Women tend to speak and hear a language of connection and intimacy, whereas men tend to
speak and hear a language of status and independence. Women are more likely to hear emotions
and to communicate empathy. Women’s oral communication also differs from men’s in
significant ways. Women are more likely to use qualifiers, phrases such as “I think” or “It seems
to me.” Generally, women tend to end statements with an upward inflection that makes
statements sound like questions. Female voices are generally higher and softer than male voices.
This makes it easy for men to overpower women’s voices, and men commonly interrupt women
or overlap their speech. Although a wide range of gender differences can exist in verbal
communication, nonverbal differences are even more striking. Men lean back and sit in an open-
leg position that takes up considerable space, thereby communicating higher status and a greater
sense of control over their environment. Women use much more eye contact than men, yet avert
their gaze more often, especially when communicating with a man or someone of higher status.
Women smile more frequently and are generally better at conveying and interpreting emotions.

Other Barriers
Physical barriers: You cannot listen if you cannot hear what is being said. Physical
impediments include hearing disabilities, poor acoustics, and noisy surroundings. It’s also
difficult to listen if you’re ill, tired, uncomfortable, or worried. Psychological barriers:
Everyone brings to the communication process a different set of cultural, ethical, and personal
values. Each of us has an idea of what is right and what is important. If other ideas run counter to
our preconceived thoughts, we tend to “tune out” the speaker and thus fail to hear. Language
problems: Unfamiliar words can destroy the communication process because they lack meaning
for the receiver. In addition, emotion-laden or “charged” words can adversely affect listening. If
the mention of words such as abortion or overdose has an intense emotional impact, a listener
may be unable to think about the words that follow.
Nonverbal distractions: Many of us find it hard to listen if a speaker is different from what we
view as normal. Unusual clothing, speech mannerisms, body twitches, or a radical hairstyle can
cause enough distraction to prevent us from hearing what the speaker has to say.
Thought speed: Because we can process thoughts more than three times faster than speakers can
say them, we can become bored and allow our minds to wander.
Faking attention: Most of us have learned to look as if we are listening even when we’re not.
Such behavior was perhaps necessary as part of our socialization. Faked attention, however,
seriously threatens effective listening because it encourages the mind to engage in flights of
unchecked fancy. Those who practice faked attention often find it hard to concentrate even when
they want to. Grandstanding: Would you rather talk or listen? Naturally, most of us would
rather talk. Because our own experiences and thoughts are most important to us, we grab the
limelight in conversations. We sometimes fail to listen carefully because we’re just waiting
politely for the next pause so that we can have our turn to speak.

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Activity II: what are the consequences of information overload?

______________________________________________________________________

4.3. Non verbal communication

Nonverbal communication involves all messages that are non-language responses. It can be
anything that sends a message. Although managers recognize that communication has a
nonverbal component, they often underestimate its importance. Nonverbal cues play a large role
in the messages that you send because this form of communication may contain hidden messages
and can influence the process and outcomes of face-to-face communication. Even a person who
is silent or inactive in the presence of others may be sending a message that may or may not be
what is intended. Consider how nonverbal communication affects the impressions we make on
others. For example, interviewers respond more favorably to job candidates whose nonverbal
cues are positive (such as eye contact, appearance, and facial expressions) than to those
displaying negative nonverbal cues (such as looking down and slouching). The physical
arrangement of space, such as that found in various office and work layouts, can also send
nonverbal messages. For example, some visitors tend to be uncomfortable in offices where a
desk is placed between them and the person to whom they are speaking. This desk might be seen
as a separation or a wall that interferes with close communication. Others might see the desk as a
symbol of power of the person whose office it is and may be influenced more positively or
negatively by it. A desk or table between two people might also be seen as a setting for
confrontational rather than cooperative communication. Still other things that communicate
nonverbal messages about an individual are the artwork and decorations found in an office, as
well as its orderliness and neatness. What is your view of someone who has a very clean desk?
Do you see that person as having nothing important to do—so he or she has time to clean the
desk—or do you see that person as very productive and efficient?

The following are six basic types of nonverbal communication:

1. Kinesic behavior, or body motion: Gestures, facial expressions, eye behavior, touching, and
any other movement of the body.
2. Physical characteristics: Body shape, physique, posture, height, weight, hair, and skin
color.
3. Paralanguage: Voice quality, volume, speech rate, pitch, and laughing.
4. Proxemics: The way people use and perceive space, seating arrangements, and
conversational distance.
5. Environment: Building and room design, furniture and interior decorating, light, noise, and
cleanliness.
6. Time: Being late or early, keeping others waiting, and other relationships between time and
status.
Keep in mind that each category of nonverbal communication becomes additionally complex
when we consider diversity and multiple cultural issues in the workplace.

4.1Active listening
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Systems view of communication emphasized that effectiveness depends upon both transmitting
and receiving information. It may seem inconsistent, therefore, to distinguish the topic of
listening from the general topic of communication. Separate treatment of listening is simply for
emphasis. It seems to us most discussions of communication emphasize the transmission size and
neglect the receiving side. Good leaders and followers recognize the value of two-way
communication. Listening to others is just as important as expressing oneself clearly to them.
People in leadership roles are only as good as the information they have, and much of the
information comes from watching and listening to what goes on around them.

At first, it may seem strange to describe listening as skill. Listening may seem like an automatic
response to things being said, not something one practices to improve, like free throws.
However, the best listeners are active listeners, not passive listeners (Davis, Hellervik, &
Sheard, 1989). In passive listening, someone may be speaking but the receiver is not focused on
understanding the speaker. Instead, the receiver may be thinking about the next he will say or
how bored he is in listening to the speaker. In either case, the receiver is not paying attention to
what the sender is saying. To truly get the fullest meaning out of what someone else says, one
needs to practice active listening. Individuals who are listening actively exhibit a certain pattern
of nonverbal behaviors, do not disrupt the sender’s message, try to put the sender’s message into
their own words, and scan the sender for various nonverbal signals. Knowing what nonverbal
signals to send and correctly interpreting the sender’s nonverbal signals are the knowledge
component of listening skills. One’s nonverbal signals are the behavioral component, and how
well one can paraphrase a sender’s message makes up the evaluative component of listening
skills.

In addition to helping one understand others better, active listening is a way to visibly
demonstrate that one respects others. People, particularly those with high self-monitoring scores,
can often sense when others are not truly paying attention to what they are saying. Followers will
quickly decide it is not worth their time to give their leader information if they perceive they are
not being listened to. Leaders may do the same. To avoid turning off others, leaders and
followers can improve their active listening skills in a number of ways. Some of these tips
include (a) model nonverbal signals associated with active listening, (b) actively interpret the
sender’s message, (c) be aware of the sender’s nonverbal behaviors, and (d) avoid becoming
defensive. The following is a more detailed discussion of these four ways to improve active
listening skills.

Demonstrate Nonverbally that You Are Listening

Make sure your nonverbal behaviors show that you have turned your attention entirely to the
speaker. Many people mistakenly assume that listening is a one-way process. Although it seems
plausible to think of information flowing only from the sender to the receiver, the essence of
active listening is to see all communication, even listening, as a two-way process. Listeners show
they are paying attention to the speaker with their own body movements. They put aside, both

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mentally and physically, other work they may have been engaged in. Individuals who are
actively listening establish eye contact with the speaker and they do not doodle, shoot rubber
bands, or look away at other things. They show they are genuinely interested in what the speaker
has to say.

Actively Interpret the Sender’s Message

The essence of active listening is trying to understand what the sender truly means. It is not
enough merely to be (even if you could) a perfect human tape recorder. One must look for the
meaning behind someone else’s words. In the first place, this means one needs to keep one’s
mind open to the sender’s ideas. This in turn, implies not interrupting the speaker and not
planning what to say while the speaker is delivering the message. In addition, good listeners
withhold judgment about the sender’s ideas until they have heard the entire message. This way,
they avoid sending the message that their mind is made up and avoid jumping to conclusions
about what the sender is going to say. Another reason to avoid sending a closed-minded message
is that it may lead others to not bring up things one definitely needs to hear. Another valuable
way to actively interpret what the sender is saying is to paraphrase the sender’s message. By
putting the speaker’s thoughts into their own words, leaders can best ensure that they fully
understand what their followers are saying, and vice versa.

Attend to the Sender’s Nonverbal Behavior

People should use all the tools at their disposal to understand what someone else is saying. This
includes paraphrasing senders' messages, and being astute at picking up at senders’ nonverbal
signals. Much of the social meaning in messages is conveyed nonverbally, and when verbal and
nonverbal signals conflict, people often tend to trust nonverbal signals. Thus, no one can be an
effective listener without paying attention to nonverbal signals. This requires listening to more
than just the speaker’s words themselves; it requires listening for feelings expressed via the
speaker’s loudness, tone of voice, and pace of speech as well as watching the speaker’s facial
expressions, posture, gestures, and so on. These behaviors convey a wealth of information that is
immensely richer in meaning than the purely verbal content of the message, just as it is easier to
watch actors in stage play rather than merely read their script. Although there may not be any
simple codebook of nonverbal cues with which one can decipher what a sender “really” feels,
listeners should explore what a sender is trying to say whenever they sense mixed signals
between the sender’s verbal and nonverbal behaviors.

Avoid Becoming Defensive

Defensive behavior is most likely to occur when someone feels threatened. Although it may
seem natural to become defensive when criticized, defensiveness lessens the person’s ability to
constructively make use of the information. Acting defensively may also decrease followers’
subsequent willingness to pass additional unpleasant information on to the leader or other

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followers, or even the leader’s willingness to give feedback to followers. Defensiveness on the
part of the leader can also hurt the entire team or organization, as it includes a tendency to place
blame, categorize others as morally good or bad, and generally question others’ motives. Such
behaviors on a leader’s part hardly build a positive work or team climate. Leaders can reduce
their defensiveness when listening to complaints by trying to put themselves in the other person’s
shoes. Leaders have an advantage if can emphasize with how they and their policies are seen by
others; they can better change their behaviors and policies if they know how others perceive
them. Leaders need to avoid the temptation to explain how the other person is wrong and should
instead just try to understand how he perceives things. A useful warning sign that a leader may
be behaving defensively (or perhaps closed-mindedly) is if he begins a conversation saying,
“yes, but…”

4.5. Feedback
To start, managers need to recognize that feedback can be constructive or destructive.
Destructive feedback is disapproving without any intention of being helpful and almost always
causes a negative or defensive reaction in the recipient. Some employees, however, will push
back when their bosses behave this way. In fact, one study found that 98 percent of employees
responded to destructive feedback from their bosses with either verbal aggression (two-thirds) or
physical aggression (one-third). By contrast, constructive feedback is intended to be helpful,
corrective, and/or encouraging. It is aimed at correcting performance deficiencies and motivating
employees. When you are telling people things they don’t necessarily want to hear, you have to
deliver your message in a way that gets their attention and acceptance.

For feedback to be constructive rather than destructive, it must be immediate, focused on specific
behaviors, and problem oriented. Immediate feedback is much more effective than delayed
feedback because manager and worker can recall the mistake or incident more accurately and
discuss it in detail. For example, if a worker is rude to a customer and the customer immediately
reports the incident to management, and the manager, in turn, immediately discusses the incident
with the employee, there should be little disagreement over what was said or done. By contrast,
if the manager waits several weeks to discuss the incident, it’s unlikely that either the manager or
the worker will be able to accurately remember the specifics of what occurred. When that
happens, it’s usually too late to have a meaningful conversation. Specific feedback focuses on
particular acts or incidents that are clearly under the control of the employee. For instance,
instead of telling an employee that he or she is “always late for work,” it’s much more
constructive to say, “In the last three weeks, you have been 30 minutes late on four occasions
and more than an hour late on two others.” Furthermore, specific feedback isn’t very helpful
unless employees have control over the problems that the feedback addresses. Indeed, giving
negative feedback about behaviors beyond someone’s control is likely to be seen as unfair.
Similarly, giving positive feedback about behaviors beyond someone’s control may be viewed as
insincere.

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Last, problem-oriented feedback focuses on the problems or incidents associated with the poor
performance rather than on the worker or the worker’s personality. Giving feedback does not
give managers the right to personally attack workers. Though managers may be frustrated by a
worker’s poor performance, the point of problem-oriented feedback is to draw attention to the
problem in a nonjudgmental way so that the employee has enough information to correct it. For
example, if an employee has body odor, a surprisingly common workplace problem, don’t leave
deodorant, soap, or shampoo on the person’s desk (for all to see) or say, “You stink.”Advise and
handle the problem this way: “Because this is a sensitive issue and the employee will likely be
uncomfortable and embarrassed in discussing it, keep the meeting private and confidential. Be
compassionate but direct. Treat it as you would handle any other job-related performance issue.
Explain the problem and the need to correct it. Be specific about expectations. If the employer
has a dress and grooming policy, refer to the policy and provide the employee with a copy.

4.6. Meetings
Meetings are a fact of organizational life. It is difficult to imagine a leader who could (or should)
avoid them, particularly when groups, committees or teams have high levels of task or lateral
interdependence. Well-planned and well-led meetings are a valuable mechanism for
accomplishing diverse goals and are an important way of exchanging information and keeping
open lines of communication within and between work groups or volunteer organizations.
Although meetings have many advantages, they also cost time and money. The annual cost of
meetings in corporate sector alone may well be in billions of dollars. Furthermore, unnecessary
or inefficient meetings can be frustrating and are often a source of dissatisfaction for participants.
Given the investment of time and energy meetings require, leaders have a responsibility to make
them as productive as possible. Guth and Shaw (1980) provided seven helpful tips for running
meetings, which are discussed in the following paragraphs.

Determine Whether It Is Necessary

Perhaps the most important step in conducting a meeting is to take the time to determine whether
or not a meeting is really a necessary. If you are evaluating whether or not to have a meeting,
assess what it can accomplish. Have a meeting only if the potential benefits outweigh the costs.
As part of this process, get the opinions of the other participants beforehand if that is possible.
Moreover, if meetings are regularly scheduled, then you should have significant business to
conduct in each meeting. If not, then these meetings should probably be scheduled less
frequently.

List the Objectives

Once you have decided that a meeting is necessary, you should then list your objectives for the
meeting and develop a plan for attaining them in an orderly manner. Prioritize what you hope to
accomplish at the meeting. It is often helpful to indicate approximately how much time will be

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spent on each agenda item. Finally, get the agenda and issues to be covered to the participants
well in advance; also let them know who else will be attending.

Stick to the Agenda

Once the meeting gets started, it is important for leaders to stick to the agenda. It is easy for
groups to get sidetracked by tangential issues or good-natured storytelling. Although you should
try to keep a cooperative and comfortable climate in the meeting, it is better to err on the side of
being organized and businesslike than being lax and laissez faire. If items were important enough
to put on the agenda, they are important enough to get to in the time allotted for the meeting.

Provide Pertinent Materials in Advance

Besides having an agenda, a meeting is often more effective if leaders also provide the other
participants with pertinent reports or support materials well in advance. Passing out materials and
waiting for people to read them at the meeting itself wastes valuable time. Most people will
come prepared, having read relevant material beforehand, if you have given it to them, and
almost everyone will resent making a meeting longer than necessary doing work that could and
should have been done earlier. In a similar vein, prepare well in advance for any presentations
you will make. If you did not provide reports before the meeting, then it is often helpful to
provide an outline of your presentation for others to take notes on. Finally, of course, be sure the
information you pass out is accurate.

Make It Convenient

Another way to maximize the benefits of meetings is to pick a time and place as convenient as
possible for all participants. Besides maximizing attendance, this will also keep key participants
from being distracted with thoughts of other pressing issues. Similarly, choose a place that is
convenient for the participants and suitable for the nature of the meeting. Be sure to consider
whether you need such things as a table for the meeting (with seating around it for all
participants); a blackboard, an over head projector, or similar audiovisual aids; coffee or other
refreshments; and directions on how to find the meeting place. And start on time; waiting for
stragglers is unfair to those who were punctual, and it sends the wrong signal about the
seriousness of the meeting. Also plan and announce a time limit on the meeting beforehand and
stick to it.

Encourage Participation

Leaders have a responsibility to encourage participation; everyone at the meeting should have an
opportunity to be heard and should feel some ownership in the meeting’s outcome. In some
cases, you may need to solicit participation from quieter participants at the meeting, as these
members often make valuable contributions to the group when given the chance. Furthermore,

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ensuring that the quieter members participate will also help you to avoid interpreting someone’s
quietness as implied consent or agreement. By the same token, you sometimes may need to
curtail the participation of more verbal or outspoken participants. You can do this respectfully by
merely indicating that the group has a good idea of their position and that it would be useful also
to hear from some others. You also help encourage relevant participation by providing interim
summaries of the group’s discussion.

Keep a Record

During a meeting, the points of discussion and various decisions or actions taken may seem clear
to you. However, do not trust your memory to preserve them all. Take minutes for the record so
you and others can reconstruct what the participants were thinking and why you did or did not
take some action. Record decisions and actions to be taken, including who will be responsible for
doing it and when it is supposed to be accomplished. Such records are also very useful for
preparing future meeting agendas. By following the preceding simple steps, both leaders and
followers are likely to get much more out of their meetings, as well as appear well organized and
effective.

Summary
Communication is the process that managers use to interact with subordinates, peers,
supervisors, customers, suppliers, owners, the general public, and others. The social context is an
important consideration in light of the global nature of business and the diversity of employees’
and customers’ cultural backgrounds and the complexity of information technology. The sender
initiates the communication process by encoding his or her meaning and sending the message
through a channel. The encoding process translates the sender’s ideas into a systematic set of
symbols or a language expressing the communicator’s purpose. The function of encoding, then,
is to provide a form in which ideas and purposes can be expressed as a message. The result of
encoding is the message. The channel is the carrier of the message or the means by which the
message is sent. The receiving person or group must make sense of the information. Decoding
involves the translation of received messages into interpreted meanings. In our model,
communication feedback refers to the process of verifying messages and the receiver’s attempts
to ensure that the message that was decoded is what the sender really meant to convey. Any
internal or external interference with or distraction from the intended message is considered to be
noise. Communication barriers such as cross-cultural diversity, trust and credibility, information
over load, language characteristics, gender differences, and other factors interfere with
organizational excellence.

Nonverbal communication involves all messages that are non-language responses. Systems view
of communication emphasized that effectiveness depends upon both transmitting and receiving
information. Managers need to recognize that feedback can be constructive or destructive.

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Destructive feedback is disapproving without any intention of being helpful and almost always
causes a negative or defensive reaction in the recipient. By contrast, constructive feedback is
intended to be helpful, corrective, and/or encouraging. Well-planned and well-led meetings are a
valuable mechanism for accomplishing diverse goals and are an important way of exchanging
information and keeping open lines of communication within and between work groups or
volunteer organizations.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Ye No
s

I can define and explain what communication is.

I can list and explain the components of communication

I can identify and discuss about barriers to communication.

I can discuss the physical and psychological problems in communication.

I can describe the non-verbal communication.

I can identify and explain the basic types of non-verbal communication.

I can discuss the importance of active listening in communication.

I can explain ways to improve active listening skills.

I can identify and define feedback.

Explain the importance of meetings.

List helpful tips for running meetings.

 Self Test Exercise Unit four

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 I. Say True or False

1. Communication is a process in which the senders, messages, channels, and receivers

remain constant or static.
2. The increasing use of technology in organizations often leads to information overload.
3. Information overload occurs when the amount of information that one can process is
exceeded.
4. Knowing everything is as important as knowing how to find the correct answers in a
systematic way.
5. Nonverbal communication involves all messages that are non-language responses.

II.Short answer
1. List the basic types of non-verbal communication
2. Feedback can be _________________ or _____________________

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Unit Five: Problem Solving

Introduction
Dear student! Welcome to the fifth unit of the course. In this unit, you will learn different topics
such as the concept of problem solving, steps in problem solving, identifying problems or
opportunities for improvement, analyzing the causes, developing alternative solutions, setting
and implementing the best solution, and assessing the impact of the solution. Towards the end of
the unit, you will exercise the self assessment tests, activities and practice by the checklists to
better understand about the concepts discussed in the unit.

Objectives
After studying this unit, you will be able to:

 explain the basic steps in problem solving.

 identify the problems or opportunities for improvement.
 analyze the causes of problem.
 explain how alternative solutions are developed and the best one is selected.

Contents of the Unit

Basic Steps to Problem Solving

Identifying Problems or Opportunities for Improvement

Analyzing the Causes

Developing Alternative Solutions

Selecting and Implementing the Best Solution

Assessing the Impact of the Solution

Summary

Checklist

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 Self-Assessment Questions

5.1. Basic Steps to Problem Solving

The basic steps to problem solving are the following: Identifying problems or opportunities for
improvement; Analyzing the causes; Developing alternative solutions; Selecting and
Implementing the best solution; Assessing the impact of the solution.

Identifying Problems or Opportunities for Improvement

The first step in problem solving is to state the problem so that everyone involved in developing
a solution has an informed and common appreciation and understanding of the task. This is a
critical stage in problem solving and will take time and probably group discussion. It is
dangerous to assume that everyone (or anyone) knows at the outset what the problem is. A
hurried or premature definition of the problem (e.g. as a result of group think) may lead to
considerable frustration and wasted effort. In counseling and advising, for example, a significant
portion of the work with a client is devoted to clarifying the problem. A student may seek help at
the school counseling center to improve his study skills because he is spending what seems to be
plenty of time studying yet is still doing poorly on examinations. A little discussion, however,
may reveal that he is having difficulty concentrating on schoolwork because of problems at
home. If the counselor had moved immediately to develop the client’s study skills, the real cause
of his difficulties would have gone untreated, and the client might have become even more
pessimistic about his abilities and the possibility that others can help him.

The reason it helps to take time to define a problem carefully is that sometimes people mistake
symptoms for causes. If a plan addresses a symptom rather than the causes of a problem, the
desired results will not be attained. It is also important during this stage to avoid scapegoating or
blaming individuals or groups for the problem, which may just engender defensiveness and
reduce creative thinking. This is a stage where conflict resolution techniques and negotiating
skills can be very important. Finally the statement of problem should not imply that any
particular solution is the correct one. Another aspect of this first stage of problem solving
involves identifying those factors that, when corrected, are likely to have greatest impact on
improving an unsatisfactory situation. Since there are almost always more problems or
opportunities for improvement than tine or energy to devote to them all, it is crucial to identify
those whose solutions offer the greatest potential payoff. A useful concept here is known as the
Pareto principle. It states that about 80 percent of the problems in any system are the result of
about 20 percent of the causes. In school, for example, most of the discipline problems are
caused by a minority of the students. Of all the errors people make on income tax returns, just a
few kinds of errors (e.g. forgetting to sign them) account for a disproportionately high percentage

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of returned forms. We would expect about 20 percent of the total mechanical problems in a city
bus fleet to account for 80 percent of the fleet’s downtime. The Pareto principle can be used to
focus problem-solving efforts on those causes that have the greatest overall impact.

Analyzing the Causes

Once a problem is identified, the next step is to analyze its causes. Analysis of a problem’s
causes should precede a search for solutions. Two helpful tools for identifying the key elements
affecting a problem situation are the cause-and-effect diagram (also called the “fishbone”
diagram because of its shape, or the Ishikawa diagram after the person who developed it) and
force field analysis. The cause-and-effect diagram uses a graphic approach to depict
systematically the root causes of a problem, the relationship between different causes, and
potentially a prioritization of which causes are most important. Force field analysis also uses a
graphic approach, this time to depict the opposing forces that tend to perpetuate a present state of
affairs. It is a way of depicting any stable situation in terms of dynamic balance, or equilibrium,
between those forces that tend to press toward movement in one direction and those other forces
that tend to restrain movement in that direction. So long as the net sum of all those forces is zero,
no movement occurs. When a change is desirable, force field analysis can be used to identify the
best way to upset the balance between positive and negative forces so that a different equilibrium
can be reached.

Developing Alternative Solutions

Several ideas examined previously are relevant here (e.g., brainstorming), as is the importance of
solutions meeting criteria for quality and acceptance. A procedure called Nominal Group
Technique (NGT) is another way to generate a lot of ideas pertinent to a problem. This procedure
is similar to brainstorming in that it is an idea-generating activity conducted in a group setting.
With NGT, however, group members write down ideas on individual slips of paper, which are
later transferred to a blackboard or flipchart for the entire group to work with.

Selecting and Implementing the Best Solution

The first solution one thinks of is not necessarily the best solution, even if everyone involved
finds it acceptable. It is better to select a solution on the basis of established criteria. These
include such questions as the following: Have the advantages and disadvantages of all possible
solutions been considered? Have all the possible solutions been evaluated in terms of their
respective impacts on the whole organization, not just a particular team or department? Is the
information needed to make a good decision among the alternatives available?

Assessing the Impact of the Solution

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One should not assume that just by doing through the preceding steps the actions implemented
will solve the problem. The solution’s continuing impact must be assessed, preferably in terms of
measurable criteria of success that all parties involved can agree on.

Activity I: List the steps in problem solving.

_______________________________________________________________________

Answer Key for Self Test Exercise Unit One

Part I: Matching
1) C 2) A 3) B 4) E 5) D

Part II: True or False

1) False 2) True 3) True 4) True 5) False

Part III: Short Answer

1) (1) creating a vision, (2) communicating and sharing information, (3) empowering others to
act on the vision, (4) institutionalizing the new approaches, and (5) evaluating.

2) Effectiveness and Efficiency

Answer key for activities-unit One

Activity I: 1. Open systems are organizations with input-output transformation systems that
depend on their environment for survival; Political systems are organizations that are composed
of internal constituencies that seek control over the decision process in order to enhance their
position. 2. Goals

Activity II: work specialization, departmentalization, chain of command, span of control,

centralization and decentralization, and formalization.

Activity III: conceptual, interpersonal (human) and technical skills; top management, middle
level management and first line management.

Answer Key for Self Test Exercise Unit Two

Part I: True or False

1) False 2) False 3) False 4) False 5) True

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Part Two: Matching
1) C 2) D 3) E 4) B 5) A

Part Three: Short Answer

1) Create vision, communicate, character; Character, commitment, competence

Community, commitment, communication; Clarity, courage, connection

2) Legitimate, coercive, reward; referent, expert

Answer key for activities-unit two

Activity I: it helped researchers to identify the traits leaders need to possess to be effective
leaders. The trait approach is also used for personal awareness and development, as it allows
managers to analyze their strengths and weaknesses and to gain a clearer understanding of how
they should try to change to enhance their leadership.

Activity II: It broadened the scope of leadership research to include the concern for behaviors of
leaders and what they do in various situations. Its doctrine has validated and given creditability
by wide range of studies.

Activity III: Staff involvement can improve staff morale (involvement in planning, decision
making and control, job satisfaction of staff maybe increased (because it allows them wider
responsibilities and making their work more interesting), the expert knowledge and problem
solving skills of members of staff can be utilized, allow setting reasonable goals: because it
involves the implementers during formulation.

Answer Key for Self Test Exercise Unit Three

Part I: Choice

1) A 2) C 3) D 4) B 5) C

Part II: Filling in the blanks

1) Ingratiation 2) Internal Self Concept 3) Influence tactic 4) Influence 5) Standing plans

Answer key for activities-unit three

Activity I: Based on their scope or breadth plans can be classified into three categories: Strategic
planning, tactical planning and operational planning. Based on repetitiveness plans can be
classified in to two as (1) Single use and (2) Standing plans.

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Activity II: rational persuasion, inspirational appeal, consultation, ingratiation, exchange,
personal appeal, coalition, legitimizing, pressure/coercion, mental conditioning, manipulation
and brain washing.

Answer Key for Self Test Exercise Unit Four

Part I: True or False

1) False 2) True 3) True 4) False 5) True

Part II. Short Answer

1) Kinesic behavior, or body motion, physical characteristics, paralanguage, proxemics,

environment and time.

