Value, Attitude: and Job Satisfaction

Value, Attitude
And Job Satisfaction
1
Values
• It shows individual preference of what is right,
good or desirable.
• Values have both content and intensity
attributes
• Content shows what is important to you
• Intensity shows how much important that is for
you
• When we combine both this attributes than
person value system is obtain.
2
• Values are basic convictions that a
specific mode of conduct or end state of
existence is socially or personally
preferable to an opposite or converse
mode of conduct or end state of existence.
• Value System-A hierarchy based on the
ranking of an individual's values in term of
intensity.
3
• Importance of values- How it influence
attitudes and behavior
4
Types of Values
• Milton Rokeach created the Rokeach
Value Survey (RVS).
• The RVS consists of two sets of values,
with each set containing 18 individual
value items,
• Terminal values- Desirable end states of
existence, the goals that a person would
like to achieve during his lifetime.
5
• Instrumental values- Preferable mode of
behavior or means of achieving one's
terminal value.
6
Terminal values Instrumental values
Comfortable life Ambitious, hardworking,

aspiring
Self respect, self esteem Obedient, respectful,
dutiful
Social recognition, Polite, courteous, well
respect, admiration mannered
True friendship, relations Responsible, reliable
wisdom Self controlled, self

disciplined
7
Values Across Cultures
• Hofstede”s framework for assessing
cultures:- to analyze variations among
different national cultures Geert Hofstede
conducted survey on more than 1.16lac
IBM employees in 40 countries about their
work related values.
• He found 5 value dimensions of national
culture.
8
Power Distance
• The degree to which people in a country
accept that power in institutions and
organizations is distributed unequally.
• Ranges from relatively equal (low power
distance)- USA
• To extremely unequal (higher power
distance)- india
9
Individualism vs. collectivism
• Individualism is the degree to which
people in a country prefer to act as a
individual rather than member of s group.
• Collectivism indicates degree to which
people want to be part of society or group
expect from members of group to look
after them and protect them,
10
Quality vs. quantity of life
• Quantity- people give value to
assertiveness, acquisition of money and
material goods.
• Quality- people values relationships,
concern for others, sensitive and welfare
of others.
11
• Uncertainty Avoidance- A national culture
attribute describing the extent to which a
society feels threatened by uncertainty and
ambiguous situations and tries to avoid
them.
• Long term orientation- emphasize on future
and short term orientation emphasize on
past and present, respect for tradition and
fulfill social obligations.
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Attitudes
• It reflect how one feels about something.
• Attitude and value are interrelated
• 3 Component of attitude:
• Cognitive: Opinion or believe segment
• Affective: Emotional or feeling segment
• Behavior: An intention to behave in a certain
way toward someone or something
13
Types of Attitudes
• Job Satisfaction: How positive (Job
satisfaction) or negative (Job
Dissatisfaction) attitude one's has toward
his job.
• Job Involvement: It measures the degree to
which a person identifies psychologically
with his job, actively participate in it and
considers his performance important to self
worth.
14
• Organization Commitment Now
Occupation Commitment: The degree to
which an employee identifies with a
particular organization and its goals, and
wishes to maintain membership in the
organization.
• Attitude and Consistency
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Cognitive Dissonance Theory
• Any incompatibility between two or more
attitudes or between behavior and
attitudes.
• Attitude and workforce divercity
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Job Satisfaction
• Its an individual general attitude towards
his job.
• 2 approaches to find out job satisfaction
among employees
• Single global rating
• Summation Score
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Effect of Job Satisfaction on
Employee Performance
• Productivity: Happy workers are
productive workers.
• Absenteeism:
• Turnover:
• Organization Citizenship Behavior
• Customer Satisfaction
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Chapter 4
Motivating
Self and Others
19
Motivating Self and Others
Questions for Consideration
• What do theories tell us about motivating
ourselves and others?
• How do we motivate for specific
organizational circumstances and/or
individual differences?
• Are rewards always necessary?
20
What Is Motivation?
• Motivation
– The processes that account for an individual’s
intensity, direction, and persistence of effort
toward attaining a goal
• Intensity: how hard a person tries
• Direction: where effort is channeled
• Persistence: how long effort is maintained
21
Theory X and Theory Y
• Theory X
– Assumes that employees dislike work, will attempt
to avoid it, and must be coerced, controlled, or
threatened with punishment if they are to perform.
• Theory Y
– Assumes that employees like work, are creative,
seek responsibility, and can exercise self-direction
and self-control.
22
Motivators
• Intrinsic
– A person’s internal desire to do something,
due to such things as interest, challenge, and
personal satisfaction.
• Extrinsic
– Motivation that comes from outside the
person, such as pay, bonuses, and other
tangible rewards.
23
Needs Theories of Motivation
• Basic idea:
– Individuals have needs that, when unsatisfied,
will result in motivation
• Maslow’s hierarchy of needs
• Herzberg’s two factor theory (motivation-hygiene
theory)
• Alderfer’s ERG theory
• McClelland’s theory of needs
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Maslow’s Hierarchy of Needs
• Physiological
– Includes hunger, thirst, shelter, and other
bodily needs
• Safety
– Includes security and protection from
physical and emotional harm
• Social
– Includes affection, belongingness,
acceptance, and friendship
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Maslow’s Hierarchy of Needs
• Esteem
– Includes internal esteem factors such as self-
respect, autonomy, and achievement; and
external esteem factors such as status,
recognition, and attention
• Self-actualization
– The drive to become what one is capable of
becoming; includes growth, achieving one’s
potential, and self-fulfillment
26
Exhibit 4-1
Self-
actualization
Esteem
Social
Safety
Physiological
27
Herzberg’s Motivation-Hygiene
Theory
• Hygiene factors are necessary, but not
sufficient, for healthy adjustment
– Extrinsic factors; context of work
• Company policy and administration
• Unhappy relationship with employee's supervisor
• Poor interpersonal relations with one's peers
• Poor working conditions
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Herzberg’s Motivation-Hygiene
Theory
• Motivators - the sources of satisfaction
– Intrinsic factors; content of work
• Achievement
• Recognition
• Challenging, varied or interesting work
• Responsibility
• Advancement
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Exhibit 4-3 Contrasting Views of
Satisfaction and Dissatisfaction
Traditional view
Satisfaction Dissatisfaction
Herzberg's view
Motivators
Satisfaction No satisfaction
Hygiene Factors
No dissatisfaction Dissatisfaction
30
Criticisms of Motivation-Hygiene
Theory
• The reliability of Herzberg’s methodology
is questioned
• No overall measure of satisfaction was
used
• The theory is inconsistent with previous
research
31
Alderfer’s ERG Theory
• Existence
– Concerned with providing basic material
existence requirements
• Relatedness
– Desire for maintaining important interpersonal
relationships
• Growth
– Intrinsic desire for personal development
32
McClelland’s Theory of Needs
• Need for Achievement
– The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
• Need for Power
– The need to make others behave in a way that they
would not have behaved otherwise
• Need for Affiliation
– The desire for friendly and close interpersonal
relationships
33
Exhibit 4-4 Summarizing the
Various Needs Theories
Maslow Alderfer Herzberg McClelland

