Unit iii ob at group level

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Learning Block II: Study of OB at Group Level Learning Block II: Study of OB at Group Level Graduate Teaching Notes on OB (2015) Dr Chanakya P Rijal Nepal College of Management In Affiliation with Kathmandu University, School of Management Lalitpur, Nepal 1 Dr Rijal's Discourses on OB

Transcript of Unit iii ob at group level

Page 1: Unit iii ob at group level

Learning Block II: Study of OB at Group LevelLearning Block II: Study of OB at Group Level

Graduate Teaching Notes on OB (2015)

Dr Chanakya P Rijal

Nepal College of ManagementIn Affiliation with

Kathmandu University, School of ManagementLalitpur, Nepal

1Dr Rijal's Discourses on OB

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UNIT III: WORKING IN GROUPSUNIT III: WORKING IN GROUPS

Section 1: LeadershipSection 1: Leadership

Section 2: CommunicationSection 2: Communication

Section 3: Work GroupsSection 3: Work Groups

Section 4: Work TeamsSection 4: Work Teams

Section 5: Conflict NegotiationSection 5: Conflict Negotiation

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Section 1: Leadership in PerspectiveSection 1: Leadership in Perspective

1. Introducing Leadership1. Introducing Leadershipa. Meaningb. Scopec. Functions

2. Selected Perspectives of Leadership2. Selected Perspectives of Leadershipa. Structural functionalist perspectiveb. Political-conflict perspectivec. Constructivist perspectived. Critical humanist perspective

3. Issues Governing Leadership3. Issues Governing Leadership

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� Are leaders born?

� Can leadership be learnt?

� What are the determinants of effective leaders and leadership?

� Are leaders different from managers?

� What is the role of leadership in transformation?

Leadership: Learning AgendaLeadership: Learning Agenda

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Your mission…is to win our wars…you are

the ones who are trained to fight. Yours is the

profession of arms, the will to win, the sure

knowledge that in war there is no substitute

for victory; That if you lose, the nation will be

destroyed.…General of the US Army

Douglas Macarthur

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The most precious commodity with

which the army deals is the individual

soldier who is the heart and soul of our

combat forces.

General J. Lawton Collins,VII Corps Commander, World War II

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� The act of leading

� One of the key management process functions.

� Process of influencing people to do something that they might otherwise not do.

� Refers to ‘Getting It Done’.

� An art which defies precise definitions.

� The action through which one or more persons are influenced or guided to behave the way they are expected to.

� Cannot occur without the consent of followers.

Introducing LeadershipIntroducing Leadership

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� Leadership ranges from the smallest decision, such as where to eat lunch, to the decisions that affect the directions of nations.

� Attainment of agreement upon goals or purposes is important, but the group or organization is an important part of the leadership process.

� Once individuals turn as successful leaders, they are more likely to accept or seek more challenging opportunities

Introducing LeadershipIntroducing Leadership

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Leadership

Influencing people by providing the purpose,

direction, and motivation while operating to

accomplish the mission and improving the

organization.

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Influencing� Getting people to do what you want them to

do.

� The example you set is just as important as the words you speak.

� Through your words and example, you must communicate purpose, direction, and motivation.

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� Persuades people with a reason to something.

� You must earn their trust: they must know from experience that you care about them and would not ask them to do something particularly dangerous or affective unless there is a good reason, and unless the task is essential to mission accomplishment.

Purpose

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� Communicate the way you want the mission be accomplished.

� Prioritize tasks.

� Assign responsibility and communicate; delegate authority when necessary.

� Make sure your people understand the standard.

� Listen, and correct the limitations that oppose your direction.

Direction

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� People want direction. They want to be given challenging tasks, training in how to accomplish them, and the resources necessary to do them well. Then they want to be left alone to do the job.

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� Motivation gives subordinates the will to do

everything they can to accomplish a mission.

� To motivate your people, give them goals that

challenge them.

� Get to know your people and their capabilities.

� Give them as much responsibility as they can.

Motivation

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� When they succeed, praise them.

� When they fall short, give them credit for what they

have done and coach or counsel how to do better

next time.

� Make sure that the example you set is as important

as what you say and how well you manage the

work.

Motivation

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� Actions taken to influence others serve to accomplish operating actions

� Take take those actions that help accomplish the stated goals.

� All leaders execute operating actions, which become more complex as they assume positions of increasing responsibility.

Operating

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� Leaders should strive for improving everything that is entrusted to them, their people, facilities, equipment, training, and all resources.

Improving

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Means Ends

Efficiency Effectiveness

Goals

Low High

wastage attainment

Leadership Vs. Efficiency and Effectiveness

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1. Planning1. Define goals2. Establish strategy3. Develop tactics/subplans

3. Leading1. Direct the people2. Motivate the people3. Resolve the conflicts

2. OrganizingDetermine:1. What to be done2. How to be done3. Who is to do

4. ControllingMotivate activitiesto ensure that theyare accomplishedas planned.

Achieving theorganization’sstated purpose

Leadership as One of the Management Functions

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Manager CharacteristicsAdministersA copyMaintainsFocuses on systems and structuresRelies on controlsShort-range viewAsks how and whenEye on the bottom lineImitatesAccepts the status quoClassic good soldierDoes things right

Manager Vs. LeaderManager Vs. Leader

Leader CharacteristicsInnovatesAn originalDevelopsFocuses on peopleInspires trustLong-range perspectiveAsks what and whyEye on the horizonOriginatesChallenges the status quoOwn personDoes the right things

Warren G. Bennis, Managing the dream: leadership in 21st century, journal of

Organizational Change Management, vol. 2, No. 1, 1989, p. 7 Dr Rijal's Discourses on OB 21

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PersonalGoal Setting

Elements of Self-Leadership

ConstructiveThought Patterns

DesigningNatural Rewards

Self-Monitoring

Self-Reinforcement

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� Weber has defined THREE types of leadership legitimacies:

• Traditional Legitimacy,

• Charismatic Legitimacy, and

• Bureaucratic Legitimacy

Legitimacy - what makes you a leader!

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� Legitimacy to control is handed down from the past

� Based on most traditional forms of customs

� Obedience based on loyalty to traditions

� Leadership decisions can be arbitrary

� Leadership authority is limited by the displeasure of

the subjects, and failure to follow traditions

Examples: Kingdoms of China, Egypt, family schools

Pros: Leadership is clearly defined

Cons: Possible irrationalism, easily corrupted

Traditional Legitimacy

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� Based on Inspiration: Vision and projection

� Legitimacy occurs after leader proves him/herself

Examples: Jesus Christ, Hitler, Ghandi

Pros: The leader is not restricted by tradition and

technical knowledge

Cons: Power can be abused, and people can be

mislead into following

Charismatic Legitimacy

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� Power is given based on skills, knowledge, and experience.