2) Destructive or constructive

Answer key for activities-unit four

Activity I: sender, encoding, message, decoding, receiver, feedback, noise.

Activity II: Failing to process or ignoring some of the information, Processing the information
incorrectly, delaying the processing of information until the information overload abates,
searching for people to help process some of the information, lowering the quality of information
processing, withdrawing from the information flow.

Answer Key for Self Test Exercise Unit Five

Answer key for activities-unit five

Identifying problems or opportunities for improvement; Analyzing the causes; Developing
alternative solutions; Selecting and Implementing the best solution; Assessing the impact of the
solution.

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 Public Service College of Oromia

ORGANIZATIONAL LEADERSHIP AND MANAGEMENT

(GoDM 241)

Module Two
(Delegation, Coaching, Team Building, Motivation, diversity, and ethics)

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 September, 2013

Module Contents

Unit 6: Leadership in Management

Unit 7: Coaching

Unit 8: Team Building

Unit 9: Motivation

Unit 10: Leadership Pragmatics

Unit 11: The Leader

Introduction
Dear student! Welcome to the second module of the course ‘Organizational Leadership and
Management’. This module is prepared to acquaint you with the knowledge of building and
leading different teams by coaching and motivating them through delegating, mentoring, etc. The
module introduces and discusses six units. These are leadership in management, coaching, team
building, motivation, leadership pragmatics and the leader. It aims to educate and train learners
on the nature of different types of teams and their leadership, theories of motivation, steps in
coaching and mentoring for capacitating followers, leading in diversity, leading change, ethical
leadership and building excellence and emotional excellence. Unit six focuses on leadership in
management, unit seven deals with the concept of coaching. The eighth unit presents team
building and the ninth unit discusses about motivation. Unit ten is concerned with leadership
pragmatics and unit eleven (the last unit) is about the leader.

Objectives
At the end of this module, the students will be able to:

 Explain the concept of delegation, accountability, coaching, mentoring and motivation.

 List and explain different theories of motivation.
 Define ethical leadership and ethics.

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  Discuss different ways of building excellence and about emotional intelligence
 Explain the concept of leadership and diversity.
 Describe negative and positive leaders.

UNIT Six
Unit 6: Leadership in Management

Introduction
Dear student! Welcome to the sixth unit of the course. In this unit, you begin with the topic
leadership in management. In this unit, you will learn about the definition of delegation, and
accountability in leadership. In addition, you will practice and check your understanding of the
concepts through checklists, self-test questions and activities.

Objectives
After studying this unit, you will be able to:

 define delegation and explain potential advantages of delegation.

 Describe reasons for lack of delegation
 list guidelines for delegation.
 explain the concept of accountability in leadership.

Contents of the Unit

6.1. Delegation
6.2. Accountability
Summary

Checklist

Self-Assessment Questions

6.1 Delegation
In text question: explain delegation in your own words.________________________________

Delegation is the process managers use to transfer authority and responsibility to positions
below them in the hierarchy. Most organizations today encourage managers to delegate authority
to the lowest possible level to provide maximum flexibility to meet customer needs and adapt to

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the environment. However, many managers find delegation difficult. Basically, delegation
involves the assignment of new responsibilities to subordinates and additional authority to carry
them out. Although delegation is sometimes regarded as variety of participative leadership, there
is ample justification for treating delegation as a separate category of managerial behavior.
Delegation is qualitatively different in some ways from the other forms of participative
leadership such as consulting and joint decision making. A leader may consult with subordinates,
peers or superiors, but in most cases delegation is appropriate only with subordinates. Delegation
has somewhat different situational determinants from consultation.

Moreover, the term delegation is commonly used to describe a variety of different forms and
degrees of power sharing with individual subordinates. Major aspects of delegation include the
authority in deciding how to carry out responsibilities, the authority to take action and implement
decisions without prior approval, the frequency and nature of reporting requirement, and the flow
of performance information .In its most common form delegation involves assignment of new
and different tasks or responsibility to a subordinate. For example a person who is responsible
for manufacturing something is also given responsibility for inspecting the product and
correcting any defects that are found. When new tasks are assigned, the additional authority
necessary to accomplish the tasks is usually delegated also.

Sometimes delegation involves only the specification of additional authority and discretion for
the same tasks and assignments already performed by the subordinate. For example, a sales
representative is allowed to negotiate sales within a specified range of prices, quantities, and
delivery dates, but cannot exceed these limits without prior approval from the sales manager.
Delegation is increased by giving the sales representative more latitude in setting process and
delivery dates. The extent to which a subordinate must check with the boss before taking action
is another aspect of delegation. There is little or no delegation for someone who must ask the
boss what to do whenever there is a problem or something unusual occurs. There is a must to get
approval before implementing decisions. There is substantial delegation when the subordinate is
allowed to make important decisions and implement them without getting prior approval.

Reporting requirements are another aspect of delegation for which there is considerable
variation. The amount of subordinate’s autonomy is greater when reports are required only
infrequently. Autonomy is also greater when reports describe only results rather than describing
both the results and the procedures used to accomplish them. The flow of performance
information involved in monitoring a subordinate’s activities is also subject to variation.
Subordinate’s autonomy is greater when detailed information about subordinate performance
goes directly to the subordinate, who is then allowed to correct any problems. A subordinate is
likely to have less autonomy when detailed performance information goes to the boss and is
subsequently passed on the subordinate. There is an intermediate amount of subordinate
autonomy when detailed performance information goes to both parties simultaneously.

Potential Advantages of Delegation

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There are many different reasons for delegation. Delegation offers a number of potential
advantages if carried out in an appropriate manner by a manager. One potential advantage of
delegation is that like other forms of participation and power sharing, is the importance of
decision quality. Delegation is likely to improve decision quality if a subordinate has more
expertise in how to do the task than the manager. Decision quality is likely to improve also if the
subordinate’s job requires quick responses to a changing situation and lines of communication do
not permit the manager to monitor the situation closely and make rapid adjustments quicker an
better decisions can be made by a subordinate who is closer to the problem and has more
relevant information about it than the manager.

The second potential advantage of delegation is greater subordinate commitment to implement

decisions effectively. The primary reason for increased commitment is identification with the
decisions and the desire to make it successful. However commitment is unlikely to improve if a
subordinate views delegation as a manipulative tactic by the manager, considers the task
impressible to do, or believes the newly delegated responsibilities are an unfair increase in
workload. The other potential advantage of delegation is that its additional responsibility and
authority can make a subordinate’s job more interesting, challenging and manifold. Enriched
jobs are sometimes necessary to attract and retain competent employees, especially when the
organization has limited opportunities for advancement to higher level positions. Giving junior
managers more responsibility and authority with a commensurate increase in salary reduces the
likelihood that they will be lured away to other companies in times of stiffs competition for
managerial talent. Delegation will decrease job satisfaction if the subordinate is constantly
frustrated due to a lack of sufficient authority and resources to carry out new responsibilities or
to a lack of ability to do the work.

Delegation is an important form of time management for a manager who is over loaded with
responsibilities. By delegating less important duties and functions to subordinates, a manager
frees additional time for more important responsibilities. Even when a manager could do the
delegated tasks better than subordinates, it is a more efficient use of the manager’s time to
concentrate on those functions that will have the greatest influence on the performance of the
manager’s organizational unit. Without delegation a manager is unlikely to have sufficient
discretionary time to do some important tasks that require larger blocks of time and are not
immediately urgent. Delegation can be an effective method of management development.
Organizations need to develop managerial talent to fill vacant positions at higher levels of
authority. Delegation is a way to facilitate development of the skills necessary to perform key
responsibilities in a higher position. When delegation is used for developmental purposes,
however, it is usually necessary for the manager to do more monitoring and coaching. Thus,
when used for this purpose delegation is unlikely to reduce a manager’s workload much.

Reasons for Lack of Delegation

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With all of these potential advantages of delegation, it would seem as if it should occur whenever
appropriate. However there are a number of reasons why some managers fail to delegate. Several
aspects of personality are associated with failure to delegate, including a strong need for power,
insecurity a higher need for achievement and difficulty in forming relationships. Some managers
enjoy the exercise of power over subordinates and the feeling of being in charge. Delegation
would require sharing power with subordinates and reducing their dependence. Delegation is
never absolute, because a manager continues to be responsible for the work activities of
subordinates. To avoid the risk of mistakes a manager who is insecure may delegate sensitive
tasks only to a few trusted subordinates, or not at all. Furthermore, allowing a subordinate to
demonstrate competence in perforating managerial responsibilities may create a competitor for
the manager’s job.

Leaders/managers with a high need for achievement often prefer to retain important, challenging
tasks rather than delegating them to subordinates. Managers who take pride in solving important
problems may be reluctant to relinquish that activity or admit others could do it as effectively.
Reluctance to delegate may be supported by biases in perception of one’s own performance. One
experiment found that managers rated quality of performance higher when they were directly
involved in supervising a task, even though actual quality was the same as for a delegate. Failure
to delegate is also related to characteristics of the subordinates such as task expertise and shared
objectives. Mangers are reluctant to delegate significant responsibility to subordinates who lack
the necessary expertise. Even if a subordinate has the expertise, delegation of significant
responsibility is unlikely if the person seems indifferent about task objectives .Thus perception
may be inaccurate initially. But distrust by the manager may eventually make it a self-fulfilling
prophecy. Sometimes distrust of subordinates is determined more by personality problems in the
manager than by the actual characteristics of the subordinates.

The reader should not assume that only insecure, power-hungry managers are reluctant to
delegate. Even managers who become successful at empowering people often say it was
personally difficult. When describing how difficult it was , he explained how it was not natural to
ask questions of employees when he already knew the answer, to listen patiently when they said
something that wasn’t right or to ask them for ideas when he was eager to express ideas of his
won . A number of situational constraints also limit the feasibility of delegation. The need to
protect confidential information is one constraint. Another constraint is when subordinates have
highly interdependent jobs, and it is difficult to coordinate their work. Empowerment in this type
of situation is more likely to involve use of consultation or self-managed groups than delegation
to individual subordinates. Standardized facilities, equipment, procedures, and materials limit
local discretion and thereby reduce the potential for delegation. Chain stores and fast food
restaurants are examples of organizations with extensive standardization.

Guidelines for Delegating

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 Here the focus is to review some tentative guidelines for effective use of delegation by leaders.
Although research on delegation is still very limited, there is considerable agreement in the
practitioner literature about when and how to use delegation effectively. Guidelines for what to
delegate are presented first, followed by guidelines on how to delegate.

What to Delegate: The selection of tasks to delegate depends in part on the purpose of the
delegation. Some guidelines on what to delegate is as follows: Delegate tasks that can be done
better by a subordinate; Delegate tasks that are urgent but not high priority; Delegate tasks
relevant to a subordinate's career; Delegate tasks of appropriate difficulty; Delegate both pleasant
and unpleasant tasks, and Delegate tasks not central to the manager's role.

How to Delegate: The success of depends as much on how it is carried out as on what is
delegated. The following guidelines are designed to minimize problems and avoid common
pitfalls related to assignment of tasks and delegation of authority. The first four guidelines is for
the meeting to delegate responsibilities to a subordinate: Specify responsibilities clearly; Provide
adequate authority and specify limits of discretion; Specify reporting requirements; Ensure
subordinate acceptance of responsibilities; Inform others who need to know; Monitor progress
in appropriate ways ; Arrange for the subordinate to receive necessary information; Provide
support and assistance, but avoid reverse delegation, and Make mistakes a learning experience.

Managers must serve as liaisons. That is, they coordinate the activities between individuals and
work groups within the organization and develop favorable relationships with outside
constituents. Being politically sensitive to important organizational issues helps them develop
relationships and networks both within and beyond their organizations.

Activity 1: Why do managers resist delegating authority?________________________________

6.2. Accountability
It occupies a central place in good governance. The norm of accountability has to ensure
answerability as well as proper enforcement of correct procedure in case of violation of certain
laid down norms. Not only the public institutions, but also the private sector and the civil society
organizations need to be accountable to the public at large and to the other related institutions
and stakeholders (World Bank, 1994). Moreover, accountability is a concept in ethics with
several meanings. It is often used synonymously with such concepts as answerability,
enforcement, responsibility, blame worthiness, liability, and other terms associated with the
expectation of account-giving. Accountability is a key requirement of good governance. Not only
governmental institutions but also the private sector and civil society organizations must be
accountable to the public and to their institutional stakeholders. Who is accountable to who
varies depending on whether decision or actions taken are internal or external to an organization
or institution. In general an organization or an institution is accountable to those who will be
affected by its decisions or actions. Accountability cannot be enforced without transparency and
the rule of law (Bishop & Davis, 2002).
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 In leadership roles accountability is the acknowledgment and assumption of responsibility for
actions, products, decisions, and policies including the administration, governance and
implementation within the scope of the role or employment position and encompassing the
obligation to report, explain and be answerable for resulting consequences.

a) Types of Accountability
According to Bruce, et. al (1999) there are five types of accountability. The details of each is as
follows: Political accountability: the case in which the congress, or the legislature, holds other
civil servant accountable is part of political accountability. Mechanisms of political
accountability are vested in constitution either written or unwritten and implemented in three
dimensions: election, legislature and ministerial. Administrative accountability: This includes
government officials accountability for the violation of rules, regulations and norms. It also
includes the subordination of civil servants to their superiors. Judicial/Legal Accountability:
Court actions and judicial reviews are two mechanisms by which the public may address
violations of law and constitution. Moreover, court actions also fill the gap of accountability
between executive and legislature, if the executive fails or is reluctant to exercise legitimate
decision made by legislature. Professional Accountability: professional public servants, namely
doctors, lawyers engineers, accountants and etc are also bound by professional codes and norms
established in light of public interest. Market Accountability: Service provided are nowadays
more “customer driven” and should aim to provide convenience and various choices to citizens.
Therefore, accountability in this sense is responsiveness of service providers to a body
‘sovereign’ customers and produce quality service.

b) Improving Accountability
Accountability requires accounts to be given, actions to be reported. This may not be only a
report to line management. One purpose in providing rights of access to information is that
account should be given to end users and the public in general, including accountability through
the media. According to Rehman (1998) effective accountability at the top levels of government
requires a separation of powers between legislature, executive and judiciary, police, media and
others. Individuals and organizations report to others, not to themselves. A head of state
separated from the day-by –day execution of government business helps make governments
more accountable and protects human freedom (That may explain reports that one survey found
that measures of freedom were higher on average in monarchies than in states with other patterns
of governance. Perhaps in other patterns of government a separation of symbols or figureheads
for national and political loyalties should be sought.)

The culture change that has come with contemporary concerns for accountability is a
requirement that goes beyond compliance with the rules. In this regard Kiggundu (2002) pointed
out that the focus in good governance is more on outputs than on inputs. Accountability like
transparency requires a major change in the public sector work culture. It is a valuable tool in
detecting and discouraging corrupt acts. Checks on value for money, whether made by internal

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audit or line managers, whether routine or random, are a useful tool for the detection of
corruption. If a transaction brings good value for money there is little cash over for bribes or
other corrupt benefits.

Activity 2: what does effective accountability require at the top?__________________________

Summary
Delegation is the process managers use to transfer authority and responsibility to positions below
them in the hierarchy. There are many different reasons for delegation it offers a number of
potential advantages if carried out in an appropriate manner by a manager. Some reasons why
some managers fail to delegate may include a strong need for power, insecurity, a higher need
for achievement and difficulty in forming relationships. Some managers enjoy the exercise of
power over subordinates and the feeling of being in charge. Delegation would require sharing
power with subordinates and reducing their dependence. Managers need to identify what to
delegate and how to delegate in the process of delegation.

Accountability occupies a central place in good governance. The norm of accountability has to
ensure answerability as well as proper enforcement of correct procedure in case of violation of
certain laid down norms. In leadership roles accountability is the acknowledgment and
assumption of responsibility for actions, products, decisions, and policies including the
administration, governance and implementation within the scope of the role or employment
position and encompassing the obligation to report, explain and be answerable for resulting
consequences. Different types of accountability also include political accountability, professional
accountability, market accountability, judicial/legal accountability, and administrative
accountability. Accountability requires accounts to be given, actions to be reported. The culture
change that has come with contemporary concerns for accountability is a requirement that goes
beyond compliance with the rules.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Ye No
s

I can define and explain what delegation is.

I can list and explain the potential advantage of delegation.

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 I can identify and discuss reasons for lack of delegation.

I can discuss the guidelines for delegating.

I can describe the concept of accountability in good governance and leadership

roles.

I can define and explain what political accountability is.

I can discuss the concept of administrative accountability.

I can explain and define professional accountability.

I can discuss and define market accountability.

I can discuss and define legal/judicial accountability.

Discuss ways of improving accountability.

 Self Test Exercise Unit six

I. Say True or False

1. Delegation involves the assignment of new responsibilities to subordinates and additional

authority to carry them out.
2. There is what is known as up-ward delegation.
3. It is better to delegate tasks that can be done better by a manager.
4. Accountability occupies a central place in good governance.
5) Accountability requires accounts to be given, actions to be reported.

III.Short answer
3. List the potential advantages of delegation.
4. List the types of accountability.

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Unit 7: Coaching

Introduction
Dear student! Welcome to unit seven of the course. In this unit, you study the topic coaching.
Coaching is one method of building the capacity of leaders, employees, and teams. In this unit,
you will learn about the definition of coaching, and steps in coaching and the concept of
mentoring. In addition, you will practice and check your understanding of the concepts through
checklists, self-test questions and activities.

Objectives
After studying this unit, you will be able to:

 define coaching and explain the steps of coaching.

 explain what executive coaching is
 define and explain mentoring.
 discuss how to forge partnership and inspire commitment.

Contents of the Unit

Introduction to Coaching
Forging a Partnership
Inspiring Commitment: Conducting a GAPS Analysis
Growing Skills: Creating Development and Coaching Plans
Promoting Persistence: Helping Followers Stick to Their Plans
Transferring Skills: Creating a Learning Environment
Executive Coaching
Mentoring
Concluding Comments

Checklist

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 Self-Assessment Questions

Introduction to Coaching
In text question: what is the difference between coaching, training and mentoring?

A key success factor in most organizations today is having leaders and followers with the right
knowledge and skills. More and more, companies are looking at “bench strength” as a
competitive advantage moving into the next century. There are essentially two ways to acquire
bench strength; employers can either buy (i.e., hire) the talent they need, or they can build their
existing talent through development and coaching programs. Given that many employers face a
labor shortage in certain critical positions, many are looking to build their own internal talent.
Much of this talent is being developed through informal coaching. Most leaders engage in some
form of informal coaching. But how good of a coach are they. Studies indicate that almost every
single one was unsure what to do as a coach. Some thought it involved directing their employees
on how to do tasks. Others thought it involved counseling employees on personal problems. One
stated that his only example of coaching came from his high school football coach, and he
wouldn’t want to wish that on anyone. Two thought leaders in this area are Peterson and Hicks
(1996), who described coaching as the process of equipping people with the tools, knowledge,
and opportunities they need to develop themselves and become more successful. According to
Peterson and Hicks, good coaches orchestrate rather than dictate development. Good coaches
help followers clarify career goals, identify and prioritize development needs, create and stick to
development plans, and create environments that support learning and coaching. Thus, coaching
is really a blend of several different leadership skills. Being a good coach means having well-
developed skills, determining where a follower is in the coaching process, and intervening as
appropriate. The five steps of coaching provide leaders with both a good roadmap and a
diagnostic model for improving the bench strength of their followers.

Peterson and Hicks (1996) pointed out that this model works particularly well for high
performers-individuals who tend to benefit the most from, but are often overlooked by, leaders
when coaching. Coaching can have a considerable impact on the bottom line if it is targeted at
high performers. Further support for the idea that top performers may benefit the most from
coaching comes from athletics. Although the five step model also works with poorly performing
employees, more appropriate interventions might also include diagnosing performance problems,
goal setting, providing rewards and constructive feedback, and punishing these individuals,
particularly if informal coaching is not achieving desired results.

Forging a Partnership
The first step in informal coaching involves establishing a relationship built on mutual trust and
respect with a follower. If a follower does not trust or respect her leader, then it will be very
unlikely that she will pay much attention to his ideas for her development. There are several

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things leaders can do to forge a partnership with coachees. First, it will be much easier for
leaders with high credibility to build strong partnerships with followers than for leaders with low
credibility. Therefore, leaders need to determine where they are on the credibility matrix, and
they may need to take appropriate developmental steps to improve their credibility before their
coaching suggestions will have much impact. These developmental steps may include building
technical and organizational knowledge as well as building strong relationships with the
individuals they want to coach. Having an understanding of the context in which the employee
operates can be as important as the relationship the leader shares with the employee. Leaders will
also need to spend time listening to their coachees; they need to understand coachees’ career
aspirations, values, intrinsic motivators, view of the organization, and current work situation.
Good coaches can put themselves in their coachees’ shoes, and can understand how coachees
may view issues or opportunities differently from themselves. While forging a partnership,
leaders can also provide coachees with realistic career advice, as sometimes coachees have
unrealistic estimations of their skills and opportunities. If coaches do not know what derives their
coachees’ behaviors, then another step to forging a partnership is to start asking a lot of
questions. This is an excellent opportunity for leaders to practice their listening skills so as to
better understand their coachees’ career aspirations and intrinsic motivators.

Inspiring Commitment: Conducting a GAPS Analysis

This step in the coaching process is very similar to the GAPS and the gaps-of-the GAPS. The
difference is that these two analyses are now done from the coachee’s perspective.

Goals: Abilities:
What does the employee want to do? What can the employee do now?
----------------------------------------------------- -------------------------------------------------------
Step 1: career objectives. --
Step 2: What strengths does the employee
To become an Engineering Supervisor have for his or her career objective?

-Understand operational side of the business

-Good planning skills
-Set clear individual and team goals

Step 3: What development needs will he or

she have to overcome?

-Multidirection communication; may need to

improve listening skills
-May need to improve conflict resolution

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 skills
Standards: Perceptions:
What do you or the organization expect? How do others see the employee?
---------------------------------------------------------- ------------------------------------------------------
-- Step 4: PPRP and feedback from others
Step 5: Expectations:
 Boss
 Boss: To be promoted, will need to: -Good technician
-Get along better with peers -Develops good plans and holds people
-Develop stronger listening skills accountable
-More interested in own rather than others”
ideas

 Peers:
-Can be counted on to get the job done
-Can be too set in ways; too argumentative

 Direct Reports
-Has clear goals
-Understands technical side of business
-Doesn’t value our ideas and opinions

The above figure might help to clarify the difference in perspective. Thus, in the goals quadrant
of the GAPS analysis the leader should write down the coachee’s career objectives, and in the
Perceptions quadrant the leader would write down how the coachee’s behavior is impacting
others. It is entirely possible that the leader may not be able to complete all of the quadrants of
the GAPS for a coachee. If so, then the leader will need to gather more information before going
any further. This information gathering may include discussing career goals and abilities with the
coachee, reviewing the coachee’s 360-degree feedback results, asking peers about how the
coachee comes across or impacts others, or asking human resources about the educational or
experience standards relevant to the coachee’s career goals. One way to gather additional
information is to have both the leader and the coach complete a GAPS analysis independently,
and then get together and discuss areas of agreement and disagreement. This can help ensure that
the best information is available for the GAPS analysis and also help to build the partnership
between the leader and coachee. During this discussion the leader and coachee should also do a
gaps-of-the-GAPS analysis to identify and prioritize development needs. Usually leaders will get
more commitment to development needs if coachees feel they had an important role in
determining these needs, and a gaps-of-the-GAPS discussion is a way to build buy-in. this
discussion can also help ensure that development needs are aligned with career goals.

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Growing Skills: Creating Development and Coaching Plans
Once the coachee’s development needs are identified and prioritized, coachees will need to build
development plans to overcome targeted needs. Leaders generally do not build development
plans for their coachees. Instead, they may want to go over a sample (or their own) development
plan and coach their coachees on seven steps in building a plan. They can then either jointly
build a plan or have the coachee individually build a plan for the leader to review. Providing
coachees with an important role in development planning should increase their level of
commitment to the plan. Once a draft development plan is created, the leader and coach can then
use the development planning checklist to review the plan. In addition to the development plan,
leaders will need to build a coaching plan that outlines the actions they will take to support their
coachees’ development. Some of these actions might include meeting with the coachees on a
regular basis to provide developmental feedback, identifying developmental resources or
opportunities, or helping the coachee reflect on what they have learned. As with development
plans, leaders should share their coaching plans so that coachees know what kind of support they
will be getting. This will also publicly commit the leaders to the coachees development, which
will make it more likely that they will follow through with the coaching plan.

Promoting Persistence: Helping Followers Stick to Their Plans

Just because development and coaching plans are in place is not guarantee that development will
occur. Sometimes coachees build development plans with great enthusiasm, but then never take
further action. This step in the coaching process is designed to help coachees “manage the
mundane.” Conducting a GAPS analysis and creating a development plan are relatively easy;
sticking to the plan is much more difficult. From the leader’s perspective, a large part of
coaching is helping followers stick to their development plan. Several development planning
steps were specifically designed to promote persistence. For example, ensuring alignment
between career and development objectives, getting feedback from multiple sources on a regular
basis, and reflecting with a partner can help keep coachees focused on their development. If the
leader is a coachee’s developmental partner, then reflection sessions can help followers persist
with their development. If leaders are not designated as partners in the development plan, then
they should commit to meeting regularly with the coachees to discuss progress, what the leaders
can do to support development, developmental opportunities, developmental feedback, and so
forth. Leaders can also help to promote persistence by capitalizing on a coachable moments. Say
a coachee was working on listening skills, and the leader and coach were in a staff meeting
together. If the leader provides feedback to the coachee about her listening skills immediately
after the staff meeting, then the leader has capitalized on a coachable moment. To capitalize on a
coachable moment, leaders must know the followers’ developmental objectives, be in situations
where they can observe followers practicing their objective, and then provide immediate
feedback on their observations. Few coaches capitalize on a coachable moments, but they can go
a long way toward promoting persistence in coachees. It is important to note that capitalizing on

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coachable moments should take little time, often less than two minutes. In the example above,
the leader could provide feedback to the coachee during their walk back to the office after the
staff meeting.

Activity 1: what activities need to be performed to keep coachees focused on their development?

______________________________________________________________________________

Transferring Skills: Creating a Learning Environment

To build bench strength, leaders need to create a learning environment so that personal
development becomes an ongoing process rather than a one-time event. The most successful
organizations are those that emphasize the learning and teaching process-they focus on
constantly creating leaders throughout the company. In reality, leaders have quite a bit of control
over the kind of learning environments they want to create for their followers, and there are
several interventions they can take to ensure that development becomes an ongoing process.
Perhaps the most important intervention is for leaders to role-model development. In that regard,
if leaders are not getting regular feedback from followers, then they are probably not doing a
good job of role-modeling development. By regularly soliciting feedback from followers, leaders
are also likely to create a feedback-rich work environment. Once feedback becomes a group
norm, people will be much more willing to help build team member skills, which in turn can
have a catalytic effect on group performance. It is important to note that the leader will play a
large role in this group norm, because if the leader is a feedback averse, it will be difficult to see
how this norm will be adopted by followers. Leaders can also create learning environments by
regularly reviewing their followers’ development. Perhaps the easiest way to do this is by
making leaders and followers development partners; then both parties can provide regular
feedback and on-going support. During these discussions leaders and followers should review
and update their development plans to capitalize on new development opportunities or acquire
new skills. Leaders and followers can also review coaching plans to see what is and is not
working and make the necessary adjustments.

Executive Coaching
In recent years there has been a rapid increase in the popularity of individual coaching as
another type of developmental intervention for leaders in business organizations. The type of
leader who receives coaching is usually a high-level executive. The person who provides the
coaching may be an external or internal consultant. The coach is usually either a successful
former executive or a behavioral scientist with extensive experience as a management
consultant. Some of the advantage of using an external coach includes wider experience,
greater objectivity, and more confidentiality. An internal coach has other advantages, such as
easy availability, more knowledge of the culture and politics, and a better understanding of the
strategic challenges and core competencies.