Self-Actualization
Growth Motivators Need for Achievement
Esteem
Need for Power
Affiliation Relatedness
Hygiene
Need for Affiliation
Security Factors
Existence
Physiological
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Summary: Hierarchy of Needs
– Maslow: Argues that lower-order needs must be
satisfied before one progresses to higher-order needs.
– Herzberg: Hygiene factors must be met if person is not
to be dissatisfied. They will not lead to satisfaction,
however. Motivators lead to satisfaction.
– Alderfer: More than one need can be important at the
same time. If a higher-order need is not being met, the
desire to satisfy a lower-level need increases.
– McClelland: People vary in the types of needs they
have. Their motivation and how well they perform in a
work situation are related to whether they have a need
for achievement, affiliation, or power.
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Summary: Impact of Theory
– Maslow: Enjoys wide recognition among practising
managers. Most managers are familiar with it.
– Herzberg: The popularity of giving workers greater
responsibility for planning and controlling their work can
be attributed to his findings. Shows that more than one
need may operate at the same time.
– Alderfer: Seen as a more valid version of the need
hierarchy. Tells us that achievers will be motivated by
jobs that offer personal responsibility, feedback, and
moderate risks.
– McClelland: Tells us that high need achievers do not
necessarily make good managers, since high achievers
are more interested in how they do personally.
36
Summary: Support and
Criticism of Theory
– Maslow: Research does not generally validate the
theory. In particular, there is little support for the
hierarchical nature of needs. Criticized for how data
were collected and interpreted.
– Herzberg: Not really a theory of motivation: Assumes
a link between satisfaction and productivity that was
not measured or demonstrated.
– Alderfer: Ignores situational variables.
– McClelland: Mixed empirical support, but theory is
consistent with our knowledge of individual
differences among people. Good empirical support,
particularly on needs achievement.
37
Process Theories of Motivation
• Looks at the actual process of motivation
– Expectancy theory
– Goal-setting theory
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Expectancy Theory
• The strength of a tendency to act in a certain
way depends on the strength of an expectation
that the act will be followed by a given outcome
and on the attractiveness of that outcome to the
individual.
39
Expectancy Relationships
• The theory focuses on three relationships:
– Effort-performance relationship
• The perceived probability that exerting a given amount
of effort will lead to performance.
– Performance-reward relationship
• The degree to which the individual believes that
performing at a particular level will lead to a desired
outcome.
– Rewards-personal goals relationship
• The degree to which organizational rewards satisfy an
individual’s personal goals or needs and and are
attractive to the individual.
40
Exhibit 4-7
Steps to Increasing Motivation,
Using Expectancy Theory
Improving Expectancy Improving Instrumentality Improving Valence
Improve the ability of the Increase the individual ’s belief that Make sure that the reward is
individual to perform performance will lead to reward meaningful to the individual
• Make sure employees have skills • Observe and recognize performance • Ask employees what rewards they
for the task • Deliver rewards as promised value
• Provide training • Indicate to employees how previous • Give rewards that are valued
• Assign reasonable tasks and goals good performance led to greater
rewards
41
Goal-Setting Theory
• The theory that specific and difficult goals
lead to higher performance.
– Goals tell an employee what needs to be done and how
much effort will need to be expended.
• Specific goals increase performance
• Difficult goals, when accepted, result in higher performance
than do easy goals
• Feedback leads to higher performance than does
nonfeedback.
– Specific hard goals produce a higher level of output than
does the generalized goal of “do your best.”
• The specificity of the goal itself acts as an internal stimulus.
42
Management by Objectives
• A program that encompasses
– Specific goals
– Participative decision-making
– Explicit time period
– Performance feedback
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Responses to the Reward
System
• Equity Theory
• Fair Process
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Equity Theory
• Main points
– Individuals compare their job inputs and
outcomes with those of others and then
respond so as to eliminate any inequities.
– Equity theory recognizes that individuals
are concerned not only with the absolute
amount of rewards for their efforts, but
also with the relationship of this amount to
what others receive.
45
Exhibit 4-8 Equity Theory
Ratio of Output to Input Person 1’s Perception
Person 1
Inequity, underrewarded
Person 2
Person 1
Equity
Person 2
Person 1
Inequity, overrewarded
Person 2
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Responses to Inequity
• Change Inputs
• Change Outcomes
• Adjust Perceptions
• Choose a Different Referent
• Leave the Field
47
Fair Process and Treatment
• Historically, equity theory focused on:
– Distributive justice
• However, equity should also consider
– Procedural justice
48
Fair Process
• Distributive Justice
– Perceived fairness of the amount and allocation of
rewards among individuals
• Procedural Justice
– Perceived fairness of the process used to determine
the distribution of rewards
• Interactional Justice
– The quality of the interpersonal treatment received
from another
49
Role of Money
• Money is most commonly used reward in
organizations
– Money certainly helps some needs get met
• But, money is not all employees’ top
priority
– Many emphasize relationships in the
workplace
50
Motivating for Specific
Organizational Goals
• Employee Recognition: Motivating to
Show People Matter
– Employee recognition plans
• Variable-Pay Programs: Motivating for
Improved Productivity
– Individual-based incentives: piece rate
– Group-based incentives: gainsharing
– Organizational-based incentives: profit sharing,
ESOPs
51
Variable-Pay Programs
• A portion of an employee’s pay is based on
some individual and/or organizational
measure(s) of performance.
– Individual-based
• Piece-rate wages, bonuses
– Group-based
• Gainsharing
– Organizational-based
• Profit sharing
• Employee stock ownership plans (ESOPs)
52
Variable Pay Programs
• Piece-rate pay plans
– Workers are paid a fixed sum for each unit of
production completed.
• Gainsharing
– An incentive plan where improvements in
group productivity determine the total amount
of money that is allocated.
53
Variable Pay Programs
• Profit-sharing plans
– Organization wide programs that distribute
compensation based on some established
formula designed around a company’s
profitability.
• Employee stock ownership plans (ESOPs)
– Company-established benefit plans in which
employees acquire stock as part of their
benefits.
54
Motivating Professionals
• How are “professionals” different?
– Receive a great deal of “intrinsic” satisfaction
from their work.
– Strong and long-term commitment to their
field of expertise.
– Well paid/Chief reward is work itself.
– Value support.
– More focused on work as central life interest.
55
Motivating Professionals
• How do we motivate professionals?
– Provide challenging projects
– Give them autonomy in follow interests and
structure work.
– Reward with educational opportunities.
– Recognize their contributions.
56
Motivating Contingent Workers
• No simple solutions to motivating contingent
workers.
– Contingent or temporary workers have little or no job
security/stability; therefore, they don’t identify with the
organization or display the commitment of permanent
employees.
– Contingent or temporary workers are typically
provided with little or no health care, pensions, or
similar benefits.
57
Motivating Contingent Workers
• Greatest motivating factor is the
opportunity to gain permanent
employment.
• Motivation is also increased if the
employee sees that the job he or she is
doing for the firm can develop saleable
skills.
58
Motivating Low-Skilled Service
Workers
• Many 15- to 24-year-olds have “McJobs” with
pay levels near minimum wage
• To motivate
– Employees want more respect
– Make jobs more appealing
– Raise pay levels
– Find unusual ways to motivate:
• Flexible work schedules
• Broader responsibility for inventory, scheduling, and
hiring
• Creation of a “family” atmosphere among employees
59
Motivating Unionized
Employees
• Constraints of contract affect some forms of
rewards
– Some unions against pay-for-performance
• Additional ideas
– Create better work environments
– Show appreciation
– Provide opportunities for training and advancement
– Listen to employees concerns
60
Motivating Public Sector
Employees
• Special challenge
– Much work is service-oriented, harder to
measure productivity
– Hard to link rewards to performance
• What to do
– Goal setting helps
• Goal difficulty and goal specificity help improve
motivation
61
Cross-Cultural Differences in
Motivation
• Canada and US rely on extrinsic rewards
more than other countries
• Japan and Germany rarely use individual
incentives
– Japan emphasizes group rewards
• China more likely to give bonuses to
everyone
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Are Rewards Overrated?
Cognitive Evaluation Theory
• Allocating extrinsic rewards for behaviour
that had been previously intrinsically
rewarded tends to decrease the overall
level of motivation.
63
Abolishing Rewards
• Alfie Kohn suggests that organizations should
focus less on rewards, more on creating
motivating environments
– Abolish incentives
– Re-evaluate evaluation
– Create conditions for authentic motivation
– Collaboration
– Content
– Choice
64
Summary
• Need Theories
– Be aware that individuals differ in their levels and
types of needs
• Goal Setting Theory
– Clear and difficult goals lead to higher levels of
employee productivity.
• Expectancy Theory
– Offers a relatively powerful explanation of employee
productivity, absenteeism, and turnover.
65
Implications
• Recognize Individual Differences
– Employees have different needs.
– Don’t treat them all alike.
– Spend the time necessary to understand
what’s important to each employee.
• Use Goals and Feedback
• Allow Employees to Participate in
Decisions That Affect Them
66
Chapter 5
Group Dynamics
67
Groups: ?
• Groups
– Two or more individuals, interacting and
interdependent, who have a stable relationship, a
common goal, and perceive themselves to be a group
• Types of Groups
– Informal groups: a collection of people seeking
friendship and acceptance that satisfies esteem
needs.
– Formal groups: a collection of people created to do
something productive that contributes to the success
of the larger organization.
68
Types of Groups
• Formal Groups
• Task
• Command
• Informal Groups
• Interest
• Friendship
69
Exhibit 5-4
Stages of Group Development
Prestage I Stage I Stage II Stage III Stage IV Stage V

