MBA MCO101 Unit 8 A Lecture 9 200806 Xx
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MCO 101 • MANAGEMENTUnit 8A: Motivation, Leadership,
Groups and Teams
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MANAGEMENT 2MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 3MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Managing Expectations
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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MANAGEMENT 4MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Managing Expectations
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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MANAGEMENT 5MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 6MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Leadership Traits
LeadershipTraits
Desireto Lead
Honestyand
Integrity
Drive Self-Confidence
EmotionalStability
CognitiveAbility
Knowledgeof the
Business
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MANAGEMENT 7MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 8MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 9MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Putting Leaders in the Right Situation:Fiedler’s Contingency Theory
GroupPerformance
=
LeadershipStyle
SituationalFavorableness
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MANAGEMENT 10MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 11MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 12MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 13MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 14MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 15MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
Normative Decision Theory
DecisionStyles
Decision Quality and Acceptance
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MANAGEMENT 16MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 17MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 18MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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
• 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
Increasing Quality of Decisions [2]
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MANAGEMENT 19MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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
• 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
Increasing Quality of Decisions [3]
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MANAGEMENT 20MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 21MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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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MANAGEMENT 22MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
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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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MANAGEMENT 23MCO 101Issue date: 15 June 2008 Source: by South-Western, a division of Thomson Learning. All rights
reserved
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