7028SR- GROUP- 1
Sa1_Jyyy
Topic1.3-LeadershipTheoriesthatHarnessMotivation.pptx
Breakthrough Leadership Skills MN7028
Topic 3: Transformational Leadership - Harnessing Motivation
1
1
Learning Outcomes
Situating Transformational Leadership
Organisational culture and the implications for leadership and management.
To examine the main sources of power in organisational settings and the methods by which power and resources can be enhanced to increase effectiveness in such contexts.
To analyse authority, power and politics as sources of control.
To clarify any queries related to assessments
2
‘Transforming leadership’ (Gregor Burns 1978)
View of the leader as a transformer (visionary) and as a motivator rather than simply as a transactor (day to day operations) (Burns, 1978; Peters and Waterman, 2004)
‘leadership builds on man’s need for meaning’ (Peters and Waterman, 2004, p.82)
‘leadership creates institutional purpose’ (ibid)
Has a moral component in that it transcends personal interests of leader and meets those of others
3
‘Transforming leadership’ contrasted with power
Leadership is exercised when leaders ‘arouse, engage and satisfy the motives of followers’ (Burns cited in Peters and Waterman, 2004)
‘Leadership, unlike naked power wielding, is thus inseparable from followers’ needs and goals’ (ibid)
Power bases therefore become ‘mutual support for common purpose’
Transforming people ‘from neutral, technical units into participants who have a particular stamp, sensitivity and commitment’ (Selznick, 1957)
‘reworking of human and technological materials to fashion an organism that embodies new and enduring values’ (ibid)
The ‘dynamic’ outcomes from transformational leadership (contrasted with power)
‘Transforming leadership is dynamic leadership in the sense that the leaders throw themselves into a relationship with “followers” who will feel “elevated” by it and often become more active themselves, thereby creating new cadres of leaders’ (Peters and Waterman, 2004, p.83)
5
What values?
Peters and Waterman, 2004 offer some examples from business:
‘beauty in a hamburger bun’ (Ray Kroc. McDonalds)
‘48 hours parts service anywhere in the world’ (Caterpillar)
However a more critical challenge of the leader is to ensure that the vision is enacted/lived by employees and that such values are indeed transforming the organisation.
Problems of over-simplifying definition of culture
The ‘Excellence’ school (Peters and Waterman, 1981) certainly popularised the notion of culture and Marvin Bower (also CEO of McKinsey) coined perhaps the most famous definition of culture as ‘the way we do things around here’.
Yet Schein (1992) distinguishes different depths to the concept: ‘a pattern of shared basic assumptions (that the group learned as it solved its problem of external adaptation and internal integration)’
https://www.youtube.com/watch?v=gPqz315HSdg
Organisational Culture: What are your perceptions about/definitions of culture? 10 Minute discussion
Definitions: Culture as cohesive (“glue”)
Culture is ‘how things are done around here’. (Drennan, 1992:3 after Bower)
Culture…is a pattern of beliefs and expectations shared by the organization’s members. These beliefs and expectations produce norms and powerfully shape the behaviour of individuals and groups in the organization. (Schwartz and Davis, 1981:33)
By culture I mean the shared beliefs top managers have about how they should manage themselves and other employees, and how they should conduct business(es) (Lorsch, 1986: 95)
Mintzberg et al: ‘tissue’
Definitions: Culture as Constraining (“glue”!)
Culture represents an interdependent set of values and ways of behaving that are common in a community and that tend to perpetuate themselves, sometimes over long periods of time. (Kotter and Hesketh, 1992:141)
Because...
Common values and beliefs which can increase ‘the level of inertia and breed similarities in “strategic postures” (Abrahamson and Fombrum, 1994, cited in Mintzberg et al, 2005)
This Photo by Unknown Author is licensed under CC BY-NC-ND
10
Value of culture in HR terms
Alvesson talks about some other common metaphors for change:
As a “regulator”: i.e. an unwritten element of company policy, which influences and directs aspects such recruitment/rewards
As a “compass”: helping to draw attention to the values, behaviours which are “right” for the organisation
As “glue”: encourages teamwork, cohesion.
Challenges of culture in HR terms
As “glue” again: but this time inhibiting necessary change
As “blinkers” but also may blinker people to new ideas (Leonard Barton talks of ‘core rigidities’).
