MBA MCO101 Unit 8 A Lecture 9 200806 Xx

MCO 101 • MANAGEMENTUnit 8A: Motivation, Leadership,

Groups and Teams

MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights

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Managing Expectations

LEARNING OUTCOMES:

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

• Explain fundamental concepts and principles of management including the basic roles, skills, and functions of management

• Discuss the knowledgeable of historical development, theoretical aspects and practice application of managerial process

• Examine the environment, technology, human resources, and organisations in order to achieve high performance

• Discuss the ethical dilemmas faced by managers and the social responsibilities of businesses.


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SUBJECTS DISCUSSED:

1. Management, Managers and evolution of Management theory

2. Personality traits and diversity3. Organisation, Globalisation and the resulting

environments4. Decision-making and Planning5. Structure and Strategy6. Executing and Controlling7. Human Resources Management as a function8. Motivation, Leadership, Groups and Teams9. Communication, conflicts and politics10. Operations Management. Entrepreneurship. Innovation


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TOPIC DETAILS:

After going through UNIT 8A, you should be able to:

1. explain what leadership is. 2. describe who leaders are and what effective leaders do3. explain Fiedler’s contingency theory.4. describe how path-goal theory works.5. discuss Hersey and Blanchard’s Situational Leadership theory.6. explain the normative decision theory. 7. explain how visionary leadership (i.e., charismatic and

transformational leadership) helps leaders achieve strategic leadership.


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Leaders versus Managers

MANAGERS

Do things rightStatus quoShort-term

MeansBuilders

Problem solving

LEADERS

Do the right thingChange

Long-termEnds

ArchitectsInspiring & motivating


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Leadership Traits

LeadershipTraits

Desireto Lead

Honestyand

Integrity

Drive Self-Confidence

EmotionalStability

CognitiveAbility

Knowledgeof the

Business


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Leadership Behaviors

Initiating Structure

The degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks.

Consideration

The extent to which a leader is friendly, approachable, and supportive and shows concern for employees.


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Blake/Moulton Leadership Grid

1,9 Country Club Management

9,9 Team Management

1,1Impoverished Management 9,1

Authority-Compliance

5,5Middle of the

Road5,5

1 2 3 4 5 6 7 8 91

2

3

4

5

6

7

8

9

Co

nce

rn f

or

Peo

ple

Concern for Production

High

Low

Low High


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Putting Leaders in the Right Situation:Fiedler’s Contingency Theory

GroupPerformance

=

LeadershipStyle

SituationalFavorableness


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Putting Leaders in the Right Situation:Fiedler’s Contingency Theory

Least Preferred Coworker

Situational Favorableness

Matching Leadership Styles to Situations

• Leadership style is the way a leader generally behaves toward followers. seen as stable and difficult to change.

• Style is measured by the Least Preferred Co-worker scale (LPC): relationship-oriented vv task-oriented

Situational Favorableness: The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. Three factors: (1) Leader-member relations, (2) Task structure, (3) Position power


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Path-Goal Theory

Path-Goal Theory

A leadership theory that states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

Clarify paths to goals

Clear paths to goals by solving problems and removing roadblocks

Increase the number and kinds of rewardsavailable for goal attainment

Do things that satisfy followers today or will lead to future rewards or satisfaction

Offer followers something unique and valuablebeyond what they’re experiencing

assumptions


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Path-Goal Theory

Subordinate Contingencies•Perceived Ability•Locus of Control•Experience

Environmental Contingencies•Task Structure•Formal Authority System•Primary Work Group

Outcomes•Subordinate satisfaction•Subordinate performance

Leadership Styles•Directive•Supportive•Participative•Achievement-Oriented


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Adapting Leader Behavior: Path-Goal Theory

LeadershipStyles

• Directive: clarifying expectations and guidelines• Supportive: being friendly and approachable• Participative: allowing input on decisions• Achievement-Oriented: setting challenging goals

Directive Leadership Supportive Leadership Unstructured tasks Inexperienced workers Workers with low perceived ability Workers with external locus of

control Unclear formal authority system

Structured, simple, repetitive tasks

Stressful, frustrating tasks When workers lack confidence Clear formal authority system

Participative Leadership Achievement-Oriented Leadership Experienced workers Workers with high perceived ability Workers with internal locus of

control Workers not satisfied with rewards Complex tasks

Unchallenging tasks


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Adapting Leadership Behavior

WorkerReadiness

LeadershipStyles

Hersey and Blanchard’s Situational Leadership Theory

R4

R3

R2

R1

Confident, willing , able

Insecure, not willing, able

Confident, willing, not able

Insecure, not able, not willing

Telling(R1)

Selling(R2)

Participating(R3)

Delegating(R4)

high task behavior, low relationship behavior

high task behavior, high relationship behavior

low task behavior, high relationship behavior

low task behavior, low relationship behavior


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Normative Decision Theory

DecisionStyles

Decision Quality and Acceptance


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Normative Decision TheoryDecision Style

Solve the problem yourself

Obtain information.Select a solutionyourself.

