Leadership and Staffing
Transcript of Leadership and Staffing
Leadership and StaffingBusiness Policy
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Please note that these slides are not intended as a substitute
to reading the recommended text for this course.
Difference - leadership /management
Theory behind leadership
Importance of leadership
Characteristics / Barriers to effective leadership
Staffing the company correctly
Human Resource Palnning
Chapters 11 & 14: Johnson, Scholes & Whittington
Objectives
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The Theories of Leadership
“A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.”
- Rosalynn Carter
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What Is Leadership?
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Leadership
The ability to influence a
group toward the
achievement of goals
Management
Use of authority inherent in
designated formal rank to
obtain compliance from
organizational members
Why is understanding the history of leadership important?
1. Understanding leadership of an era to understand how and why events and societal development happened.
2. We can look at the past based on culture and the structure of a society.
– Seek to learn from the lessons of the past.
– Apply what is most applicable.
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When Did Leadership Begin?
Leadership has been studied since the earliest civilizations.
– Humans have ALWAYS organized themselves with some type of structure.
• Mayans & Aztecs
• Great Wall of China
• Moses and Hebrews
• Ancient Pygmy societies.
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How Did Leadership Begin?
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Having an effective leader was critical for survival for early civilizations.
– Tribes and nomadic groups.
Qualifications based on skilled, strength, size, agility, knowledge.
– Usually male.
– Existed since the beginning of mankind.
What are the three historical types of leadership?
Leader-centric.– more of a fixture-
kings and queens.– they were born.– blood lines do not
always make good leaders.
– men were primary in control of government, business, and family units.
– Citizens simply followed directions caused segregation of social classes.
What are the three historical types of leadership?
Follower-centric.– Because of technology,
more workers needed.– Followers wanted to regain
control.– By late 1800s, ideas to
increase worker productivity and boost revenue.
– Unwilling to give up total control and give power to their followers.
– Leaders discovered that increasing the responsibility of workers did in fact increase productivity.
– 1920s-when supervisors gave personal attention to workers, satisfaction increased.
Leadership vs. Management—A Difference?
Many distinctions between managers and leaders.
“Management” = efficiency, process, regulations
“Leadership” = risk, creativity, vision
Leadership: “Doing the right things” vs. Management: “Doing things right.”
Leaders can be managers, and managers can become good leaders.
Shepherds and sheepherders.
Managers vs. Leaders
Managers
– Focus on things
– Do things right
– Plan
– Organize
– Direct
– Control
– Follows the rules
Leaders
– Focus on people
– Do the right things
– Inspire
– Influence
– Motivate
– Build
– Shape entities
Planning
Manager
– Planning
– Budgeting
– Sets targets
– Establishes detailed steps
– Allocates resources
Leader
– Devises strategy
– Sets direction
– Creates vision
Organizing
Manager
– Creates structure
– Job descriptions
– Staffing
– Hierarchy
– Delegates
– Training
Leader
– Gets people on board for strategy
– Communication
– Networks
Directing Work
Manager
– Solves problems
– Negotiates
– Brings to consensus
Leader
– Empowers people
– Cheerleader
Controlling
Manager
– Implements control systems
– Performance measures
– Identifies variances
– Fixes variances
Leader
– Motivate
– Inspire
– Gives sense of accomplishment
Leadership vs Management
Management seeks stability & predictability
– (order)
Leadership seeks improvement through change
– (disorder) Kotter (1990)
Leadership & Power
Power is influence derived from being seen as likable & knowledgeable
– Referent
– Expert
Power derivedfrom office or rank in an organization
– Legitimate
– Reward
– Coercive
Five Bases of Power
REFERENT POWER – Based on followers’ identification and liking for the leader.
– ex. A schoolteacher who is adored by her students has referent power.
EXPERT POWER – Based on followers’ perceptions of the leader’s competence.
– ex. A tour guide who is knowledgeable about a foreign country has expert power.