Culture as a mechanism for leadership
Cultural ‘schools’ of strategic management (Mintzberg et al, 2005)
Mintzberg et all (2005) describe a number of schools of strategy including the Cultural School. Within the Cultural school are two perspectives which reflect a strong human relations orientation:
The ‘Excellence’ school (Peters and Waterman, 1981)
Resource based View of the Firm (Wernerfelt 1984 and Barney (1991)
Drucker said ‘culture eats strategy for breakfast’. What do you think he meant by that?
14
Culture and Performance
The ‘excellence’ school (Peters and Waterman, 1985). Developed a blueprint for high performing organisations, which consisted of 8 ‘attributes’ shared by their ‘excellent’ organisations:
Bias for action
Close to the customer
Autonomy and entrepreneurship
Productivity through people
Hands on/value driven
Stick to the knitting
Simple form/lean staff
Loose-tight properties
Culture and Performance?
Culture may be easily “linked” to superior performance (e.g. Peters and Waterman, 2004)
But there is an issue about causality
Compare with the ‘black box’ relating to contribution of HR to performance (e.g. Purcell et al, 2003)
Compare with the challenge of “proving” value of Employee Engagement (what comes first?)
What has happened to many of the organisations studied by Peters and Waterman?
Depths of Culture
Artefacts: ‘the visible products of the group ... That one sees, hears, feels’
Espoused beliefs and values: e.g. “our customers come first”, “innovation drives our business”
Basic Underlying assumptions: e.g. engineers do not deliberately design a product that is unsafe
(Schein, 2004)
17
Matching up the artefacts, the espoused values and the behaviours
Schein (1992) distinguishes in the video between the artefacts, the espoused values and the behaviours/assumptions of the members of a firm
Northern Rock ‘Mission Statement’ from 2006
‘superior value to customers .. through excellent products, efficiency and growth’ (2006 Annual Accounts)
RBS Values: https://www.rbs.com/rbs/about/our-values.html Accessed 24/10/17
‘we want to be trusted, respected and valued by our customers, shareholders and communities’
Compare with the notion of ‘due diligence light’ (2011) which was applied to the acquisition of ABN AMRO Bank
Challenges with/critiques of organisational culture
You cannot just “implement” culture or culture change. It takes time.
Paradoxically it is fragile and easy to destroy (e.g. at the whim of a new CEO)
One critique of the culture school is that it renders firms vulnerable to change and indeed many of the firms identified in Peters and Waterman’s classic text have since struggled or gone out of business.
Why?
It can discourage necessary change because the ‘common values and beliefs’ embedded in people also ‘increase their levels of inertia and breed similarities in “strategic postures” (Abrahamson and Fombrun, 1994, cited in Mintzberg et al, 2005)
It is inwardly focussed (‘inside-out’) and explains ‘too easily what already exists, rather than tacking the tough questions of what can come into being’ (Mintzberg et al, 2005). So it is valuable for HRM but is it valuable for strategic HRM?
Other notions of values
In 2016, financial and insurance services contributed £124.2 billion in gross value added (GVA) to the UK economy, 7.2% of the UK’s total GVA. London accounted for 51% of the total financial and insurance sector GVA in the UK in 2015. There are over one million jobs in the financial and insurance sector (3.1% of all UK jobs). The UK had a surplus of over £60 billion on trade in the financial and insurance sectors in 2016. In 2015-16, the banking sector alone contributed £24.4 billion to UK tax receipts in corporation tax, income tax, national insurance and through the bank levy.
Commons Briefing papers SN06193
Author: Gloria Tyler
Topics: Economic situation, Financial services
http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06193
Accessed 24/10/17
20
Power
‘Power lies in the acceptance of your authority by others – their knowledge that if they try to resist you, they will fail and you will succeed.’ Jay, A. (1967)
‘Power is the capacity to impress the dominance of one’s goals or values on others.’ (Armstrong, 2001)
21
Sources of Power
Reward – being able to give the other what he or she wants
Coercive – forcing him or her to do it
Referent – having desirable attributes that make people wish to refer to the leader
Legitimate – as opposed to illegitimate in the eyes of the followers
Expert – having an expertise that others want to use.
