MHA6100 WEEK 3 DISCUSSION AND PROJECT INSTRUCTIONS

MHA6100 WEEK 3 LECTURE NOTES

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Masterful Execution and Generating Informal Power

Completion of day-to-day tasks often requires knowledge of the nature of people’s relationships and the ability to use that knowledge creatively. The more complex a task is, the more of a role these relationships are likely to play. High-performing leaders often successfully build and navigate these networks, which sets them apart from other leaders.

Influencing others without resorting to formal authority is known as informal power. This power is derived by understanding the role of power and influence within organizations. To execute informal power, leaders must develop compelling points of view on the basis of knowledge of other’s priorities. Once the priorities are known, a leader develops and works to maintain useful networks throughout the organization. This networking allows the leader to develop a reputation as a go-to person, who is able to effectively affect others’ thoughts and opinions directly and indirectly.

Informal power relies on relationships and influence as opposed to formal rules and regulations. French and Raven (1959) identified six fundamental types of leadership (legitimate, coercive, reward, expert, referent, and information), each having a greater or lesser relationship with formal authority. Formal power and informal power are related to the ability to gain access to and acquire cooperation, support, information, resources, funds, and opportunities inside an organization.

Fundamental Types of Leadership

Review each leadership type to learn more.

Legitimate

Legitimate power comes from the position a person holds and the formally recognized authority associated with that position. You can almost look at it as a chain of command. The individual at the top of the chain holds the most legitimate power. Those who fall underneath have subsequently less power. The power is wielded simply based on the title. The directors hold more power than the managers. Legitimate leadership has a great association with formal authority because of the nature of the leadership is based on the position.

Coercive

Coercive power comes from the threat of sanctions. A coercive leader looks to wield power by holding things over the staff's heads. This critically viewed use of power also has a great association with formal authority. "You will do what I say or you will be removed from the position," comes to mind when thinking of this type of leadership. It doesn't look to building relationships or consensus.

Reward

Reward power is derived from the ability to provide benefits or rewards. Many of the rewards or benefits you will see are compensation, praise, promotions, and bonuses. These rewards are used as motivation for production. The idea behind reward leadership is to provide opportunities for the employees to take control of their own situation by having some control over the rewards received. "If I do this, I will receive a salary increase." Reward leadership begins to move away from the formal authority by placing a lot of the ownership in the hands of the employee.

Expert

Expert power is based on the knowledge or special expertise the leader holds. Many times, these individuals are looked at as subject matter experts. Therefore, it is natural to lean on the expert regarding matters of the specialty. Leading from this perspective continues the move away from formal authority. The expert may or may not be the highest-ranking member of the organization or team; however, he or she will be the one who holds the authority to lead the project based on his or her knowledge. Expertise is the cornerstone of this form of leadership, not position.

Referent

Expert power is based on the knowledge or special expertise the leader holds. Many times, these individuals are looked at as subject matter experts. Therefore, it is natural to lean on the expert regarding matters of the specialty. Leading from this perspective continues the move away from formal authority. The expert may or may not be the highest-ranking member of the organization or team; however, he or she will be the one who holds the authority to lead the project based on his or her knowledge. Expertise is the cornerstone of this form of leadership, not position.

Information

Information power is derived from holding information or data. This differs from expert power in that the power does not lie in knowledge, the power lies in the possession of information. For example, an individual leading with information power may withhold data to gain cooperation, support, resources, finds, and opportunities for the organization or team. Information power doesn't last. If you give away a piece of information, you give your power away. This type of power is the least useful to the leader in the long run. It is also far removed from formal authority.

Highly effective, exceptional leaders share common approaches to informal power. These approaches are:

· Approaching Power Strategically: Being selective in who they invest in developing informal power relationships with

· Taking an Effective Approach: Developing relationships; understanding some take more effort than others, with an eye on efficiency

· Reciprocating: Returning favors, which can be as important as requesting them

As with all competencies, generating informal power also has the ability to let the leader down. The circumstances where this let down could occur are:

· Undervaluing informal power

· Involving wrong people in networks

· Using ineffective approaches

Reference:

French, J. P., & Raven, B. (1959). Studies in social power. New York, NY: Institute for Social Research.

Additional Materials

From your course textbook, Exceptional Leadership: 16 Critical Competencies for Healthcare Executives, read the following chapters:

· Competency 11: Generating Informal Power

· Competency 12: Building True Consensus

From the South University Online Library, read the following article:

· Revisiting Weber's Charismatic Leadership: Learning from the Past and Looking to the Future 

· True Consensus

· Consensus, or having a general agreement, is important in leadership. The ability to build consensus is the key to success. The ability to use informal power, along with other negotiating skills, to help people move toward a true consensus is essential to high-performing leaders.

· Building true consensus calls for a leader to frame issues in ways that can provide clarity from multiple perspectives. It also calls for the leader to keep issues separate from personalities, skillfully use group decision techniques, and ensure all group members are drawn into the discussion. Building true consensus calls for the leader to find shared values and common adversaries, facilitate discussions rather than guide them, and ensure that the consensus-building process is viewed as fair and appropriate.

· Stages in Consensus Building

· Review each stage to learn more.

· Frame the issues.