� Obedience is based on rank which is completed for and earned.

� Structured hierarchy prevails.Examples: Headteacher, Army General, Catholic

ChurchPros: Rational, technically efficient, and favours

levelling of social classesCons: Breeds impersonality and contempt, and stunts

enthusiasm.

Bureaucratic Legitimacy

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� Accountability and responsiveness to be the

central aspects.

� External environmental forces likely to create

unexpected pressure.

� Management rigidity to be the strongest enemy

of leadership.

� Nations more likely to go for international jobs.

� Leadership to be applied in every sector.

Future of LeadershipFuture of Leadership

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� To set standards and accountabilities for operational outcomes produced at all levels.

� Measure the outcomes to confirm that they have positive relationship with the improvements made.

� Initiate changes for systems improvement to facilitate long term system’s transformation.

� Communicate the problems, prospects, and necessary changes with the external forces, and seek their continued support.

� Create and maintain international partnerships.

� Enhance overall team effectiveness

Roles of Current LeadershipRoles of Current Leadership

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� Systems thinking

� Organizational designing

� Stewardship: share vision

and purpose

� Creating creative tensions

� Teaching for development

Other Important Roles of LeadersOther Important Roles of Leaders

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� Do all people want to lead?

� Is it the part of universality of leadership to pay high for the managers from the developed countries?

� Is leadership not dominated by situation?

� Does legacy of leadership have its final definition?

Leadership DilemmasLeadership Dilemmas

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� The change or legacy of a good leader will last longer after the leader has left the role.

� Role model unconsciously important role in writing leadership schools

� A school, once it is created, provides a platform to play for all and forever.

� Bad aspects are dominated and ignored.

Leadership EffectsLeadership Effects

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2. Leadership in Perspectives2. Leadership in Perspectives� Slater (1995) has defined leadership from four

major perspectives:

� Structural-Functionalist Perspective

� Political-Conflict Perspective

� Constructivist Perspective

� Critical Humanist Perspective Dr Rijal's Discourses on OB 32

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Structural Functionalist PerspectiveStructural Functionalist Perspective� This is a dominant perspective of leadership.

� It sees leadership as a set of measurable behavior or skills.

� Includes all functional activities covering planning, organizing, leading, and controlling of the resources for their best utilization to make the institutional operations more cost effective.

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Political-Conflict PerspectivePolitical-Conflict Perspective� This perspective contrasts with the structural-

functionalist perspective because it does not see leadership as a set of behavior and skills, rather it sees it as power relationship with the subordinates.

� 'Structure of domination' is the essence of this perspective.

� This perspective can be seen as the relationship between the manager and other members.

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Constructivist PerspectiveConstructivist Perspective� This perspective also tends to see leadership as the

leader behaviors and skills.

� It emphasizes that the majority of the behavior and skills become dominated by one or two major behaviors that lead the functioning of other behaviors and skills.

� As its symbolic aspect, this perspective tends to convey the meaning that the underlying dynamic social laws construct the structure of the society.

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Constructivist PerspectiveConstructivist Perspective� This perspective disagrees that the social structure

or the social science, and administration are value free.

� Creating and imparting values for life is the essence of this perspective of leadership.

� Since institutions are for providing products or services with value for life, this perspective is instrumental in better understanding the philosophy of leadership.

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� This perspective deals with the human relations at the workplace.

� Creating motivating jobs, providing guidance, love and care, and offering a vision for the team, one may be able to establish personally as a leader.

� The indicators of the humanist perspective of leadership are the personality traits, and leader member relations.

Critical Humanist PerspectiveCritical Humanist Perspective

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Perspectives of LeadershipPerspectives of Leadership� To summarize from the various leadership

perspectives, it may be concluded that leader behavior has to be measured in terms of -

� leader's relationship of power position,

� leader’s behavior and skills to add values to the society, and

� leader’s personality traits to figurehead the work teams.

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Issues Governing LeadershipIssues Governing Leadership� Political-legal issuesPolitical-legal issues

� Economic issuesEconomic issues

� Socio-cultural issuesSocio-cultural issues

� Technological issuesTechnological issues

� International issuesInternational issues

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Selected Leadership Theories

Trait Theories

Behavioral Approaches

Contingency Approaches

Neocharismatic Approaches

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Trait Theory� The theories that sought personality, social,

physical, or intellectual traits that differentiated leaders from nonleaders

� The traits are the inherent attributes of the leaders to keep them distinct from others

� For example, Margaret Thatcher, as the prime minister of UK, was recognized for her leadership in terms of her confidence, iron-willed, determined, and decisive.

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� A research study was conducted in the 1930s to study the attributes that differentiate the leaders from nonleaders.

� A review of 20 different studies identified nearly 80 leadership traits, though the study was not aimed to identify the leadership traits

� Among the identified traits, only FOUR of them were common to all cases, which included personality, social, physical, and intellectual traits.

Trait Theory

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� Earliest approach to study leadership

� Used to identify great persons from masses

� Based on the assumption of -

certain traits = success/effectiveness

� The logic of leadership traits is as basic as height, as complex as intelligence

Trait Theory

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How Leaders Differ from Nonleaders?

� According to Kirkpatrick & Locke (1991), leaders can be distinguished from nonleaders on the basis of SIX attributes or traits:

• Drive

• Desire to lead

• Honesty and integrity

• Self-confidence

• Intelligence

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Important Traits of Effective Leaders

� Personality

� Persuasive

� Persistence

� Patience

� Probity

� Praise giving

� Positive orientation

People BasedPeople Based PossiblePossible PracticalPractical ProgressiveProgressive PreparedPrepared Power-buildingPower-building

13 Ps

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Personality Factors for Effective LeadershipCapacity Achievement Responsibility Participation Status

Intelligence Scholarship Honesty Activity Socioeconomic position

Alertness Knowledge Dependability Sociability Popularity

Verbal facility

Athletic accomplishment

Initiative Cooperation

Originality Personality adjustment

Persistence Adaptability

Judgment Aggressiveness Humor

Self-confidence

Desire to excel

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Criticisms on Trait Theories of Leadership� The belief that personality traits determine the rate of

success of a leader could easily be challenged because practically it is very hard to distinguish leaders from non-leaders based on personality traits

� There exists a very thin relationship between traits and leader’s success

� Some traits are achieved by birth� Personality traits without motivation are worthless for

success� It does not look like a theory� “Traits Plus Motivation Equals Leadership”

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Behavioral Approaches to Leadership

� Pattern of actions used by different individuals determines leadership potential

� Examples� Autocratic, democratic and laissez-faire� Michigan Studies: Employee centered

versus task centered

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Three Approaches to Behavioral Studies

1. Studies Based on Leadership Styles

2. Studies Based on Leadership Dimensions

3. Studies Based on Leadership Grid

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1. Studies Based on Leadership StylesLewin, Lippitt, and White are probably the earliest

contributors of leadership study in a scientific manner.