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 The primary purpose of executive coaching is to facilitate learning of relevant skills. Coaches
also provide advice about how to handle specific challenges, such as implementing a major
change, dealing with a difficult boss, or working with people from a different culture. Having a
coach provides the unusual opportunity to discuss issues and try out ideas with someone who
can understand them and provide helpful objective feedback and suggestions, while maintaining
strict confidentiality. Executive coaching is especially useful in conjunction with techniques that
provide information about developmental needs but do not directly improve skills (e.g.,
multisource feedback, developmental assessment center).

An executive coach is not a permanent mentor and the coach is usually employed for a limited
period of time ranging from a few months to a few years. Coaching may be provided on a
weekly or biweekly basis, and in extreme cases, the coach may be "on call" to provide advice
whenever needed. Sometimes the decision to obtain coaching is made by the executive and
other times it is made by higher management to help prepare an executive for advancement, or
to prevent derailment. In general, executive coaching has several advantages over formal
training courses, including convenience, confidentiality, flexibility, and more personal
attention. However, it has some drawbacks/disadvantages. One obvious disadvantage is the
high expense of one-on-one coaching even when used for a limited time. The high cost is one
reason why personal coaching is used primarily for executives. Another limitation is the
shortage of competent coaches. It is important to find a coach who is able to establish a good
working relationship with the executive while also remaining objective and professional. Some
of the common examples for the types of behaviors and skills that can be enhanced by a coach
include listening, communicating, influencing people, building relationships, handling conflicts,
team building, initiating change, conducting meetings, and developing subordinates. The coach
can also provide advice about other things the executive can do to acquire relevant knowledge
and skills. Guidelines for effective coaching of executives can be found in recent books on the
subject.

Mentoring:
Recently there is increasing interest in use of formal mentoring programs to facilitate leadership
development. Mentoring is a relationship in which a more experienced manager helps a less
experienced protégé’; the mentor is usually at a higher managerial level and is not the protégé’s
immediate boss. Mentor can provide two distinct types of functions for the protégé: a) a
psychosocial function (acceptance, encouragement, coaching, counseling), and b) a career-
facilitation function (sponsorship, protection, challenging assignments, exposure and visibility).

Some of the most important examples of the psychological function related benefit of mentor
includes that mentors can facilitate adjustment, learning, and stress reduction during difficult job
transitions, such as promotion to one’s first managerial position, a transfer or promotion to a
different functional unit in the organization, an assignment in a foreign country, or assignments
in an organization that has been merged, reorganized, or downsized. Regarding, a career-

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facilitation benefit, several studies show that mentoring results in more career advancement and
success for the protégé. Mentors may also benefit from the mentoring experience, because it is
likely to increase their job satisfaction and help them develop their own leadership skills. It is
also found that career advancement in a service company was predicted both by mentoring given
and mentoring received. Thus, mentoring can be a useful technique for facilitating career
advancement, adjustment to change, and satisfaction of a protégé.

Concluding Comments
Perhaps one of the greatest misconceptions of coaching, and the primary reason why leaders
state they do not coach others, is that it takes a lot of time. In reality, nothing could be further
from the truth. Leaders are working to build credibility, build relationships with followers, and
understand followers’ career aspirations and review of the world. Although these do take time,
they are also activities leaders should be engaged in even if they are not coaching followers.
Doing a GAPS analysis, identifying and prioritizing development needs, helping followers create
development plans, and creating coaching plans often takes less than four hours. Although
leaders will need to take these steps with all their followers, these four hours can spread out over
a four-to-six-week period. As stated earlier, meeting with followers on a regular basis to review
development (perhaps monthly) and capitalizing on coachable moments also take little time.
Finally, many of the actions outlined in “create a learning environment” either take little time or
extensions of actions outlined earlier. The bottom line is that coaching really can take little
additional time; it is really more a function of changing how you spend time with followers so
that you can maximize their development.

Another note about the coaching model is that good coaches are equally versatile at all steps of
coaching. Some leaders are very good at forging a partnership, but then fail to carry development
to the next level by conducting a GAPS analysis or helping followers build a development plan.
Other leaders may help followers build a development plan but do not do anything to promote
persistence or create a learning environment. Just as leaders need to develop their technical
skills, so might they need to assess and in turn develop certain coaching skills. It is also
important to remember that coaching is a very dynamic process-good coaches assess where
followers are in the coaching process and intervene appropriately. By regularly assessing where
they are with followers, they may determine that the relationship with a particular follower is not
as strong as they thought, and this lack of relationship is why followers are not sticking to their
development plan. In this case, a good coach would go back to forging a partnership with the
follower and, once a trusting relationship had been created, go through another GAPS analysis,
and so forth. Finally, it is important to note that people can and do develop skills on their own.
Nevertheless, leaders who commit to the five steps of informal coaching outlined above will both
create learning organizations and help to raise development to a new level. Given the
competitive advantage of companies that have a well-developed and capable workforce, in the

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future it will be hard to imagine leadership excellence without coaching. Good leaders are those
who create successors, and coaching may be the best way to make this happen.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can define and explain what coaching is.

I can list and explain the steps in informal coaching.

I can explain and discuss what GAPS analysis is.

I can discuss how to create development and coaching plans.

I can describe way of helping followers how to stick to their plans.

I can explain way of creating learning environment in coaching.

I can discuss the concept of executive coaching.

I can explain and define mentoring.

 Self Test Exercise Unit Seven

I. Choose the correct answer

1. Which of the following is correct about coaching?
A. It helps for diagnosing performance problems C. It helps for constructive feedback
B. It can have a considerable impact on the bottom line D. All of the above
2. What can leaders do to forge a partnership with coachees?
A. Improve credibility B. Build strong relationship C. Understand coachees’ career
aspirations D. All of the above
3. Which of the following is an advantage of internal consultant?
A. Knowledge of culture and politics B Greater objectivity C. Wider Experience

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 4. ____________ is a relationship in which a more experienced manager helps a less
experienced protégé’. A. Coaching B. Counseling C. Mentoring D. Training
5. The purpose of executive coaching is:
A.To facilitate learning of relevant skills. C. A & B
B.Coaches provide advice about how to handle specific challenges D. None
II. Short Answer
1. What types of functions can mentor provide for the protégé?
2. List the advantages of executive coaching over formal training.

Unit Eight: Team Building

Introduction
Dear student! Welcome to the eighth unit of the course. In this unit, you begin with the topic
team building. In this unit, you will study about the definition of groups, and teams and their
leadership. In addition, you will learn about the difference between teams and groups, and ways
of building effective teams. In order to enhance your understanding of the concepts, checklists,
self-test questions and activities are also prepared at the end of the unit.

Objectives
After studying this unit, you will be able to:

 define groups, teams and explain their difference and similarity.

 Describe the rocket model of building high performance teams
 Explain team leadership
 explain the effective team characteristics and team building.

Contents of the Unit

Understanding Teams

The Difference between Team and Group

Team Leadership

Building High Performance Teams: The Rocket Model

Effective Team Characteristics and Team building

Summary
Checklist

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 Self-Assessment Questions

Understanding Teams
In text question: what is the difference between group and team?__________________________

A team is small number of people with complementary skills who are committed to a common
purpose, performance, goals and approach for which they hold themselves mutually accountable.
Teamwork enhances individual and organizational productivity, improves the quality of work
life, brings about a unity of purpose and creates a common vision and improves relations.
However, introducing team-working and making it work is a tremendous task involving total
commitment by everyone in an organization and demands sustained, enthusiastic support from
its top management. Teams have increasingly become the primary means for organizing work in
contemporary business firms. Currently, it was reported that 80 percent of Fortune 500
companies have half or more of their employees on teams. And 68 percent of small U.S.
manufacturers are said to have been using teams in their production areas.

How do we explain the current popularity of teams? The evidence suggests that teams typically
outperform individuals when the tasks being done require multiple skills, judgment, and
experience. As organizations have restructured themselves to compete more effectively and
efficiently, they have turned to teams as a way to use employee talents better. Management has
found that teams are more flexible and responsive to changing events than are traditional
departments or other forms of permanent groupings. Teams have the capability to quickly
assemble, deploy, refocus, and disband. But don't overlook the motivational properties of teams.
Consistent with the role of employee involvement as a motivator, teams facilitate employee
participation in operating decisions. So another explanation for the popularity of teams is that
they are an effective means for management to democratize their organizations and increase
employee motivation.

The Difference between Team and Group

Groups and teams are not the same thing. We defined a group as two or more individuals,
interacting and interdependent, who have come together to achieve particular objectives. A work
group is a group that interacts primarily to share information and to make decisions to help each
member perform within his or her area of responsibility. Work groups have no need or
opportunity to engage in collective work that requires joint effort. So their performance is merely
the summation of each group member's individual contribution. There is no positive synergy that
would create an overall level of performance that is greater than the sum of the inputs.

A work team generates positive synergy through coordinated effort. Their individual efforts
results in a level of performance that is greater than the sum of those individual inputs. These
definitions help clarify why so many organizations have recently restructured work processes
around teams. Management is looking for that positive synergy that will allow their organizations

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to increase performance. The extensive use of teams creates the potential for an organization to
generate greater outputs with no increase in inputs. Notice, however, we said "potential." There is
nothing inherently magical in the creation of teams that ensures the achievement of this positive
synergy. Merely calling a group a team doesn't automatically increase its work teams’ skills
performance. Effective teams have certain common characteristics. If management hopes to gain
increases in organizational performance through the use of teams, it will need to ensure that its
teams possess these characteristics.

Two identifying characteristics of groups are mutual interaction and reciprocal influence.
Members of teams also have mutual interaction and reciprocal influence, but we generally
distinguish teams from groups in four other ways. First, team members usually have a stronger
sense of identification among themselves than group members do. Often, both team members
and outsiders can readily identify who is and who is not on the team (athletic uniforms are one
obvious example); identifying members of group may be more difficult. Second, teams have
common goals or tasks; these may range from the development of a new product to an athletic
league championship. Group members, on the other hand, may not have the same degree of
consensus about goals as team members do. Group members may belong to the group for a
variety of personal reasons, and these may clash with the group’s stated objectives. (This
phenomenon probably happens with teams, too, although perhaps not to the same extent).

Third, task interdependence typically is greater with teams than with groups. For example,
basketball players usually are unable to take a shot unless other team members set picks or pass
the ball to them. On the other hand, group members often can contribute to goal accomplishment
by working independently; the successful completion of their assigned tasks may not be
contingent on other group members. Of course, task interdependence can vary greatly even
across teams. Among athletic teams, for example, softball, football, soccer, and hockey teams
have a high level of task interdependence, whereas swimming, cross-country, and track teams
have substantially lower levels of task interdependence. Fourth, team members often have more
differentiated and specialized role than group members. In the preceding section we noted that
group members often play a variety of roles within the group; however, team members often play
a single, or primary, role on a team. Finally, it is important to bear in mind that the distinctions
we have been highlighting probably reflect only matters of degree. One might consider teams to
be highly specialized groups. Although the term team is frequently used for any group, especially
to get individuals to work together and to motivate them, some team experts also make a
distinction between teams and traditional work groups. They go on to note these specific
differences between work groups and teams.

1. The work group has a strong, clearly focused leader; the team has shared leadership style.
2. The work group has individual accountability; the team has individual and mutual
accountability.
3. The work group’s purpose is the same as the organizations; the team has a specific purpose.
4. The work group has individual work products; the team has collective work products.

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 5. The work group measures effectiveness indirectly (for example, financial performance of
the overall business); the team measures performance directly by assessing collective work
products.
6. the work group runs efficient meeting; the team encourages open ended, active problem
solving meetings
7. The work group discusses, decides, and delegates, the team discusses, decides and does the
real work.
The point is that teams do go beyond traditional formal work groups by having a collective,
synergetic (the whole is greater than the sum of its parts) effect.

How to make teams more effective

For teams to be more effective, they must overcome some of the problems and dysfunctions that
groups in general encounter. Long standing models of team effectiveness include, creating the
right environment where support, commitment, reward systems, communication systems, and
physical space are all in sync to allow the team to work in a productive atmosphere. Tasks should
be designed to be interdependent, team size should be kept as small as possible, and members
should be selected based on both being motivated and competent. Farther, team cohesion should
be built by either establishing homogenous groups or overcoming potential problems associated
with diversity by encouraging interaction and contact and by making the group seem somewhat
“exclusive” so that members are happy to be included. Also, team success naturally tends to
build grater cohesion, as does the presence of external competition and challenges. Team
Building’ is the process of enabling that group of people to reach their goal. It is therefore a
management issue, and the most effective form of team building is that undertaken as a form of
management consultancy, rather than as pure training (though there is a role for training within a
programme of team building). In its simplest terms, the stages involved in team building are: to
clarify the team goals, to identify those issues which inhibit the team from reaching their goals
and to address those issues, remove the inhibitors and enable the goals to be achieved

Team building must be a way of life, the responsibility of every team member, a continuous
process, about developing a clear and unique identity, focused on a clear and consistent set of
goals, concerned with the needs and ambitions of each team member recognizing the unique
contribution that each individual can make an awareness of the potential of team as a unit,
results oriented and enjoyable. Team building must NOT be a short term, flavor of the month,
imposed without regard to peoples’ feelings, reserved for only some members of the team, an
excuse for not meeting personal responsible, a process where actions clearly contradict intentions
and seen as a chore.

8.2. Team Leadership

An effective leader is one who is able to draw out full potential of his team members. The team
leader should be able to give a direction, for investing their potentials. He should have to use his

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authority appropriately in tune with personal values of the team members. The team leader
although vested with the authority but should not become authoritarian but should encourage
democratic style of leadership. The team member would have their own individual needs but all
the same they have to work together as a team to fulfill the organizational needs. An effective
leader is to be sensitive to both the individual needs and the organizational needs but all the same
they have to work together as a team to fulfill the organizational needs. An effective leader is to
be sensitive to both the individual needs and the organizational needs and thus try and integrate
them. The individual look for recognition when they do anything of significance. Those in
leade4rship position should appreciate and recognize the individual’s worth and should ensure
that members do not become complacent and should consistently give their best. Because at time
the lack of recognition can be a source of frustration to the individual and may affect the team
work. Another element related to the team work is differential identities to the team members in
the organization. Individuals are grouped into the teams and relationship between these teams is
important for the effectiveness of the organization. Individuals tend to retain a strong identity to
their own team with much less identity with the organization as a whole.

Activity 1: what characteristics differentiate groups from teams?__________________________

Building High Performance Teams: The Rocket Model

The Rocket Model of Team Effectiveness (Curphy, 1999, 2000, 2004a, b, c, Curphy & Hogan,
2004; Krile, Curphy, & Lund, in press) is both a prescriptive and diagnostic model of team
building. The model is prescriptive in that it tells leaders what steps to take and when to take
them when building new teams. The model can also be used as a diagnostic tool for
understanding where existing teams are falling short and what leaders need to do to get them
back on track.

The Rocket Model is based on extensive research on and experience with teams in the health
care, education, retail, manufacturing, service, software, telecommunication, energy, and
financial service industries. The model has been used with executive teams at The Home Depot,
Waste Management, and the Strategic Health Authority in the United Kingdom; mid
management teams at Waste management, Pfizer, and a number of rural hospitals and school
districts; and project teams at Qwest Communications and Hewlett-Packard. The model seems to
work equally well with different types of teams at different organizational levels in different
industries. Leaders in particular like the Rocket Model because of its straight forward and
practical approach to team building.

Just as the booster stage is critical for getting a rocket off the ground, so are the Mission and
Talent stages critical for starting a team. Once the mission and talent issues have been addressed,
leaders will then need to work with team members to sort out team Norms and Buy-In, and so
on. Research shows that the teams with the best Results are usually those who report a high level
of team functioning on the six other components of the Rocket Model. Teams reporting a high

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level of functioning in only some of the components usually report mediocre results, and those
with low functioning on all sex components usually achieve few if any results. The following is a
more in depth description of the seven components of the Rocket Model.

Mission

When building a new team, the first thing a leader must do is clarify the team’s purpose and
goals, set team performance standards, and ensure individual team member goals are aligned
with the team’s goals. Thus, the Mission component of the Rocket Model is concerned with
setting a common direction for the team. In some cases the leader works closely with team
members to sort out these issues; in other cases the leader makes these decisions. For this
component of the model, who makes these decisions is not as important as ensuring that
everyone on the team understands what the team is trying to accomplish an how they personally
contribute to team success. Teams with this common understanding often experience much lower
levels of role ambiguity and conflict.

Of all the components in the Rocket Model, Mission may be the most important component. This
is the case because it drives all the other components of the model. The Mission of the team will
play a big role in determining the number and skills of people needed to achieve results (Talent),
the rules by which the team operates (norms), and the equipment and budget needed (Power).
Because Mission plays such a critical role in team building, leaders of underperforming teams
often find it worthwhile to first review the team’s purpose, goals, and performance standards
when striving to improve team performance. If we were to apply the Rocket Model to a learning
team in a college Leadership course, then the first thing the team should do is clarity what the
team wants to accomplish. This might include such things as everyone on the team getting on the
midterm, final exam, and overall course. Once the overall mission and team goals are
determined, the learning team would then need to decide who would do what and what the
performances standards would be for each team members.

Talent

Teams with too many or too few people or with team member lacking the skills needed to
achieve team goals often will report lower talent scores than teams having the right number of
people with right skill. Selecting the right kind of people and continuously developing those
skills needed to achieve tam goals are two key leadership activities in this component of the
Rocket Model. And the selection and development of Talent is precisely where many teams fall
short. Professional athletic and elite military combat teams obsess over hiring decisions and
spend countless hours practicing; they actually spend very little time performing. Most other
teams seem to do just the opposite in that they do nothing more than throw a group of available
people together and expect them to produce. These latter teams do not think through who needs
to be on the team, spend little if any time developing needed skills, and never practice.

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In the learning team example, Talent would come into play if team leaders selected their
teammates on the basis of GPA and how well potential team members got along with other.
Once the team was assembled, team leaders would than determine what skills they still needed to
develop and work to ensure the team improved in these areas. Team skills could be developed
through coaching. Training programs, practice test sessions, and so on. Of course, this scenario
assumes the leader gets to pick team members. Many times leaders do not have this luxury. If
leaders do not get to pick team members, then it is imperative that they assess and develop those
skills needed to accomplish team goals.

Norms

Once team members are selected and have a clear understanding of the team’s purpose and goals,
leaders then need to address the Norms component of the Rocket Model. Norms are the rules that
govern how teams make decisions, conduct meetings, get work done, hold team members
accountable for results, and share information. There are several important aspects of norms that
are worth noting. First, the decisions the team makes, the way in which it makes decisions, how
often and how long the teams meets, and so forth, should all be driven by the team’s purpose and
goals. Second, norms happen. If the team or team leader is not explicit about setting the rules
that govern team behavior, they will simply evolve over time. And when they are not explicitly
set, these rules may run counter to the team’s purpose and goal. For example, one of the authors
was working with a software development team that was responsible for delivering several new
products in a six-month time period. The time frame was very aggressive, but one of the team
norms that had evolved was that it was okay for team members to show up late to team meetings,
if they even bothered to show up. But the team meetings were very important to the success of
the team, as they were the only time the team could discuss problems and coordinate its software
development efforts. Team member behavior did not change until an explicit norm was set for
team-meeting participation.

Third, there are many team norms. These norms might include where people sit in meetings,
what time team members come in to work, what team members wear, the acronyms and terms
they use, and so on. But of domain of possible norms, those involving decision making,
communication, meetings, and accountability seem to be the most important to team functioning.
High performance teams are very explicit about what decisions the team makes and how it
makes those decisions. These teams have also set rules about the confidentiality of team meeting,
when team members speak for themselves or speak for the team, and how difficult or
controversial topics get raised in team meeting. High performance teams also have explicit rules
about team meetings and team member accountability. In our learning team example, the team
would need to decide how it would prepare for the midterm exam, what the format and quality of
the prep material would be, how often and where they would meet to prepare for the exam, what
they would do both in and outside of the preparation meetings, and how they would use the
results of the midterm exams to adjust their preparations for the final exam. Corporate teams
often fail because they do not explicitly set decision-making communication, meeting, and

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accountability norms or ask themselves if the rules they have adopted are still working or need to
be improved.

Buy –In

Just because team members understand the team’s purpose and goals and the rules by which the
team operates does not necessarily mean they will automatically be committed to them. Many
times team members will do north to south head nods on the team’s goal, rules, and action steps
in team meetings, but then turn around and do something entirely different after the meetings.
This is an example of a team that lacks Buy-In. teams with high levels of Buy-in have team
members who believe in what the team is trying to accomplish and will enthusiastically put forth
the effort needed to make the team successful.

There are three basic way team leaders can build Buy-In. one way to build Buy-In is to develop a
compelling team vision or purpose. Many times team members want to be part of something
bigger than them, and a team can be one venue for fulfilling this need. Whether or not team
members will perceive the team to have a compelling vision will depend to a large extent on the
degree to which the team’s purpose and goals matches up to their personal values. Charismatic or
transformational leaders are particularly adept at creating visions aligned with followers’
personal values. A second way to create Buy-In is for the team leader to have a high level of
credibility. Leaders with high levels of relevant expertise who share trusting relationships with
team members often enjoy high levels of Buy-In. team members often question the judgment of
team leaders who lack relevant expertise, and they question the agendas of team leaders they do
not trust. And because people prefer to make choices as proposed to being told what to do, a
third way to enhance team Buy-In is to involve team members in the goal, standard, and rule-
setting process.

In our learning team example, team Buy-In would likely be enhanced if the team got together
and jointly determined their purpose, goal, roles and rules. Alternatively, the team leader could
assemble a group of students who wanted to achieve the same means and believed being part of a
team would be the best way to make an A in the class. Team Buy-In might be somewhat lower if
the instructor determined the learning team’s mission and norms. Many teams in the public and
private sector world fail because team members do not trust the team leader, believe the team
leader to be incompetent, do not see how they personally benefit for being on the team, or were
not involved with setting the team’s goals.

Power

The power component of the Rocket Model concerns the decision-making latitude and resources
the team has in order to accomplish its goals. Teams reporting high levels of power have
considerable decision-making authority and all of the equipment, time, facilities, and funds
needed to accomplish team goals. Teams with low power often lack the necessary decision-
making authority or resources needed to get things done. One of the authors was working with a

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group of public school administrators who felt they had very little power to make decisions
affecting the school district. The district had had three superintendents over the past four years,
and as a result the school board bad stepped in to take over the day-to-day operation of the
school district.

To improve the power component of the Rocket Model, team leaders will first need to determine
if they have all the decision-making latitude and resources they need to accomplish group goals.
If they do not have enough power, then they will ether need to lobby higher ups to get what they
need, devise ways to get team goals accomplished with limited resources, or revise team goals in
light of the resource shortfalls. Most teams do not believe they have all the time, resources or
decision-making latitude they need to succeed, but more often than not they have enough of
these things to successfully accomplish their goals. Good teams figure out ways to make do with
what they have or devise ways to get what they need; dysfunctional team spend all their time and
energy complaining about a perceived lack of resources rather than figuring out ways to achieve
team goals. Along these lines, many poor performing teams often make false assumptions or
erect barriers that do not really exist. Team leaders will need to challenge these assumptions and
break barriers if they are to help the team succeed.

Team power will play a role in our learning team. In this case, the team leader may need to
secure a room or facility to conduct the study session, obtain computer resources for team
members, or even work with the instructor to see if the members could take group rather than
individual exam. They also need to determine how much time will be needed to adequately
prepare for the examinations and whether all the team members can devote the time needed for
the team to succeed. If the team does not have all the resources or time it believes it needs, then
the team will either have to find ways to make do with what it has or make a downward revision
of the team’s goals.

Morale

Just because individual team members understand what the team is trying to accomplish, are
committed to achieving team objectives, and understand the rules by which the team gets work
done does not necessarily mean them members will all get along with each other. Teams that
report high levels of morale tend to effectively deal with interpersonal conflict and have high
levels of morale and cohesion. This does not mean that highly cohesive team does not experience
interpersonal conflict. Instead, teams with high morale scores have learned how to get conflict
out in the effective manner. One way leaders can improve morale is to work, with team members
to determine the rules for addressing team conflict. On the other hand, some of the best
techniques for destroying team morale are for leaders to ether ignore interpersonal conflict or to
tell team members to “quit fighting and just get along.”

Because of values differences, work load inequities, miscommunication, and differing levels of
commitment, it is likely that our learning team will experience some level of interpersonal

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conflict. If the learning team wanted to improve cohesiveness, then it would have to discuss how
members were going to address conflict in the group. These discussions should happen relatively
early in the group’s formation and team conflict should be a regular topic in team meetings.
Interestingly enough, many public and private sector teams report low morale scores and often
take some kind of action to improve team cohesiveness. Usually these actions include sending
the team to some sort of team-building program, such as an outdoor learning or high ropes
course. In almost all these cases, these interventions have little if any long-term effect on team
cohesiveness, the reason being the morale component of the Rocket Model is often a symptom of
a deeper team problem. More often than not, the reason team members are not getting along is
due to unclear goals and roles, ill-defined performance standards or accountability norms, a lack
of commitment or resources, and so forth. In other words, the reason why team members are
fighting has to do with a problem in one or more of the other components of the Rocket Model.
Successfully addressing these problem components will not only improve results; they will also
have a positive impact on team morale.

Result

The mission through morale components of the Rocket Model describes the “how” of team
building. In other words, these components tell team leaders what they specifically need to do if
they need to improve team mission, norms, and so forth. The results component of the rocket
model describes the “what” of team building what did the team actually accomplish? Like
morale, results are a symptom or an outcome of the other components of the rocket model. High
performing teams get superior results because they have attended to the other six components of
the Rocket Model. These teams achieving less than optimal results can improve team
performance by focusing on these problematic components of the rocket model. In our learning
team example, if the team received a ‘B’ on the midterm exam, the team could reexamine its
purpose and goals, determine if it had some talent gaps, review its rules to see if they were
spending enough time practicing the right things, find another venue or time to study, and so on.

One thing we do know about high performing teams is that they often build executable action
plans with clear timelines and parties accountable in order to achieve results. These plans include
key milestones and metrics, and good teams regularly review team progress and review team
progress and revise their plans accordingly. Many times these plans include specific action steps
to improve team functioning as well as the actions specific team members need to take for the
team to achieve results.

Implications of the Rocket Model

As stated at the beginning of this section, the Rocket Model is both prescriptive and diagnostic,
and the model works equally well with student-through executive diagnostic, level teams. When
building a new team or determining where an existing team is falling short, leader should always
start with mission and talent components before moving to other parts of the model. Just as a

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rocket needs a large booster to get off the ground, so do teams need a clear purpose and the right
players in order to be successful. Along these lines, the team assessment survey (Curphy, 2004c)
was designed to provide teams with feedback on where they stand with respect to the seven
components of the rocket model.

Second, the components of the rocket model roughly correspond to Tuckman’s (1965) four
development stages of groups. According to Tuckman, forming is the first stage teams go
through. Team leaders can help teams to successfully work through this stage by focusing on the
mission and talent components of the rocket model. Tuckman maintained that teams than go into
the storming stage, during which team leaders should concentrate on the norms and Buy-In
components of the model. Team leaders should focus on power and morale in Tuckman’s
norming phase and the results component of the rocket model in Tuckman’s performing stage.

Effective Team Characteristics and Team building

Teams do vary in their effectiveness. Virtually identical teams can be dramatically different in
terms of success or failure. We must ask, therefore, what makes one team successful and another
unsuccessful? Although this is an area only recently studied, exploratory work at the Center for
Creative Leadership has tentatively identified several key characteristics for effective team
performance.

