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Phone: 714-547-9625 Fax: 714-547-5777

Leadership: Theory, Application, & Skill Development

Fifth Edition, 2013

ISBN-13: 9781111827076

Robert N. Lussier and Christopher F. Achua

Cengage Learning

02/14

BAM 550 Leadership

Message From the President

Welcome to California Coast University. I hope you will find this course interesting and useful throughout your career. This course was designed to meet the unique needs of students like you who are both highly motivated and capable of completing a degree program through distance learning.

Our faculty and administration have been involved in distance learning for almost forty years and understand the characteristics common to successful students in this unique educational environment.

This course was prepared by CCU faculty members who are not only outstanding educators but who have real world experience. They have prepared these guidelines to help you successfully complete your educational goals and to get the most from your distance learning experience.

Again, we hope that you will find this course both helpful and motivating. We send our best wishes as you work toward the completion of your program.

Sincerely,

Thomas M. Neal President

BAM 550 Leadership

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system without written permission from the publisher, except for the inclusion of brief quotation in review. Copyright © 2013 by California Coast University

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Course Number BAM 550

Course Title Leadership

Course Description This course focuses on leadership theories that seek to explain how traits, behaviors, or situational factors influence leadership style and effectiveness. Students will develop the competencies and skills to immediately start using these principles in their personal and professional lives. The course also explores the critical question of how well a leader is able to influence followers to achieve group objectives—this is what distinguishes effective from ineffective leaders.

Units of Credit 3 Units of Credit

Course Objectives Upon successful completion of this course, students will be able to:

• Analyze classical and contemporary leadership theories.

• Examine the importance of managerial leadership skills.

• Differentiate transformational and transactional leadership.

• Evaluate the relationships among negotiation and conflict, influencing tactics, power, and politics.

• Examine the importance of ethical principles, personal and company values, and socially responsible leadership practices.

Learning Resources Textbook: Leadership: Theory, Application, & Skill 5th Edition, 2013 Robert N. Lussier and Christopher F. Achua Cengage Learning

ISBN-13: 9781111827076

All course examinations are based on the contents of the textbook required for this course. To successfully complete the examinations, you will need the textbook. You may rent the textbook from the CCU rental library or you may purchase the textbook from another source.

The Study Guide

The study guide was designed to help you further understand the material in the textbook and master the course content. Each study guide chapter corresponds to a chapter in the textbook.

Additional Readings and Online Resources

To help you to further understand this subject material, additional readings and online resources related to this course are listed in this syllabus.

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The Library Information and Resources Network, Inc. (LIRN)

LIRN is an online library resource that provides access to multiple research databases. CCU doctoral candidates who enrolled in their program after February 1, 2010 receive complimentary access to LIRN.

If you are a current student enrolled in another CCU program and wish to request access to LIRN, you may do so for a one-time fee of $25. Please contact the CCU library to fill out a request form and submit it, with payment, to the university. You will be emailed a confidential identification number to use for the remainder of your studies at CCU.

Supplementary Materials

Unit Examination Answer Sheets* Final Examination Scheduling Form

*Master of Education and Doctor of Education students will not receive unit exam answer sheets. These programs require written responses only.

Your Course Grade

Your grades on course examinations are determined by the percentage of correct answers. The university uses the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

Your grade in this course will be based on the number of points you earn. Grades are based on the percentage of points you earned out of a total of 500 points:

Four Unit Examinations

100 points each 400 points total 80% of your grade

Final Examination

100 points 100 points total 20% of your grade

Syllabus

BAM 550 Leadership

Mastering the Course Content

In order to successfully complete this course, we recommend that you do the following before beginning:

• Be sure that you have the correct edition of the course textbook. Check the ISBN number of your textbook with the ISBN number listed on the cover page of this study guide.

• Review the table of contents at the end of this syllabus. You will only be responsible for the chapters in the textbook that are listed in the table of contents.

Each study guide contains several components selected and developed by the faculty to help you master the content of the course. Each chapter in the study guide corresponds to a chapter in the textbook. Study guides vary depending on the course, but most will include:

Learning Objectives Overviews Self Tests Summaries Key Terms Critical Analysis Questions (Master and doctoral students only)

The most efficient way to complete this course is to read the materials in both the study guide and textbook in the sequence in which it appears, generally from beginning to end.

Read the Overviews and Summaries

Before reading a chapter of your textbook, review the corresponding learning objectives, overview, key terms and summary sections in the study guide. These were prepared to give you an overview of the content to be learned.

Review the Self Test

After you have reviewed the study guide summaries, look at the items on the self test. As you identify your areas of relative strength and weakness, you will become more aware of the material you will need to learn in greater depth.

Review the Critical Analysis and/or Case Study Questions (Master and Doctoral Students Only) The critical analysis questions are designed to help you gain a deeper understanding and appreciation for the course subject matter. This section will encourage you to give additional thought to the topics discussed in the chapter by presenting vignettes or cases with real world relevance.