The authors specialized in leadership styles while conducting a series of research studies in the 1930s at the University of Iowa.

The suggested leadership styles include:

• Autocratic

• Democratic

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When Quantity of work is important

When Quality of work is important

When Satisfaction with work is important

Which is the Best Style?

Autocratic Democratic Laissez Faire

Most Least

Democratic Autocratic Laissez Faire

Best Worst

Democratic Laissez Faire Autocratic

Most Least

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Tannenbaum and Schmidt - Continuum of Leadership Behavior

Autocratic Democratic Laissez-faire

Use of Authority by the Manager

Area of Freedom for Subordinates

Boss- CenteredLeadership

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Optimal Leadership Style Depends Upon:

1.Forces in the Leader

2.Forces in the Subordinate Group

3.Forces in the Situation

Tannenbaum/Schmidt’s Leadership Continuum

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2. Studies Based on Leadership Dimensions

Key Contributions

a. Ohio State University Studies

b. Michigan State University Studies

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Ohio State University Studies

Two Dimensions

� Initiating structure: The extent to which a leader is likely to define and structure his/her role and roles of subordinates in the search for goal attainment

� Consideration: The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinates’ ideas, and regard of their feelings

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Initiating Structure� Is task oriented� Directs subordinate work activities toward goal

attainment� Typically give instructions, spend time planning,

and emphasize deadlines� Provide explicit schedules of work activities

Consideration� Is mindful of subordinates� Establishes mutual trust� Provides open communication� Develops teamwork

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Two Dimensions � Employee Oriented: The leadership dimension in

which the leader emphasizes interpersonal relations; relationship oriented.

� Production Oriented: The leadership dimension in which the leader emphasizes on technical or task aspect of the job; result oriented.

Michigan State University Studies

Similar to Ohio StudiesSimilar to Ohio Studies

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Studies Based on Leadership Grid

� Blake and Mouton (1964) represented with the graphical portrayal of the two dimensional view of leadership

� The authors proposed a managerial grid showing the key managerial styles of ‘concern for people’ and ‘concern for production’

� The grid has been developed in a nine-by-nine matrix outlining 81 different leadership styles

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The Managerial Grid

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5 6 7 8 9

Concern for People

Con

cern

for

Tas

k

(1,9)(1,9)

(9,1)(9,1)

(9,9)(9,9)

(5,5)(5,5)

(1,1)(1,1)

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Figure 13.4 B: The Managerial Grid

High

High

Low

Low

Concern for Production

Co

nce

rn f

or

Peo

ple

1,9Country Club ManagementThoughtful attention to the needs of people for satisfying relationships leads to a com-fortable, friendly organization atmosphere and work tempo.

1,1 Impoverished ManagementExertion of minimum effort to get required work done is appropriate to sustainorganization membership.

9,9Team ManagementWork accomplishment is from committed people; interdependencethrough a “common stake” inorganization purpose leads torelationships of trust and respect.

5,5Middle-of-the-Road Management

Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level.

Authority-Compliance 9, 1Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 60Dr Rijal's Discourses on OB

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Leadership Styles

Likert’s System Four

System I—Exploitive Autocratic

System II—Benevolent Autocratic

System III—Consultative

System IV—Participative Group

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Contingency Theories of Leadership

� Leader traits and/or leader behaviors are important aspects but must be taken in context.

That is, the situation matters.

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Selected Studies on Contingency Approaches

� Fiedler’s Contingency Theory

� Hersey and Blanchard’s Situational (Life Cycle) Theory

� House’s Path-Goal Theory

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LPC: LEAST PREFERRED COWORKER

� Low LPC Score: task-oriented leader

� High LPC Score: relationship-oriented leader

� According to Fiedler, a person is one or the other - it is a fixed personality trait

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FIEDLER’S CONTINGENCY THEORY OF LEADERSHIP

A person’s LPC score correlates with:

� Task structure

� Leader/Member relations

� Leader position power

in terms of group effectiveness

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Three Elements of Leadership Situations

Leader-member relations: refers to group atmosphere and members’ attitude toward and acceptance of the leader

Task structure: refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals

Position power: is the extent to which the leader has formal authority over subordinates

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Task-Oriented (low LPC)

Leader is best when situation either favorable or unfavorable

Employee-Oriented (high LPC)

Leader is best when situation is moderately favorable

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POSSIBLE USES OF FIEDLER’S THEORY

1.Train leaders in needed style

(Fiedler says no)

2.Match the leader with the job

(Fiedler says this is a good start)

3.Engineer the job to fit the manger

(Fiedler says this is the best approach)

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Hersey and Blanchard’s Situational Theory

A contingency approach to leadership that links the leader’s behavioral style with the task readiness (maturity) of subordinates.

Also known as ‘life cycle’ theory.

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Situational Leadership

� No single best way to lead� Focus on maturity or readiness of followers

� Ability and willingness

� Adjust emphasis on task and relationship behaviors according to the readiness of followers to perform their tasks

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Hersey’s Situational Leadership Model

� Based on� Style of leadership

• Giving direction (task behaviour)• Giving motivational support (relationship

behaviour)

� “Readiness” of followers to perform a task• Ability• Willingness

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Situational Leadership

� Telling: low readiness, untrained and inexperienced employees

� Selling: low/moderate readiness, trained but inexperienced employees

� Participating: moderate/high readiness, able but unwilling, employees skeptical

� Delegating: high readiness, employees ready and willing to take responsibility

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Hersey and Blanchard’s Situational Leadership Model Defines Relationship Between Maturity and Four Leadership Styles