The Center for Creative Leadership’s research with teams indicated that successful and
unsuccessful teams could be differentiated on the basis of eight key characteristics, the first six
of which are primarily concerned with task accomplishment (Hallam &Campbell, 1992). First,
effective teams had a clear mission and high performance standards. Everyone on the team knew
what the team was trying to achieve and how will he or she had to perform in order to achieve
the team’s mission. Second, leaders of successful teams often took stock of their equipment,
training facilities and opportunities, and outside resources available to help the team. Leaders of
effective teams spent a considerable amount of time assessing the technical skills of the team
members. After taking stock of available resources and skills, good leaders would work to secure
those resources and equipment necessary for team effectiveness. Moreover, leaders of effective
make optimal use of available resources, to select new members with needed technical skills, or
to improve needed technical skills of existing members. The last two characteristics of effective
teams were concerned with the group maintenance of interpersonal aspects of teams. Hallam and
Campbell’s (1992) research indicated that high levels of communication were often associated
with effective team.

This author believed this level of communication helped team members to stay focused on the
mission and to take better advantage of the skills, knowledge, and resource available to the team.
High levels of communication also helped to minimize interpersonal conflicts on the team which
often drained energy needed for team success and effectiveness. The characteristics of effective
teams identified in this research provide leadership practitioners with a number of ideas about

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how they may be able to increase the effectiveness of their work unit or teams. A different
avenue to group and team effectiveness has been to use a normative approach. One example of
this technique is described in Groups that work (and those that don’t) (Hackman, 1990), Ginnett
(1993, 1996) has developed an expanded model focusing specifically on team leadership. For
now, our concern is with one of the three major leadership functions in Ginnett’s model that
focuses on team design. The model suggests four components of design of the team itself that
help the team get off to a good start, whatever its task. This is important because it is not
uncommon to find that a team’s failure can be traced to its being set up inappropriately from the
very beginning. If a team is to work effectively, the following four variables need to be in place
from the beginning.

Task structure: Does the team know what is task is? Is the task reasonably unambiguous and
consistent with the mission of the team? Does the team have a meaningful piece of work,
sufficient autonomy to perform it, and access to knowledge of its results?
Group boundaries: Is the collective membership of the team appropriate for the task to be
performed? Are there too few or too many members? Do the members collectively have
sufficient knowledge and skills to perform the work? In addition to task skills, does the team
have sufficient maturity and interpersonal skills to be able to work together and resolve
conflicts? Is there an appropriate among of diversity on the team (e.g., members are not so
similar that they do not have differing perspectives and experiences, and yet not so diverse that
they cannot communicate or relate to one another)?
Norms: Does the tam share an appropriate set of norms for working as a team? Norms can be
acquired by the team in three ways: They can be imported from the organization existing outside
the team, They can be instituted and reinforced by the leader or leaders of the team, or They can
be developed by the team itself as the situation demands. If the team is to have a strategy that
works over time, then it must ensure that conflicting norms do not confuse team members. It also
needs to regularly scan and review prevailing norms to ensure they support overall objective.
Authority: has the leader established a climate where her authority can be used in flexible rather
that a rigid manner? Has she, at one end of the authority continuum, established sufficient
competence to allow the group to comply when conditions demand (such as in emergencies)?
Has she also established a climate such that any member of the team feels empowered to provide
expert assistance when appropriate? Do team members feel comfortable in questioning the leader
on decisions where there are no clear right answers? In short, have conditions been created where
authority can shift to appropriately match the demands of the situation?

Many of these team design components may be imported from preexisting conditions in the
organization within which the team is forming, from the industry in which the organization
operates, or even from the environment in which the industry exist. To help team leaders
consider these various levels, Hackman and Ginnett (1986, 1993) developed the concept of
organizational shells. Notice that the four critical factors for team design (task, boundary, norm,
and authority) are necessary for the group to work effectively. In some cases, all the information

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about one of these critical factors may be input from the industry or organizational shell level. In
these cases, the leaders need to do little else but affirm that condition. In other cases, there may
be too little (or even inappropriate) input from the organizational level to allow the team to work
effectively. In these cases, the leader needs to modify the factors for team design. Ideally this is
done during the formation process the final shell before the team actually begins work.

These ideas may require a new way of thinking about the relationship between a leader and
followers. In many organizational settings, leaders are assigned. Sometimes, however, the people
who create conditions for improved group effectiveness are not the designated leaders at all; they
may emerge from the ranks of followers. This model has been used to differentiate between
effective and ineffective “self-managing work groups” teams where the followers and leaders
were the same people. Moreover, because the model is prescriptive, it also provides a number of
suggestions about what ineffective work groups can do to be successful. That same purpose
underlies the following model as well.

Figure 8.1
Environment Environment

Industry

NORM
TASK

Organization

Group formation

Team at
work

AUTHORTIY

BOUNDARY

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Ginnett’s Team Effectiveness Leadership Model

Since we have emphasized that leadership is a group or team function and have suggested that
one measure of leadership effectiveness may be whether the team achieves it objectives, it is
reasonable to examine a model specifically designed to help teams perform more effectively: the
Team effectiveness Leadership Model, or TELM (Ginnett, 1993, 1996, 2001.) another way to
think of this model is as a mechanism to first identify what a team needs to be effective, and then
to point the leader either toward the roadblocks that are hindering the team or toward ways to
make the team even more effective than it already is. This approach is similar to McGrath’s
(1964) description of leadership, which suggested that the leader’s main job is to determine what
needs the team is faced with and then take care of them. This approach also will require us to
think about leadership not as a function of the leader and his or her characteristics but as a
function of the team. As the title of the model suggests, team effectiveness is the underlying
driver.

We have mentioned this model of group or team effectiveness briefly before, but now we will
explore it in greater detail. The original model for examining the “engine or a group” was
developed by Richard Hackman and has been the basis for much research on groups and teams
over the last 20 years (Hackman, 1990). The model presented here includes major modifications
by Ginnett and represents an example of a leadership model that has been developed primarily
using field research. It provides the underlying structure for the “Leadership and High
Performance Team” course offered by the Center for Creative Leadership. While there have been
controlled experimental studies validating portions of the model (K.W. Smith, Salas, Brannick,
1994), the principal development and validation have been completed using actual high-
performance teams operating in their own situational context. Examples of the teams studied in
this process include commercial and military air crews in actual line flying operations, surgical
teams in operating suites, top management teams, product development and manufacturing
teams, and teams preparing the Space Shuttle fleet for launch.

At the most-basic level, this model (see figure 8.1.) resembles a systems theory approach with
inputs on the left (i.e., what one can tell about the team by actually observing team members at
work), and outputs on the right (i.e., how well the team did in accomplishing its objectives). We
will examine each of these stages. However, we will precede through the model in reverse order
looking at outputs first, then the process stage, then inputs.

Outputs

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What do we mean by outputs? Quite simply, outputs are the results of the team’s work. For
example, a football team scores 24 points. A production team produces 24 valves in a day. A
tank crew hits 24 targets on an artillery range. Such raw data, however, are insufficient for
assessing team effectiveness.

Activity 2: what are the four critical factors of Ginnett’s Team Effectiveness Leadership Model
for team design?

:Figure .8.2.

Input PROCESS OUTPUT

INPUR Team PROCESS Team

OUTPUT
Resources and Effectiveness
Context Team Process
Organizational
system

Team design
Effort Outcome
acceptable to
Individual Input
stakeholders
Knowledge & Skills Future capability
of the team

How do we know if a team’s output is good? How do we know if a team is effective? Even
though it was possible for the three different teams mentioned above to measure some aspect of
their work, there work, these measurements are not very helpful in determining their
effectiveness, either in an absolute sense or in a relative sense. For comparison and research
purposes, it is desirable to have some measures of team effectiveness that can be applied across
teams and tasks. Hackman (1990) argued that a group is effective if,

a) the team’s productive output (goods, services, decisions) meets the standards of quantity,
quality, and timeliness of the people who use it;

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 b) the group process that occurs while the group is performing its task enhances the ability
of the members to work as members of a team (either the one they were on or any new
teams they may be assigned to ) in the future; and
c) the group experience enhances the growth and personal well-being of the individuals who
compose the team.

Process
It should be obvious why leaders should be concerned with the output listed in the preceding
section. After all, if a team does not “produce” (output) , then it could not be considered
effective. But what is process? And why should a leader care about it? Actually, there are
several reasons a leader might want to pay attention to the team’s process how the team goes
about its work.

Some teams may have such a limited number of products that the leader can ill afford to wait
until the product is delivered to assess its acceptability to the client. For example, a team whose
task is to build one (and only one) satellite to be launched into obrbit will have no second
chances. There may be not opportunity to correct any problem one the satellite is launched (or, as
was the case with the flawed Hubble Space Telescope, correction can be made only after great
expense). Therefore, it may be desirable for the leader of such a team to assess his team’s work
while it is working rather than after the satellite is launched. Other kinds of teams have such high
standards for routine work that there simply are not enough critical indicators in the end product
to determine effectiveness from outcome measures. As an example of this situation, a team
operating a nuclear power plant is surrounded by so many technical backup systems that it may
be difficult to determine team effectiveness by looking at “safe operation” as a measurement
criterion. But we have evidence that not all teams in nuclear power plants operate equally well
(Chernobyl and Three Mile Island are but two examples). Ti would seem helpful to be able to
assess real teams “in process” rather than learn of team problems only following disastrous
outcomes. Even leaders of non critical teams might like to be able to routrous outcomes. Even
leaders of non critical teams might like to be able to routinely monitor their teams for evidence
of effective or ineffective processes. So it turns out that the way teams go about their work can
provide some very useful information to the leader.

Since process assessment is so important, let us focus for a moment on the block containing the
four process measures of effectiveness in figure 8.1. . These four process measures of
effectiveness provide criteria by which we can examine the ways in which teams work. If team is
to perform effectively, it must work hard enough, have sufficient knowledge and skills within the
team to perform the task, have an appropriate strategy to accomplish its work (or ways to
approach the task at hand), and constructive and positive group dynamics among its members.

The phrase group dynamic refers to interactions among team members, including such aspects
as how they communicate with other, express feelings toward each other, and deal with conflict

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with each other, to name but a few of the characteristics. Assessing and improving group process
is no trivial matter, as has been documented extensively in a comprehensive view of group
process and its assessment by Wheelan (1994).

What should the leader do if she discovers a problem with one of these four process measures?
Paradoxically, the answer is not to focus her attention on that process per se. While the four
process measures are fairly good diagnostic measures for a team’s ultimate effectiveness, they
are, unfortunately, not particularly good leverage points for fixing the problem. An analogy from
medicine would be a doctor who diagnoses the symptoms of an infection (a fever) but who then
treats the symptoms rather than attacking the true underlying cause (a nail in the patient’s foot).
Similarly at the team level, rather than trying to correct a lack of effort being applied to the task
at hand (perhaps a motivation problem), the team leader would be better advised to discover the
underlying problem and fix that than to assume that a motivational speech to the team will do the
job. This is not to imply that teams cannot benefit from process help. It merely suggests that the
leader should ensure that there are no design problems (at the input level) that should be fixed
first.

Team Leadership

Design Development
Dream

INPUT PROCESS OUTPUT

Organizational
system

Team design
Effort Outcome
acceptable to
Individual Input
stakeholders
Knowledge & Skills Future capability
of the team
In

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Inputs
In a manufacturing plant, inputs are the raw materials that are processed into products for sale.
Similarly in team situations, inputs are what is available for teams as they go about their work.
However, an important difference between an industrial plant and a team is that for a plant, the
inputs are physiological factors. There is a variety of levels of inputs, ranging from the individual
level to the environmental level. Some of the inputs provide little opportunity for the leader to
have an influence they are merely givens. Leaders are often put in charge of teams with little or
no control over the environment, the industry, or even the organizational conditions. There are
other inputs, however, that the leader can directly impact to create the conditions for effective
teamwork. Figure 2.3 shows the multiple levels in the input stage of the model. Note that there
are input factors at the individual and organizational levels and that both of these levels affect the
team design level, as depicted by the direction of the arrows between these levels.

Leadership Prescriptions of the Model

Creation

Following McGrath’s (1964) view of the leader’s role (the leader’s main job is to identify and
help satisfy team needs), and using the TELM, it is possible to identify constructive approaches
for the leader to pursue. As described earlier in this chapter, what leaders do depends on where a
team is in its development. Ideally, we should build a team like we build a house or an
automobile. We should start with a concept, create a design, engineer it to do what we want it to
do, and then manufacture it to meet those specifications. The TELM provides the same linear
flow for design of a team. The three critical functions for team leadership: dream, design, and
development.

Three critical functions for team leadership:

Dream
Obviously, the team needs to have clear vision. In their book ‘The Wisdom of Team (1994)
Katzenbach and Smith suggested that this may be the most important single step in teamwork. If
the team has a challenging and demanding goal, teamwork may be necessary to accomplish the
task. In highly effective work teams, the leader ensures that the team has a clear vision of where
they are going. The communication of a vision frequently involves metaphorical language so that
team members actually “paint their own picture” of where the team is headed.

Design
The importance of the design function of leadership cannot be overstated. Whether in the startup
of a team or in the midstream assignment of leaders, designing the team is critical. It is also often
the most frequently omitted step. Managers have long been trained to detect deviations and

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correct them. But what if the deviations are not detectable until the output stage? At their best,
mangers often detect deviations at the process stage and attempt to fix them “right where they are
seen.” Far too often, little time or attention is focused at the input level. Senior-level leaders may
resist changing the organizational systems for a number of reasons, including having a vested
interest in maintaining the status quo (whatever it is, it at least lets them rise to their current
position!). And while individual team leaders may have little control over the organizational
context and systems, they always have the opportunity for making an impact in their own team’s
design.

Development
If the leader finds that the team has a clear sense of direction and vision, and the input variables
at the individual, organizational, and team levels are contributing positively to team effectiveness
(i.e., the design portion of the leader’s job has been taken care of), then she can turn her attention
to the development level. Development is the ongoing work done with the team at the process
level to continue to find ways to improve an already well-designed team. Given our
individualistic culture, we have identified many teams in organizations that are apparently well
designed and supported at the input level, but that have had no training or experience in the
concept of teamwork. There are times when effective teamwork is based on very different
concepts than effective individual work. For example, for a tam to do well, the individuals
composing the team must sometimes not maximize their individual effort. Referred to as
subsystem no optimization, this concept is at first not intuitively obvious to many newly assigned
team members. Nevertheless, consider the example of a high school football team that has an
extremely fast running back and some very good (but considerably slower) blocking linemen as
members of the offense. Often, team members are told they all need to do their absolute best if
the team is going to do well. If our running back does his absolute best on a sweep around the
end, then he will run as fast as he can. By doing so, he will leave his blocking linemen behind.
The team is not likely to gain much yardage on such a play, and the linemen and the running
back, which have some their individual best, are apt to learn an important experiential lesson
about teamwork. Most important, after several such disastrous plays, all of the team members
may be inclined to demonstrate poor team process (lower effort, poor strategy, poor use of
knowledge, and poor group dynamics represented by intra-team strife). If we assume that all the
input stage variables are satisfactorily in placed, ongoing caching may now be appropriate. The
coach would get better results if they worked out a better coordination plan between the running
back and the linemen. In this case, the fast running back needs to slow down (i.e., not perform
maximally) to give the slower but excellent blockers a chance to do their work. After they have
been given a chance to contribute to the play, the running back will have a much better chance to
then excel individually, and so will the team as a whole.

As straightforward as this seems, very few leaders get the opportunity to build a team from the
ground up. More often the leader is placed into a team that already exists, has most, if not all, of

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its members assigned, and is in a preexisting organizational contest that might not be team
friendly. While this situation is more difficult, all is not lost. The TELM also provides a method
for diagnosis and identification of key leverage point for change.

Diagnosis and Leverage Points

Let us assume that you, as a new leader, have been placed in charge of a poorly performing
existing team. After a few days of observation, you have discovered that its members are just not
working very hard. They seem to be uninterested in the task, frequently wandering off or not
even showing up for scheduled teamwork. By focusing on the process block of the TELM, now
shown in its complete form in figure 10.5, we would diagnose this at the process level as a
problem of effort. Note that preceding the term effort is the label (P-1). Rather than just
encouraging them to work harder (or threatening them), we should first look at the input level to
see if there is some underlying problem. But you do not need to examine all 12 input variables.
Since we have already diagnosed a P-1 level process problem, the TELM is designed to focus
your attention on the key leverage points to target change.

At each of the input levels (individual, Team, and Organizational) you will find a 1-level
variable identified. These 1-level Input variables are the most likely leverage points for
impacting (P-1) effort. The individual level (I-1) suggests that we look at the interests and
motivations of the individual team members. These are referred to as individual factors in the
model. If we have built a team to perform a mechanical assembly task, but the individuals
assigned have little or not interest in mechanical work and instead prefer the performing arts,
they may have little interest in contributing mush effort to the team task. Here, using instruments
such as the Campbell Interest and Skills Survey to select personnel may help out team’s effort
level from an individual perspective (D.P. Campbell, Hyne, & Nilsen, 1992).

While it may seem tempting to move to the team-level inputs next, it is important to remember
that this model emphasizes the way teams are influenced by both individual and organizational
level inputs. Therefore, we will look at the organizational level next. At the organizational level
(O-1), the model suggests that we should examine the reward system that may be impacting the
team. If the individuals have no incentive provided by the organization for putting forth effort,
they might not be inclined to work every hard, or, perhaps, not to work at all. Similarly, the
reward system may be solely structured to reward individual performance. Such a reward
structure would be inconsistent with designs for a team task where interdependence and
cooperation among members is often an underlying premise. If a professional basketball
organizational provides rewards for players based only on individual points scored, with no
bonuses for team performance (games won or making the playoffs), you can expect little passing,
setting picks for teammates, and so on.

Both the individual and organizational level variables contribute to the team’s ability to perform
the task. But there can also be problems at the team design level. Here (T-1), a poorly designed

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task is hypothesized to be un-motivating. (An approach for designing intrinsically rewarding
work based on job characteristics will be discussed in the next chapter.) If a job is meaningless,
lacks sufficient autonomy, or provides no knowledge of results, we would not expect to see
followers putting forth much effort. Using the model, we found key leverage points at various
levels of the input stage that would impact the way the team went about its work (team process).
In the example cited, we diagnosed a process-level problem with effort (P-1), so we examined
the 1-level variables at the individual, organizational, and team levels as the most likely location
for finding input stage problems. By the way, the concept of leverage point does not imply that
only factors at corresponding “numbers” should be considered. For example, a team’s effort
might be affected by an oppressive and authoritarian leader. As we will discuss next, this
“foundation-level variable” can have a tremendous impact on the other variables. Indeed, so
powerful is this component, we should examine the process measure of group dynamics (P-4)
and its corresponding leverage points in more detail. Consider the following two examples:

Again returning to the model for determining points of leverage, we would check the I-4 variable
at the individual level to determine if the team members involved had adequate interpersonal
skills to interact appropriately. At the organizational level, the O-4 variable would suggest we
check organizational components to determine if there are organizational control systems that
inhibit or overly structure the way in which the team can make decisions or control its own fate.
Such factors may include organizational design or structure limitations, or it may be a rigid
computerized control system that specifies every minutes detail of the tasks not only of the teams
as a whole but of all the individuals composing the team. These excessive controls at the
organizational level can inhibit effective teamwork. Finally, at the team design level, the T-4
variable would have us examine authority dynamics created between the leader and the
followers. Authority dynamics describe the various ways the team members, including the leader
related and respond to authority. It is at the team level that the followers have opportunities to
relate directly with team’s authority figure, the team leader. The intricacies of how these various
authority dynamics can play themselves out in a team’s life are more complex than this chapter
warrants. Suffice it to say that there is a range of authority relationships that can be created, from
autocratic to laissez-faire. For a more detailed explanation of this concept, see Ginnett (1993).
But even without further description, it should be no surprise that the varied group dynamics
observed in the previous two examples were leveraged by the leaders’ use of authority in very
different ways.

It would be simple if leaders could identify ad specify in advanced the ideal type of authority for
themselves and their teams, and then work toward that objective. However, teams seldom can
operate effectively under one fixed type of authority over time. The leader might prefer to use his
or her favorite style, and the followers might also have an inherent preference for one type of
authority or another; but if the team is to be effective, then the authority dynamics they are
operating with should complement the demands of the situation. Since situations often change

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over time, so should the authority dynamics of the team. This idea is very similar to a point
made earlier in the book that effective leaders tend to use all five sources of leader power.

In research on the behavior of leaders in forming their teams, Ginnett (1993) found that highly
effective leaders used a variety of authority dynamics in the first few minutes of the team’s life.
This does not mean that each highly effective leader used a single style that was different from
the others (i.e., other leaders). It does mean that each one of the effective leaders used a variety
of authority styles. At one point in the first meeting of the team, the leader would behave
directively, which enabled him to establish his competence and hence his legitimate authority. At
another time, he would engage the team in a very participative process and actively seek
participation from each member of the team. By modeling a range of authority behaviors in the
early stages of the team’s life, the effective leaders laid the groundwork for continuing
expectations of shifting authority as the situational demands changed.

Summary
A team is small number of people with complementary skills who are committed to a common
purpose, performance, goals and approach for which they hold themselves mutually accountable.
Teamwork enhances individual and organizational productivity, improves the quality of work
life, brings about a unity of purpose and creates a common vision and improves relations. Teams
typically outperform individuals when the tasks being done require multiple skills, judgment, and
experience. Groups and teams are not the same thing. A group is two or more individuals,
interacting and interdependent, who have come together to achieve particular objectives. A work
team generates positive synergy through coordinated effort. For teams to be more effective, they
must overcome some of the problems and dysfunctions that groups in general encounter.

An effective leader is one who is able to draw out full potential of his team members. The team
leader should be able to give a direction, for investing their potentials. The Rocket Model of
Team Effectiveness is both a prescriptive and diagnostic model of team building. The rocket
model includes mission, talent, norms, buy-in, power, morale and result. The three critical
functions for team leadership are dream, design, and development.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can define and explain team.

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I can differentiate group and team.

I can explain and discuss team leadership.

I can describe the rocket model of effective team building.

I can describe mission, talent, norm, buy-in, power, morale, and result in the rocket model.

I can explain implications of the rocket model.

I can discuss effective team characteristics and team building.

I can describe Gennett’s Team Effectiveness Leadership Model

I can explain the three critical functions for team leadership

 Self Test Exercise Unit Eight

I. Matching
Match the items listed under column “B” to items listed under column “A”
No. A B
1 Selecting the right kind of people and continuously developing them A Norms
2 Rules that govern how teams make decisions and conduct meetings B Mission
3 Team building at the top C Talent
4 Believing in what the team accomplishes and putting forth the effort D Power
5 The decision-making latitude and resources in the rocket model E Result
6 Helps to deal with interpersonal conflict and create high level of cohesion F Buy-in
7 Team’s purpose and goals G Morale
8 Describes the what of the team building in the rocket model H Group of executives

II. Short answer

1. What are the three critical functions for team leadership?

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Unit Nine: Motivation
Contents of the Unit
9.1 Motivation, Satisfaction, and Performance

9.2 Understanding and Influencing Follower Motivation

9.3 Need Theories

9.4 Individual Differences in Motivation

9.5. Cognitive Theories

9.6. Situational Approaches

Concluding thoughts
Checklist
Self-Assessment Questions

Introduction
In text question: explain in your own words the relation between motivation, satisfaction and
performance.___________________________________________________________________

Why do some followers join some teams but not others? How do we get followers to exhibit
enough of those behaviors needed for the team to succeed? And why are some leaders capable of
getting followers to go above and beyond “the call of duty”? Motivation is all about getting
people to do things, and motivating others is a fundamental leadership skill. Researchers
studying motivation try to determine why followers do certain things and how to make them start
or stop exhibiting specific behaviors. The importance of follower motivation is suggested in
findings that most people believe they could give as much as 15 percent or 20 percent more
effort at work than they now do with no one, including their own bosses, recognizing any
difference. Perhaps even more startling, these workers also believed they could give 15 percent
or 20 percent less effort with no one noticing any difference (Kinlaw, 1991). Moreover, variation

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in work output varies significantly across leaders and followers. Hunter, Schmidt, and Judiesch
(1990) estimated the top 15 percent of workers in any particular job produced from 20 to 50
percent more output than the average worker, depending on the complexity of the job. Put
another way, the best computer programmers or salesclerks might write up to 50 percent more
programs or process 50 percent more customer orders. Might better methods of motivating
workers lead to higher productivity from all the workers? And are more motivated workers
happier or more satisfied workers? What can leaders do to increase the motivation and
satisfaction levels of their followers? Creating highly motivated and satisfied followers depends,
most of all, on understanding others. Therefore, whereas motivation is an essential part of
leadership, it is appropriate to include in this unit of the course, which focuses on the followers.
9.1. Motivation, Satisfaction, and Performance
Motivation, satisfaction, and performance seem clearly related. Some leadership behaviors, such
as building relationships or consideration, result in more satisfied followers. More satisfied
followers are more likely to remain with the company and engage in activities that help others at
work (i.e., organizational citizenship behaviors). Other leadership behaviors, such as setting
goals, planning, providing feedback, and rewarding good performance (initiating structure)
appear to more directly influence followers to exert higher levels of effort toward the
accomplishment of group goals. Research has shown that these follower behaviors result in
higher levels of customer satisfaction and loyalty, which in turn leads to better performance. And
teams with higher levels of performance often achieve more rewards, which further increases
follower satisfaction and performance. Thus, the leader’s ability to motivate followers is vitally
important to both the morale and the performance of the work group. However, it is important to
understand that the leader’s use of good motivational techniques is not the only factor affecting
group performance. Selecting the right people for the team, correctly using power and influence
tactics, being seen as ethical and credible, possessing many of bright-side and none of the dark-
side personality traits, and acquiring the necessary resources and developing follower skills are
other relationship factors affecting a group’s ability to accomplish goals.

Most people probably think of motivation as dealing with choices about what we do and how
much effort we put in to doing it. According to Kanfer (1990), motivation is anything that
provides direction, intensity, and persistence to behavior. Another definition considers the term
motivation a sort of shorthand to describe choosing an activity or task to engage in, establishing
the level of effort to put forth on it, and determining the degree of persistence in it over time
(Campbell & Pritchard, 1976). Other researchers define motivation as a behavior probability; it
is the likelihood an individual will initiate and continue exhibiting certain behaviors (Miller &
Rollnick, 1991). Like personality traits and types, motivation is not directly observable; it must
be inferred from behavior. We would infer that one person would be highly motivated to do well
in school if she spent a lot of time studying for exams. She could choose to spend her time and
energy on socializing, intramurals, or volunteer work, but because she is spending time outlining
readings and reviewing class notes we say she is motivated to do well in school. At work, if one
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person regularly assembles twice as many radios as any other person in his work group-assuming
all have the same abilities, skills, and resources-then we likely would say this first person is more
motivated than the others. We use the concept of motivation to explain differences we see among
people in the energy and direction of their behavior.

Performance, on the other hand, concerns those behaviors directed toward the organization’s
mission or goals, or the products and services resulting from those behaviors. At work or school
we can choose to perform a wide variety of behaviors, but performance would only include those
behaviors related to the production of goods or services or obtaining good grades. Performance
differs from effectiveness, which generally involves making judgments about the adequacy of
behavior with respect to certain criteria such as work-group or organizational goals. However, it
is important to understand that performance is affected by more than a follower’s motivation.
Factors such as intelligence, skill and the availability of key resources can affect a follower’s
behavior in accomplishing organizational goals (performance) independently of that person’s
level of motivation. Thus, an adequate level of motivation may be a necessary but insufficient
condition of effective performance.