French and Raven (1958)
Informational – (added in 1965)
22
Sources of Power (2)
| Source of Power | Referred to as: |
| Ability to apply sanctions Status and formal position Ability to give valued resources Superior knowledge & experience Personal relationships: charisma Access to inside information | Coercive Legitimate Reward Expert Relationship Connection |
23
Authority is… (1)
Definitions:
The power or right to enforce obedience (Oxford English Dictionary);
Power made legitimate by position or expertise (Weightman, 2004)
24
Authority is… (2)
Distinctions:
In authority – relies on control over resources to influence people; it confers the right to control and judge the actions of others
An authority – based on personal attributes, credibility or ability to influence people; it is the basis of credibility that you must earn and maintain for yourself
Moral authority – based upon equity, ethics and fairness
Authority to act
Authority to authorise
25
Legitimacy of power?
Not all power is legitimate
“persuasion” of the Mafia
Gotti and Machiavelli
26
Some Theories of Power relevant to HR
Culture as power: ‘it’s the way we do things around here’ (Bowers).
‘the greatest conceivable power lies in the possibility to preform somebody in such a way that, of his own accord, he does what one wants him to do, without any need for domination ... or for explicit power’ (Castoriadis, 1992 in Alvesson, 2002)
Clegg (1987) states that ‘the most important kinds of power’ consist of ‘those occcasions when A’s didn’t have to get B’s to do things because B’s would do those sort of things anyway.
Power/dependence theory (Emerson, 1962)
Social Exchange theory (Blau, 1964)
27
Some Theories of Power relevant to HR contd:
Persuasion is more effective than exercise of power through coercion
Power/dependence theory (Emerson, 1962)
Social Exchange theory (Blau, 1964)
28
Gaining and Retaining Power
“Generally dominance is manifested not in significant political acts but rather in the day to day taken for granted nature of organizational life. As such the exercise of power and domination exists at routine level, further protecting certain interests and allowing the order of organizational life to go largely unquestioned by its members” (Deetz and Mumby, 1986 in Alvesson, 2004)
29
Empowerment
Empowerment is a concept whereby employees at all levels are responsible for their actions and should be given authority to make decisions about their own work.
It concerns the ownership of problem and solution
Empowerment requires training for employees and their managers – previous managers need to give up some of their power.
30
Power and Politics
Political behaviour in organisations has been described as ‘a process, that of influencing individuals and groups of people to get your own point of view, where you cannot rely on authority’ (Kakabadse, 1983)
31
Playing Politics
Power is a property of all organisations – politics reflects how power is put into action
Ethical or unethical behaviour?
Ends versus means?
The nature of competition
32
Control versus Participation
Scientific management – control
Continuum of behaviour depending on control of leader over the led
Unitarist and pluralist perspectives
Tells, sells, consults, joins
33
Selected reference list (online options in red)
Alvesson, M. (2002) Understanding Organizational Culture. London: Sage
CIPD (2014) ‘Keeping culture, purpose and values at the heart of your SME’
Collins, J. (1995) ‘Building Companies to Last’. Available at ‘https://www.jimcollins.com/article_topics/articles/building-companies.html
Emerson, R.E. (1962) ‘Power-Dependence Relations’, American Sociological Review, vol. 27, pp. 31-41.
French, J and Raven, B (1958) ‘The Bases of Social Power’ in Cartwright, D. (ed.) Studies in Social Power, Ann Arbor, Mich: University of Michigan Press.
Hofstede, G. (1990) ‘The Cultural Relativity of Organizational Practices and Theories’, in Wilson, D.C. & Rosenfield, R.H. (eds.), Managing Organizations: Text, Readings and Cases, London: McGraw-Hill.
Peters, T. and Waterman, R.H. (2004) In Search of Excellence: Lessons from America’s Best-Run Companies, Exmouth: Profile
Schein, E.H. (1985) Organizational Culture and Leadership: A Dynamic View, San Francisco, CA: Jossey-Bass
34
image1.png
image2.svg
.MsftOfcThm_Accent1_Fill_v2 { fill:#4472C4; } .MsftOfcThm_Accent1_Stroke_v2 { stroke:#4472C4; }