HighHigh

relationshiprelationship

Low taskLow task

High taskHigh task

HighHigh

relationshiprelationship

LowLow

relationshiprelationship

Low taskLow task

High taskHigh task

LowLow

relationshiprelationship

M1M1

M2M2M3M3

M4M4

Parti

cipat

ing

Del

egat

ing Telling

Selling

HighHigh

LowLow HighHighTask BehaviorTask Behavior

Rel

atio

nshi

p B

ehav

ior

Rel

atio

nshi

p B

ehav

ior

Style of Style of LeaderLeader

ImmatureImmatureMaturityMaturity

AbilityAbility

WillingnessWillingness

M1M1M2M2M3M3M4M4HighHigh ModerateModerate LowLow

This person is able(has the necessaryknowledge and skill)

This person is willing(has the necessary confidence and commitment)

Maturity of Followers

Psychological maturity

Job maturity

A great dealA great deal44

Quite a bitQuite a bit33

SomeSome22

LittleLittle11

UsuallyUsually44

OftenOften33

On occasionOn occasion22

SeldomSeldom11

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HOUSE’S PATH-GOAL THEORY OF HOUSE’S PATH-GOAL THEORY OF LEADERSHIPLEADERSHIP

Based on Expectancy Theory of Motivation

A leader should emphasize either path clarification or adjust rewards depending on the factors affecting a person’s motivation

Theory assumes people can change their leadership styles to fit the situation

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Situational ContingenciesThree Important Situational Contingenciesin Path-Goal Theory

The personal characteristics of group members

The work environment The situation

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Path-goal Theory

� Rooted in Expectancy Theory

� Leader behaviors� Directive� Supportive� Achievement-oriented� Participative

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Path-Goal Model of Leadership

Follower CharacteristicsFollower Characteristics1.1. Locus of controlLocus of control2.2. AuthoritarianismAuthoritarianism3.3. AbilityAbility

OutcomesOutcomes1.1. Job satisfactionJob satisfaction2.2. PerformancePerformance3.3. Acceptance of the leaderAcceptance of the leader

FollowersFollowers1.1. PerceptionsPerceptions2.2. MotivationMotivation

Environmental FactorsEnvironmental Factors1.1. TasksTasks2.2. Formal authority systemFormal authority system3.3. Work groupWork group

Leader Behavior StylesLeader Behavior Styles1.1. DirectiveDirective2.2. SupportiveSupportive3.3. ParticipativeParticipative4.4. Achievement-orientedAchievement-oriented

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Change Leadership� Transactional Leader: Provides direction for

subordinates to achieve set objectives (typical “good manager” using position power and some personal power).

� Transformational Leader: Special ability to create innovation & change (charismatic leader within an organization – high on position & personal power).

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Effects of Change Leadership

Transactional Leadership

Current state ofexpectedsubordinateeffort

Normalexpectedsubordinateperformance

TransformationalLeadership

Heightenedmotivationto attaindesignedoutcome(extra effort)

Subordinateperformancebeyondnormalexpectations

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Transformational Leadership

Transformational Leadership

• Idealized Influence• Inspiration• Intellectual stimulation• Individualized

consideration

Transformational Leadership

• Idealized Influence• Inspiration• Intellectual stimulation• Individualized

consideration

Transactional Leadership

• Contingent reward• Management by

exception (active or passive)

• Laissez faire

Transactional Leadership

• Contingent reward• Management by

exception (active or passive)

• Laissez faire

Performance beyond expectations

Performance beyond expectations

Agreed uponperformance

Agreed uponperformance

Broadening and elevating followergoals

Leader/follower exchange

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Characteristics of Transactional LeadershipCharacteristics of Transactional Leadership

� Establishes goals and objectives� Designs work flow and delegates task assignments� Negotiates exchange of rewards for effort� Rewards performance and recognizes

accomplishments� Searches for deviations from standards and takes

corrective actions

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Characteristics of Transformational LeadershipCharacteristics of Transformational Leadership

� Charismatic: Provides vision and a sense of mission, gains respect and trust, instills pride.

� Individualized consideration: Gives personal attention, and treats each person individually, coaches.

� Intellectually stimulating: Promotes learning, encourages rationality, uses careful problem solving.

� Inspirational: Communicates high performance expectations, uses symbols to focus efforts, distills essential purposes.

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Participative Management Democratic approach of management Employees have autonomy in making and

implementing decisions Leader invites wider participation of the

subordinates in making and selling decisions Exists high degree of delegation of authority Managers listen and value the subordinate

suggestions High degree of customer focus exists A move into TQM process climate

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Management by Objectives (MBO) A management system in which specific performance goals

are jointly determined by employees and their managers, progress toward accomplishing those goals is periodically reviewed, rewards are allocated on the basis of the progress in accomplishing the goals.

Goal achievement is the key of MBO. Management approach is driven by the nature of

performance objectives and goals. MBO consists of four elements -- i. goal specificity, ii.

participative decision making, iii. an explicit time period, and iv. performance feedback.

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Management by Walking Around (MBWA) A term used to describe when a manager is out in

the work area, interacting directly with employees, and exchanging information about what’s going on.

MBWA is a management control process which follows THREE steps:

Measuring actual performance, Comparing actual performance with the standard

performance, and Taking managerial actions for further

improvement

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Management by Exception An alternative approach of management when the

other conventional laws management do not work Difficult to distinguish from charismatic,

transformational, and transactional leadership approaches

Examples: Use negative reinforcement if positive reinforcement

does not work Reward for faulty deeds if punishment does not work Do it yourself to let others know how to follow it Induce unexpected surprising ways to doing things

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Learning Organization An organization with exceptional work culture. The most open type of organization. An organizational system in which fear of

ignorance and inability is eliminated through relevant training and development.

People learn through open interactions. Managers value subordinate problems and their

suggestions. Creativity creeps eternally in all members . A move towards TQM process climate.

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Key Findings from Leadership Theories� Transformational leaders inspire higher

performance than do transactional leaders.� Effective leaders must be concerned about

accomplishing the task and relationships.� Effective leaders know when to tell, sell,

participate, or delegate.� Effective leaders understand mission and strategy,

know how to implement change, motivate employees to high performance, and operate effectively.

� Effective leaders lead by example and are honest and fair. They inspire confidence.