Job satisfaction is not how hard one works or how well one works, but rather how much one
likes a specific kind of job or work activity. Job satisfaction deals with one’s attitudes or feelings
about the job itself, pay, promotion, or educational opportunities, supervision, co-workers,
workload, and so on. Various polls over the past half century have consistently shown the vast
majority of men and women report liking their jobs. Research has also shown that people who
are more satisfied with their jobs are more likely to engage in organizational citizenship
behaviors-behaviors not directly related to one’s job that are helpful to others at work.
Organizational citizenship behaviors make for a more supportive workplace. Examples might
include volunteering to help another employee with a task or project, or filling in for another
employee when asked. Happier workers tend to be more helpful workers. When the positions are
eliminated to reduce costs and improve profitability, they may also dramatically increase the
workload for the remaining workers (i.e., the same amount of work will be performed by fewer
people), and may severe the implicit contract between workers and employers (i.e., if workers
performed at a high level, then employers guaranteed a job for life). The end result is that job
dissatisfaction among workers is at an all-time high. Although people report being satisfied with
what they do for living, the forced overtime, increased workload, and erosion of trust between
employers and employees will significantly lower levels of job satisfaction. It will be very
difficult to maintain various indices of organizational effectiveness when many of the best and
brightest employees are leaving the company. Job satisfaction may not have as direct an effect on
the accomplishment of organizational goals as motivation, or performance, but the indirect
effects of reduced organizational citizenship behaviors or increased turnover are so important
that leaders can ill afford to ignore them.

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As a result of the economic downturn, many leaders today are facing the dual challenges of
having to achieve increasingly difficult unit performance goals while having fewer followers
available to do the work. The best leaders and organizations understand that one way to meet
these challenges is to recruit, develop, and retain top leadership and technical talent. Savvy
companies that spend considerably more time and effort attracting, developing, and retaining the
best people often report superior financial results. The best leaders may well be those who can
motivate workers to perform at a high level while maintaining an equally high level of job
satisfaction. Having now defined motivation, performance and job satisfaction, we can explore
their relationships a bit further. If followers lack the necessary skills or resources to accomplish a
group task, then trying to “motivate them more” could be unproductive and even frustrating.
Higher motivation will usually only affect performance if followers already have the abilities,
skills, and resources to get the job done. Motivating others is an important part of leadership, but
not all of it; pep talks and rewards are not always enough.

The relationships between motivation and job satisfaction are a bit more straightforward-as a
matter of fact, many theories of motivation are also theories of job satisfaction. The implicit link
between satisfaction and motivation is that satisfaction increases when people accomplish a task,
particularly when the task requires a lot of effort. It might also seem logical that performance
must be higher among more satisfied workers, but actually this is not always so. Although
satisfaction and performance are correlated at the r=.3 level, it is just not true that happy workers
are the most productive ones, nor is it true that unhappy or dissatisfied workers are always the
poorest performers. It is entirely possible, for example, for poorly performing workers to be
fairly satisfied with their jobs (maybe because they are paid well yet do not have to work very
hard). It is also possible for dissatisfied workers to be relatively high performers (they may have
a strong work ethic, or they may be trying to improve chances to get out of their current job).
Despite the intuitive appeal of believing the satisfied workers usually perform better, it may be
that satisfaction has only an indirect effect on performance. Nevertheless, having both satisfied
and high-performance followers is a goal leaders should usually strive to achieve.

9.2 Understanding and Influencing Follower Motivation

So what do leaders do to “motivate” followers to accomplish group goals? Are all leaders and
followers motivated the same way? Is there a universal theory of motivation? Organizations
spend billions on motivating the troops, but do these interventions actually help to improve job
satisfaction, retention, and performance? Several major approaches to understanding worker
motivation, as well as the implications of these approaches for follower satisfaction and
performance are important. These motivational theories and approaches provide leadership
practitioners with a number of suggestions to get followers to engage in and persist with different
behaviors. It is important to understand that some motivational theories are particularly useful in
certain situations but are not as applicable in others. Just as a carpenter can successfully build
better wooden structures or furniture by having a larger set of tools, so can leadership

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practitioners solve a greater number of motivational problems among followers by becoming
familiar with different motivational theories and approaches. People who have only hammers in
their tool kits are more likely to see every problem as a nail needing hammering, and it is not
unusual for less effective leaders to call on a very limited number of approaches to any
motivational problem. Leaders who are knowledgeable about different motivational theories are
more likely to choose the right theory for a particular follower and situation, and often have
higher-performing and more satisfied employees as a result.

It is important to understand that most performance problems can be attributed to unclear

expectations, skill deficits, resource/equipment shortages, or lack of motivation. Of these
underlying causes, leaders seem to have the most difficulty recognizing and rectifying
motivation problems. In this section we will discuss the key aspects of 11 different approaches to
understanding motivation in a work or leadership context. The approaches are organized in to
four broad categories: need theories, individual-difference approaches, cognitive theories, and
situational approaches.

Category Theory or Approach Major Themes or Characteristics

Need Maslow’s hierarchy of Satisfy needs to change behavior
needs
Alderfer’s ERG theory Can satisfy multiple needs simultaneously.
Individual Achievement orientation Personality trait
difference Values People are aligned with their personal values.

Intrinsic motivation People are more motivated to do some activities

than others.
Cognitive Goal setting Set goals to change behavior
Expectancy theory Motivate others by clarifying links between
behaviors, performance, and rewards
Equity theory People are motivated to reduce inequalities
between rewards and effort.
Self-efficacy One’s beliefs about being able to successfully
complete a task.
Situational Operant approach Change rewards and punishments to change
behavior
Empowerment Give people autonomy and latitude in order to
increase their motivation for work

9.3. Need Theories

Assume people all have basic needs, and leaders can motivate followers by helping them satisfy
their needs. One way to get followers to engage and persist with the behaviors needed to
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accomplish group goals is to appeal to their needs. The two major need theories include
Maslow’s (1954) hierarchy of needs and Alderfer’s (1969) existence-relatedness-growth (ERG)
theory. These theories assume that all people share a common set of basic needs; the theories
primarily differ in the types of needs that supposedly underlie or drive people’s behavior. Needs
refer to internal states of tension or arousal, or uncomfortable states of deficiency people are
motivated to change (Kanfer, 1990). Hunger would be a good example of a need, as people are
motivated to eat when they get hungry. Other needs might include the need to live in a safe and
secure place, to belong to a group with common interests or social ties, or to do interesting and
challenging work. If these needs were not being met, then people would choose to engage in and
persist with certain behaviors until they were satisfied. According to these motivational
approaches, leadership practitioners can get followers to engage in and persist with certain
behaviors by correctly identifying and appeasing their needs.

Maslow’s Hierarchy of Needs

According to Maslow (1954), people are motivated by five basic sorts of needs. These include
the need to survive physiologically, the need for security, the need for affiliation with other
people (i.e., belongingness), the need for self-esteem, and the need for self-actualization.
Maslow’s conceptualization of needs is usually represented by a triangle with the five levels of
needs arranged in hierarchy, called not surprisingly, the hierarchy of needs. According to
Maslow, any person’s behavior can be understood primarily as the effort directed to satisfy one
particular level of need in the hierarchy. Which level happens to be motivating a person’s
behavior at any time depends on whether or not lower needs in the hierarchy have been satisfied.
According to Maslow, lower-level needs must be satisfied before the next-higher level becomes
salient in motivating behavior.

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 self-
actualization
needs

Esteem needs

Belongingness needs

Security needs

Physiological needs

Fig. Maslow’s hierarchy needs

Maslow (1954) said higher-level needs like those for self-esteem or self-actualization would not
become salient (even when unfulfilled) until lower needs were satisfied. Thus, a practical
implication of his theory is that leaders may only be successful in motivating follower behavior
by taking account of the follower’s position on the needs hierarchy. Thus, if leadership
practitioners want to use Maslow’s hierarchy of needs to motivate employees to work harder,
then they need to determine where their followers fall on the needs hierarchy and ensure all
lower-order needs are satisfied before appealing to their followers’ self-esteem or self-
actualization needs. Leadership practitioners should watch for “mismatches” between their
motivational efforts and followers lowest (on the hierarchy) unsatisfied needs.

ERG Theory
Alderfer’s (1969) existence-relatedness-growth (ERG) theory is similar to Maslow’s hierarchy
of needs. In the terms of ERG theory, existence needs basically correspond to Maslow’s
physiological and security needs; relatedness needs are like Maslow’s social and esteem needs;
and growth needs are similar to the need for self-actualization. Beyond those similarities,
however, are two important differences.

First, Alderfer (1969) reported that people sometimes try to satisfy more than one need at a time.
For example, even though a follower’s existence needs may not be entirely satisfied, she may
still be motivated to grow as a person. Second, he claimed frustration of a higher-level need can
lead to efforts to satisfy a lower-level need. In other words, a follower who is continually
frustrating in achieving some need might regress and exert effort to satisfy a lower need that has

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already been satisfied. Some of these behaviors might include moving to an upscale
neighborhood; buying a more expensive wardrobe, a new sports car, or new stereo equipment; or
demanding more pay. Alderfer called this the frustration regression hypothesis.

The practical implications for motivating followers using ERG theory are threefold. First
leadership practitioners should identify the degree of need for existence, relatedness, and growth
for their followers. Followers having relatively unmet existence or relatedness needs will focus
their behaviors on satisfying these needs, and leadership practitioners may be able to help with
these endeavors. Second, followers having relatively satisfied existence and relatedness needs
are more apt to focus on growth needs. Leadership practitioners can get a lot of motivational
“mileage” by helping followers satisfy their growth needs, as these followers are more willing to
develop and master new skills, apply skills in new situations, look for more responsibility and
independence, and strive to achieve greater personal and organizational challenges. Third,
leadership practitioners should also be on the lookout for the frustration regression hypothesis
among followers. If followers are repeatedly thwarted in satisfying a need, and have shifted their
efforts to over-satisfying a lower-level need, then appealing to the need that was thwarted may be
relatively fruitless.

Activity 1: what is the major theme of need theories?___________________________________

Concluding Thoughts on Need Theories

According to the two need theories, leaders should start by determining if lower-level needs are
being satisfied. In most cases it will be difficult for followers to exhibit the behaviors necessary
for group success if these lower-level needs are not being met; therefore, leaders should do all
they can to help followers meet these needs. Once the lower-level needs are satisfied, leaders can
then work to satisfy higher-level needs, which in turn should improve the odds of group success.
Although the two need theories do provide some useful ideas on how to improve customer
service, it is important to note that they have several limitations. For one thing, none of the
theories makes specific predictions about what an individual will do to satisfy a particular need.
The theories’ lack of specificity and predictive power severely limits their practical applicability
in real-life settings. On the other hand, awareness of the general nature of the various sorts of
basic human needs described in these theories seems fundamentally useful to leaders. Leaders
will have a difficult time getting followers to maintain various work behaviors by emphasizing
good relationships with co-workers or appealing to their sense of pride if the job pays only
minimum wage and followers are having a difficult time making ends meet. A person may be
reluctant to volunteer for a self-actualizing opportunity in support of a political campaign if such
participation may risk that person’s financial security. Perhaps the greatest insight provided by
these two theories is that leadership practitioners may need to address some basic, fundamental
areas before their attempts to get followers to expend more effort on work-related behaviors will
be successful.

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9.4. Individual Differences in Motivation
Assume people differ in key personality traits and values and the work they like to do. Leaders
can motivate followers by hiring those with the right traits, values, and work interests. Is possible
that some people are naturally more “motivated” than others? Do some people automatically put
forth a higher level of effort toward group goals simply because of who they are or because they
enjoy what they do? Unlike the two need theories that claimed all people share some
fundamental needs, the individual difference approach to motivation assumes that people vary
substantially in their achievement orientation, values, or intrinsic motivation. This approach to
motivation is rather simple. To improve group performance, leaders should select only those
followers who possess both the right skills and have a higher level of achievement orientation,
the right values, or find the work to be intrinsically motivating.

Achievement Orientation
Atkinson (1957) proposed that an individual’s tendency to exert effort toward task
accomplishment depended partly on the strength of his or her motive to achieve success, or, as
Atkinson called it, achievement orientation. McClelland (1975) further developed Atkinson’s
ideas and said that individuals with a strong achievement orientation (or in McClelland’s terms, a
strong need for achievement) strived to accomplish socially acceptable endeavors and activities.
These individuals also preferred tasks that provided immediate and ample feedback and were
moderately difficult (i.e., tasks that required a considerable amount of effort but were
accomplishable). Additionally, individuals with strong need to achieve felt satisfied when they
successfully solved work problems or accomplished job tasks (McClelland, 1975). Individuals
with a relatively low need to achieve generally preferred easier tasks and did not feel satisfied by
solving problems or accomplishing assigned tasks. McClelland (1975) maintained that
differences in achievement orientation were a primary reason why people differed in the levels of
effort they exerted to accomplish assignments, objectives, or goals. Thus, achievement
orientation is a bit like “fire in the belly”; people with more achievement orientation are likely to
set higher personal and work goals and are more likely to expend the effort needed to accomplish
them. People with low levels of achievement motivation tend to set lower personal and work
goals, and are less likely to accomplish them.

Achievement orientation is also a component of a Five Factor personality dimension of

dependability. Like intelligence, dependability has been found to be positively related to
performance across virtually all jobs. Achievement orientation has been found to predict success
in school, in the military, in blue-collar and retail workers, and in managers. All things being
equal, people with higher levels of achievement orientation are likely to do better in school,
pursue post graduate degrees, get promoted more quickly, and get paid higher salaries and
bonuses than their lower-scoring counterparts.

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Given that individuals with higher achievement of orientation scores set high personal goals and
put in the time and effort necessary to achieve them, it is hardly surprising that achievement
orientation is often a key success factor for people who advance to the highest levels of the
organization. Although achievement orientation is often associated with higher performance, it is
important to note that high achievers can get extremely demoralized when faced with unclear or
impossible tasks. The important lesson here is that leaders need to give high achievers clear goals
and the resources they need to succeed. Thus, achievement orientation may be a dual-edged
sword. Leadership practitioners may be able to hire a group of highly motivated followers, but
they also need to set clear expectations, provide opportunities for followers to set and achieve
work-related goals, and provide feedback on progress toward goals. Otherwise followers may
find different ways to fulfill their high levels of achievement orientation.

Values
If motivation is all about choosing to engage and persist with particular behaviors, then
appealing to followers’ values can be a very powerful motivational strategy. Values represent a
person’s most important and enduring beliefs and make up another set of individual difference
variables that are related to motivation. In the world of work, some people believe creating high
quality products to be very important, whereas others might believe that making money or
helping others to be more important. It is important to realize that there are no right or wrong
values per se, but followers will be motivated to do activities that are aligned with their personal
intrinsic values and unmotivated to work on those activities they do not believe important. Most
followers possess two to four key work values, that motivate followers to engage and persist in
certain activities. Just as transformational leaders appeal to followers’ values as an important
motivation to perform the tasks. That change so can other leaders align work toward the tasks
values in order to increase satisfaction and performance. The trick is accurately identifying and
aligning work activities to followers’ values.

Unfortunately, most leaders do not appear to be very good at accurately assessing followers’
values. When followers are asked to list the things they believe to be most important at work,
they describe many of the values (recognition, power, affiliation, etc.). But when they are asked
to describe what motivates others at work, 75 percent report that money is the best way to
motivate others. As such, many leaders appear to suffer from extrinsic motivational bias and
falsely believe followers are more motivated by money (i.e., commercial values) rather than by
job security, recognition, or helping others (Morse, 2003). Research has shown that most
followers value doing important work (i.e., power) and being recognized for good performance
(i.e., recognition) over making money, but many people falsely believe that paying followers
more will result in higher performance (Curphy, 2003c). Extrinsic motivational bias is a
variation of the fundamental attribution error where people are biased to believe that their own
success is due to their own efforts and others’ success is due to external factors, such as pay.
Like achievement orientation, values develop early in life and are quite difficult to change. So

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leaders will need to accurately assess what these individuals value and then restructure work so
that it is better aligned with their underlying beliefs.

Intrinsic motivation
Work behavior is motivated by both internal and external factors. We use the term intrinsic
motivation to describe behavior seemingly motivated for its own sake, for the personal
satisfaction and increased feelings of competence or control one gets from doing it. In other
words, some people are motivated to persist in certain behaviors for the simple reason that they
like to do them. As such, intrinsic motivation is closely related to personal values, in that people
often enjoys doing those activities aligned with their personal values. But intrinsic motivation is
more specific than personal values, as it relates to the specific activities that one enjoys doing.
Someone might have strong altruism values and intrinsically motivated to teach middle school
students. They may not like to counsel families, draw blood, work in a homeless shelter, etc.,
although all of their activities are related to altruism. What is intrinsically motivating for one
person, however, may not be for someone else. Hobbies, for example, are almost by definition
intrinsically motivating, yet they also reflect the diversity of human tastes for different activities.
Stamp collecting may be intrinsically motivating to one person, yet exceedingly boring to many
others. The key for leadership practitioners is to identify the activities their followers like to
perform (within reason), and increase their job opportunities to do them.

Researchers observed that individuals often voluntarily put forth effort toward activities they
enjoy doing. If an individual is already engaged in an intrinsically motivating activity, we might
ask what would result if extrinsic rewards were added to the intrinsic reward of just performing
the activity. It might seem at first as though the activity would be even further strengthened if
external rewards were added to internal rewards. Sometimes, though, that is not the case. Some
research has shown that external rewards or incentives may backfire if they are given to people
already intrinsically motivated to perform the tasks. That can result in a decrease in the person’s
intrinsic motivation toward the task. Further study of this over justification effect has shown that
external rewards can result in a decrease in intrinsic motivation when they are perceived to be
“controlling”; however, rewards seen as providing “informational” value (e.g., letting a person
know how well he or she is doing) or those that are consistent with societal norms concerning
pay and benefits typically do not result in a decrease in intrinsic motivation for the task. After
reviewing the results of approximately 100 studies, Eisenberger and Cameron (1996) went on to
say that the over justification effect is more of a myth than reality; the number of situations
where this occurs is so limited and so easily avoided that it rarely, if ever, happens in the real
world. Despite this preponderance of evidence, however, many educators and leaders continue to
believe in the notion that rewards reduce the intrinsic motivation of tasks.

Although followers will almost always have to perform activities they may not like, the more a
leader aligns his/her followers’ intrinsic interests with their work activities, the more motivated
his/her team is likely to be.

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Concluding Thoughts on Individual Differences in Motivation
Because people vary in their achievement orientation, values, and in the tasks they find
intrinsically motivating, one way to ensure that followers will exert the effort needed to
accomplish their tasks is to select individuals already high in these motives. Although
McClelland (1985) has reported successfully training people to be higher in achievement
orientation, this can be a relatively expensive and inefficient process; putting more emphasis on
selecting the right people for the job in the first place may be a preferable approach for leaders to
take. It is also important to remember that perhaps the most effective way to determine what
followers find to be important or intrinsically motivating is to simply ask them what they like to
do. However, many leaders either do not have particularly good relationships with their
followers or assume they know what motivates them, so they often fail to ask this simple
question. While it may not be possible to completely align tasks with followers’ intrinsic
interests, leaders may be able to reassign or periodically rotate tasks to increase the level of
follower motivation. Leaders often assume that jobs and task assignments are static and
unchangeable, but most organizations do not care who does the work as long as it gets done.
Leaders may be able to get higher-quality work and have more satisfied employees by
reassigning work according to values and intrinsic interests.

9.5. Cognitive Theories

Assume people are motivated by having clear goals, when they see the connections between
efforts and rewards, and believe they can accomplish tasks. Leaders can motivate followers by
setting goals and bolstering their beliefs about task accomplishment. Another way to get
followers to engage and persist with the behaviors associated with group success is to persuade
them to think differently about their efforts. Rather than appealing to needs or hiring individuals
who are naturally more “motivated,” the cognitive theories look at whether followers will exert
more effort toward group goals when the expectations for performance and the links between the
level of effort and desirable outcomes are clear. Should leaders set goals for their teams or
simply tell them to do their best? Similarly, should leaders explicitly point out what rewards a
group will get if they achieve certain outcomes, or will followers exert more effort if rewards are
vague and only loosely tied to performance? The research underlying the cognitive theories
provides leadership practitioners with the answers to these two important questions.

Goal Setting
One of the most familiar and easiest formal systems of motivation to use with followers is goal
setting. From the leader’s perspective, it involves helping followers see how a goal might be
attained by following a systematic plan to achieve it. According to Locke and Latham (1990;
2002), goals are the most powerful determinants of task behaviors. Goals serve to direct
attention, mobilize effort, help people develop strategies for goal achievement, and help people
continue exerting effort until the goal is reached. That leads, in turn, to even higher goals.

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Locke and Latham (1990; 2002) reported that nearly 400 studies and 35 years of research across
individuals, groups, and organizations in eight different countries have provided consistent
support for several aspects of goal setting. First, this research showed goals that were both
specific and difficult resulted in consistently higher effort and performance when contrasted to
“do your best” goals. Second, goal commitment is critical. Merely having goals is not enough.
Although follower participation in setting `goals is one way to increase commitment, goals set
either by leaders unilaterally or through participation with followers can lead to necessary levels
of commitment. Commitment to assigned goals was often as high as commitment to goals
followers helped to set, provided the leader was perceived to have legitimate authority, expressed
confidence in followers, and provided clear standards for performance. Third, followers exerted
the greatest effort when goals were accomplished by feedback; followers getting goals or
feedback alone generally exerted less effort.

Several other aspects of goal setting are also worth noting. First, goals can be set for any aspect
of performance, be it reducing costs, improving the quality of services and products, increasing
voter registration, or winning a league championship. Nevertheless, leaders need to ensure that
they do not set conflicting goals, as followers can only exert so much effort over given period of
time. Second, determining just how challenging to make goals creates a bit of a dilemma for
leaders. Successfully completed goals provide followers with a sense of job satisfaction, and
easy goals are more likely to be completed than difficult goals. However, easily attainable goals
result in lower levels of effort (and, in turn, performance) than do more difficult jobs. Locke and
Latham (1990; 2002) suggested that leaders might motivate followers most effectively by setting
moderately difficult goals, recognizing partial goal accomplishment, and making use of a
continuous-improvement philosophy by making goals incrementally more difficult (Imai, 1986).

A leader’s implicit and explicit expectations about goal accomplishment can also affect the
performance of followers and teams. Research by Dov Eden and his associates in Israel provided
fairly consistent support for the Pygmalion and Golem effects. The Pygmalion Effect occurs
when leaders articulate high expectations for followers; in many cases these expectations alone
will lead to higher performing followers and teams. Unfortunately, the Golem Effect is also true-
leaders who have little faith in their followers’ ability to accomplish a goal are rarely
disappointed. Thus a leader’s expectations for a follower or team have a good chance of
becoming a self-fulfilling prophecy. These results indicate that leaders wanting to improve team
performance should set high but achievable goals and express confidence and support that the
followers can get the job done.

Expectancy Theory
The next cognitive theory is concerned with clarifying the links between what people do and the
rewards and outcomes they will obtain. First described by Tolman (1932), expectancy theory
has been modified for use in work settings. It involves two fundamental assumptions: (a)
motivated performance is the result of conscious choice, and (b) people will do what they believe

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will provide them will provide them the highest (or surest) rewards. Thus, expectancy theory is a
highly rational approach to understanding motivation. It assumes that people act in ways that
maximize their expectations of attaining valued outcomes, and that reliable predictions of
behavior are possible if the factors that influence those expectations can be quantified. In this
model, there are three such factors to be quantified. The first two are probability estimates
(expectancies), and the third is a vector sum of predicted positive and negative outcomes.
Expectancy theory maintains that leadership practitioners will be able to motivate followers if
they understand the process followers use to determine whether certain behaviors will lead to
valued rewards.

The first probability estimate is the effort-to-performance expectancy. Like all probabilities, it
ranges from no chance of the event occurring to absolute certainty of its occurring; or in decimal
form, from 0.0 to 1.0. Here, the follower estimates the likelihood of performing the desired
behavior adequately, assuming s/he puts forth the required effort. The second probability
estimate is the performance-to-outcome expectancy. In this case, our follower estimates the
likelihood of receiving a reward, given that s/he achieves the desired level of performance. This
is a necessary step in the sequence since it is not uncommon for people to actually do good work
yet not be rewarded for it. Finally, the follower must determine the likely outcomes, assuming
that the previous conditions have been met, and determine whether their weighted algebraic sum
(valence) is sufficiently positive to be worth the time and the effort. To put it more simply,
expectancy theory says that people will be motivated to do a task if three conditions are met: (1)
they can perform the task adequately if they put forth enough effort, (2) they will be rewarded if
they do it, and (3) they value the reward.

Leadership practitioners using expectancy theory to motivate a follower to do a work project

would need to take three steps. First, the leader would have to increase effort-to-performance
expectancy by clarifying the links between the follower’s level of effort and project completion.
To do this, the leader and follower might discuss what the follower would need to do, and the
amount of time and resources it would take to complete the project. Second, the leader would
need to increase the performance-to-reward expectancy by discussing the positive outcomes to
the follower and the organization if the project were completed in time and at cost. This might
involve such things as year-end bonus, increased recognition by upper management, or reduced
costs or increased market share for the organization. Finally, the leader would need to clarify all
of the potential valences for successfully completing the project. This may not be obvious to the
follower, so the leader would need to clarify describe both the pros and the cons but emphasize
the positive aspects of the project.

Equity Theory
This cognitive approach assumes that people value fairness in leader-follower exchange
relationships (Kanfer, 1990). Followers are said to be most motivated when they believe that
what they put into an activity or a job and what they get out of it are roughly equivalent to what

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others put into and get out of it. Equity theory proposes a very rational model for how followers
assess these issues. Followers presumably reach decisions about equitable relationships by
assigning values to the four elements i.e. personal outcomes, personal inputs, reference group
outcomes, and reference groups inputs and then comparing the two ratios. Regarding the specific
elements in each ratio, personal outcomes refer to what one is receiving for one’s efforts, such as
pay, recognition, job satisfaction, opportunity for advancement, and personal growth. Personal
inputs refer to all those things one contributes to an activity or a job, such as time effort,
knowledge, and skills.

A key aspect of equity theory is that it contains two ratios. Judgments of equity are always based
on a comparison to some referent group. It is the relationship between the two ratios that is
important in equity theory, not the absolute value of either one’s own or another’s outcomes or
inputs, considered by themselves. What matters most is the comparison between one’s own ratio
and that of a reference group such as one’s co-workers or workers holding similar jobs in other
organizations.

In essence, equity theory does not try to evaluate equality of inputs or equality of outcomes. It is
concerned with fairness of inputs relative to outcomes. The perception of inequity creates a state
of tension and an inherent pressure for change. As long as there is general equality between the
two ratios, there is no motivation (at least based on inequity) to change anything, and people are
reasonably satisfied. If, however, the ratios are significantly different, a follower will be
motivated to take action likely to restore the balance. Exactly what the follower will be
motivated to do depends on the direction of the inequality. Adams (1965) suggested six ways
people might restore balance: (a) changing their inputs, (b) changing their outcomes, (c) altering
their self-perceptions, (d) altering their perceptions of their reference groups, or if all else fails,
(f) leaving the situation. Research has shown that perceptions of underpayment generally resulted
in actions in support of the model, but perceptions of overpayment did not. Instead of working
harder in an overpayment condition (to make their own ratio more equitable), subjects often
rationalized that they really deserved the higher pay (Campbell & Pitchard, 1976).

Self-Efficacy
So far in this section we have discussed the importance of goals, linking efforts and rewards to
goals, and making sure rewards are commensurate with efforts. But we have yet to discuss
whether a person’s beliefs about whether he or she can or cannot perform certain tasks have any
effect on motivation and performance. The last cognitive theory of motivation is self-efficacy,
which concerns one’s core beliefs about being able to successfully perform a given task. Positive
self-efficacy is used to note beliefs where people feel confident that they have the power to
create desired effects; negative self-efficacy is used to note self-debilitating beliefs. Research
has shown that people who simply believe they can perform a particular task will often exert
considerable effort to get the task accomplished. Conversely, people with negative self-efficacy
often give up in the face of difficulty.