Forming Storming Norming Performing Adjourning
70
• Stage I: Forming
– The first stage in group development,
characterized by much uncertainty
• Stage II: Storming
– The second stage in group development,
characterized by intragroup conflict
• Stage III: Norming
– The third stage in group development,
characterized by close relationships and
cohesiveness
71
• Stage IV: Performing
– The fourth stage in group development, when
the group is fully functional
• Stage V: Adjourning
– The final stage in group development for
temporary groups, characterized by concern
with wrapping up activities rather than task
performance
72
Putting the Five-Stage Model
Into Perspective
• Groups do not necessarily progress
clearly through the stages one at a time
• Groups can sometimes go back to an
earlier stage
• Conflict can sometimes be helpful to the
group
• Context can matter: airline pilots can
immediately reach performing stage
73
The Punctuated-Equilibrium
Model
• First phase
– The first meeting sets the group’s direction.
– The first phase of group activity is one of inertia.
• Transition
– A transition takes place at the end of the first phase,
which occurs exactly when the group has used up half its
allotted time.
– The transition initiates major changes.
• Second phase
– A second phase of inertia follows the transition.
• Last meeting is characterized by markedly accelerated
activity
74
Exhibit 5-5 The Punctuated-
Equilibrium Model
(High)
Performance
Phase 2
Completion
First
Meeting
Transition
Phase 1
(Low)
A (A+B)/2 B
Time
75
Explaining Work-Group Behavior
• External Conditions Imposed on Group
• Group Member Resources
• Group Structure
• Group Processes
• Group Task
• Performance and Satisfaction
76
External Conditions Imposed on
Group
• Organization Overall Strategy
• Authority Structure
• Formal Regulations
• Performance evaluation and reward
system
• Organization culture
• Physical work setting
77
Group Member Resources
• Knowledge
• Skills
• Abilities
• Personal Characteristics
78
Group Structure
• Formal Leadership
• Roles
• Norms
• Status
• Size
• Composition
• Cohesiveness
79
Roles
• A role is a set of expected behaviour
patterns associated with someone
occupying a given position in a social unit.
– Role Identity: Certain attitudes and
behaviours consistent with a role
– Role Perception: An individual’s view of how
he or she is supposed to act in a given
situation
80
Roles
– Role Expectations: How others believe a
person should act in a given situation
• Psychological Contract: Unwritten agreement that
sets out what management expects from the
employee, and vice versa.
– Role Conflict: A situation in which an
individual is confronted by divergent role
expectations
81
Norms
• Acceptable standards of behaviour within
a group that are shared by the group’s
members
82
What Norms Cover
• Performance
– How hard to work, what kind of quality, levels of
tardiness
• Appearance
– Personal dress, when to look busy, when to "goof off,"
how to show loyalty
• Social arrangement
– How team members interact
• Allocation of resources
– Pay, assignments, allocation of tools and equipment
83
How Norms Develop
• Explicit statements
• Critical events
• Initial patterns of behaviour
• Carry-over behaviour
09/24/10 84
Why Norms Are Enforced
• Facilitate group survival
• Make behaviour predictable
• Minimize embarrassment
• Express central values
• Clarify the group’s identity
09/24/10 85
Conformity
• Adjusting your behaviour to align with the
norms of the group
• People conform to reference groups
– Important groups to which individuals belong
or hope to belong
86
Deviant Workplace Behaviour
• Antisocial actions by organizational
members that intentionally violate
established norms and that result in
negative consequences for the
organization, its members, or both.
87
Exhibit 5-3
Deviant Workplace Behaviour
Category Examples
Production Leaving early
Intentionally working slowly
Wasting resources
Property Sabotage
Lying about hours worked
Stealing from the organization
Political Showing favouritism

Gossiping and spreading rumours
Blaming co-workers
Personal Sexual harassment

aggression Verbal abuse
Stealing from co-workers
88
Status
• A socially defined position or rank given to
groups or group members by others
• Status and norms
• Status equity
• Status and culture
89
Roles in Groups
• Task-oriented roles
– Roles performed by group members to ensure
that the tasks of the group are accomplished
• Maintenance roles
– Roles performed by group members to
maintain good relations within the group
• Individual roles
– Roles performed by group members that are
not productive for keeping the group on task
90
Exhibit 5-7 Roles That Build Task
Accomplishment
Initiating
91
Exhibit 5-7 Roles That Build and
Maintain a Team
Harmonizing Mediating conflict among other members,

reconciling disagreements, relieving tensions
Compromising Admitting error at times of group conflict
Gatekeeping Making sure all members have a chance to express

their ideas and feelings and preventing members
from being interrupted
Encouraging Helping a group member make his or her point.

Establishing a climate of acceptance in the group
92
Group Size
• Research Evidence
– Smaller groups faster at completing tasks
– When problem solving, larger groups do
better
– Social loafing-The tendency of individuals to
expend less efforts when working collectively
than working individually.
93
Composition
• Group demography-The degree to which
members of a group share common
demographic attributes like age,
experience, qualification and it impact on
turnover
• Cohorts-Individuals who, as a part of
group hold a common attribute.
94
Cohesiveness
• Degree to which group members are
attracted to each other and are motivated
to stay in the group
09/24/10 95
Exhibit 5-9 Relationship Between
Group Cohesiveness, Performance
Norms, and Productivity
Cohesiveness
Performance Norms
High Moderate
High
productivity productivity
Low Moderate to
Low
productivity low productivity
96
Group Processes
• Synergy
• Social facilitation effect- The tendency for
performance to improve or decline in
response to the presence of others
97
Group Task
• If task is complex then it need diverse
views, skills and ideas therefore group
discussion required
• If task is simple and repetitive than people
can better work on it independently.
98
Exhibit 5-10 Advantages and
Disadvantages of Diversity
Advantages Disadvantages
• Multiple perspectives • Ambiguity
• Greater openness to • Complexity
new ideas • Confusion
• Multiple interpretations • Miscommunication
• Increased creativity • Difficulty in reaching a
• Increased flexibility single agreement
• Increased problem- • Difficulty in agreeing on
solving skills specific actions
99
Group Decision Making
• Strength of group decision making
– More complete information and knowledge
– Diversity of views
– High quality decisions
• Weakness of group decision making
– Time Consuming and Conformity
– Effectiveness and efficiency
100
Group Decision Making
Strengths of Group Decision
Making
• Generates more complete information and
knowledge
• Offers increased diversity of views
• Generates higher-quality decisions
• Leads to increased acceptance of a solution
101
Weaknesses of Group Decision
Making
• More time consuming
• Conformity pressures in groups