LEGITIMATE POWER –Associated with having status or formal job authority.
– ex. A judge who administers sentences in the courtroom exhibits legitimate power
REWARD POWER – Derived from having the capacity to provide rewards to others.
– ex. A supervisor who gives rewards to employees who work hard is using reward power.
COERCIVE POWER – Derived from having the capacity to penalize or punish others.
– ex. A coach who sits players on the bench for being late to practice is using coercive power.
What is the evolutionary process of leadership theories?
Great man theories were the first attempt in studying leadership.
– Based on the idea that leaders are ‘born’ with innate qualities, destined to lead
– Term 'man' was intentional -concept was primarily male, military and Western
Additional approaches have been developed— traittheories, behavioral theories, and modern-day contingencytheories.
Emphasis today is that leadership styles should match the situation at hand, which is a contingency approach.
The Development of Leadership Theory
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Period Approach Core Theme
Up to late 1940s Trait approach Leadership ability is innate
Late 1940s to late 1960s Style approach Leadership effectiveness is to
do with how the leader
behaves
Late 1960s to early 1980s Contingency approach It all depends; effective
leadership is affected by the
situation
Since early 1980s Now Leadership approach Leaders transform the way
people feel about themselves
Trait Theories - ‘Leaders are born, not made’
Early trait theories identified:
– Physical characteristics (height, appearance)
– Personality characteristics (extrovert)
– Skills and abilities (intelligence)
– Social factors (interpersonal skills)
Traits are distinctive
characteristics that distinguish
leaders from non-leaders.
No universal traits found that predict leadership - in all situations
Unclear evidence of the cause and effect of relationship of leadership and traits
Traits are hard to measure. For example, how do we measure honesty or integrity?
Trait Theories - Limitations
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The Style Approach
Concern for task – the extent to which the leader emphasises the task objectives
Or
Concern for people – the extent to which the leader emphasises the needs, interests etc of the group
Directive leadership – the extent to which the leader makes all the decisions regarding group activity
Or
Participative leadership – the extent to which the leader shares decision-making concerning group activity
When to use Autocratic Leadership Style?
When quick decisions are needed
No need for others input
Team agreement is not necessary
However:– Employees cannot question
decisions
– Little opportunity to give suggestions
Democratic Style
Seeks input from key people on important decisions
Listens carefully to concerns
Collective decision strengthened by buy-in, commitment across organization
Uninvolved - “leave them alone”
Sees main role as passer of information
Lets others make decisions
Basically abdicates responsibility for team or unit
Theory “L”: Laissez-faire leader
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Autocratic
DemocraticLaissez-
faire
‘Perfect’ Leadership
28‘Perfect’ Leadership
Theory “X”: Autocratic leader
Lacks flexibility
Controlling and demanding
“carrot and stick” approach
Focused solely on productivity
Theory “Y”: Benevolent leader
Very people oriented; encouraging
Organizes around people
Can be paternalistic
“Country club” atmosphere: non-competitive
What are the major components of the Contingency Theories?
Contingency theory identifies:
– Key situational factors,
– Specifies how they interact, and
– Determines best leadership approach.
– This is called situational leadership.
Contingency Theories continued
Leadership is composed of both a directive and supportive dimension.
Coaching and delegating were added to provide four styles.
Contingency Theories
All Consider the Situation
– Fiedler Contingency Model
– Path Goal Theory
Assumptions underlying the different models:
– Fiedler: Leader’s style is fixed.
– Other’s: Leader’s style can and should be changed.
Situational Theories
Fiedler’s Contingency Model
– Leader style is either task-oriented or relationship-oriented
– Style depends on three situational factors
• leader-member relations
• task structure
• position power
– Key Assumption
• Leader must fit situation; options to accomplish this:
• Select leader to fit situation
• Change situation to fit leader
Contingency Theories continued
Path-Goal Theory developed by Evans & House.– Adapting leadership to
the situation.– Leader can impact
performance of others by offering paths to desired goals.