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Although research has shown that self-efficacy is strongly linked to motivation and performance,
it is important to note that self-efficacy varies from one task to the next. A particular follower or
team may have positive self-efficacy about one task and negative self-efficacy about others.
Because followers’ self-efficacy varies from one task to the next, leaders can better motivate
followers by finding ways to boost their self-efficacy. Leaders can do this by providing relevant
work experience and trying it to training, coaching, encouragement, and support, and ensuring
followers get the resources they need to be successful. Self-efficacy seems very important for
understanding why people may be unmotivated to do a task, but having positive self-efficacy
may be necessary but insufficient to ensure that people engage in those behaviors that result in
higher individual or team performance.

Concluding Thoughts on Cognitive Theories of Motivation

All four of the cognitive theories assume that changing followers’ thoughts will help them to
engage in particular tasks and activities. Followers will be more inclined to pursue activities that
result in the accomplishment of specific goals, that balance perceived inequalities, or when they
believe they can perform those behaviors needed to accomplish goals. Leaders can influence
followers’ motivational levels by clearly articulating expected outcomes, clarifying the links
between efforts and rewards, and providing training, coaching, and feedback to followers as they
go about accomplishing task.

Perhaps more than theories and approaches described in this section, the cognitive theories place
a strong premium on leader-follower communication. It is hard to imagine how goal setting,
expectancy theory, equity theory, or self-efficacy would work if the leader did not articulate
goals, provide ongoing feedback, and continually clarify motivational links with followers. If
leader-follower communication is poor, then it is unlikely that leaders will realize the benefits of
these four approaches. The research shows that these theories can effectively increase worker
motivation; when they fail it often has more to do with how the theory was implemented than
with the inadequacy of the theory. Thus, leaders with poor interpersonal communication,
feedback, and coaching skills might have a difficult time using these theories to increase
follower motivation levels.

9.6. Situational Approaches

Assume leaders can change the situation in order to better motivate followers. So far we have
discussed how underlying needs, individual differences in achievement orientation, or goals or
performance-to-reward links can affect follower motivation levels. However, these motivational
techniques are mainly follower-or leader-centric; they pertain to certain follower qualities or
leader actions. From our situational theories of leadership, we know that leadership is an
interaction between the leader, followers, and the situation, and the theories of motivation can be
categorized using the same framework. The two approaches described in this section show how
it is possible to change the situation in order to improve followers’ motivation levels. In other

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words, research shows that some jobs are more motivating than others and that it is possible to
reengineer jobs to improve followers’ motivation levels. These two situational approaches to
motivation include the operant approach and empowerment.

The Operant Approach

One very popular way to change the direction, intensity, or persistence of behavior is through
rewards and punishments. A reward is any consequence that increases the likelihood that a
particular behavior will be repeated. Punishment is the administration of an aversive stimulus or
the withdrawal of something desirable, each of which decreases the likelihood a particular
behavior will be repeated. Contingent rewards or punishments are administered as consequences
of a particular behavior. Non-contingent rewards and punishments are not associated with
particular behaviors. Finally, behaviors that are not rewarded will eventually be eliminated
through the process of extinction. When properly implemented, there is ample evidence to show
that the operant approach can be a very effective way to improve follower motivation and
performance. Some of the research has also shown that rewards work better than punishments,
particularly if administered in a contingent manner. When comparing the relative impact of
different types of rewards, Stajkovic and Luthans (2001) reported that incentive pay targeted at
specific follower behaviors was the most effective, followed by social recognition and
performance feedback for improving follower performance in credit card processing centers.
Although Kohn (1993) has gained attention by arguing that incentive pay programs do not work,
his statements appear to be based on nothing more than his own opinions. The research clearly
shows that leaders who properly design and implement contingent reward systems do indeed
increase follower productivity and performance.

So how does a leader properly design and implement an operant system for improving followers’
motivation and performance levels? Using operant principles properly to improve followers’
motivation and hence performance requires several steps. First, leadership practitioners need to
clearly specify what behaviors are important. Second, leadership practitioners need to
determine if those behaviors are currently being punished, rewarded, or ignored. Believe it or
not, sometimes followers are actually rewarded for behaviors that leaders are trying to
extinguish, and punished for behaviors that leaders want to increase. It also may be the case that
leaders sometimes just ignore the very behaviors they would like to see strengthened. Third,
leadership practitioners need to find out what followers actually find rewarding and punishing.
Leaders should not make the mistake of assuming that followers will find the same things
rewarding and punishing as they do, nor should they assume that all followers will find the same
things to be rewarding and punishing. What may be one follower’s punishment may be another
follower’s reward. In all likelihood valued rewards will be related to followers’ underlying
values. Fourth, leadership practitioners need to be wary of creating perceptions of inequity when
administering individually tailored rewards. Leaders can minimize inequities by being clear and
consistent with rewards and punishments. Fifth, leadership practitioners should not limit

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themselves to administering organizationally sanctioned rewards and punishments. Oftentimes
leaders are limited in the amount of money they can give followers for good performance.
However, research showed that social recognition and performance feedback resulted in
significant productivity improvements in followers and these rewards do not cost any money.
Using a bit of ingenuity, leaders can often come up with an array of potential rewards and
punishments that are effective and inexpensive, and do not violate organizational norms and
policies. Finally, because the administration of non-contingent consequences has relatively little
impact, leadership practitioners should administer rewards and punishments in a contingent
manner whenever possible.

Empowerment
Empowerment makes up the other situational approach to motivation. In general, people seem to
fall into one of two camps with respect to empowerment. Some people believe empowerment is
all about delegation and accountability, a top-down process where senior leaders articulate a
vision and specific goals, and hold followers responsible for achieving them. Others believe
empowerment is more of bottom-up approach that focuses on intelligent risk taking, growth,
change, trust, and ownership; followers act as entrepreneurs and owners that question rules and
make intelligent decisions. Leaders tolerate mistakes and encourage cooperative behavior in this
approach to empowerment. Needless to say, these two conceptualizations of empowerment have
very different implications for leaders and followers. And it is precisely this conceptual
confusion which has caused empowerment programs to fail in many organizations. Because of
the conceptual confusion surrounding empowerment, companies such as Motorola will not use
this term to describe programs that push decision making to lower organizational levels.

We define empowerment as having two key components. For leaders to truly empower
employees, they must delegate leadership and decision making down to the lowest level possible.
Employees are often the closest to the problem and have the most information, and as such can
often make the best decisions. The second component of empowerment, and the one most often
overlooked, is equipping followers with the resources, knowledge, and skills necessary to make
good decisions. All too often companies adopt an empowerment program and push decision
making down to the employee level, but employees have no experience creating business plans,
submitting budgets, dealing with other departments within the company, or directly dealing with
customers or vendors. Not surprisingly, ill-equipped employees often make poor, uninformed
decisions, and managers in turn are likely to believe that empowerment was not all it was
cracked up to be. The same happens with downsizing, as employees are asked to take on
additional responsibilities but are provided with little training or support. ”Forced”
empowerment may lead to some short-term stock gains but tends to be disastrous in the long-run.
Thus, empowerment has both delegation and developmental components; delegation without
development is often perceived as abandonment, and development without delegation can often
be perceived as micromanagement. Leaders wishing to empower must determine what followers

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are capable of doing, enhance and broaden these capabilities, and give followers commensurate
increases in authority and accountability.

The psychological components of empowerment can be examined at both macro and micro
levels. There are three macro psychological components underlying empowerment, and these are
motivation, learning and stress (Howard, 1996). As a concept, empowerment has been around
since at least the 1920s, and the vast majority of companies that have implemented
empowerment programs have done so to increase employee motivation and, in turn, productivity.
As a motivational technique, however, empowerment has not lived up to its promise; empowered
workers may not be any more productive than unempowered workers. There are several reasons
why this may be the case. First, senior leaders tend to see empowerment through rose-colored
glasses. They hear about the benefits an empowerment program is having in another company,
but do not consider the time, effort, and changes needed to create a truly empowered workforce.
Relatedly, many empowerment programs are poorly implemented-the program is announced
with a great fanfare, but little real guidance, training, or support is provided and managers are
quick to pull the plug on the program as soon as followers start making poor decisions. Adopting
an effective empowerment program takes training, trust, and time but companies most likely to
implement an empowerment program (as a panacea for their poor financial situation) often lack
these three attributes.

Although the motivational benefits of empowerment seem questionable, the learning and stress
reduction benefits of empowerment seem more clear-cut. Given that properly designed and
implemented empowerment programs include a strong developmental component, one of the key
benefits to these programs is that they help employees learn more about their jobs, company and
industry. These knowledge and skill gains increase the intellectual capital of the company and
can be a competitive advantage in moving ahead. In addition to the learning benefits, well-
designed empowerment programs can actually help to reduce burnout. People can tolerate high
levels of stress when they have a high level of control. Given that many employees are putting in
longer hours than ever before and work demands are at an all-time high, empowerment can help
followers gain some control over their lives and better cope with stress. Although an empowered
worker may have the same high work demands as an unempowered worker, the empowered
worker will have more choices on how and when to accomplish these demands and as such will
suffer from less stress. And because stress is a key component of a dysfunctional turnover,
giving workers more control over their work demands can reduce turnover and in turn positively
impact the company’s bottom line.

There also four micro components of empowerment. These components can be used to determine
whether employees are empowered or unepowered, and include self-determination, meaning,
competence, and influence. Empowered employees have a sense of self-determination; they can
make choices about what they do, how they do it, and when they need to get it done. Empowered
employees also have a strong sense of meaning; they believe what they do is important to them
and to the company’s success. Empowered employees have a high level of competence in that

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they know what they are doing and are confident they can get the job done. Finally, empowered
employees have an impact on others and believe that they can influence their teams or work units
and that co-workers and leaders will listen to their ideas. In summary, empowered employees
have latitude to make decisions, are comfortable making these decisions, believe what they do is
important, and are seen as influential members of their team. Unempowered employees may
have little latitude to make decisions, may feel ill equipped and may not want to make decisions,
and may have little impact on their work unit, even if they have good ideas. Most employees
probably fall somewhere in between the two extremes of the empowerment continuum.

Empowered Employees Unempowered employees

Self-determined Other-determined

Sense of meaning Not sure if what they do is important

High competence Low competence

High influence Low influence

Activity 2: what is the assumption of situational approaches of motivation?_________________

Concluding Thoughts on Situational Approaches

Empowerment and operant approach make an important point that is often overlooked by other
theories of motivation: by changing the situation, leaders can enhance followers’ motivation,
performance, and satisfaction. Unfortunately, many leaders naively assume it is easier to change
an individual than it is to change the situation, but this is often not the case. It is important to
remember that the situation is not always fixed, and followers are not the only variable in the
performance equation. Leaders can often see positive changes in the followers’ motivation levels
by restructuring work processes and procedures, which in turn can increase their latitude to make
decisions and add more meaning to work. Tying these changes to a well-designed and well-
implemented reward system can result in further increases in motivation. However, leaders are
likely to encounter some resistance whenever they change the processes, procedures, and
rewards for work, even if these changes are for the better. As noted by Peterson and Hicks
(1996), doing things the old way is easy, as followers know the expectations for performance and
usually have developed the skills needed to achieve results. Followers often find that doing
things a new way can be frustrating, as expectations may be unclear and they may not have the
requisite skills. Leadership practitioners can help followers work through this initial resistance to
new processes and procedures by showing support, providing training and coaching on new
skills and capitalizing on opportunities to reward progress. If the processes, procedures, and
rewards are properly designed and administered, then in many cases followers will successfully
work through their resistance and, over time wonder how they ever got work done using the old

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systems. The successful transition to new work processes and procedures will rest squarely on
the shoulders of leaders.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can explain the relation between motivation, satisfaction and performance.

I can describe different approaches and theories of motivation.

I can define and explain Maslow’s hierarchy of needs.

I can describe ERG theory of motivation.

I can describe and explain achievement orientation in motivation .

I can explain the concept of values in relation to motivation.

I can differentiate extrinsic motivation from intrinsic motivation.

I can define and describe goal setting.

I can explain the expectancy and equity theories of motivation

I can discuss the concept of self efficacy and the operant approach.

I can illustrate the concept of empowerment.

 Self Test Exercise Unit Nine

I.Choose the correct answer

1. What does motivation provide to behavior?
A. Intensity B. Direction C. Persistence D. All of the above
2. __________ is the likelihood an individual will initiate and continue exhibiting certain
behaviors. A. Motivation B. Performance C. Job satisfaction D. All

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 3. Which theory is categorized under individual difference?
A. ERG theory B. Goal Setting C. Values D. Equity theory
4. All of the following are characteristics of empowered employees except,
A. Sense of meaning B. Self-determined C. Other-determined D. High influence
5. One of the following is not considered as a Maslow’s physiological need of hierarchy.
A. Hobbies B. Base salary C. Sex D. Water E. Air
II. Answer the following questions
1. Write the characteristics of unempowered employees.
2. What is the major theme or characteristic of Expectancy theory?

Unit Ten: Leadership Pragmatics

Contents of the Unit
10.1 Leadership and diversity
10.2 Leadership and change
Summary
Checklist
Self-Assessment Questions

10.1. Leadership and Diversity

In text question: how can you explain diversity in leadership?____________________________

One of the great challenges facing organizations is getting all employees, from the CEO to the
hourly workers, to realize that to become the best, they have to embrace diversity. Diversity is
about empowering people. It makes an organization effective by capitalizing on all of the
strengths of each employee. It is not EEO or Affirmative Action. These are laws and policies.
While on the other hand, diversity is understanding, valuing, and using the differences in every
person. Simply enforcing government regulations will not get you to the best. To obtain that
competitive edge, you need to grow your work-force from groups into teams that use the full

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potential of every individual. Teams are much more than a group. A group is collection of
individuals where each person is working towards his or her own goal, while a team is a
collection of individuals working towards a common goal or vision. This helps to create a
synergy effect with teams. . . that is, one plus one equals more than one. An individual, acting
alone, can accomplish much; but a group of people acting together in a unified force can
accomplish great wonders. This is because team members understand each other and support
each other. Their main goal is to see the team accomplish its mission. Personal agendas do not
get in the way of team agendas. By using the synergy effect of teams you create a competitive
advantage over other organizations who are using people acting alone. You are getting more for
your efforts!

One of the main failures that prevent a group from becoming a team is the failure to accept
others for what they are. It is only when the group members realize that diversity is the key for
turning weak areas into strong areas does the group start to grow into a team. Failing to accept
the diversity of others keeps the group members from going after team goals. Goals are
individual in nature, that is, they are personal agendas. . . to make them as an individual look
good while ignoring the needs of the team. Embracing diversity is the first item for building
teams. Every team building theory states that to build a great team, there must be a diverse group
of people on the team, that is, you must avoid choosing people who are only like you. Diversity
is what builds teams — a collection of individual experiences, backgrounds, and cultures that can
view problems and challenges from a wide-variety of lenses.

Our bias and prejudice are deeply rooted within us. From the moment when we are born, we
learn about ourselves, our environment, and the world. Families, friends, peers, books, teachers,
idols, and others influence us on what is right and what is wrong. These early learnings are
deeply rooted within us and shape our perceptions about how we view things and how we
respond to them. What we learn and experience gives us a subjective point of view known as
bias. Our biases serve as filtering lenses that allow us to make sense of new information and
experiences based on what we already know. Many of our bias are good as they allow us to
assume that something is true without proof. Otherwise, we would have to start learning anew on
everything that we do. But, if we allow our bias to shade our perceptions of what people are
capable of, then the bias is harmful. We start prejudging others on what we think that they cannot
do. Simply giving a class on diversity will not erase these bias. Indeed, even the best
development programs will not erase most of these deeply rooted beliefs. Development can only
help us to become aware of them so that we can make a conscious effort to change. Developing
diversity is more than a two-hour class; it involves workshops, role models, one-on-ones, etc.
But most of all, it involves a heavy commitment by the organization's leadership. Not only the
formal leadership but also the informal leadership that can be found in almost every organization
is important.

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Diversity is not only black and white, female and male, young and old, etc.; but the diversity of
every individual, slow learner and fast learner, introvert and extrovert, controlling type and
people type, scholar and sports-person, liberal and conservative, etc. This is where HRD needs to
focus its efforts. . . helping people to realize that it takes a wide variety of people to become the
best and that they need to have the ability to be able to rely on everyone on their team, no matter
how different another person may be. An organization needs controllers, thinkers, dreamers,
doers, organizers, team builders, etc. to reach the goals that make an organization the best. It
does not need people fighting and distrusting other team members! Organizations need an
extremely diverse group of people on each and every team. For example, having a group of team
builders will get you nowhere, as everyone will be out trying to create a team. Likewise, having a
group of doers will get you nowhere as everyone will be trying to accomplish something without
a clear goal or vision to guide them. Most organizations picture diversity in very limited terms.
The essence of diversity should NOT be to picture diversity as race, religion, sex, age; but to
picture it as the uniqueness of every individual. Only by accepting this distinctiveness in others,
will people want to help the team as a whole to succeed.

When organizations and communities include diversity in their senior ranks, it often results in
gains in performance and effectiveness. Diverse leadership is “about attracting and keeping the
best talent available, maintaining a ‘meritocracy’ and having access to the most diverse and
creative thinking possible … It is about having a reason for existing as an organization that
resonates with our customers, our employees, our shareholders and the communities we serve,
and remaining relevant in a changing world.

10.2. Leadership and Change

Introduction
Organizations today face a myriad of potential challenges. To be successful they must cope
effectively with the implications of new technology, globalization, changing social and political
climates, new competitive threats, shifting economic conditions, industry consolidation, swings
in consumer preferences, and new performance and legal standards. This subject became
especially relevant in the 1980s when many private and public-sector organizations were
confronted with the need to change the way things were done in order to survive. This topic,
therefore, focuses on the leaders’ major activities in planning and implementing change in the
organizations.

Leading change is one of the most important and difficult leadership responsibilities. For some
theorists, it is the essence of leadership and everything else is second. Leading change is perhaps
the most difficult challenge facing any leader. Yet it may be that this skill is the most
differentiator of managers from leaders, and of mediocre from exceptional leaders. Effective
leadership is needed to revitalize an organization and facilitate adaptation to a changing
environment. The best leaders are those who recognize the situational and follower factors

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inhibiting or facilitating change, paint a compelling vision of the future, and formulate and
execute a plan that moves their vision from a dream to reality.

The scope of any change initiatives varies dramatically. Leaders can use goal setting, coaching,
mentoring, delegation, or empowerment skills to effectively change the behaviors and skills of
individual direct reports. Some change initiatives may obviously involve more than individual
coaching and mentoring. To successfully lead larger-scale change initiatives, leaders need to
attend to the situational and follower factors affecting their group or organization. They then
must use their intelligence, problem-solving skills, creativity, and values to sort out what is
important and formulate solutions to the challenges facing their group. But solutions in and of
themselves are no guarantee for change; leaders must use their power and influence, personality
traits, coaching and planning skills, and knowledge of motivational techniques and group
dynamics in order to drive change. Finally, leaders can use some measures to monitor the
progress of their change initiatives.

Leaders inspire and develop others, challenge the status quo, ask what and why questions and are
more apt to take a long-term view. Managers administer programs, control budgets and costs,
maintain the status quo, and are more likely to take a short-term view. So leadership involves
changing the way things are, whereas management involves maintaining the current state of
affairs. Much like a driver uses the gas, brakes, clutch, gears, and steering wheel to control the
speed and direction of a car, a manager uses various accounting, information, hiring,
performance management, compensation, training, planning, quality and inventory systems to
align the behavior of followers toward the accomplishment of team or organizational goals. If
followers are over budget on travel expenses or fail to come to work on time, then managers use
various levers in the accounting or performance management system to correct the situation.
These systems help followers to behave in both a consistent and an efficient manner.
Organizations tend to be more successful when followers exhibit those behaviors most closely
aligned with organizational goals. And organizations that need fewer resources to deliver goods
and services tend to be more profitable (i.e., efficient) than those needing more resources to do
the same thing. There is nothing inherently good or bad with organizational systems, but to some
degree the quality of these systems dictates the ease with which a manager can do his or her job.

Leadership = change (vision, inspire, empower, coach, revenues, forecasts, possibilities,

opportunity, synergy).

Management = Control (plan, reward, direct, train, expenses, budgets, systems and procedures,
schedule, coordinate)

Although there are several benefits to organizational systems, one of their inherent problems is
that they are fairly resistant to change. Adding to this resistance is that many people have high
security values and have a tendency to fall in love with their systems. Whole bureaucracies and
departments are designed to do nothing but support organizational systems. Oftentimes the

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people working in the accounting, information technology, or quality departments invented the
relevant systems used throughout the organization, and pride of ownership may get in the way of
needed changes. Likewise the users of these systems may not want to learn new graphics
programs, accounting procedures, sales models, or six sigma quality processes. Even if current
systems are inefficient and dysfunctional, people know how to use them, and with these
knowledge comes a certain degree of stability and predictability. Learning new systems and
behaviors requires some tolerance for ambiguity and can take a considerable amount of patience,
persistence, and hard work. All things being equal, many followers may prefer to have a
predictable path rather than risk their success on some uncharted course for the future.

A leader is a person who takes the car down a different road, has a different final destination, or
determines whether a car is even the right vehicle. Because technology, globalization, market
conditions, consumer preferences, and demographic changes can have a big impact on any team
or organization, leadership is the key to aligning organizational systems and follower behaviors
around a new organizational vision. Whereas managers focus on compliance on existing
procedures, leaders take a step back and ask why a system even exists. They create and align
systems around a new set of goals for the organization, rather than having existing systems
dictate what the organization can and cannot do. Successful leaders are also able to align
followers’ behaviors with this new vision and systems. But changing followers’ behaviors and
organizational systems, structure, and goals takes a tremendous amount of skill and effort. It
takes a combination of both leadership and management skills to successfully implement any
team or organizational change effort. One of the main reasons for the high base rate of the
managerial incompetence is that many people in positions of authority struggle with leadership,
management, or both sets of skills.

The Rational Approach to Organizational Change

A number of authors have written about organizational change. All of the authors have unique
perspectives on leadership and change, but they also share a number of common characteristics.
Beer (1988, 1999) has offered a rational and straight forward approach to organizational change
that addresses many of the issues raised by the other authors. Beer’s model also provides a
roadmap for leadership practitioners wanting to implement an organizational change initiative, as
well as a diagnostic tool for understanding why change initiatives fail. According to Beer:

C= D x M x P > R

The D in this formula represents followers’ dissatisfaction with the current status quo. M
symbolizes the model for change, and includes the leader’s vision of the future as well as the
goals and systems that need to change to support the new vision. P represents process: This is
concerned with developing and implementing a plan that articulates the who, what, when, where,
and how of the change initiative. R stands for resistance; people resist change because they fear a
loss of identity or social contacts, and good change plans address these sources of resistance.

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Finally the C corresponds to the amount of change. Notice that leaders can increase the amount
of change by increasing the level of dissatisfaction, increasing the clarity of vision, developing a
well-thought-out change plan, or decreasing the amount of resistance in followers. We should
also note that the D x M x P is a multiplicative function-increasing dissatisfaction but having no
plan will result in little change. Likewise, if followers are content with the status quo, then it may
be very difficult for leaders to get followers to change, no matter how compelling their vision or
change plan may be. This model maintains that organizational change is a very systematic
process and large scale changes can take months if not years to implement (Beer, 1988; 1999).
Leadership practitioners who possess a good understanding of the model should be able to do a
better job developing change initiatives and diagnosing where their initiatives may be getting
stuck.

Dissatisfaction
Followers’ level of satisfaction is an important ingredient in a leader’s ability to drive change.
Followers who are relatively content are not apt to change; malcontents are much more likely to
do something to change the situation. Although employee satisfaction is an important outcome of
leadership, leaders who want to change the status quo may need to take action to decrease
employee satisfaction levels. Followers’ emotions are the fuel for organizational change, and
change often requires a considerable amount of fuel. The key for leadership practitioners is to
increase dissatisfaction (D) to the point where followers are inclined to take action, but not so
much that they decide to leave the organization. So what can leaders do to increase follower
dissatisfaction levels? Probably the first step is to determine just how satisfied followers are with
the current situation. This information can be gleaned from employee satisfaction surveys,
grievance records, customer complaints, or conversations with followers. To increase
dissatisfaction, leaders can talk about potential competitive, technology, or legal threats or
employee concerns about the status quo. They can also capitalize on or even create some type of
financial or political crisis, benchmark against other organizations, or substantially increase
performance standards. All of these actions can potentially heighten followers’ emotional levels;
however, leaders must ensure that these emotions are channeled toward the leader’s vision for
the organization.

Model
There are four key components to the model (M) variable in the change formula, and these
include environmental scanning, a vision, setting new goals to support the vision, and identifying
needed system changes. Organizations are constantly bombarded with economic, technological,
competitive, legal, and social challenges. Good leaders are constantly scanning the external
environment to assess the seriousness of these threats. They are also adept at internal scanning;
they understand where the organization is doing well and falling short. Thus, keeping up to date
on current events, spending time reviewing organizational reports, and taking time to listen to
followers’ concerns are some of the techniques leaders use to conduct external and internal

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scans. This information in turn is used to formulate a vision for the change initiative. What
would a new organization look like if it were successfully counter the gravest external threats,
take advantage of new market opportunities, and overcome organizational shortcomings? What
would be the purpose of the new organization and why would people want to work in it? A good
vision statement should answer these questions. The good news about a vision statement is that it
does not have to be a solo effort on the part of the leader. Oftentimes leaders will either solicit
followers for ideas or work with a team of followers to craft a vision statement. Both of these
actions can help to increase followers’ commitment to the new vision.

It is important to understand the difference between an organization’s vision and goals. Just as
the ancient mariners used the stars to navigate, so too should a vision provides guidance for an
organization’s actions. A vision helps the organization make choices about what it should and it
should not do, the kind of people it should hire and retain, the rules by which it should operate,
and so on. But just as the stars were not the final destination for the ancient mariners, so too is a
vision not the final destination for an organization. An organization’s goals are the equivalent of
the ancient mariner’s final destination, and they should spell out specifically what the
organization is trying to accomplish and when they will get done. Depending on the
organization, these goals might concern market share, profitability, revenue or customer growth,
quality, the implementation of new customer service or information technology systems, the
number of patents rewarded, school test scores, fund raising targets, or the reduction of crime
rates. Thus, an organization’s goals can be externally or internally focused or both, depending on
the results of the environmental scan and the vision of the organization.

After determining its goals, the leader will need to determine which systems need to change in
order for the organization to fulfill its vision and accomplish its goals. In other words, how do
the marketing, sales, manufacturing, quality, human resource, shipping, accounting, or customer
service systems need to change if the organization is to succeed? And does the current
organizational structure or culture support or interfere with the new vision? Leaders wanting
their organizational change initiatives to succeed will need to take a systems thinking approach
after setting organizational goals. A systems thinking approach asks leaders to think about the
organization as a set of interlocking systems, and explains how changes in one system can have
intended and unintended consequences for other parts of the organization. For example, if a
company wanted to grow market share and revenues, then it might change the compensation
system to motivate salespeople to go after new customers. However, this approach could also
cause a number of problems in the manufacturing, quality, shipping, accounting, and customer
service departments. Leaders who anticipate these problems make all of the necessary systems
changes in order to increase the odds of organizational success. Leaders may need to set goals
and put action plans in place for each of these system changes. These actions can be contrasted to
soiled thinking, where leaders act to optimize their part of the organization at the expense of
suboptimizing the organization’s overall effectiveness. For example, the vice president of the
sales could change the sales compensation plan if she believed her sole concern was annual

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revenues. This belief could be reinforced if her compensation was primarily based on hitting
certain revenue targets. If she is a soiled thinker, she would also believe that profitability,
quality, or customer service were not her concern. However, this model of thinking could
ultimately lead to her downfall as quality and order fulfillment problems may cause customers to
leave at a faster rate than new customers are buying products.