• Discussion can be dominated by one or a few
members
• Decisions suffer from ambiguous responsibility
102
• Groupthink
– Phenomenon in which the norm for
consensus overrides the realistic appraisal of
alternative courses of action
• Groupshift
– Phenomenon in which the initial positions of
individual members of a group are
exaggerated toward a more extreme position
103
Group Think
• Groupthink (Irving Janis)
– A mode of thinking (blind conformity) that people engage
in when they are deeply involved in a cohesive in-group,
when the members’ strivings for unanimity override their
motivation to realistically appraise alternative courses of
action.
• Symptoms of Groupthink
– Excessive optimism
– An assumption of inherent morality
– Suppression of dissent
– A desperate quest for unanimity
104
• Preventing Groupthink
– Avoid using of groups as rubberstamps.
– Urge each group member to think independently.
– Bring in outside experts for fresh perspectives.
– Assign someone the role of devil’s advocate.
– Take time to consider possible effects and
consequences of alternative courses of action.
105
Group shift
• A change in decision risk between the
group decision and individual decision that
members within the group would make,
can be either toward conservation or
greater risk
• It is one of the type of group think
106
Group Decision-making
Techniques
• Interacting Groups
• Brainstorming
• Nominal Group Technique
• Electronic meeting
107
Chapter 8
Conflict and
Negotiation
108
Chapter Outline
• Conflict Defined
• Sources of Conflict
• From Potential to Actual Conflict
• Conflict Management and Teams
• Negotiation
• Issues in Negotiation
109
Conflict and Negotiation
Questions forConsideration
Questionsfor Consideration
• How do we manage conflict?

• When is conflict functional?
• How do we negotiate?
110
Conflict
• 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.
– Functional
• Supports the goals of the group and improves its
performance
– Dysfunctional
• Hinders group performance
111
Conflict Process
• Potential opposition or incompatibility
Communication
Structure
personal variables
112
• Cognition and personalization
Perceived conflict-Awareness by one or
more party of the existence of conditions
that create opportunities for conflict to
arise
Felt conflict-emotional involvement in
conflict creating anxiety, tenseness or
frustation
113
How Structure Can Lead to
Conflict
• Stimulating conflict
– Size, specialization, and composition of the
group
– Too much reliance on participation
– Diversity of goals among groups
– Ambiguity in precisely defining where
responsibility for actions lies
– Reward systems where one member’s gain is
at another’s expense
114
Exhibit 8-1 How Conflict Builds
Conflict-handling Outcomes
Intentions
• Competing • Functional:
• Collaborating increased
• Compromising Behaviour performance
• Avoiding • Dysfunctional:
• Accommodating decreased group
performance
115
Conflict-Handling Intentions
• Two Dimensions
– Cooperativeness
• The degree to which one party attempts to satisfy the
other party’s concerns
– Assertiveness
• The degree to which one party attempts to satisfy his or
her own concerns
116
Specific Intentions
• Competing
• A desire to satisfy one’s interests, regardless of the impact on the other
parties.
• Collaborating
• A situation where 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.
• 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
117
Exhibit 8-2 Dimensions of
Conflict-Handling Intentions
Assertive
Competing Collaborating
Assertiveness
Compromising
Unassertive
Avoiding Accommodating
Uncooperative Cooperative
Cooperativeness
118
Exhibit 8-4
Conflict Intensity Continuum
Annihilatory Overt efforts to destroy

conflict the other party
Aggressive physical attacks
Threats and ultimatums
Assertive verbal attacks
Overt questioning or
challenging of others
Minor disagreements or
No misunderstandings
conflict
119
• Conflict outcomes
Functional or dysfunctional conflict
120
Conflict Resolution Techniques
• Problem Solving
• Shared Goals
• Expansion of Resources
• Avoidance
• Authoritative Command
121
Types of Conflict
• Cognitive
– Conflict related to differences in perspectives and
judgments
• Task-oriented
• Results in identifying differences
• Usually functional conflict
• Affective
– Emotional conflict aimed at a person rather than an
issue
• Dysfunctional conflict
122
Reducing Group Conflict
• Team members reduced conflict using the
following tactics:
– Worked with more, rather than less, information
– Debated on the basis of facts
– Developed multiple alternatives to enrich the level of
debate
– Shared commonly agreed-upon goals
– Injected humour into the decision process
– Maintained a balanced power structure
– Resolved issues without forcing consensus
123
Summary and Implications
• Conflict can be either constructive or
destructive to the functioning of a group.
• An optimal level of conflict:
– Prevents stagnation
– Stimulates creativity
– Releases tension
– And initiates the seeds for change
• Inadequate or excessive levels of conflict can
hinder group effectiveness.
124
• Don’t assume there's one conflict-handling
intention that is always best.
– Use competition when quick, decisive action is vital
– Use collaboration to find an integrative solution
– Use avoidance when an issue is trivial
– Use accommodation when you find you’re wrong
– Use compromise when goals are important
• Negotiation is an ongoing activity in groups
• Intergroup conflicts can also affect an
organization’s performance.
125
Point-CounterPoint
• Conflict Is Good • All Conflicts Are
for the Dysfunctional!
Organization ▲ The negative consequences
from conflict can be
▲ Conflict is a means by which devastating
to bring about radical change
▲ Effective managers build
▲ Conflict facilitates group teamwork not conflict
cohesiveness
▲ Competition is good for an
▲ Conflict improves group and organization, but not conflict
organizational effectiveness ▲ Managers who accept and
▲ Conflict brings about a slightly stimulate conflict don’t survive
higher, more constructive in organizations
level of tension
126
Negotiation
• A process in which two or more parties
exchange goods or services and attempt to
agree upon the exchange rate for them
– 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
127
Exhibit 8-6 Distributive versus
Integrative Bargaining
Bargaining Distributive Integrative