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Reasons for Derailment of Top ManagementRank the following in order of importance. Choose 1 for the reason you feel is most important, 2 for next most important, etc.

a) Betrayal of Trust—failure to meet commitments

b) Cold, aloof, arrogant

c) Overdependence on one’s boss or mentor

d) Insensitive to others: abrasive, intimidating

e) Over-managing: unable to delegate or build a team

f) Unable to think broadly or strategically - too much attention to detail and minor technical problems

g) Unable to adapt to a boss with a different style

h) Unable to select and develop an effective staff

i) Overly ambitious—plays politics, pushes too hard to get ahead

j) Failure to handle specific performance problems - failure to handle problems then not admit the problem, try to cover up or shift blame

Source: “What Makes a Top Executive” by McCall and Lombardo, Source: “What Makes a Top Executive” by McCall and Lombardo, Psychology TodayPsychology Today, February 1983, February 1983Dr Rijal's Discourses on OB 89

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Section 2: CommunicationSection 2: Communication

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Functions of Communication

Communication Functions

1. Control member behavior.

2. Foster motivation for what is to be done.

3. Provide a release for emotional expression.

4. Provide information needed to make decisions.

Communication Functions

1. Control member behavior.

2. Foster motivation for what is to be done.

3. Provide a release for emotional expression.

4. Provide information needed to make decisions.

Communication

The transference and the understanding of meaning.

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Elements of the Communication Process� The sender

� Encoding

� The message

� The channel

� Decoding

� The receiver

� Noise

� FeedbackDr Rijal's Discourses on OB 92

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The Communication Process Model

Communication Process

The steps between a source and a receiver that result in the transference and understanding of meaning.

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The Communication ProcessThe Communication Process

Channel: The medium selected by the sender through which the message travels to the receiver.

Types of Channels� Formal Channels

• Are established by the organization and transmit messages that are related to the professional activities of members.

� Informal Channels• Used to transmit personal or social messages in the

organization. These informal channels are spontaneous and emerge as a response to individual choices.

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Information Richness of Communication ChannelsInformation Richness of Communication Channels

Low channel richness High channel richness

Routine Nonroutine

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Direction of Communication

Upward

Downward

Lateral

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Interpersonal Communication

� Oral Communication� Advantages: Speed and feedback.� Disadvantage: Distortion of the message.

� Written Communication� Advantages: Tangible and verifiable.� Disadvantages: Time consuming and lacks feedback.

� Nonverbal Communication� Advantages: Supports other communications and

provides observable expression of emotions and feelings.� Disadvantage: Misperception of body language or

gestures can influence receiver’s interpretation of message.

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Three Common Formal Small-Group NetworksThree Common Formal Small-Group Networks

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Small-Group Networks and Effectiveness Criteria

NETWORKS

Criteria Chain Wheel All Channel

Speed Moderate Fast Fast

Accuracy High High Moderate

Emergence of a leader Moderate High None

Member satisfaction Moderate Low High

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Grapevine� Grapevine Characteristics

� Informal, not controlled by management.

� Perceived by most employees as being more believable and reliable than formal communications.

� Largely used to serve the self-interests of those who use it.

� Results from:• Desire for information about important situations

• Ambiguous conditions

• Conditions that cause anxiety

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Computer-Aided Communication� E-mail

� Advantages: quickly written, sent, and stored; low cost for distribution.

� Disadvantages: information overload, lack of emotional content, cold and impersonal.

� Instant messaging� Advantage: “real time” e-mail transmitted straight to the

receiver’s desktop.

� Disadvantage: can be intrusive and distracting.

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Emoticons: Showing Emotion in E-Mail

Electronic mail needn’t be emotion free. Over the

years, a set of symbols (emoticons) has evolved that e-

mail users have developed for expressing emotions.

For instance, the use of all caps (i.e., THIS PROJECT

NEEDS YOUR IMMEDIATE ATTENTION!) is the

e-mail equivalent of shouting. The following

highlights some emoticons:

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Computer-Aided Communication (cont’d)

� Intranet

� A private organization-wide information network.

� Extranet

� An information network connecting employees with external suppliers, customers, and strategic partners.

� Videoconferencing

� An extension of an intranet or extranet that permits face-to-face virtual meetings via video links.

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Barriers to Effective Communication

Filtering

A sender’s manipulation of information so that it will be seen more favorably by the receiver.

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Information Overload

A condition in which information inflow exceeds an individual’s processing capacity.

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Barriers to Effective Communication (contd.)

Emotions

How a receiver feels at the time a message is received will influence how the message is interpreted.

Language

Words have different meanings to different people.

Communication Apprehension

Undue tension and anxiety about oral communication, written communication, or both.

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Communication Barriers Between Men and Women

� Men talk to:

� Emphasize status, power, and independence.

� Complain that women talk on and on.

� Offer solutions.

� To boast about their accomplishments.

� Women talk to:

� Establish connection and intimacy.

� Criticize men for not listening.

� Speak of problems to promote closeness.

� Express regret and restore balance to a conversation.

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“Politically Correct” Communication� Certain words stereotype, intimidate, and insult individuals.

� In an increasingly diverse workforce, we must be sensitive to kown how words might offend others.

� Removed: handicapped, blind, and elderly � Replaced with: physically challenged, visually impaired,

and senior.

� Removing certain words from the vocabulary makes it harder to communicate accurately.

� Removed: death, garbage, quotas, and women.� Replaced with terms: negative patient outcome,

postconsumer waste materials, educational equity, and people of gender.

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Cross-Cultural CommunicationCross-Cultural Communication

Cultural BarriersCultural Barriers

� Semantics

� Word connotations

� Tone differences

� Differences among perceptions

Cultural GuideCultural Guide

� Assume differences until similarity is proven.

� Emphasize description rather than interpretation or evaluation.

� Practice empathy.

� Treat your interpretations as a working hypothesis.

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Hand Gestures Mean Different Things in Different Countries

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Hand Gestures Mean Different Things in Different Countries (contd.)

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Communication Barriers and Cultural ContextCommunication Barriers and Cultural Context

High-Context Cultures

Cultures that rely heavily on nonverbal and subtle situational cues to communication.

Low-Context Cultures

Cultures that rely heavily on words to convey meaning in communication.

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High-vs.

Low-Context Cultures

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Section 3: Work Groups

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Definition of a Group

A collection of

individuals, the

members accept a

common task, become

interdependent in their

performance, and

interact with one

another to promote its

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What is a Group?� A group is defined as two or more individuals

interacting and interdependent, who have come together to achieve particular goal.

� Group work is often seen as a set of people working together to achieve a common goal.

� To define a group, a group must have certain qualities.

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Work Group“each member is conscious about their own and others existence within the group … members have common aims or ideals that to some extent bind them together … members influence and respond to each other in the process of communicating”, (Jaques, 2000).

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Characteristics of groupCollection of People

Interaction & Interdependence

Similar Interests

Common goals

Role Differentiation

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Why do people join Groups?