Figure below is a graphic depiction of a systems model for leadership practitioners. All of the
components of this model interact with and affect all the other components of the model.
Therefore, leaders changing organizational vision or goals will need to think through the
commensurate changes in the organization’s structure, culture, systems, and leader and follower
capabilities. Similarly, changes in the information or hiring systems can affect the organization’s
capabilities, culture, structure, or ability to meet its goals. One of the keys to successful
organizational change is ensuring that all components-vision, culture, structure, systems,
capabilities) are in alignment. A common mistake for many leaders is to change organization’s
vision, structure, and systems and overlook organization’s culture and leader and follower
capabilities. This makes sense in that it is relatively easy to create a new vision statement,
organization chart, or compensation plan. Leaders either discount the importance of
organizational culture and capabilities, falsely believe they are easy to change, or believe they
are a given because they are so difficult to change. It is possible to change the culture and the
capabilities of an organization, but it takes considerable time and focused effort. Unfortunately,
about 70 percent of change initiatives fail; and the underlying cause for many of these failures is
the leader’s inability or unwillingness to address these culture and capabilities issues.

Vision

Capabilities
1. technical Culture
2.Leadrship
 Norms
 Shared
values

Structure
Systems 1. Span of control
1. Accounting 2. Team
3.Sales composition
2. HR 4. IT
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FIGURE 10.1 The components of organizational alignment

Process
At this point in the change process, the leader may have taken certain steps to increase follower
dissatisfaction. She may also have worked with followers to craft a new vision statement, set
new team or organizational goals, and determined what organizational systems, capabilities, or
structures need to change. In many ways, the D and M components of the change model are the
easiest for the leadership practitioners to accomplish. The process (P) component of the change
model is where the change initiative becomes tangible and actionable because it consists of the
development and execution of the change plan. Good change plans outline the sequence of
events, key deliverables, timelines, responsible parties, metrics, and feedback mechanisms
needed to achieve the new organizational goals. It may also include the steps needed to increase
dissatisfaction and deal with anticipated resistance, an outline of training and resource needs, and
a comprehensive communication plan to keep all relevant parties informed.

Depending on the depth and breadth of change, change plans can be fairly detailed and
complicated. A plan itself is only a roadmap for change. Change will only occur when the action
steps outlined in the plan are actually carried out. This is another area that where leadership
practitioners can run in to trouble. One of the reasons why CEOs fail is an inability to execute
and it is also one of the reasons why first-line supervisors through executives derail. Perhaps the
best way to get followers committed to a change plan is to have them create it. This way
followers become early adopters and know what, why, when, where, who, and how things are to
be done. Nevertheless, many times it is impossible for all the followers affected by the change to
be involved with the creation of the plan. In these cases follower commitment can be increased if
the new expectations for behavior and performance are explicit, the personal benefits of the
change initiative are made clear, and followers already have a strong and trusting relationship
with their leader. Even after taking all of these steps, leadership practitioners will still need to
spend considerable time holding people accountable for their roles and responsibilities in the
change plan. Followers face competing demands for the time and effort, and a lack of follow-
through will cause many followers to drop the change initiative off of their radar screens.
Leaders should also anticipate shifts in followership styles once the change plan is implemented.
Exemplary followers may shift to become alienated followers, conformist to passive followers,
or passive to alienated followers. Leaders who address these shifts in styles and inappropriate
follower behaviors in a swift and consistent manner are more likely to succeed with their change
initiatives.

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Resistance
So why would followership styles shift as a result of a change initiative? One reason is that it
may take some time before the benefits of change are realized. Many times leaders, followers
and other stakeholders assume that performance, productivity, or customer service will
immediately improve up on the acquisition of new equipment, systems, behaviors, and so on.
However, there is often a temporary drop in performance or productivity as followers learn new
systems and skills. This difference between initial expectations and reality can be the source of
considerable frustration. If not managed properly, it can spark resistance (R), causing followers
to revert back to old behaviors and systems to get things done. Leadership practitioners can help
followers deal with frustration by setting realistic expectations, demonstrating a high degree of
patience, and ensuring followers gain proficiency with the new systems and skills as quickly as
possible. Good change plans address the expectation-performance gap by building in training
and coaching programs to improve follower skill levels.

Another reason why followers resist change is a fear of loss. Because of the change, followers
are afraid of losing power, close relationships with others, valued rewards, and their sense of
identity or, on the other hand, being seen as incompetent. According to Beer (1999), the fear of
loss is a predictable and legitimate response to any change initiative, and some of a leader’s
responses to these fears can be found in the table below (table 10.1). Change initiatives are more
likely to be successfully adopted if their change plans identify potential and address these areas
of resistance. People also seem to go through some very predictable reactions when confronted
with change. There are four reactions to change-shock, anger, rejection, and acceptance-make up
what is known as the SARA model (Kubler-Ross, 1981). It is important to note that most people
go through these four stages whenever they get passed over for a promotion, receive negative
feedback on 360-degree report, get criticized by their boss, and so on.

Table 10.1 Common losses with Change

Loss of: Possible Leader Actions

Power Demonstrate empathy, good listening skills, and new ways to build
power.
Competence Coaching, mentoring, training, peer coaching, job aids, and so forth.
Relationships Help employees build new relationships before change occurs, or soon
thereafter.
Rewards Design and implement new reward system to support change initiative
Identity Demonstrate empathy; emphasize value of new roles.

But what a leadership practitioner do with the SARA model? Perhaps the first step is to simply
recognize the four reactions to change. Second, leaders need to understand that individual
followers can take more or less time to work through the four stages. Leaders can, however,

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accelerate the pace in which followers work through the four stages by maintaining an open door
policy, demonstrating empathy, and listening to concerns. Third, as it is important to note that
people are not likely to take any positive action toward a change initiative until they reach the
acceptance stage. This does not mean they are happy with the change; only that they accept the
inevitability of the change. Fourth, they also need to understand that where people are in the
SARA model often varies according to the organization level. Usually the first people to realize
that a change initiative needs to be implemented are the organization’s top leaders. Like
everyone else, they go through the four stages, but they are the first to do so. The next people to
hear the news are middle managers, followed by first-line supervisors and individual
contributors. These three groups also go through the emotional stages of the SARA model, but
do so at different times. These differences in emotional reactions by organizational level are
depicted in fig 6.2. What is interesting in fig 6.2 is that just when top executives have reached the
acceptance stage, first-line supervisors and individual contributors and individual contributors
are in the shock or anger stages. By this time top leaders are ready to get on with the
implementation of the change initiative and may not understand why the rest of the organization
is still struggling. Because they are already at the acceptance stage, top leaders may fail to
demonstrate empathy and listening skills, and this may be another reason for the depressed
performance depicted in fig. 10.2.

Concluding Comments about the Rational Approach to Organizational

Change
The situational, follower, and leader components of the rational approach to organizational
change are shown in fig below (fig 10.3). Although organizational vision, goals and change plans
are often a collaborative effort between the leaders and followers, they are the primary
responsibility of the leader. Leaders also need to think about the importance of critical mass for
driving change. They may be more successful by initially focusing their change efforts on early
adopters and those on the fence rather than on those followers who are the most adamant about
maintaining the status quo. Once critical mass is reached, the adopters can then exert peer
pressure on those followers reluctant to change. This approach also maintains that the leader
needs both good leadership and good management skills if a change initiative is to be successful
over the long term. Leadership skills are important for determining a new vision for the
organization, increasing dissatisfaction, coaching followers on how to do thing differently, and
overcoming resistance. Management skills are important when setting new goals and creating
and implementing change plans. Both sets of skills are not only important components in
organizational change but also may play a key role in determining whether a new company will
succeed or fail. Because of their strong leadership skill, entrepreneurs are often very good at
starting up new organizations, such as dot-coms. Many of these leaders can get followers excited
about the leader’s vision for the new company. However, if the entrepreneurial leaders fail to
possess or appreciate the importance of management skills, they may not create the systems,
policies, and procedures necessary to keep track of shifting consumer preferences, revenues,

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 customer satisfaction, quality, and costs. As a result, these leaders may not have the information
needed to make good operational and financial decisions, and their companies may eventually
have to file for bankruptcy. On the other hand, it is hard to see how planning and execution skills
alone will result in the formation of a new company or drive organizational change. It is almost
impossible to start up a new company-or an organization to successfully change-if a person in
charge does not have a compelling vision or fails to motivate others to do something different.
Many of the other reasons why organizational change initiatives succeed or fail also have their
roots in underdeveloped leadership or management skills.

Although both sets of skills are important, leadership practitioners should recognize that there is
a natural tension between leadership and management skills. In many ways management skills
help to maintain the status quo; they help to ensure consistency in behaviors and results.
Leadership skills are often used to change the status quo; they help to change the purpose and
processes by which an organization gets things done. Leaders who overuse or overemphasize
either set of skills are likely to suboptimize team or organizational performance. Leadership
practitioners need to better understand when to use these skills in the change process, and
education and experience can help leadership practitioners to improve both sets of skills.

Finally, it is worth noting that the rational approach provides leaders with a systematic process
on how to drive change and increased understanding on why change initiatives succeed or fail
in their respective organizations. Leadership practitioners can use the C= D x M x P > R
Emotional Level

model as a roadmap for creating a new vision and goals, changing the products and services
their organizations provide, or changing the IT, financial operations, maintenance, or human
resource systems used to support organizational goals. Likewise, leadership practitioners can
also use this model as diagnostic to determine where their change initiatives have fallen short-
perhaps followers were reasonably satisfied with the status quo, did not buy-in to the new
vision and goals, critical systems of changes were not adequately identified, or change plans
were incomplete or were not properly implemented. Given the explanatory power of the
model, the rational approach to change provides leaders and leaders-to-be with a useful heuristic
for driving organizational and community change.

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 Time
Top leaders
Middle managers
Individual contributors

Table 10.2 Eight Reasons Why Change Efforts Succeed or Fail

1. Demonstrate a sense of urgency 1. Allow too much complacency

2. Form a strong change coalition 2.Fail to create a strong change coalition
3. Envision the future and build strategy 3.Underestimate the power of vision
4. Constantly communicate the vision 4.Undercommunicate the vision by a factor of
10
5. Remove barriers and align the 5.Permit obstacles to block the vision
organization
6. Build on early successes 6. Fail to create short-term wins
7. Maintain (or increase) the pace of 7.Declaring victory too soon
change
8. Put systems in place to reinforce 8. Neglect to anchor changes in the culture.
change

Leader

 Environmental scans
 Vision
 Goals
 Change plan
Followers  Systems vs. siloed thinking Situation
 Leadership and
management capabilities

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  Dissatisfaction 1. Crisis
 Resistance 2. Consumer preference
 SARA model 3. Market conditions
 Loss of: 4. Societal shifts
-Power 5. Political and legal challenges
-Competence 6. Competitive threats
-Identity 7. Organizational structure
-Reward 8. Organizational systems
-Relationships 9. Organizational culture
 Technical/functional capabilities

The Emotional Approach to Organizational Change: Charismatic and

Transformational Leadership
Although the rational approach provides straight forward model for organizational change, it
seems like many of the large-scale political, societal, or organizational changes were not this
formulaic. For example, it is doubtful that many former leaders of the world including Nelson
Mandela, Mahatma Gandhi and others followed some change formula or plan, yet these
individuals were able to fundamentally change their respective societies. Although these leaders
differ in a number of important ways, one distinct characteristic they all share is charisma.
Charismatic leaders are passionate, driven individuals who are able to paint a compelling vision
of the future. Through this vision they are able to generate high levels of excitement among
followers and build particularly strong emotional attachments with them. The combination of a
compelling vision, heightened emotional levels, and strong personal attachments often compels
followers to put forth greater effort to meet organizational or societal challenges. The enthusiasm
and passion generated by charismatic leaders seems to be a dual-edged sword, however. Some
charismatic movements can result in positive and relatively peaceful organizational or societal
changes. On the downside, when this passion is used for selfish or personal gains, history
mournfully suggests it can have an equally devastating effect on society.

So what is it about charismatic leadership that causes followers to get so excited about future
possibilities that they may willingly give up their lives for a cause? Even though many people
conjure up images of charismatic individuals when thinking about leadership, the systematic
investigation of charismatic leadership is relatively recent. The debate surrounding charismatic
leadership shifted dramatically with the publication of James MacGregor Burns’s leadership
(1978). Burns was a prominent political scientist who had spent a career studying leadership in
the national political arena. He believed that leadership could take one of two forms.
Transactional leadership occurred when leaders and followers were in some type of exchange

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relationship in order to get needs met. The exchange could be economic, political, or
psychological in nature, and examples might include exchanging money for work, votes for
political favors, loyalty for consideration, and so forth. Transactional leadership is very common
but tends to be transitory, in that there may be no enduring purpose to hold parties together once
a transaction is made. Burns also noted that while this type of leadership could be quite effective,
it did not result in organizational or societal change and instead tended to perpetuate and
legitimize the status quo.

The second type of leadership is transformational leadership, which serves to change the status
quo by appealing to followers’ values and their sense of higher purpose. Transformational
leaders articulate the problems in the current system and have a compelling vision of what a new
society or organization could be. This new vision of society is intimately linked to the values of
both the leader and the followers; it represents an ideal that is congruent with their value
systems. According to Burns, transformational leadership is ultimately a moral exercise in that it
serves to raise the standard of human conduct. This implies that the acid test for transformational
leadership might be the answer to the question, “Do the changes advocated by the leader advance
or hinder the development of the organization or society?” Transformational leaders are also
adept at reframing issues; they point out how the problems or issues facing followers can be
resolved if they fulfill the leader’s vision of the future. These leaders also teach followers how to
become leaders in their own right and incite them to play active roles in the change movement.

It is important to note that all transformational leaders are charismatic, but not all charismatic
leaders are transformational. Transformational leaders are charismatic because they are able to
articulate a compelling vision of the future and form strong emotional attachments with
followers. However, this vision and these relationships are aligned with followers’ value systems
and help them get their needs met. Charismatic leaders who are not transformational can convey
a vision and form a strong emotional bonds with followers, but they do so in order to get their
own (i.e., the leader’s) needs met. Both charismatic and transformational leaders strive for
organizational or societal change; the difference is whether the changes are for the benefit of the
leader or the followers. Finally, transformational leaders are always controversial. Charismatic
leadership almost inherently raises conflicts over values or definitions of the social “good.”
Controversy also arises because the people with the most to lose in any existing system will put
up the most resistance to a transformational change initiative. The emotional levels of those
resisting the transformational leadership movement are often just as great as those who embrace
it, and this may be the underlying cause for the violent ends to Martin Luther King, Mahatma
Gandhi, etc. Burns stated that transformational leadership always involves conflict and change,
and transformational leaders must be willing to embrace conflict, make enemies, exhibit a high
level of self-sacrifice, and be thick-skinned and focused in order to perpetuate the cause.

Although charismatic or transformational leadership often results in large-scale organizational

change and higher organizational performance, there is little evidence that these changes remain
permanent in business settings after the leader moves on (Conger, 1999). In addition, some

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researchers have found that charismatic or transformational leaders did not result in higher
organizational performance, but they did earn higher paychecks for themselves. In other words,
these leaders were very good at calling attention to themselves and changing their respective
organizations, but many of these changes did not result in higher organizational performance.

Activity 1: list the focus of leadership and management in organizational change.____________

Summary

Diversity is about empowering people. It makes an organization effective by capitalizing on all

of the strengths of each employee. The essence of diversity should NOT be to picture diversity as
race, religion, sex, age; but to picture it as the uniqueness of every individual. Only by
accepting this distinctiveness in others, will people want to help the team as a whole to succeed.

The scope of any change initiatives varies dramatically. Leaders can use goal setting, coaching,
mentoring, delegation, or empowerment skills to effectively change the behaviors and skills of
individual direct reports. Managers use various accounting, information, hiring, performance
management, compensation, training, planning, and quality and inventory systems to align the
behavior of followers toward the accomplishment of team or organizational goals. So, changing
followers’ behaviors and organizational systems, structure, and goals takes a tremendous amount
of skill and effort. It takes a combination of both leadership and management skills to
successfully implement any team or organizational change effort.

The rational approach/model to organizational change provides a roadmap for leadership

practitioners wanting to implement an organizational change initiative, as well as a diagnostic
tool for understanding why change initiatives fail. The emotional approach to organizational
change focuses on charismatic and transformational leadership.

Checklist
Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can explain about leadership and diversity.

I can describe different approaches to organizational change.

I can define and explain rational approach to organizational change.

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I can describe the concept of change, process, model, dissatisfaction and resistance.

I can describe and explain the emotional approach to organizational change .

I can explain the concept of charismatic and transformational leadership.

I can illustrate the reasons why change efforts succeed or fail

I can list common losses with change and possible leader actions.

 Self Test Exercise Unit Ten

I.Say true or false

1. Diversity is about empowering people.
2. What we learn and experience gives us an objective point of view known as bias.
3. Leading change is one of the most important and easy leadership responsibilities.
4. The emotional approach to organizational change is straight forward and formulaic.
5. Followers’ level of satisfaction is an important ingredient in a leader’s ability to drive
change.

II. Fill in the following blank spaces

1. Beer’s (1988, and 1999) approach/model can be used as a __________ and ________ for
leadership practitioners wanting to implement and evaluate change initiatives.
2. The components in the Beer’s (1988, 1999) formula are ______, ______, _____, ______
and ___________
3. ___________makes an organization effective by capitalizing on all of the strengths of
each employee.
4. _____________occurred when leaders and followers were in some type of exchange
relationship in order to get needs met.
5. ___________are passionate, driven individuals who are able to paint a compelling vision
of the future.

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Unit Eleven: The Leader
Contents of the Unit
11.1 . Ethics
11.2 . Gender and Leadership
11.3 . Building excellence
11.4 . Emotional intelligence
11.5 . Leadership traits
11.6 . Positive and negative leaders
Summary
Checklist
Self-Assessment Questions

11.1. Ethics

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Definition of Ethics

In text question: what do you understand by ethical leadership?___________________________

Ethics is a set of well-based standards of right and wrong by which people live and which
prescribe what humans ought to do, usually in terms of rights, obligations, benefits to larger
society, fairness, or specific virtues. Ethics refers to principles that define behavior as right, good
and proper. Ethics refers to standards of behaviour that state how human beings ought to act in
the many situations in which they find themselves-as friends, parents, children, citizens, business
people, professionals, and so on. Ethics is a branch of philosophy that studies what constitutes
good and bad human conduct, including related actions and values.

Managing Organizational Ethics and Social Responsibility

Many managers are concerned with improving the ethical climate and social responsiveness of
their companies. As one expert on the topic of ethics said, “Management is responsible for
creating and sustaining conditions in which people are likely to behave themselves. Managers
can take active steps to ensure that the company stays on an ethical footing. Ethical business
practices depend on individual managers as well as the organization’s values, policies, and
practices. Exhibit below illustrates the three pillars that support an ethical organization.

ETHICAL INDIVIDUALS
Managers who are essentially ethical individuals make up the first pillar. These individuals
possess honesty and integrity, which is reflected in their behavior and decisions. People inside
and outside the organization trust them because they can be relied upon to follow the standards
of fairness, treat people right, and be ethical in their dealings with others. Ethical individuals
strive for a high level of moral development. Being a moral person and making ethical decisions
is not enough, though. Ethical managers also encourage the moral development of others. They
find ways to focus the entire organization’s attention on ethical values and create an
organizational environment that encourages, guides, and supports the ethical behavior of all
employees. Two additional pillars are needed to provide a strong foundation for an ethical
organization: ethical leadership and organizational structures and systems.

ETHICAL LEADERSHIP

In a study of ethics policy and practice in successful ethical companies, no point emerged more
clearly than the crucial role of leadership. If people don’t hear about ethical values from top
leaders, they get the idea that ethics is not important in the organization. Employees are acutely
aware of their leaders’ ethical lapses, and the company grapevine quickly communicates
situations in which top managers choose an expedient action over an ethical one. Lower-level
managers and first-line supervisors perhaps are even more important as role models for ethical

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 behavior, because they are the leaders whom employees see and work with on a daily basis.
These managers can strongly influence the ethical climate in the organization by adhering to high
ethical standards in their own behavior and decisions. In addition, these leaders articulate the
desired ethical values and help others embody and reflect those values. Using performance
reviews and rewards effectively is a powerful way for managers to signal that ethics counts.
Managers also take a stand against unethical behavior. Consistently rewarding ethical behavior
and disciplining unethical conduct at all levels of the company is a critical component of
providing ethical leadership.

What Is Ethical Leadership?

Many executives and business thinkers believe that ethical leadership is simply a matter of
leaders having good character. By having “the right values” or being a person of “strong
character,” the ethical leader can set the example for others and withstand any temptations that
may occur along the way. Without denying the importance of good character and the right
values, the reality of ethical leadership is far more complex and the stakes are much higher.
Leaders see their constituents as not just followers, but rather as stakeholders striving to achieve
that same common purpose, vision, and values. Ethical leaders embody the purpose, vision, and
values of the organization and of the constituents, within an understanding of ethical ideals. They
connect the goals of the organization with that of the internal employees and external
stakeholders. Leaders work to create an open, two-way conversation, thereby maintaining a
charitable understanding of different views, values, and constituents’ opinions. They are open to
others’ opinions and ideas because they know those ideas make the organization they are leading
better.

Characteristics of Ethical Leaders

In today’s turbulent world, ethics and values are present at a number of levels for executives and
managers—leaders who devote their time and energy to leading the process of value creation.
This broader concept of ethical leadership empowers leaders to incorporate and be explicit about
their own values and ethics. The following list provides a framework for developing ethical
leadership. Written from the perspective of the leader, these ten facets of ethical leaders offer a
way to understand ethical leadership that is more complex and more useful than just a matter of
“good character and values.”

Ethical Leaders:

a) Articulate and embody the purpose and values of the organization.

It is important for leaders to tell a compelling and morally rich story, but ethical leaders must
also embody and live the story. This is a difficult task in today’s business environment where

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 everyone lives in a fishbowl—on public display. So many political leaders fail to embody the
high-minded stories they tell at election time, and more recently, business leaders have become
the focus of similar criticism through the revelations of numerous scandals and bad behaviors.
CEOs in today’s corporations are really ethical role models for all of society.

b) Focus on organizational success rather than on personal ego.

Ethical leaders understand their place within the larger network of constituents and stakeholders.
It is not about the leader as an individual, it is about something bigger—the goals and dreams of
the organization. Ethical leaders also recognize that value is in the success of people in the
organization.

c) Find the best people and develop them.

This task is fairly standard in different models of leadership. Ethical leaders pay special attention
to finding and developing the best people precisely because they see it as a moral imperative—
helping them to lead better lives that create more value for themselves and for others. Finding the
best people involves taking ethics and character into account in the selection process.

d) Create a living conversation about ethics, values and the creation of value for stakeholders.
Too often business executives think that having a laminated “values card” in their wallet or
having a purely compliance approach to ethics has solved the “ethics problem.” Suffice it to say
that Enron and other troubled companies had these systems in place. What they didn’t have was
a conversation across all levels of the business where the basics of value creation, stakeholder
principles and societal expectations were routinely discussed and debated. There is a fallacy that
values and ethics are the “soft, squishy” part of management. Nothing could be further from the
truth.

In organizations that have a live conversation about ethics and values, people hold each other
responsible and accountable about whether they are really living the values. And, they expect the
leaders of the organization to do the same. Bringing such a conversation to life means that people
must have knowledge of alternatives, must choose every day to stay with the organization and its
purpose because it is important and inspires them. Making a strong commitment to bringing this
conversation to life is essential to do if one is to lead ethically.

e) Create mechanisms of dissent.

Many executives don’t realize how powerful they are simply by virtue of their positions.
Psychologists such as Stanley Milgram have long ago demonstrated that most of the time people
will obey what they perceive to be legitimate authority, even if there is no cost for disobedience.
To avoid this “Authority Trap” it is critical to have an established and explicit way for
employees to “push back” if someone thinks that a particular market, region, or internal process
is out of line.

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 This needs to be made part of the organizational culture, not just a line item in a compliance
program document. Some companies have used anonymous e-mail and telephone processes to
give employees a way around the levels of management that inevitably spring up as barriers in
large organizations. Many executives also have used “skip level” meetings where they go down
multiple levels in the organization to get a more realistic view of what is actually going on.

f) Take a charitable understanding of others’ values.

Ethical leaders can understand why different people make different choices, but still have a
strong grasp on what they would do and why.

g) Make tough calls while being imaginative.

Ethical leaders inevitably have to make a lot of difficult decisions, from reorienting the
company’s strategy and basic value proposition to making individual personnel decisions such as
working with employees exiting the organization. Ethical leaders do not attempt to avoid
difficult decisions by using an excuse of “I’m doing this for the business.” The ethical leader
consistently unites “doing the right thing” and “doing the right thing for the business.”

h) Know the limits of the values and ethical principles they live.
All values have limits, particular spheres in which they do not work as well as others. The limits
for certain values, for instance, may be related to the context or the audience in which they are
being used. Ethical leaders have an acute sense of the limits of the values they live and are
prepared with solid reasons to defend their chosen course of action. Problems can arise when
managers do not understand the limits of certain values. As an example, one issue common to the
recent business scandals was that managers and executives did not understand the limits of
“putting shareholders first.” Attempts to artificially keep stock prices high—without creating any
lasting value for customers and other stakeholders—can border on fanaticism rather than good
judgment. Ethics is no different from any other part of our lives: there is no substitute for good
judgment, sound advice, practical sense, and conversations with those affected by our actions.

i) Frame actions in ethical terms.

Ethical leaders see their leadership as a fully ethical task. This entails taking seriously the rights
claims of others, considering the effects of one’s actions on others (stakeholders), and
understanding how acting or leading in a certain way will have effects on one’s character and the
character of others. There is nothing amoral about ethical leaders, and they recognize that their
own values may sometimes turn out to be a poor guidepost. The ethical leader takes
responsibility for using sound moral judgment. But, there is a caution here. It is easy to frame
actions in ethical terms and be perceived as “righteous.” Many have the view that ethics is about
universal, inviolable principles that are carved into stone. We need to start with principles and
values, and then work hard to figure out how they can be applied in today’s complex global
business environment.

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 Principles, values, cultures, and individual differences often conflict. Ethical leadership requires
an attitude of humility rather than righteousness: a commitment to one’s own principles, and at
the same time, openness to learning and to having conversations with others who may have a
different way of seeing the world. Ethics is best viewed as an open conversation about those
values and issues that are most important to us and to our business. It is a continual discovery
and reaffirmation of our own principles and values, and a realization that we can improve
through encountering new ideas.

j) Connect the basic value proposition to stakeholder support and societal legitimacy.
The ethical leader must think in terms of enterprise strategy, not separating “the business” from
“the ethics.” Linking the basic raison d’être of the enterprise with the way that value gets created
and society’s expectations is a gargantuan task. But, the ethical leader never hides behind the
excuse of “It’s just business.”