Characteristic Bargaining Bargaining
Available resources Fixed amount of Variable amount of resources to

resources to be divided be divided
I win, you lose
Primary motivations I win, you win
Opposed to each other
Primary interests Convergent or congruent with
Short term
each other
Focus of relationships Long term
128
How to Negotiate
• Assess personal goals, consider other’s
goals, develop strategy
• Identify target and resistance points
– Target: what one would like to achieve
– Resistance: lowest outcome acceptable
• Identify BATNA
– Best Alternative To a Negotiated Agreement
129
Issues in Negotiation
• Gender Differences
• Cross-Cultural Differences
• Alcohol and Negotiations
• Third-Party Negotiations
130
Gender Differences
• Women
– More inclined to be concerned with feelings and
perceptions, and take a longer-term view
– View the bargaining session as part of an overall
relationship
– Tend to want all parties in the negotiation to be
empowered
– Use dialogue to achieve understanding
• Men
– View the bargaining session as a separate event
– Use dialogue to persuade
131
Alcohol Consumption and
Negotiations
– Negotiators who had been drinking
• Were more aggressive and more likely to insult,
mislead, and threaten their opponent
• Were more likely to make mistakes, saying such things
as "I propose a start date of 12 weeks . . . no, 4 weeks.
I'm sorry, I was confused"
• Were more likely to focus on irrelevant information or
misunderstand the problem
• Were not aware that alcohol had influenced their
performance, when in fact it had
132
Alcohol Consumption and
Negotiations
– Sober negotiators
• Were were more likely to look for win-win solutions
• Did not do well when bargaining against someone
who had been drinking, as the drinker tended to be
far more aggressive
133
Third Party Roles in
Negotiations
• Conciliator
• Mediator
• Arbitrator
134
Conciliator
• Trusted third party who provides an
informal communication link between the
negotiator and the opponent
– Informal link
– Used extensively in international, labour,
family and community disputes
– Fact-find, interpret messages, persuade
disputants to develop agreements
135
Mediator
• A neutral third party who facilitates a negotiated
solution by using reasoning, persuasion, and
suggestions for alternatives
– Labour-management negotiations and civil court
disputes
– Settlement rate is about 60%; satisfaction rate is
about 75%
– Participants must be motivated to bargain and settle
– Best under moderate levels of conflict
– Mediator must appear neutral and non-coercive
136
Arbitrator
• Has authority to dictate an agreement
– Voluntary (requested) or compulsory
(imposed by law or contract)
– Always results in a settlement
– May result in further conflict
137
Chapter 12
Organizational
Structure
138
Chapter Outline
• What Is Organizational Structure?
• Common Organizational Designs
• Traditional Designs
• New Design Options
• Why Do Structures Differ?
139
Organizational Structure
Questions for Consideration
• What are the key elements of
organizational structure?
• How do traditional organizational designs
compare with newer organizational
structure?
• Why do organizational structures differ?
140
What Is Organizational
Structure?
• Organizational structure refers to how job
tasks are formally divided, grouped, and
coordinated, and includes the degree of
complexity, formalization, and
centralization in the organization.
141
Exhibit 12-1 Pyramidal
142
Exhibit 12-2
Flat Organizational Structure
143
Exhibit 12-3 Six Key Questions for
The Answer
The Key Question Is Provided
By
1. To what degree are tasks subdivided into Work specialization
separate jobs?
2. On what basis will jobs be grouped together? Departmentalization
3. To whom do individuals and groups report? Chain of command
4. How many individuals can a manager Span of control

efficiently and effectively handle?
5. Where does decision-making authority lie? Centralization and

decentralization
6. To what degree will there be rules and regu- Formalization

lations to direct employees and managers?
144
Work Specialization
• The degree to which tasks in the organization
are subdivided into separate jobs
– Also known as division of labour
• Benefits
– Efficiency
• Less time changing tasks, putting equipment away
• Easier to train employees
• Downsides
– Boredom, stress, low productivity, high turnover,
increased absenteeism
145
Departmentalization
• The basis on which jobs are grouped together
• Types
– Functional
– Product
– Geographic
– Process
– Customer
– Mixed
146
Exhibit 12-4 Functional
Departmentalization
Composites Atlantic
Board of
Directors
President/ Counsellor of
CEO the President
Executive
Vice-President
Executive
Secretary
VP Financial VP Business Director, Quality

Operations Controller Development Assurance
147
Exhibit 12-5
Product Departmentalization
Nortel
Public Carrier Broadband Enterprise Wireless

Networks Networks Networks Networks
148
Exhibit 12-6 Geographic
Departmentalization
Royal Bank
Canada Asia Europe United States
149
Exhibit 12-7
Customer Departmentalization
Dell Canada
Individual Educational Federal Large Business Small/Medium

Users Users Government Users Users Business Users
150
Chain of Command
• Two aspects
– Authority
• Who has the right to give orders and expect them to be
obeyed
– Unity of command
• Subordinates should have only one superior
• Today’s organizations
– Fewer follow chain of command
– More have decision making opportunities at all levels
151
Span of Control
• Number of subordinates that can be efficiently
and effectively managed
• Small span
– Expensive, more managers
– Makes vertical communication more complicated
– Encourages tight supervision and discourages
autonomy
• Larger span
– Empowers workers
– Speeds up decisions
152
Exhibit 12-8 Contrasting Spans
of Control
Members at each level
(Highest)
Assuming span of 4 Assuming span of 8
1 1 1
Organizational Level
2 4 8
3 16 64
4 64 512
5 256 4096
6 1024
7 4096
Operatives = 4096 Operatives = 4096

Managers (Levels 1 – 6) = 1365 Managers (Levels 1 – 4) = 585
153
Centralization and
Decentralization
• Are decisions concentrated at top
(centralization) or pushed to lower levels
(decentralization)?
• There is a marked trend toward
decentralization
154
Formalization
• How standardized are the jobs?
– High formalization means employees have
little discretion
– Low formalization means employees have
more freedom
155
Exhibit 12-10
Mechanistic
versus Organic Models
The mechanistic model The organic model
• High specialization • Cross-functional teams

• Rigid departmentalization • Cross-hierarchical teams
• Clear chain of command • Free flow of information
• Narrow spans of control • Wide spans of control
• Centralization • Decentralization
• High formalization • Low formalization
156
Simple Structure
• Strengths
– Simplicity: fast, flexible, inexpensive
• Weakness
– Works best in small organizations
– Can slow down decision making in larger
organization
– Can be risky as it relies on one person to
make all decisions
157
Bureaucracy
• Strengths
– Standardizes activities in an efficient manner
• Economies of scale, minimum duplication of personnel
and equipment
• Lower quality employees are acceptable, which
reduces employment costs
• Weaknesses
– Creates subunit conflicts
– There is an obsessive concern with following rules
158
Matrix Organization
• Breaks the unity of command principle
– Employees have two bosses
• Strengths
– Facilitates coordination when there are many
activities
– More communication
– Efficient allocation of specialists
• Disadvantages
– Power struggles, confusion, stress
159
Exhibit 12-11
Matrix Structure
Academic Programs Under

Research
Executive Community
departments graduate Master’s Ph.D.. Development Service
Accounting
Administrative
studies
Finance
Information and
decision sciences
Marketing
Organizational
behaviour
Quantitative
methods
160
New Design Options
• Breaking the Boundaries Internally
– Team Structure
• Breaking the Boundaries Externally
– Modular Organization
– Virtual Organization
• Breaking the Boundaries Externally and
Internally
– The Boundaryless Organization
161
Modular Organization
• A small core organization that outsources major
business functions
• Advantages
– Can devote technical and managerial talent to most
critical activities
– Can respond more quickly to environmental changes
– Increased focus on customers and markets
• Disadvantages
– Reduces management’s control over business
– Relies on outsiders to get job done
162
Exhibit 12-12
Modular Structure
Organizational Infrastructure
Human Resource Technology Marketing

Management Development Procurement Operations and Sales Service
OUTSOURCED
163
Virtual Organization
• A continually evolving network of independent companies
—suppliers, customers, even competitors—linked
together to share skills, costs, and access to one
another’s markets
• Advantages
– Organizations can share costs and skills
– Provides access to global markets
– Increases market responsiveness
• Disadvantages
– Companies give up operational and strategic control to
work together
– Managers need to be more flexible, acquire new skills
164
Exhibit 12-13
Virtual Structure
Organizational Infrastructure
Human Resource Technology Marketing

Procurement Operations Service
Management Development and Sales
Alliance Alliance Alliance Alliance Alliance

Partner A Partner B Partner C Partner D Partner E
165
Exhibit 12-14
The Strategy-Structure Thesis
Strategy Structural Option