Share problem,get ideas fromindividuals.Select asolution yourself.

AI AII CI

Share problemwith group,get ideas.Make decision,which may ormay not reflectinput.

Share problemwith group.Together triesto reach a solution. Leader acts asfacilitator.

CII GII

Leader solves the problemor makes the decision

Leader accepts any decisionsupported by the entire group


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Normative Decision TheoryDecision Quality and Acceptance

• Using the right amount of employee participation:– improves decision

quality – improves acceptance

• Decision tree helps leader identify optimal level of participation

• Quality RuleQuality Rule – If the quality of the decision is

important, then don't use an autocratic decision style

• Leader Information RuleLeader Information Rule – If the quality of the decision is

important, and if the leader doesn't have enough information to make the decision on his or her own, then don't use an autocratic decision style

• Subordinate Information RuleSubordinate Information Rule– If the quality of the decision is

important, and if the subordinates don't have enough information to make the decision themselves, then don't use a group decision style

Increasing Quality of Decisions [1]


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• Goal Congruence Rule– If the quality of the decision is

important, and subordinates' goals are different from the organization's goals, then don't use a group decision style

• Problem Structure Rule– If the quality of the decision is

important, the leader doesn't have enough information to make the decision on his or her own, and the problem is unstructured, then don't use an autocratic decision style



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• Commitment Probability Rule– If having subordinates accept and

commit to the decision is important, then don't use an autocratic decision style

• Subordinate Conflict Rule– If having subordinates accept the

decision is important and critical to successful implementation and subordinates are likely to disagree or end up in conflict over the decision, then don't use an autocratic or consultative decision style

• Commitment Requirement Rule– If having subordinates accept the

decision is absolutely required for successful implementation and subordinates share the organization's goals, then don't use an autocratic or consultative style



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Strategic LeadershipVisionary Leadership

CharismaticLeadership

TransformationalLeadership

Creates an exceptionally strong relationship between leader and follower. Charismatic leaders:

•articulate a clear vision, based on values•model values consistently with vision•communicate high performance expectations•display confidence in followers’ abilities

• Generates awareness and acceptance of group’s purpose and mission

• Gets followers to accomplish more than they intended or thought possible

• Components: •Charisma or idealized influence•Inspirational motivation•Intellectual stimulation•Individualized consideration


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Kinds of Charismatic Leaders• Ethical Charismatics

• provide developmental opportunities• open to positive and negative feedback• recognize others’ contributions• share information• concerned with the interests of the group

• Unethical Charismatics• control and manipulate followers• do what is best for themselves• only want positive feedback• motivated by self-interest


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Ethical Charismatic Leaders

Exercising Power Power is used to serve others

Creating the vision Followers help develop the vision

Communicating with followers

Two-way communication

Accepting feedback Open to feedback

Want followers to think and to questions the

status quo

Stimulating followers

Developing followers Focus on developing followers

Living by moral standards

Three virtues: courage, sense of fairness, integrity

Charismatic Leader Behaviors

Ethical Charismatics


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Unethical Charismatic Leaders

Exercising Power Power is used to serve others

Creating the vision Followers help develop the vision

Communicating with followers

Two-way communication

Accepting feedback Open to feedback

Want followers to think and to questions the

status quo

Stimulating followers

Developing followers Focus on developing followers

Living by moral standards

Three virtues: courage, sense of fairness, integrity

Charismatic Leader Behaviors

Unethical Charismatics

Power is used to dominate others

Vision comes solely from the leader

One-way communication, not open to input from others

Prefer yes-men, punish candid feedback

Don’t want followers to think, prefer uncritical acceptance of own ideas

Insensitive to followers’ needs

Follow standards only if they satisfy immediate self interests

MBA MCO101 Unit 8 A Lecture 9 200806 Xx

Business

Transcript of MBA MCO101 Unit 8 A Lecture 9 200806 Xx