� Security� Status� Self-esteem� Affiliation� Power� Goal Achievement

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Committee Consortium Panel Jury

Departments Units SBUs Branches

Friendship groups

Interest groups

Grapevines

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Types of Group There can be different types of groups . The most common way of distinguishing between groups is to categorizing the groups into --

1.Formal groups: Formal groups are deliberately created by the organization in order to help the organizational members achieve some of the important the organizational goals.

2. Informal groups: A group that is neither formally structured nor organizationally determined it appears in response to the need for social contact.

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Basic Comprison of Formal and Informal GroupsBasic Comprison of Formal and Informal Groups

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1.Command Group� It is determined by the

organizational chart depicting the approved formal connections between individuals in an organization.

Eg: Director, faculty members in a business

school, school head, Teachers, Production, manager and supervisors, etc.

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Task groups

� It comprizes some individuals with special interest or expertise, are created by the organizational authorities to work together in order to complete a specific task.

• Examples:

process action teams,

Concurrent engineering teams,

task forces

Project Members

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Although group dynamics is generally

associated with informal norms and roles,

formally designated work groups also have

noticeable dynamics.

Example: Committee

Dynamics of Formal work GroupsDynamics of Formal work Groups

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Committee

1.Standing committee

� It is a permanent committee in an organization to deal with some specific types of problems that may arise more or less on a regular basis.

� Example:of standing committees include the standing committee in a university to discuss various institutional management issue.

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Committee2.Task force or ad-hoc committee

It is a temporary committee formed by organizational members from across various functional areas for a special purpose.

Meeting scan also come under this category.

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Nature of Informal Groups� Unofficial

� Focus

� Basis

� Communication

� Guidelines for behavior

� Source of power

� Major concept

� Source of control

� Co –existence

� Environmental Adaptation

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Significance of Informal group� Sense of belonging

& security

� Safety valve for emotional problems

� Self image

� Channel of communication

� Authority check

� Reduce supervision

� Social control

� Ventilation

� Innovation

� Performance

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Informal groups 1. Interest groups

are formed when a group of employees band together to seek some common objectives, like protesting some organizational policy or joining the union to achieve a higher amount of bonus.

2.Friendship groups

develop among the organizational members when they share some common interest like participating in some sports activities or staging the office drama, etc.

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Informal groups Cont…� Reference group are the groups, with which

individuals identify and compare them selves.

� These could be within the organization when a middle level executive compares himself with the higher level executive the .

� The reference group might exist outside the organization as well when an individual compares himself with his batch mates working in other organizations or an ideal group of people he likes to become.

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Formation of Groups

A group or team passes through five lifecycle stages.� Forming.� Storming.� Norming.� Performing.� Adjourning.

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Stages of Group development

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Adjourning/MourningCompletion, ending or evolution

PerformingAchieving the purpose

NormingAgreeing purpose and conduct

StormingResolving differences

FormingInitial meeting together

Stages of Group Formation & PerformanceStages of Group Formation & Performance

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Cont…

Forming stage.� Initial entry of members to a group.� Members concern’s include:

• Getting to know each other.• Discovering what is considered acceptable behavior.• Determining the group’s real task.• Defining group rules.

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Cont…

Storming stage.� A period of high emotionality and tension

among group members.� Members concern’s include:

• Formation of coalitions and cliques.• Dealing with outside demands.• Clarifying membership expectations.• Dealing with obstacles to group goals.• Understanding members’ interpersonal styles.

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Cont…

Norming stage.� The point at which the group really begins to

come together as a coordinated unit.� Members concern’s include:

• Holding the group together.• Dealing with divergent views and criticisms.• Dealing with a premature sense of accomplishment.

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Cont…

Performing stage.� Marks the emergence of a mature, organized,

and well-functioning group.

� Members deal with complex tasks and handle internal disagreements in creative ways.

� Primary challenge is to continue to improve relationships and performance.

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Cont…

Adjourning stage.

� Particularly important for temporary groups.

� A well-integrated group is:

• Able to disband when its work is finished.

• Willing to work together in the future.

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It helps shape the behavior of its members, predict the behavior and guide the performance of the group as a whole.

Group Structure

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Groups of 5-7 members exercise the best elements of both small and large groups.

Social Loafing - The tendency for individuals to expend less effort when working collectively than when working individually.

Group Structure

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Group Structure

1.Size & Composition

� Size is the number of persons in group which affects group behavior and composition is degree of similarity or difference among group members.

� Large groups

� Small groups

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Group Structure

2.Roles

� Roles deal with what people do

� Role is a set of position related expected behavior patterns in a social unit

Task Oriented roles

Relation oriented role

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Group Structure3. Norms

� Norms are the acceptable standards of behavior shared by group members

� Norms influence the behavior of group members that apply to all group members

� Performance Norms

� Appearance Norms

� Social Arrangement Norms

� Resource allocation norms

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Group Structure

4.Status4.Status

� Status is a socially defined rank given to groups or group members by others

� Status symbol

� Status equity

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The processes that go on within a work group e.g.

communication patterns, group decision processes,

leader behaviour, power dynamics, conflict

interactions etc.

Synergy, and

Social

Sacilitation

effect.

Group Processes

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Complexities of Work Groups

� Diversity

� Communication Gap

� Interpersonal differences

� personal skill competence

� Conflicts

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Benefits and dangers� Significant sites of socialization and education –

enabling people to develop a sense of identity and belonging, and to deepen knowledge, skills, and values and attitudes.

� Places where relationships can form and grow, and where people can find help and support.

� Settings where wisdom flourishes.

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Section 4: Work Teams

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Work Team � temporary or ongoing task group whose

members work together to identify problems, form consensuses about actions to be taken, and implement the most viable ones

� not appropriate for all organizations or in all types of businesses

� to mesh workers into cohesive groups in order to attain a common goal

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TYPES OF TEAMSTYPES OF TEAMSWork team: group of individuals who cooperate in completing a set of tasks.

Integrated work team: group that accomplishes many tasks by making specific assignments to members and rotating jobs among them as the tasks require.

Autonomous (or self-managing) work team: given almost complete autonomy in determining how a task will be done.

Entrepreneurial team: group of individuals with diverse expertise and backgrounds.

Quality circles: comprise small groups of employees who work on solving specific problems related to quality and productivity, often with stated targets for improvement.

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PUTTING THE TEAM TOGETHER� Forming a team involves a great deal more than just

throwing several people together and assigning them a goal

� Effectiveness of a team begins to diminish over 12 members.

� Ideal size is typically centered around 6 and can drift as high as 9.

� When formal groups are established with large numbers, they inevitably partition into subgroups.