Ethical leadership is about “raising the bar,” helping people to realize their hopes and dreams,
creating value for stakeholders, and doing these tasks with the intensity and importance that
“ethics” connotes. That said, there must be room for mistakes, for humor, and for a humanity that
is sometimes missing in our current leaders. Ethical leaders are ordinary people who are living
their lives as examples of making the world a better place. Ethical leaders speak to us about our
identity, what we are and what we can become, how we live and how we could live better. The
Josephson Institute has also identified Six Pillars of Character might easily be applied to a
business (or another) setting. These six pillars are:

 Trustworthiness - honesty, integrity, reliability, loyalty, keeping promises and not

deceiving others
 Respect – using the Golden Rule or treating others as you wish to be treated, in addition to
being courteous, listening to others, and accepting individual differences
 Responsibility – accountability, self-control, the pursuit of excellence, and considering
consequences of our actions prior to making them
 Fairness – playing by the rules, not taking advantage of others, making informed
judgments without favoritism or prejudice, and not blaming others
 Caring - kindness, compassion, and altruism, acting to minimize hardship and to help
others whenever possible.
 Citizenship – working to make one’s community better, protecting the environment,
making our democratic institutions work, and operating within the law

Developing Ethical Leaders

The best way for organizations to develop ethical leaders is to engage in some of these questions.
Viewing business simultaneously in economic and ethical terms helps to send the message that
ethics isn’t just an important set of rules not to violate, but that it is an integral part of what it
means to work at your organization. There are some concrete steps about how best to develop
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ethical leaders within the framework that most global businesses find themselves. The first step
is to bring life to a conversation about how the organization benefits its stakeholders and about
understanding the organization’s values.

This doesn’t need to be a formal program. It could be as elaborate as town hall meetings. Or, as
one executive suggested to us, we simply could have an “ethics” or “stakeholders” moment at
most meetings. Such moments, analogous to “safety moments” at companies like DuPont, set
aside a brief time to raise concerns about the effects of the meeting on key stakeholders, or on a
company’s values and ethics. Equally, the “ethics” moment could elaborate on how the
conversations and decisions of the meeting were aligned with company values.

Many companies have leadership development programs. These programs need to be

strengthened by adding the idea of “ethical leadership.” It is not necessary to use the specific
principles we have developed, but companies can make themselves better by engaging
participants in a conversation about what they see as “ethical leadership.” Executives can
develop shared conversations and conceptions of how “ethical leadership” can be implemented
in their particular company. Executives need to figure out how to have “challenge meetings,”
routine processes where anyone in the organization can raise a challenge to whether or not the
company is living its values, or its enterprise strategy approach. Without the ability to challenge
authority, there can be no such thing as true ethical leadership. Many fear that anarchy would be
the result of such a process. Our experience is just the opposite. Values, purposes, principles, an
enterprise approach—all deliver a disciplined way to think about how to make the business better
and more effective, and help to develop pride in the organization.

Becoming an Ethical Leader

We have been privileged to know many executives that we would classify as ethical leaders.
What these executives have in common is a profound and deep sense of ethical principles,
values, and character at the core of their leadership. They see their job as making others better,
and enabling them to pursue their own hopes and dreams. They are able to get things done in
complicated organizations and societies. But, it is their ethical core which pervades their
relationships with followers, the skills and processes which they use in leading them, their
analysis of the contexts, and their own sense of self.

Becoming an ethical leader is relatively simple. It requires a commitment to examining your own
behavior and values, and the willingness and strength to accept responsibility for the effects of
your actions on others, as well as on yourself. A “responsibility principle” is a necessary
ingredient for “managing for stakeholders” to be useful in today’s business world. Ethical leaders
must consider and take responsibility for the effects of their actions on customers, suppliers,
employees, communities and other stakeholders. If business were simply concerned with
shareholder value, then this “responsibility principle” would be unnecessary, other than the

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responsibility to shareholders. Ethical leaders speak to us about our identity, what we are and
what we can become, how we live and how we could live better.

ORGANIZATIONAL STRUCTURES AND SYSTEMS

The third pillar of ethical organizations is the set of tools that managers use to shape values and
promote ethical behavior throughout the organization. Three of these tools are codes of ethics,
ethical structures, and mechanisms for supporting whistle-blowers.

Code of Ethics: A code of ethics is a formal statement of the company’s values concerning
ethics and social issues. It communicates to employees what the company stands for. Codes of
ethics tend to exist as two types: principle-based statements and policy based statements.
Principle-based statements are designed to affect corporate culture; they define fundamental
values and contain general language about company responsibilities, quality of products, and
treatment of employees. General statements of principle are often called corporate credos.
Policy-based statements generally outline the procedures to be used in specific ethical situations.
These situations include marketing practices, conflicts of interest, observance of laws,
proprietary information, political gifts, and equal opportunities. Examples of policy based
statements are Boeing’s “Business Conduct Guidelines,” Chemical Bank’s “Code of Ethics,”
GTE’s “Code of Business Ethics” and “Anti-Trust and Conflict of Interest Guidelines,” and
Norton’s “Norton Policy on Business Ethics.

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Figure 11.1. The Ethical Organization

Codes of ethics state the values or behaviors expected and those that will not be tolerated, backed
up by management action. With numerous areas open to ethical abuses and the pressures that
investment bankers face when millions of dollars are at stake, the group, which includes some of
the most respected leaders, believes a code could serve as a guide for managers facing thorny
ethical issues. Many financial institutions, of course, have their own individual corporate codes.
A survey of Fortune 1,000 companies found that 98 percent address issues of ethics and business
conduct in formal corporate documents, and 78 percent of those have separate codes of ethics
that are widely distributed. When top management supports and enforces these codes, including
rewards for compliance and discipline for violation, ethics codes can boost a company’s ethical
climate. The code of ethics gives employees some guidelines for dealing with ethical questions.
By giving people some guidelines for confronting ethical questions and promising protection
from recriminations for people who report wrongdoing, the code of ethics gives all employees
the responsibility and the right to maintain the organization’s ethical climate.

ETHICAL STRUCTURES

Ethical structures represent the various systems, positions, and programs a company can
undertake to implement ethical behavior. An ethics committee is a group of executives
appointed to oversee company ethics. The committee provides rulings on questionable ethical
issues. The ethics committee assumes responsibility for disciplining wrongdoers, which is
essential if the organization is to directly influence employee behavior. For example, the Ethics
Compliance Committee may be charged with interpreting, clarifying, and communicating the
company’s code of ethics and with adjudicating suspected code violations. Many companies set
up ethics offices with full-time staff to ensure that ethical standards are an integral part of
company operations. These offices are headed by a chief ethics officer, a company executive
who oversees all aspects of ethics and legal compliance, including establishing and broadly
communicating standards, ethics training, dealing with exceptions or problems, and advising
senior managers in the ethical and compliance aspects of decisions. Most ethics offices also work
as counseling centers to help employees resolve difficult ethical issues.

Ethics training programs also help employees deal with ethical questions and translate the
values stated in a code of ethics into everyday behavior. Training programs are an important
supplement to a written code of ethics. Employees can be made to attend a weekly meeting on
workplace ethics. In these meetings the discussion how to handle ethical dilemmas and how to
resolve conflicting values can be raised. A strong ethics program is important, but it is no
guarantee against lapses. It is not enough to have an impressive ethics program. The ethics
program must be merged with day-to-day operations, encouraging ethical decisions throughout
the company.

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WHISTLE-BLOWING: Employee disclosure of illegal, immoral, or illegitimate practices on
the employer’s part is called whistle-blowing. No organization can rely exclusively on codes of
conduct and ethical structures to prevent all unethical behavior. Holding organizations
accountable depends to some extent on individuals who are willing to blow the whistle if they
detect illegal, dangerous, or unethical activities. Whistleblowers often report wrongdoing to
outsiders, such as regulatory agencies, senators, or newspaper reporters. Some firms have
instituted innovative programs and confidential hotlines to encourage and support internal
whistle-blowing. For this practice to be an effective ethical safeguard, however, companies must
view whistle-blowing as a benefit to the company and make dedicated efforts to protect whistle-
blowers. Without effective protective measures, whistle-blowers suffer. Although whistle-
blowing has become widespread in recent years, it still is risky for employees, who can lose their
jobs, be ostracized by co-workers, or be transferred to lower-level positions. People fired for
reporting wrongdoing can file a complaint under the law and are eligible for back pay, attorney’s
fees, and a chance to get their old job back. Yet, to maintain high ethical standards, organizations
need people who are willing to point out wrongdoing. Managers can be trained to view whistle-
blowing as a benefit rather than a threat, and systems can be set up to effectively protect
employees who report illegal or unethical activities.

Activity 1: what are ethical structures and systems?____________________________________

Ethical Challenges in Turbulent Times

The problem of lax ethical standards in business is nothing new, but in recent years it seems to
have escalated. In addition, public reaction has been swift and unforgiving. Any ethical misstep
can cost a company its reputation and hurt its profitability and performance. Organizational
stakeholders, including employees, shareholders, governments, and the general community, are
taking a keen interest in how managers run their businesses. One reason for the proliferation of
ethical lapses is the turbulence of our times. Things move so fast that managers who aren’t
firmly grounded in ethical values can find themselves making poor choices simply because they
don’t have the time to carefully weigh the situation and exercise considered judgment. When
organizations operate in highly competitive industries, rapidly changing markets, and complex
cultural and social environments, a strong corporate culture that emphasizes ethical behavior
becomes even more important because it guides people to do the right thing even in the face of
confusion and change.

11.2. Gender and Leadership

Does gender affect leadership success? Do men and women differ in terms of leadership ability?
Research shows that both men and women can be effective leaders, but they approach their

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leader positions differently. Female leaders are more empathic, persuasive, better listeners, and
more willing to consider others’ points of view. Women are better at expressing feelings and
accessing their emotions, and women have an easier time switching from the verbal left brain to
the emotional right brain than men do. Men show pain and distress differently than women—
they tend to externalize them, whereas women tend to internalize them. In addition, male leaders
showed higher levels of resilience and thoroughness than women leaders. How well do men
accept women as leaders? Research indicates that men’s attitudes toward women in the
workplace are gradually changing as more women enter the workforce and assume leadership
positions. Studies show that both men and women executives believe that women have to be
exceptional to succeed in the business world. Women leaders still face disadvantages in business
and feel they must struggle harder than men to succeed. In an effort to support junior female
managers, Procter and Gamble pairs female employees with a senior manager for reverse
mentoring to help the mostly male executives understand the issues that women face. In the past,
successful leaders have been associated with stereotypical masculine attributes such as
competitiveness, task orientation, and willingness to take risks. Recent studies, however, show
that female middle-and top-level executives no longer equate successful leadership with these
masculine attributes. Both male and female leaders possess a high need for achievement and
power and demonstrate assertiveness, self-reliance, risk taking, and other traits and behaviors
associated with effective leadership.52 However, a trend exists of more women making their
way to the top who are not only adopting styles and habits that have proved successful for men
but also drawing on the skills and attitudes they have developed from their experiences as
women. Generally, women are more likely to use behaviors that are associated with
transformational leadership, such as reliance on expertise, charisma, and interpersonal skills.
Men are more likely to be directive. More and more organizations are being led by women. only
two women out of 25 people were considered to be the most influential business leaders of the
past 25 years.

11.3. Building Excellence: Delivering Workforce Excellence

The challenge for businesses seems simple: align and engage your workforce to a clearly
articulated strategy. However, this can be difficult to achieve. It requires a holistic, coordinated
effort to put a number of key elements or building blocks in place. The key elements of
organizational effectiveness, as illustrated in the figure below, are needed to drive employee
engagement in an organization. Engagement influences the customers’ experience and,
ultimately, the overall performance of an organization in terms of productivity and profitability.
Figure 11.2. Right Management’s Organizational Effectiveness Framework

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Through an integrated framework that addresses the following organizational effectiveness
elements, an organization can achieve excellence: Strategy: The role, purpose, and strategic
direction that summarizes the work of the organization and/or division being clear and
appropriate. Structure, Capacity, and Capability: Capable people doing the right work through
a “fit for purpose” structure and clearly described role accountabilities and relationships.
Leadership: Leaders have the capability and capacity to drive sustainable business success.
People Systems & Processes: Leaders need to be supported by good people systems and
processes. These systems and processes work in organizations to send messages, share
information, and make well-informed decisions across the business. Organizational processes
and systems are an extension of leadership, creating consistency and trust. Culture & Values A
set of shared, basic assumptions about how to behave and carry out work within the organization
that is aligned to business strategy. The systems, symbols, and behaviors that leaders and other
employees are exposed to within an organization must align to the desired culture to achieve the
business strategy.

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Employee Engagement: High numbers of engaged employees whose hearts and minds are
aligned with both the job that they do and the organization that they work for. Engaged
employees are Satisfied with their current job and their organization as an employer, committed
to making the job and organization successful, proud of their organization and the work they do
and willing to positively talk about their job and the organization.

Customer Experience: High levels of customer satisfaction and loyalty achieved through
employees being aware of customer needs, acting on customer feedback, and being supported to
deliver what customers require. Organizations are environmentally responsible and support the
community. Integration of the first five elements will produce powerful and mutually reinforcing
results: a true performance-based, customer-focused culture. No single initiative can create
organizational effectiveness. Excellence is required across the full range of organizational
effectiveness framework elements if competitive strength is to be achieved.

11.4. EMOTIONAL INTELLIGENCE

In recent years, new insights into personality are emerging through research in the area of
emotional intelligence. Emotional intelligence (EQ) includes four basic components:
1. Self-awareness. The basis for all the other components is being aware of what you are feeling.
People who are in touch with their feelings are better able to guide their own lives and actions. A
high degree of self-awareness means you can accurately assess your own strengths and
limitations and have a healthy sense of self-confidence. Companies have become highly
successful by helping people become more self-aware.

2. Self-management. The ability to control disruptive or harmful emotions and balance one’s
moods so that worry, anxiety, fear, or anger do not cloud thinking and get in the way of what
needs to be done. People who are skilled at self-management remain optimistic and hopeful
despite setbacks and obstacles. This ability is crucial for pursuing long-term goals.
3. Social awareness. The ability to understand others and practice empathy, which means being
able to put yourself in someone else’s shoes, to recognize what others are feeling without them
needing to tell you. People with social awareness are capable of understanding divergent points
of view and interacting effectively with many different types of people.

4. Relationship awareness. The ability to connect to others, build positive relationships, respond
to the emotions of others, and influence others. People with relationship the war in Iraq, and
continuing economic hardship for many people all make meeting the psychological and
emotional needs of employees a new role for managers. Following are some elements of EQ that
are particularly important in times of crisis and turmoil. It is important to remember that EQ is
not an in-born personality characteristic, but something that can be learned and developed.

ATTITUDES AND BEHAVIORS INFLUENCED BY PERSONALITY

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An individual’s personality influences a wide variety of work-related attitudes and behaviors.
Four that are of particular interest to managers are locus of control, authoritarianism,
Machiavellianism, and problem-solving styles.

Locus of Control People differ in terms of what they tend to accredit as the cause of their
success or failure. Their locus of control defines whether they place the primary responsibility
within themselves or on outside forces. Some people believe that their own actions strongly
influence what happens to them. They feel in control of their own fate. These individuals have a
high internal locus of control. Other people believe that events in their lives occur because of
chance, luck, or outside people and events. They feel more like pawns of their fate. These
individuals have a high external locus of control. Many top leaders of e-commerce and high-tech
organizations possess a high internal locus of control. These managers have to cope with rapid
change and uncertainty associated with Internet business. They must believe that they and their
employees can counter the negative impact of outside forces and events.

People with an internal locus of control are easier to motivate because they believe the rewards
are the result of their behavior. They are better able to handle complex information and problem
solving and are more achievement oriented, but are also more independent and therefore more
difficult to manage. By contrast, people with an external locus of control are harder to motivate,
less involved in their jobs, more likely to blame others when faced with a poor performance
evaluation, but also more compliant and conforming and, therefore, easier to manage.

Authoritarianism is the belief that power and status differences should exist within the
organization. Individuals high in authoritarianism tend to be concerned with power and
toughness, obey recognized authority above them, stick to conventional values, critically judge
others, and oppose the use of subjective feelings. The degree to which managers possess
authoritarianism will influence how they wield and share power. The degree to which employees
possess authoritarianism will influence how they react to their managers. If a manager and
employees differ in their degree of authoritarianism, the manager may have difficulty leading
effectively. The trend toward empowerment and shifts in expectations among younger
employees for more equitable relationships contribute to a decline in strict authoritarianism in
many organizations.

Machiavellianism: Another personality dimension that is helpful in understanding work

behavior is Machiavellianism, which is characterized by the acquisition of power and the
manipulation of other people for purely personal gain. Machiavellianism is named after Niccolo
Machiavelli, a 16th-century author who wrote The Prince, a book for noblemen of the day on
how to acquire and use power.41 Psychologists developed instruments to measure a person’s
Machiavellianism (Mach) orientation.42 Research shows that high Machs are predisposed to
being pragmatic, capable of lying to achieve personal goals, more likely to win in win-lose
situations, and more likely to persuade than be persuaded.

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Problem-Solving: Managers also need to understand that individuals differ in the way they solve
problems and make decisions. One approach to understanding problem-solving styles grew out
of the work of psychologist Carl Jung. Jung believed differences resulted from our preferences in
how we go about gathering and evaluating information. According to Jung, gathering
information and evaluating information are separate activities. People gather information either
by sensation or intuition but not by both simultaneously. Sensation type people would rather
work with known facts and hard data and prefer routine and order in gathering information.
Intuitive-type people would rather look for possibilities than work with facts and prefer solving
new problems and using abstract concepts.

Evaluating information involves making judgments about the information a person has gathered.
People evaluate information by thinking or feeling. These represent the extremes in orientation.
Thinking-type individuals base their judgments on impersonal analysis, using reason and logic
rather than personal values or emotional aspects of the situation. Feeling-type individuals base
their judgments more on personal feelings such as harmony and tend to make decisions that
result in approval from others. According to Jung, only one of the four functions—sensation,
intuition, thinking, or feeling—is dominant in an individual. However, the dominant function
usually is backed up by one of the functions from the other set of paired opposites.

Two sets of paired opposites not directly related to problem solving are introversion-extroversion
and judging-perceiving. Introverts gain energy by focusing on personal thoughts and feelings;
extroverts gain energy from being around others and interacting with others. On the judging
versus perceiving dimension, people with a judging preference like certainty and closure and
tend to make decisions quickly based on available data. Perceiving people, on the other hand,
enjoy ambiguity, dislike deadlines, and may change their minds several times as they gather
large amounts of data and information to make decisions.

Personal Style Action Tendencies Likely Occupations

Sensation-thinking  Emphasizes, details, facts, certainty  Accounting
 Is a decisive, applied thinker  Production
 Focuses on short-term, realistic goals  Computer programming
 Develops rules and regulations for  Market research
judging performance  Engineering

Intuitive–thinking  Prefers dealing with theoretical or  Systems design

technical problems  Systems analysis
 Is a creative, progressive,  Law
perceptive thinker  Middle/top management
 Focuses on possibilities using  Teaching business,
impersonal analysis economics
 Can consider a number of options
and problems simultaneously

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 Sensation–feeling  Shows concern for current, real-  Directing supervisor
life human problems  Counseling
 Is pragmatic, analytical,  Negotiating
methodical, and conscientious  Selling
 Emphasizes detailed facts about  Interviewing
people rather than tasks
 Focuses on structuring
organizations for the benefit of
people
Intuitive–feeling  Avoids specifics  Public relations
 Is charismatic, participative,  Advertising
people oriented, and helpful  Human Resources
 Focuses on general views, broad  Politics
themes, and feelings  Customer service
 Decentralizes decision making,
develops few rules and regulations

Activity 2: what are the action tendencies for a sensation-feeling personal style?_____________

11.5. Leadership Traits

Early efforts to understand leadership success focused on the leader’s personal characteristics or
traits. Traits are the distinguishing personal characteristics of a leader, such as intelligence,
values, self confidence, and appearance. The early research focused on leaders who had achieved
a level of greatness, and hence was referred to as the Great Man approach. The idea was
relatively simple: Find out what made these people great, and select future leaders who already
exhibited the same traits or could be trained to develop them. Generally, early research found
only a weak relationship between personal traits and leader success. In recent years, interest in
examining leadership traits has reemerged. In addition to personality traits, physical, social, and
work-related characteristics of leaders have been studied. However, these characteristics do not
stand alone. The appropriateness of a trait or set of traits depends on the leadership situation. The
same traits do not apply to every organization or situation. Further studies expand the
understanding of leadership beyond the personal traits of the individual to focus on the dynamics
of the relationship between leaders and followers.

11.6. Positive and Negative Leaders

Positive and Negative Approaches

There is a difference in ways leaders approach their employees. Positive leaders use rewards,
such as education, independence, etc. to motivate employees while negative employers
emphasize penalties. While the negative approach has a place in a leader's repertoire of tools, it

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 must be used carefully due to its high cost on the human spirit. Negative leaders act
domineering and superior with people. They believe the only way to get things done is through
penalties, such as loss of job, days off without pay, reprimanding employees in front of others,
etc. They believe their authority is increased by frightening everyone into higher levels of
productivity. Yet what always happens when this approach is used wrongly is that morale falls;
which of course leads to lower productivity. Also note that most leaders do not strictly use one
or another, but are somewhere on a continuum ranging from extremely positive to extremely
negative. People who continuously work out of the negative are bosses while those who
primarily work out of the positive are considered real leaders.

Summary
Ethics refers to principles that define behavior as right, good and proper. Many managers are
concerned with improving the ethical climate and social responsiveness of their companies.
Ethical business practices depend on individual managers as well as the organization’s values,
policies, and practices. Managers who are essentially ethical individuals make up the first pillar.
In today’s turbulent world, ethics and values are present at a number of levels for executives and
managers. The third pillar of ethical organizations is the set of tools that managers use to shape
values and promote ethical behavior throughout the organization. Three of these tools are codes
of ethics, ethical structures, and mechanisms for supporting whistle-blowers. Research shows
that both men and women can be effective leaders, but they approach their leader positions
differently. Female leaders are more empathic, persuasive, better listeners, and more willing to
consider others’ points of view. Men show pain and distress differently than women—they tend
to externalize them, whereas women tend to internalize them. The key elements of organizational
effectiveness are needed to drive employee engagement in an organization. These are strategy,
structure, capacity, capability, leadership, employee engagement, and customer experience. In
recent years, new insights into personality are emerging through research in the area of
emotional intelligence. Emotional intelligence includes four basic components: self-awareness,
self-management, social awareness and relationship awareness.

An individual’s personality influences a wide variety of work-related attitudes and behaviors.

Four that are of particular interest to managers are locus of control, authoritarianism,
Machiavellianism, and problem-solving styles. Early efforts to understand leadership success
focused on the leader’s personal characteristics or traits. Traits are the distinguishing personal
characteristics of a leader, such as intelligence, values, self confidence, and appearance. There is
a difference in ways leaders approach their employees. Positive leaders use rewards, such as
education, independence, etc. to motivate employees while negative employers emphasize
penalties.

Checklist
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 Read each of the points below and tick whether or not you have understood it. If your
answer is ‘yes’ go to the next point. If however, it is ‘no’, go back to that topic and read
again until you have fully understood it.

Points Yes No

I can define and explain about ethics.

I can list and describe the three pillars that support an ethical organization.

I can explain about ethical individuals, ethical leaders and ethical organizations and
systems..

I can discuss the concept of ethical leadership.

I can mention the characteristics of the ethical leaders.

I can illustrate ways of developing ethical leaders.

I can explain the ethical structures and systems.

I can discuss about gender and leadership.

I can mention the key elements of organizational effectiveness and excellence.

I can describe emotional intelligence and its components.

I can explain attitudes and behaviors influenced by personality

I can list different personal styles, their action tendencies and their likely
occupations
I can explain about the leader’s personal characteristics or traits.

I can describe positive and negative leaders.

 Self Test Exercise Unit Eleven

I. Matching
Match the items from column “B” to column “A” with their appropriate answers on the
answer sheet

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 No. A B
1 Corporate credos A A formal statement of the company’s values concerning
ethics and social issues.
2 Policy-based statements B outline the procedures to be used in specific ethical
situations
3 Principle-based C define fundamental values and contain general language
statements
4 Ethics committee D General statements of principle
5 Code of ethics E a group of executives appointed to oversee company ethics

6 Chief ethics officers F Employee disclosure of illegal, immoral, or illegitimate

practices on the employer’s part.
7 Whistle-blowing G Head of ethics offices

II. Fill in the following blank spaces

1. __________is the ability to control disruptive or harmful emotions and balance one’s
moods so that worry, anxiety, fear, or anger do not cloud thinking and get in the way of
what needs to be done.
2. _________ is the ability to understand others and practice empathy, which means being
able to put yourself in someone else’s shoes, to recognize what others are feeling without
them needing to tell you.
3. ________ is the ability to connect to others, build positive relationships, respond to the
emotions of others, and influence others.
4. ____________ is the belief that power and status differences should exist within the
organization.
5. ______________ is characterized by the acquisition of power and the manipulation of
other people for purely personal gain.

Answer Key for Self Test Exercise Unit Six

I. True or False
1) True 2) False 3) False 4) True 5) True

II. Short Answer

1. Improves decision quality, greater subordinate commitment to implement decisions
effectively, improves time management practice of managers, serves as effective
management development method, and reduces manager’s workload.
2. Political accountability, administrative accountability, legal/judicial accountability,
market accountability and professional accountability.
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Activity 1: a strong need for power, insecurity a higher need for achievement and difficulty in
forming relationships. Some managers enjoy the exercise of power over subordinates and the
feeling of being in charge.

Activity 2: a separation of powers between legislature, executive and judiciary, police, media
and others.

Answer Key for Self Test Exercise Unit Seven

I. Multiple Choice
1) D 2) D 3) A 4) C 5) C
II. Short answer
1) a) a psychosocial function (acceptance, encouragement, coaching, counseling), and b) a
career-facilitation function (sponsorship, protection, challenging assignments, exposure
and visibility).
2) Convenience, confidentiality, flexibility, and more personal attention.

Activity 1: ensuring alignment between career and development objectives, getting feedback
from multiple sources on a regular basis, and reflecting with a partner.

Answer Key for Self Test Exercise Unit Eight

I. Matching
1) C 2) A 3) H 4) F 5) D 6) G 7) B 8) E

II. Short Answer

1. Dream, Design and Development

Activity 1: The work group has a strong, clearly focused leader; the team has shared leadership
style, the work group has individual accountability; the team has individual and mutual
accountability, the work group’s purpose is the same as the organizations; the team has a specific
purpose, the work group has individual work products; the team has collective work products,
the work group measures effectiveness indirectly (for example, financial performance of the
overall business); the team measures performance directly by assessing collective work products,
the work group runs efficient meeting; the team encourages open ended, active problem solving

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meetings, the work group discusses, decides, and delegates, the team discusses, decides and does
the real work.

Activity 2: task, boundary, norm, and authority

Answer Key for Self Test Exercise Unit Nine

I. Choice
1) D 2) A 3) C 4) C 5) A
II. Short Answer
1) Other-determined, Not sure if what they do is important, Low competence and Low
influence
2) Motivate others by clarifying links between behaviors, performance, and rewards

Activity 1: satisfy needs to change behavior.

Activity 2: Assume leaders can change the situation in order to better motivate followers.

Answer Key for Self Test Exercise Unit Ten

I. True or False
1) True 2) False 3) False 4) False 5) True
II. Fill in the blanks
1) Prescriptive and diagnostic
2) Change (C), Dissatisfaction (D), Process (P), Model (M) and Resistance (R)
3) Diversity
4) Transactional leadership
5) Charismatic leadership

Activity 1: Leadership = change (vision, inspire, empower, coach, revenues, forecasts,

possibilities, opportunity, synergy).

Management = Control (plan, reward, direct, train, expenses, budgets, systems and procedures,
schedule, coordinate)

Answer Key for Self Test Exercise Unit Eleven

I. Matching

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 1) D 2) B 3) C 4) E 5) A 6) G 7) F

II. Fill in the blanks

1) Self-management
2) Social awareness
3) Relationship awareness
4) Authoritarianism
5) Machiavellianism

Activity 1: corporate culture, code of ethics, ethics committee, chief ethics officer, ethics
training, whistle blowing mechanisms.

Activity 2: Shows concern for current, real-life human problems, Is pragmatic, analytical,
methodical, and conscientious, Emphasizes detailed facts about people rather than tasks, Focuses
on structuring organizations for the benefit of people

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