Innovation Organic: A loose structure; low specialization, low
formalization, decentralized
Cost minimization Mechanistic: Tight control; extensive

work specialization, high
formalization, high centralization
Imitation Mechanistic and organic: Mix of loose with tight

properties; tight controls over current activities and
looser controls for new undertakings
166
Why Do Structures Differ?
• Strategy
– Innovation, cost minimization, and imitation.
• Organization Size
– An organization’s size significantly affects its
structure.
– The relationship isn’t linear; rather, size affects
structure at a decreasing rate.
167
Why Do Structures Differ?
• Technology
– Every organization has at least one technology for
converting financial, human, and physical resources
into products or services
– The common theme that differentiates technologies is
their degree of routineness.
• Environment
– Composed of forces outside the organization and the
uncertainty associated with them.
168
Environmental Uncertainty
• Capacity
– Degree to which environment can support
growth
• Instability
– Degree of predictable change
• Complexity
– Degree of heterogeneity and concentration in
environment
169
Exhibit 12-15
Model of the Environment
Stable
Abundant
Simple Complex
Scarce
Dynamic
170
Exhibit 12-16
Organization Structure: Its
Determinants and Outcomes
Causes Structural Outcomes

designs
• Strategy determines leads to • Performance
• Size • Mechanistic • Satisfaction
• Technology • Organic
• Environment
Moderators
• Individual
differences
• Cultural
norms
171
• An organization’s internal structure contributes to
explaining and predicting behaviour.
• An organization’s structure reduces ambiguity for
employees.
• The specific effect of structural designs on performance
and satisfaction is moderated by employees’ individual
preferences and cultural norms.
• Structural variables like work specialization, span of
control, formalization, and centralization are objective
characteristics that can be measured by organizational
researchers.
172
Chapter 11
Basic Approaches to
Leadership
173
What Is Leadership?
Leadership
The ability to influence a group toward the
achievement of goals.
Management
Use of authority inherent in designated
formal rank to obtain compliance from
organizational members.
174
DR.SANDEEP RAMAKANT SAWANT..
Trait Theories
Traits Theories of Leadership
LeadershipTraits:
Traits:
Leadership
•• Ambition
Ambitionand
andenergy
energy
Theories that consider
•• The
Thedesire
desireto
tolead
lead
personality, social,
physical, or •• Honest
Honestand
andintegrity
integrity
intellectual traits to •• Self-confidence
differentiate leaders Self-confidence
from nonleaders. •• Intelligence
Intelligence
•• High
Highself-monitoring
self-monitoring
•• Job-relevant
Job-relevant
knowledge
knowledge
175
DR.SANDEEP RAMAKANT SAWANT.. 11–175
Trait Theories
Limitations
Limitations::
•• No
Nouniversal
universaltraits
traitsfound
foundthat
thatpredict
predict
leadership
leadershipin inall
allsituations.
situations.
•• Traits
Traitspredict
predictbehavior
behaviorbetter
betterin
in“weak”
“weak”
than
than“strong”
“strong”situations.
situations.
•• Unclear
Unclearevidence
evidenceof ofthe
thecause
causeand
andeffect
effect
of
ofrelationship
relationshipof ofleadership
leadershipandandtraits.
traits.
•• Better
Betterpredictor
predictorof
ofthe
theappearance
appearanceofof
leadership
leadershipthan
thandistinguishing
distinguishingeffective
effective
and
andineffective
ineffectiveleaders.
leaders.
176
Behavioral Theories
Behavioral Theories of Leadership
Theories proposing that specific behaviors
differentiate leaders from nonleaders.
•• Trait
Traittheory:
theory:
Leaders
Leadersare
areborn,
born,not
notmade.
made.
•• Behavioral
Behavioraltheory:
theory:
Leadership
Leadershiptraits
traitscan
canbe
betaught.
taught.
177
Ohio State Studies
Initiating Structure
The extent to which a leader is likely to define
and structure his or her role and those of sub-
ordinates 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 subordinate’s ideas, and
regard for their feelings.
178
University of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a
personal interest in the needs of employees
and accepting individual differences among
members.
Production-Oriented Leader
One who emphasizes technical or task
aspects of the job.
179
Scandinavian Studies
Development-Oriented Leader
One who values
experimentation, seeking new
ideas, and generating and
implementing change.
Researchers in Finland and Sweden question whether there
are only two dimensions (production-orientation and employee-
orientation) that capture the essence of leadership behavior.
Their premise is that in a changing world, effective leaders
would exhibit development-oriented behavior.
180
Contingency Theories
Fiedler’s Contingency Model
The theory that effective groups depend on a
proper match between a leader’s style of
interacting with subordinates and the degree
to which the situation gives control and
influence to the leader.
Least Preferred Co-Worker (LPC) Questionnaire
An instrument that purports to measure
whether a person is task- or relationship-
oriented.
181
Fiedler’s Model: Defining the
Situation
Leader-Member Relations
The degree of confidence, trust, and respect
subordinates have in their leader.
Task Structure
The degree to which the job assignments are
procedurized.
Position Power
Influence derived from one’s formal structural
position in the organization; includes power to
hire, fire, discipline, promote, and give salary
182
increases.
Cognitive Resource Theory
Cognitive Resource Theory
A theory of leadership that states that stress
can unfavorably affect a situation and that
intelligence and experience can lessen the
influence of stress on the leader.
Research
ResearchSupport
Support: :
• • Less
Lessintelligent
intelligentindividuals
individualsperform
performbetter
betterininleadership
leadership
roles
rolesunder
underhigh
highstress
stressthan
thando
domore
moreintelligent
intelligent
individuals.
individuals.
• • Less
Lessexperienced
experiencedpeople
peopleperform
performbetter
betterininleadership
leadership
roles
rolesunder
underlow
lowstress
stressthan
thando
domore
moreexperienced
experiencedpeople.
people.
183
Hersey and Blanchard’s
Situational Leadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on
followers’ readiness.
Unable and Unable but Able and Able and
Unwilling Willing Unwilling Willing
Follower readiness:
ability and willingness
Leader: decreasing need

for support and supervision
Directive High Task and Relationship Supportive Monitoring