� When considering the size of a team, a firm must also be conscious of the necessity of assembling a diversity of skills and functional expertise

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NORMS IN THE TEAM CONCEPT � Teams cannot work effectively to accomplish their

goals if they do not establish norms by which they will operate.

� Group norms are not designed to cover every conceivable situation in which a team might become involved they address only those situations which are significant to the team.

� Not all norms apply to every team member

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CONFORMITY TO NORMS � Individuals conform to team norms for a variety of

reasons.

� People generally feel more comfortable in groups whose members share some common personal factors.

� Intelligence is also an important factor in group conformity.

� Situational factors are also integral part in the team concept. Such factors include the size of the group.

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Building a team� Successful team building, that creates effective, focused work teams.

� Requires attention to each of the following.

Clear Expectations

1. Has executive leadership clearly communicated its expectations for the team’s performance?

2. Do team members understand?

3. Why the team was created?

4. Is the organization demonstrating constancy of purpose in supporting the team with resources of people, time and money?

5. Does the work of the team receive sufficient emphasis as a priority in terms of the time, discussion, attention and interest directed its way by executive leaders?

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Contexts

1. Do team members understand why they are participating on the team?

2. Do they understand how the strategy of using teams will help the organization attain its communicated business goals?

3. Can team members define their team’s importance to the accomplishment of corporate goals?

4. Does the team understand where its work fits in the total context of the organization’s goals, principles, vision and values?

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Commitment

1. Do team members want to participate on the team?

2. Do team members feel the team mission is important?

3. Are members committed to accomplishing the team mission and expected outcomes?

4. Do team members perceive their service as valuable to the organization and to their own careers?

5. Do team members anticipate recognition for their contributions?

6. Do team members expect their skills to grow and develop on the team?

7. Are team members excited and challenged by the team opportunity?

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Competence 1. Does the team feel that it has the appropriate people participating?

2. Does the team feel that its members have the knowledge, skill and capability to address the issues for which the team was formed?

3. If not, does the team have access to the help it needs?

Charter

1. Has the team taken its assigned area of responsibility and designed its own mission, vision and strategies to accomplish the mission.

2. Has the team defined and communicated its goals; its anticipated outcomes and contributions; its timelines; and how it will measure both the outcomes of its work and the process the team followed to accomplish their task?

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Control 1. Does the team have enough freedom and empowerment to feel the

ownership necessary to accomplish its charter? 2. At the same time, do team members clearly understand their

boundaries? 3. How far may members go in pursuit of solutions?

Collaboration 1. Does the team understand team and group process? 2. Do members understand the stages of group development? 3. Are team members working together effectively interpersonally? 4. Do all team members understand the roles and responsibilities of team

members?5. Can the team approach problem solving, process improvement, goal

setting and measurement jointly? 6. Do team members cooperate to accomplish the team charter?

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Communication 1.Are team members clear about the priority of their tasks? 2. Is there an established method for the teams to give

feedback and receive honest performance feedback? 3.Does the organization provide important business

information regularly? 4.Do the teams understand the complete context for their

existence?

Creative Innovation 1. Is the organization really interested in change? 2.Does it value creative thinking, unique solutions, and new

ideas?3.Does it reward people who take reasonable risks to make

improvements?4.Or does it reward the people who fit in and maintain the

status quo? 5.Does it provide the training, education, access to books and

films, and field trips necessary to stimulate new thinking?Dr Rijal's Discourses on OB 159

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Section 5: Conflict Negotiation

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Concept

Conflict is the situation where someone believes that his/her own needs has been denied.

Or

There is a felt discomfort between at least two parties brought into action.

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� Conflict Defined…� Is a process that begins when one party perceives that

another party has negatively affected, or is about to negatively affect, something that the first party cares about.• Is that point in an ongoing activity when an interaction

“crosses over” to become an interparty conflict.� Encompasses a wide range of conflicts that people

experience in organizations• Incompatibility of goals• Differences over interpretations of facts

• Disagreements based on behavioral expectations

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Any changes or transformation that Any changes or transformation that happens within a group structure, its happens within a group structure, its members, and their working patterns is members, and their working patterns is referred to as group dynamism.referred to as group dynamism.

Forces operating in groups that affect Forces operating in groups that affect group performance and member group performance and member satisfaction.satisfaction.

If the group is an open system that transforms resource inputs into product outputs, group dynamics are the processes through which this transformation is accomplished.

GROUP DYNAMICS & CONFLICT

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INTERGROUP DYNAMICS

Dynamics of Intergroup competition

(deal with unhealthy competition after it occurs)� appealing to a common goal that can unite the

groups� getting direct negotiations started between the

groups� identify a common enemy that can unite the

groups� training members of the groups to work

cooperativelyDr Rijal's Discourses on OB 164

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Transitions in Conflict Thought

Causes:

• Poor communication

• Lack of openness

• Failure to respond to employee needs

Causes:

• Poor communication

• Lack of openness

• Failure to respond to employee needs

Traditional View of Conflict

The belief that all conflict is harmful and must be avoided.

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Transitions in Conflict Thought (cont’d)

Human Relations View of Conflict

The belief that conflict is a natural and inevitable outcome in any group.

Interactionist View of Conflict

The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.

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Functional versus Dysfunctional Conflict

Functional Conflict

Conflict that supports the goals of the group and improves its performance.

Dysfunctional Conflict

Conflict that hinders group performance.

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Types of ConflictTask Conflict

Conflicts over content and goals of the work.

Relationship Conflict

Conflict based on interpersonal relationships.

Process Conflict

Conflict over how work gets done.

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LEVELS AND TYPES OF CONFLICT

LEVEL OF CONFLICT TYPE OF CONFLICT

ORGANIZATION WITHIN & BETWEEN ORGANIZATION

GROUP WITHIN & BETWEEN GROUP

INDIVIDUAL WITHIN & BETWEEN INDIVIDUAL

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Levels and Types of Conflict (Cont.)

Intra-organizational conflictConflict that occurs within an organization.It occurs at various functional levels and

interferes them.Can occur along the vertical and horizontal

dimensions of the organization.

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Levels and Types of Conflict (Cont.)

Vertical conflict : Between managers and subordinates working at different levels within an organization.

For example: Conflict between Marketing Manager and Marketing Assistant

Horizontal conflict: Between departments and workgroups.

For example: ??

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Levels and Types of Conflict (Cont.)

Intra-group conflictConflict among members of a groupEarly stages of group developmentWays of doing tasks or reaching group's goals

For example: ???

Intergroup conflict:Conflict between two or more groups

For example: ???