– Rewards contingent on increased performance.
– Leader must help followers attain goals and reduce roadblocks to success
Leaders who are:
– Honest
– Competent
– Forward – Looking
– Inspiring
……….. Post 2008 economic collapse
– Stability
– Hope
Followers four basis needs
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Transactional and Transformational Leadership
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• Contingent Reward
• Management by
Exception (active)
• Management by
Exception (passive)
• Laissez-Faire
• Idealized Influence
• Inspirational Motivation
• Intellectual Stimulation
• Individual Consideration
Transactional Leaders
Leaders who guide or motivate
their followers in the direction of
established goals by clarifying role
and task requirements
Transformational Leaders
Leaders who provide the four “I’s”
(individualized consideration,
inspirational motivation, idealized
influence, and intellectual
stimulation)
Transformational leadership motivates followers to:
– do more than is expected.
– see raised value in tasks.
– put group’s common cause in front of individual needs.
Transformational
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Characteristics of Transformational Leaders
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Idealized Influence: Provides vision and sense of
mission, instills pride, gains respect and trust
Inspiration: Communicates high expectations, uses
symbols to focus efforts, expresses important purposes in
simple ways
Intellectual Stimulation: Promotes intelligence,
rationality, and careful problem solving
Individualized Consideration: Gives personal attention,
treats each employee individually, coaches, advises
Kouzes and Posner: 5 Practices of Exemplary Leadership
Model the Way
Inspire a Shared Vision
Challenge the Process
Enable Others to Act
Encourage the Heart
Diminishing or threatening status.
Thoughtlessly giving rewards.
Reducing certainty.
Sitting in your ivory tower all day.
Being unfair.
5 mortal leadership sins
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Hiring new people with new skills; firing people with inappropriate skills; training existing employees to learn new skills
Staffing follows strategy:
– Training & Development
• Higher productivity
• Reduction in waste
• Overall cost savings
– Matching manager to strategy
• Executive type
• Dynamic industry expert
• Analytical portfolio manager
• Cautious profit planner
• Turnaround specialist
• Professional liquidator
Staffing for Strategy
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Eliminate unnecessary work
Contract out work for cost savings
Plan for long-run efficiencies
Communicate reasons for action
Invest in remaining employees
Develop value-added jobs
Guidelines for downsizing
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Strategy first
– Structure
• Staffing
What is the impact of strategy
– Responsibilities
– Positional changes
– Team Changes / Challenges
Staffing follows Strategy
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Advantages– Know the people,
processes, culture technology
– Know to associates– Established
relationships
Disadvantages– Relationships – past
commitment, fear of making hard decisions
– Less adaptable to major strategic change
Advantages
– Belief in the new strategy
– Not constrained my internal relationships / commitments
Disadvantages
– Cost of recruitment
– Degree of uncertainty
– Disgruntled insiders
Internal / External Executives
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Need for and availability of personnel to meet company objectives.
Manpower planning / Demand forecast
– Competencies
– Numbers
– Location
Change due to PESTEL
Human Resource Planning
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Workforce Succession Planning (WFSP)
– Need to know
• Characteristics of employees
• Distribution of employees by position
• Employee performance
• Time, resources, In Demand, Workplace Dynamics, Job Classification
Held on Human Resource Information System (HRIS)
Human Resource Planning
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1. Job description – typically see in an ad
2. Job Analysis:
1. Job Description – used to assist candidate decide if they are suitable (used in the contract, set priorities)
2. Person Specification – what the organization will use to shortlist (Attainments, physical, Intelligence)
Human Resource Planning
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Whose performance is being assessed?
How is performance measured? – skill acquisition
How is performance rewarded? – pay, promotion. Disadvantages of incentives:
• Operational efficiencies
• Quality of work
• Quality of working life
• Employee may view the goalposts are constantly moving
Performance & Rewards
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