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· Building true consensus calls for a leader to frame issues in ways that can provide clarity from multiple perspectives. It also calls for the leader to keep issues separate from personalities, skillfully use group decision techniques, and ensure all group members are drawn into the discussion. The leader must also remember to provide information in a way as to not persuade the members but to allow them to come to a decision by themselves. This helps the process be transparent and unskewed.

· Find shared values and common adversaries.

·

· The most effective way to find shared values and common adversaries in the consensus-building process is by using group decision-making techniques such as nominal group technique, brainstorming, force field analysis, fishbone diagrams, and scenario sketching.

Facilitate discussion.

The leader’s role in the consensus-building process is to facilitate the discussion as opposed to guiding the discussion. This small aspect has a huge effect on the perception of fairness throughout the process. This also assists in assuring all voices are heard. If the leader serves as a facilitator, he or she will inherently look to involve all parties, whereas guiding tends to take the leader into a direction he or she predetermines.

Ensure the process is viewed as fair and appropriate.

Ensuring the process is viewed as fair and appropriate calls for the leader to address the following factors:

· The process was balanced. The leader sought an appropriate level of agreement to the good-enough point as opposed to maximizing agreement.

· The process was efficient. The appropriate amount of time was spent building consensus.

· The process or technique used was appropriate and led to buy-in from the group with a clear understanding of the goals and priorities involved in the decision at hand.

The majority of decisions leaders make do not lead to equal outcomes for all affected. Leaders rarely have the luxury of developing initiatives or finding solutions that everyone supports equally. Consensus building involves developing levels of support needed to move initiatives forward without causing some to feel left behind, slighted, or powerless, which might affect the organization or cause others to feel too powerful. As you can see, consensus building can be labor intensive. It requires careful planning to ensure that the ideal time and effort is being spent on building consensus. Spend too much time and you end up having too little time for other aspects of your role as a leader. Spend too little time and your initiatives do not receive the long-term support needed for success.

Not every decision made requires consensus. Exceptional leaders understand this and inform their leadership teams about the same. They also inform their teams in advance about how their input will or will not affect the decisions being made. Sometimes, leaders ask for their team’s input but still hold the right to make the final decision. Other times, leaders form leadership groups and abide by a totally democratic decision-making process. When consensus is needed, do ensure that the following factors receive the appropriate attention:

· Balance: Maintaining a balance between good-enough versus ultimate consensus

· Efficiency: Knowing how much effort is needed and when

· Technique: Knowing those you are trying to work on regarding their drive for success and their need for power or standing among peers

Additional Materials

From your course textbook, Exceptional Leadership: 16 Critical Competencies for Healthcare Executives, read the following chapter:

· Competency 13: Mindful Decision Making

From the South University Online Library, read the following article:

· Modelling Consensus Building in Delphi Practices for Participated Transport Planning 

Mindful Decision Making and Driving Results

Being mindful of your decisions and decision making takes deliberate effort. Putting in the effort pays off in improved decision-making habits and better-quality decisions.

Mindful decision making means you are conscious of the approach you take to make decisions. You make decisions on the basis of a mix of ethics, values, goals, facts, alternatives, and judgments. Decision tools such as force-filed analysis, cost-benefit analysis, decision trees, and paired comparisons analysis are also used effectively and at appropriate times. The leader must also show a good sense of timing related to decision making.

Decision Tools

Review each tool to learn more.

Cost-Benefit Analysis

The cost-benefit analysis (CBA) works by adding up the benefits of a course of action and comparing these benefits with the costs associated with them.

Force-Filed Analysis

This tool is based on the idea that situations are maintained by a force of equilibrium between the forces that drive change. The tool analyzes the forces for and against change.

Decision Tree

The decision tree uses a tree-like model of decisions and their possible consequences. These consequences include chance outcomes, costs of resources, and utility.

Paired Comparisons Analysis

This tool allows the individual to work out the importance of a number of options relative to one another. The user then chooses the most important problem to solve or chooses the solution that will be the most effective.

Ultimately, intentional approaches to decision making strongly affects the quality of decisions. While intelligence also plays a role, it is not the high rung on the ladder. Decision making involves learnable and refineable skills.

When highly effective leaders are described as highly effective decision makers, they are known to pay close attention to the following dimensions of their decisions:

· Gauging the urgency of the decision

· Evaluating the best approach—who, how, and what

· Analyzing the decision

· Using good judgment

· Acting with consistency and integrity

Having great processes, relationships, and trust is wonderful items to have as a leader. However, a large part of the leader’s evaluation is based on driving results.

Driving results consists of all the activities leaders engage in to define, monitor, and ensure high performance from themselves and their staff. To drive results, you mobilize people toward the greater commitment to a vision; challenge staff to set higher standards and goals; keep people focused on achieving those goals; and give direct and complete feedback that keeps teams and individuals on track. Leaders must also take quick and corrective actions as needed to keep everyone moving forward, show bias toward action, and proactively work through performance barriers.

Exceptional leaders who drive results are distinguished by the following characteristics:

· Looking for process improvement opportunities

· Staying focused

· Being organized

· Having boundless energy

Additional Materials

From your course textbook, Exceptional Leadership: 16 Critical Competencies for Healthcare Executives, read the following chapter:

· Competency 14: Driving Results

From the South University Online Library, read the following articles:

· The Effects of Organizational Citizenship Behaviors and Decision-Making Styles on Transformational Leadership Behavior 

· How Leaders Communicate Big Ideas to Drive Business Results