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Interpersonal Conflict

Between two or more people.Differences in views about what should be doneEfforts to get more resources.Differences in orientation to work and time in

different parts of an organization.

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Intrapersonal conflictOccurs within an individualThreat to a person’s valuesFeeling of unfair treatmentMultiple and contradictory sources of

socializationRelated to the Theory of Cognitive Dissonance

What about examples of such conflicts?

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Inter-organizational conflictBetween two or more organizationsMay or may not be the competing institutions

Example: Conflict between the marketing channels and logistics support service organizations

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Conflict Formation and Handling ProcessConflict Formation and Handling Process

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Stage I: Potential Opposition or Incompatibility� Communication

� Semantic difficulties, misunderstandings, and “noise”

� Structure� Size and specialization of jobs� Jurisdictional clarity/ambiguity� Member/goal incompatibility� Leadership styles (close or participative)� Reward systems (win-lose)� Dependence/interdependence of groups

� Personal Variables� Differing individual value systems� Personality types

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Stage II: Cognition and Personalization

Positive FeelingsPositive FeelingsPositive FeelingsPositive FeelingsNegative EmotionsNegative EmotionsNegative EmotionsNegative Emotions

Conflict DefinitionConflict DefinitionConflict DefinitionConflict Definition

Perceived ConflictAwareness by one or more parties of the existence of conditions that create opportunities for conflict to arise.

Felt ConflictEmotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility.

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Stage III: Intentions

Cooperativeness: Attempting to satisfy the other party’s concerns.

Assertiveness: Attempting to satisfy one’s own concerns.

Cooperativeness: Attempting to satisfy the other party’s concerns.

Assertiveness: Attempting to satisfy one’s own concerns.

Intentions

Decisions to act in a given way.

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Dimensions of Conflict-Handling Intentions

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Stage III: Intentions (cont’d)

Competing

A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict.

Collaborating

A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties.

Avoiding

The desire to withdraw from or suppress a conflict.

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Stage III: Intentions (cont’d)

Accommodating

The willingness of one party in a conflict to place the opponent’s interests above his or her own.

Compromising

A situation in which each party to a conflict is willing to give up something.

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Stage IV: Behavior

Conflict Management

The use of resolution and stimulation techniques to achieve the desired level of conflict.

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Conflict-Intensity Continuum

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Conflict Management Techniques

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Stage V: Outcomes� Functional Outcomes from Conflict

� Increased group performance

� Improved quality of decisions

� Stimulation of creativity and innovation

� Encouragement of interest and curiosity

� Provision of a medium for problem-solving

� Creation of environment for self-evaluation and change

� Creating Functional Conflict

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Stage V: Outcomes

� Dysfunctional Outcomes from Conflict

� Development of discontent

� Reduced group effectiveness

� Retarded communication

� Reduced group cohesiveness

� Infighting among group members overcomes group goals

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Negotiation

Negotiation

A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them.

BATNA

The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

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Negotiation Strategies

1. I win, you lose

2. I lose, you win

3. I lose, you lose

4. I win, you win

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Bargaining Strategies

Distributive Bargaining

Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.

Integrative Bargaining

Negotiation that seeks one or more settlements that can create a win-win solution.

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Distributive Vs. Integrative Bargaining

Bargaining Distributive IntegrativeCharacteristic Characteristic Characteristic

Available resources Fixed amount of Variable amount ofresources to be divided resources to be divided

Primary motivations I win, you lose I win, you win

Primary interests Opposed to each other Convergent or congruentwith each other

Focus of relationships Short term Long term

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Conflict-Handling Intention: Competition Conflict-Handling Intention: Competition � When quick, decisive action is vital (in

emergencies); on important issues.

� Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline).

� On issues vital to the organization’s welfare.

� When you know you’re right.

� Against people who take advantage of noncompetitive behavior.

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Conflict-Handling Intention: Collaboration Conflict-Handling Intention: Collaboration

� To find an integrative solution when both sets of concerns are too important to be compromised.

� When your objective is to learn.

� To merge insights from people with different perspectives.

� To gain commitment by incorporating concerns into a consensus.

� To work through feelings that have interfered with a relationship.

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Conflict-Handling Intention: Avoidance Conflict-Handling Intention: Avoidance

� When an issue is trivial, or more important issues are pressing.

� When you perceive no chance of satisfying your concerns.

� When potential disruption outweighs the benefits of resolution.

� To let people cool down and regain perspective.

� When gathering information supersedes immediate decision.

� When others can resolve the conflict effectively

� When issues seem tangential or symptomatic of other issues.

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Conflict-Handling Intention: Accommodation Conflict-Handling Intention: Accommodation � When you find you’re wrong and to allow a better

position to be heard.

� To learn, and to show your reasonableness.

� When issues are more important to others than to yourself and to satisfy others and maintain cooperation.

� To build social credits for later issues.

� To minimize loss when outmatched and losing.

� When harmony and stability are especially important.

� To allow employees to develop by learning from mistakes.

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Conflict-Handling Intention: Compromise Conflict-Handling Intention: Compromise � When goals are important but not worth the effort of

potential disruption of more assertive approaches.

� When opponents with equal power are committed to mutually exclusive goals.

� To achieve temporary settlements to complex issues.

� To arrive at expedient solutions under time pressure.

� As a backup when collaboration or competition is unsuccessful.

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Staking Out the Bargaining Zone

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The Negotiation

Process

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Issues in Negotiation� The Role of Personality Traits in Negotiation

� Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes.

� Gender Differences in Negotiations� Women negotiate no differently from men, although

men apparently negotiate slightly better outcomes.� Men and women with similar power bases use the same

negotiating styles.� Women’s attitudes toward negotiation and their success

as negotiators are less favorable than men’s.

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Why American Managers Might Have Trouble in Cross-Cultural Negotiations?

Italians, Germans, and French don’t soften up executives with praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fast-paced meetings, have no patience for American small talk.

British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention.

Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.

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Third-Party Negotiations

Mediator

A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives.

Arbitrator

A third party to a negotiation who has the authority to dictate an agreement.

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Third-Party Negotiations (cont’d)

Consultant

An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.

Conciliator

A trusted third party who provides an informal communication link between the negotiator and the opponent.

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Conflict and Unit

Performance

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Outcomes of Better Conflict NegotiationsOutcomes of Better Conflict Negotiations

� Agreements: Strive for equitable and fair agreements that last.

� Stronger Relationship: helps to build bridges of goodwill & trust for the future.

� Learning: Greater self awareness & creative problem solving.

� Relationship: Better

� Organizational Culture: conducive

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