Orientations Participative
184
Leadership Styles and
Follower Readiness
(Hersey
Follower
and
Unwilling
Blanchard)
Willing
Readiness
Able Supportive
Monitoring
Participative
Leadership
Styles
High Task
Unable Directive and
Relationship
Orientations
185
Leader–Member Exchange
Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and
subordinates with in-group status will have
higher performance ratings, less turnover,
and greater job satisfaction.
186
Path-Goal Theory
Path-Goal Theory
The theory that it is the leader’s job to assist
followers in attaining their goals and to
provide them the necessary direction and/or
support to ensure that their goals are
compatible with the overall objectives of the
group or organization.
•Directive Leader
•Supportive Leader
•Participative Leader
•Achievement oriented Leader
187
Leader-Participation Model
Leader-Participation Model (Vroom and Yetton)
A leadership theory that provides a set of
rules to determine the form and amount of
participative decision making in different
situations.
188
Contingency Variables in the
Leader-Participation Model
1. Importance of the decision
2. Importance of obtaining follower commitment
3. Whether the leader has sufficient information to make a good decision.
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment.
6. Whether followers buy into organizational goals.
7. Whether there is likely to be conflict among followers over solutions
alternatives.
8. Whether followers have the necessary information to make good
decision.
9. Time constraints on the leader that may limit follower involvement
10. Importance of using participation as a tool for developing follower
decision skills.
189
Chapter 12
Contemporary
Issues in
Leadership
190
Trust: The Foundation of
Leadership
Trust
A positive expectation that another will not—
through words, actions, or decisions—act
opportunistically.
Trust is a history-dependent process
(familiarity) based on relevant but limited
samples of experience (risk).
191
DR.SANDEEP RAMAKANT SAWANT. 12–191
Dimensions of Trust
• Integrity
• Loyalty
– honesty and truthfulness.
– the willingness to
• Competence
protect and save face
– an individual’s technical for another person.
and interpersonal
knowledge and skills. • Openness
• Consistency – reliance on the person
– an individual’s reliability, to give you the full
predictability, and good truth.
judgment in handling
situations.
192
Trust and Leadership
Leadership
Leadership
TRUST
TRUST
and
and
INTEGRITY
INTEGRITY
193
Three Types of Trust
Deterrence-based Trust
Trust based on fear of reprisal if the trust is
violated.
Knowledge-based Trust
Trust based on
behavioral predictability
that comes from a
history of interaction.
Identification-based Trust
Trust based on a mutual understanding of
each other’s intentions and appreciation of
the other’s wants and desires.
194
Basic Principles of Trust
• Mistrust drives out trust.
• Trust begets trust.
• Growth often masks mistrust.
• Decline or downsizing tests the highest levels of trust.
• Trust increases cohesion.
• Mistrusting groups self-destruct.
• Mistrust generally reduces productivity.
195
Framing: Using Words to
Shape Meaning and Inspire
Framing Others
A way to use
language to manage
meaning.
Leaders
Leadersuse
useframing
framing(selectively
(selectivelyincluding
includingor
or
excluding
excludingfacts)
facts)to
toinfluence
influencehow
howothers
otherssee
see
and
andinterpret
interpretreality.
reality.
196
Inspirational Approaches to
Leadership
Charismatic Leadership Theory
Followers make attributions of heroic or
extraordinary leadership abilities when they
observe certain behaviors.
Charismatics
CharismaticsInfluence
InfluenceFollowers
FollowersBy:
By:
1.1. Articulating
Articulatingthe
thevision
vision
2.2. Setting
Settinghigh
highperformance
performanceexpectations
expectations
3.3. Conveying
Conveyingaanew
newset
setof
ofvalues
values
4.4. Making
Makingpersonal
personalsacrifices
sacrifices
197
Beyond Charismatic Leadership
• Level 5 Leaders
– Possess a fifth dimension—a paradoxical
blend of personal humility and professional will
—in addition to the four basic leadership
qualities of individual capability, team skills,
managerial competence, and the ability to
stimulate others to high performance.
– Channel their ego needs away from
themselves and into the goal of building a great
company.
198
Transactional and
Transformational
Transactional Leaders
Leadership
• Contingent Reward
Leaders who guide or • Management by
motivate their followers Exception (active)
in the direction of • Management by
established goals by Exception (passive)
clarifying role and task • Laissez-Faire

requirements.
Transformational Leaders • Charisma
Leaders who provide • Inspiration

individualized • Intellectual Stimulation
consideration and • Individual Consideration
intellectual stimulation,
and who possess
DR.SANDEEP RAMAKANT SAWANT.
199
12–199
Emotional Intelligence and
Leadership Effectiveness
Elements
Elementsof ofEmotional
Emotional
Intelligence
Intelligence: :
••Self-awareness
Self-awareness
••Self-management
Self-management
••Self-motivation
Self-motivation
••Empathy
Empathy
••Social
Socialskills
skills
200
Contemporary Leadership
Roles: Providing Team
Leadership
Team
TeamLeadership
LeadershipRoles
Roles: :
•• Act
Actas
asliaisons
liaisonswith
with
external
externalconstituencies.
constituencies.
•• Serve
Serveas
astroubleshooters.
troubleshooters.
•• Managing
Managingconflict.
conflict.
•• Coaching
Coachingto
toimprove
improveteam
team
member
memberperformance
performance
201
Mentor
Roles: Mentoring
Mentoring
MentoringActivities
Activities: :
A senior employee
who sponsors and •• Present
Presentideas
ideasclearly
clearly
supports a less- •• Listen
Listenwell
well
experienced
employee (a •• Empathize
Empathize
protégé). •• Share
Shareexperiences
experiences
•• Act
Actas
asrole
rolemodel
model
•• Share
Sharecontacts
contacts
•• Provide
Providepolitical
political
guidance
guidance
202
Roles:
Self-Leadership
Self-Leadership
Creating
Creatingself
selfleaders
leaders: :
A set of processes
• • Model
Modelself-leadership.
self-leadership.
through which
• • Encourage
Encourageemployees
employeesto
individuals control create self-set goals.
to
create self-set goals.
their own
• • Encourage
Encouragethetheuse
useof ofself-
self-
behavior. rewards.
rewards.
• • Create
Createpositive
positivethought
thought
patterns.
patterns.
• • Create
Createaaclimate
climateofofself-
self-
leadership.
leadership.
• • Encourage
Encourageself-criticism.
self-criticism.
203
Ethical Leadership
Actions
Actions::
•• Work
Workto
topositively
positivelychange
changethe
theattitudes
attitudesand
and
behaviors
behaviorsof
ofemployees.
employees.
•• Engage
Engagein
insocially
sociallyconstructive
constructivebehaviors.
behaviors.
•• Do
Donot
notabuse
abusepower
poweror
oruse
useimproper
impropermeans
meansto
to
attain
attaingoals.
goals.
204
Online Leadership
• Leadership at a Distance: Building Trust
– The lack of face-to-face contact in electronic communications
removes the nonverbal cues that support verbal interactions.
– There is no supporting context to assist the receiver with
interpretation of an electronic communication.
– The structure and tone of electronic messages can strongly
affect the response of receivers.
– An individual’s verbal and written communications may not
follow the same style.
– Writing skills will likely become an extension of interpersonal
skills
205
Challenges to the Leadership
Construct
Attribution Theory of Leadership
The idea that leadership is merely an
attribution that people make about other
individuals.
Qualities
Qualitiesattributed
attributedto
toleaders
leaders: :
• • Leaders
Leadersareareintelligent,
intelligent,outgoing,
outgoing,have
havestrong
strongverbal
verbal
skills, are aggressive, understanding, and industrious.
skills, are aggressive, understanding, and industrious.
• • Effective
Effectiveleaders
leadersare
areperceived
perceivedas
asconsistent
consistentand
and
unwavering in their decisions.
unwavering in their decisions.
• • Effective
Effectiveleaders
leadersproject
projectthe
theappearance
appearanceofofbeing
beingaa
leader.
leader.
206
Finding and Creating Effective
Leaders
• Selection
– Review specific requirements for the job.
– Use tests that identify personal traits associated with leadership,
measure self-monitoring, and assess emotional intelligence.
– Conduct personal interviews to determine candidate’s fit with the
job.
• Training
– Recognize the all people are not equally trainable.
– Teach skills that are necessary for employees to become
effective leaders.
– Provide behavioral training to increase the development
potential of nascent charismatic employees.
207
Chapter 7
Power and Politics
208
Power and Politics
Questions forConsideration
Questionsfor Consideration
• What is power?
• How does one get it?
• What does it mean to empower employees?
• How can we be effective at office politics?
209
Power and Politics
• Power
– A capacity that A has to influence the behaviour of B
so that B acts in accordance with A’s wishes.
• Dependency: B’s relationship to A when A possesses
something that B requires
• Politics
– Behaviour to influence or attempt to influence the
distribution of advantages and disadvantages within
the organization.
210
Leadership and Power
Power Leadership
• Does not require goal • Requires goal
acceptance agreement
• Focuses on intimidation • Focuses on downward
(threats) influence
• Minimizes importance of
• Maximizes importance of lateral and upward
lateral and upward influence
influence
• Leadership research
• Power focuses on tactics focuses on answers
for gaining compliance 211
Measuring Bases of Power
• Coercive power
– The person can make things difficult for people, and
you want to avoid getting him or her angry.
• Power that is based on fear.
• Reward power
– The person is able to give special benefits or rewards to
people, and you find it advantageous to trade favors
with him or her.
• Legitimate power
– The person has the right, considering his or her position
and your job responsibilities, to expect you to comply
with legitimate requests.
212
Measuring Bases of Power
• Expert power
– The person has the experience and knowledge to
earn your respect, and you defer to his or her
judgment in some matters.
• Referent power
– You like the person and enjoy doing things for him or
her.
213
Evaluating the Bases of Power
• Coercive power tends to result in negative performance responses
from individuals, decreases satisfaction, increases mistrust, and
creates fear.
• Legitimate power does not have a negative effect, but does not
generally stimulate employees to improve their attitudes or
performance, and it does not generally result in increased
commitment.
• Reward power may improve performance in a variety of situations if
the rewards are consistent with what the individuals want as
rewards.
• Expert power relies on trust that all relevant information is given out
honestly and completely.
214
Leaders’ Use of Power
• The least effective power bases are the
ones most likely to be used by managers
– Coercive, legitimate, and reward
– Easiest to implement
• Effective leaders use referent and/or
expert power
215
Dependency: Key to Power
• Importance
– The things you control must be important
• Scarcity
– A resource must be perceived as scarce
• Non-substitutability
– The resource cannot be substituted with
something else
216
Increasing Dependency
• To increase the dependency of others on
you, you need to
– Control things viewed as important
– The resources must be viewed as scarce
– The resource must have few or no substitutes
(nonsubstitutability)
217
Popularity of Power Tactics: From
Most to Least Popular
When Managers When Managers

Influenced Influenced
Superiors* Subordinates
Most Popular Reason Reason

Coalition (association) Assertiveness
Friendliness Friendliness
Bargaining Coalition
Assertiveness Bargaining
Least Popular Higher authority Higher authority
Sanctions
218
Empowerment: Giving Power to
Employees
• The freedom and the ability of employees to
make decisions and commitments
• Managers disagree over definition of
empowerment
– Empowerment as delegating decision making within a
set of clear boundaries
versus
– Empowerment as “a process of risk taking and
personal growth”
219
Conditions for True
Empowerment
• Clear definition of the values and mission of the
company
• Company must help employees acquire the
relevant skills
• Employees need to be supported in their
decision making, and not criticized when they try
to do something extraordinary
• Employees need to be recognized for their
efforts
220
Characteristics of Empowered
People
• Sense of self-determination
– Employees are free to choose how to do their work; They
are not micromanaged
• Sense of meaning
– Employees feel that their work is important to them; They
care about what they are doing
• Sense of competence
– Employees are confident about their ability to do their work
well; They know they can perform
• Sense of impact
– Employees people believe they can have influence on their
work unit; Others listen to their ideas
221
Coalitions
• Two or more individuals who combine their
power to push for or support their demands
• Predictions about coalition formation
– Coalitions seek to maximize their size
– Coalitions more likely to be created when there is
greater task and resource dependence
– Coalitions more likely when tasks are routine
222
Political Behavior
• Those activities that influence, or attempt
to influence, the distribution of advantages
and disadvantages within the organization.
– Legitimate: normal everyday behaviour
– Illegitimate: extreme political behaviours that
violate the implied rules of the game
223
Why Do We Get Politics?
• Organizations are made up of groups and
individuals who have differing values,
goals and interests
• Resources in organizations are limited
• Performance outcomes are not completely
clear and objective
224
Factors Influencing Political
Behaviour
Individual factors
• High self-monitors
• Internal locus of control
• High Mach
• Organizational investment
• Perceived job alternatives
• Expectations of success
Favourable outcomes
Political behaviour
Low High • Rewards

Organizational factors • Averted punishments
• Reallocation of resources
• Promotion opportunities
• Low trust
• Role ambiguity
• Unclear performance
evaluation system
• Zero-sum reward practices
• Democratic decision making
• High performance pressures
• Self-serving senior managers
225
What Individual Factors
Contribute to Politics?
• High self-monitors
• Internal locus of control
• High mach
• Organizational investment
• Perceived job alternatives
• Expectations of success
226
What Organizational Factors
Contribute to Politics?
• Reallocation of rewards
• Promotion opportunities
• Low trust
• Role ambiguity
• Unclear performance evaluation system
• Zero-sum reward practices
• Democratic decision-making
• High performance pressure
• Self-serving senior managers
227
Types of Political Activity
• Attacking or blaming others
• Controlling information
• Forming coalitions
• Networking
• Creating obligation
• Managing impressions
228
How employee respond to Politics
• Decreased job satisfaction
• Increased anxiety
• Increased turnover
• Reduced performance
229
• Power is a two-way street.
• Few employees relish being powerless in their jobs and
organization.
• People respond differently to various power bases.
– Employees working under coercive managers are unlikely to be
committed,
– and more likely to resist the manager.
• Expert power is the most strongly and consistently
related to effective employee performance.
230
• The power of the manager may also play a role
in determining job satisfaction.
• The effective manager accepts the political
nature of organizations.
• The more political that employees perceive an
organization, the lower their satisfaction.
231

Value, Attitude: and Job Satisfaction

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Value, Attitude

And Job Satisfaction

Comfortable life Ambitious, hardworking,

wisdom Self controlled, self

Maslow Alderfer Herzberg McClelland

Improving Expectancy Improving Instrumentality Improving Valence

individual to perform performance will lead to reward meaningful to the individual

for the task • Deliver rewards as promised value

• Assign reasonable tasks and goals good performance led to greater

Ratio of Output to Input Person 1’s Perception

Prestage I Stage I Stage II Stage III Stage IV Stage V

Political Showing favouritism

Personal Sexual harassment

Harmonizing Mediating conflict among other members,

Compromising Admitting error at times of group conflict

Gatekeeping Making sure all members have a chance to express

Encouraging Helping a group member make his or her point.

• Conformity pressures in groups

• How do we manage conflict?

Annihilatory Overt efforts to destroy

Aggressive physical attacks

Threats and ultimatums

Assertive verbal attacks

Bargaining Distributive Integrative

Available resources Fixed amount of Variable amount of resources to

2. On what basis will jobs be grouped together? Departmentalization

3. To whom do individuals and groups report? Chain of command

4. How many individuals can a manager Span of control

5. Where does decision-making authority lie? Centralization and

6. To what degree will there be rules and regu- Formalization

VP Financial VP Business Director, Quality

Public Carrier Broadband Enterprise Wireless

Canada Asia Europe United States

Individual Educational Federal Large Business Small/Medium

Operatives = 4096 Operatives = 4096

• High specialization • Cross-functional teams

Academic Programs Under

Human Resource Technology Marketing

Human Resource Technology Marketing

Alliance Alliance Alliance Alliance Alliance

Strategy Structural Option

Cost minimization Mechanistic: Tight control; extensive

Imitation Mechanistic and organic: Mix of loose with tight

Causes Structural Outcomes

Leader: decreasing need

Directive High Task and Relationship Supportive Monitoring

clarifying role and task • Laissez-Faire

Leaders who provide • Inspiration

Power and Politics

When Managers When Managers

Most Popular Reason Reason

Low High • Rewards

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