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BAM 550 Leadership

Read and Review the Chapter

Once you have the scope and organization of the chapter in mind, turn to the corresponding chapter in the textbook and read the material carefully. Keep the learning objectives, self test, critical analysis questions and/or case study questions in mind as you read.

Highlight important concepts and information in your study guide and write notes in the study guide margins as you read. These notes will help you study for the unit and final examinations.

Check Your Mastery of Each Chapter

When you feel that you have mastered the concepts presented in the chapter, complete the study guide self test, critical analysis questions and/or case study questions without referring to the textbook or your notes. Correct your responses using the answer key and solutions guide provided in the study guide. Your results will help you identify any areas you need to review.

Unit Examinations

Each course contains four unit examinations and a final examination. Unit examinations usually consist of 25 objective (multiple choice or true/false) test questions as well as comprehensive writing assignments selected to reflect the learning objectives identified in each chapter. For Master of Education and Doctor of Education students, unit examinations consist of writing assignments only.

Unit examinations may be found approximately every four to six chapters throughout your study guide. Unit examinations are open-book, do not require a proctor, and are not timed. This will allow you to proceed at your own pace.

It is recommended that you check your answers against the material in your textbook for accuracy.

Writing Assignments

Each unit examination includes a written component. This assignment may be in the form of written questions or case study problems. The written assignment affords the student an opportunity to demonstrate a level of subject mastery beyond the objective unit examinations, which reflects his/her ability to analyze, synthesize, evaluate and apply his/her knowledge. The writing assignment materials are found immediately following each unit examination.

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BAM 550 Leadership

Writing Assignment Requirements

• Always include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated). Be sure to keep a copy for your records.

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

• All responses must be typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size for ease of reading and grading.

• All online responses must be submitted as a MS Word Document file only.

Writing assignments are judged on the quality of the response in regard to the question. Word count is NOT one of the criteria that is used in assigning points to writing assignments. However, students who are successful in earning the maximum number of points tend to submit writing assignments that fall in the following ranges:

• Undergraduate courses: 350 - 500 words or 1 - 2 pages.

• Graduate courses: 500 - 750 words or 2 - 3 pages.

• Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut and paste your answers from the Internet and do not copy your answers from the textbook. Plagiarism consists of taking and using the ideas, writings or inventions of another, without giving credit to that person and presenting it as one’s own. This is an offense that the university takes very serious. An example of a correctly prepared written response may be found by visiting the coast connection student portal.

Citation Styles

The majority of your response should be your own original writing based on what you have learned from the textbook. However, if you choose to use outside materials to answer a writing assignment question, be sure to provide a reference (or citation) for the material. The following points are designed to help you understand how to provide proper references for your work:

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• References are listed in two places.

• The first reference is briefly listed within your answer. This includes identifying information that directs the reader to your list of references at the end of your writing assignment.

• The second reference is at the end of your work in the list of references section.

• All references cited should provide enough identifying information so that the reader can access the original material.

For more detailed information on the proper use of citations, please refer to the CCU student handbook located on the coast connection student portal.

Submitting Your Unit Examinations by Mail

Send your completed unit examination along with any writing assignments to the following mailing address:

California Coast University Testing Department 925 N. Spurgeon Street Santa Ana, CA 92701

Submitting Your Unit Examinations via the Internet

Students may access the online testing features via the coast connection student portal. Multiple choice unit examinations may be completed and submitted online.

After logging in to your online account at www.calcoastuniv.com, select the testing link, then click on complete unit exam. It is recommended that you complete the unit examinations on the hard copy answer sheet first, then transfer the answers to the online answer sheet.

The writing assignments for each unit examination may be submitted online as well. After accessing the student portal, choose the writing assignment link and then select writing assignment submission. If you will be submitting multiple Word documents, please upload and submit them one at a time.

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Repeating Examinations

After a unit examination grade has been posted, students have the option of repeating the exam to improve their grade*. Each unit examination may only be repeated once.

Requests to retake a unit examination will only be honored if the final exam has NOT been sent.

Students may retake one unit examination per course, free of charge. The cost for each additional, repeated exam will be $90. Payment must be paid in full to the accounting department prior to repeating unit exams.

*Master of Education and Doctoral students are not eligible to retake unit exams. If you would like to improve your grade, you may pay the current cost of tuition to retake the course.

Final Examination

Scheduling a Final Examination

Final examination requests can be submitted via U.S. mail, online through the coast connection student portal or by calling the testing department at (714) 547-9625.

A final exam scheduling form is located on the last page of this study guide. Please fill out all required fields and mail it to the university.

If you would like to request a final exam online, log in to your student account at www.calcoastuniv.com and choose the testing link, then select final exam scheduling.

Final exams will only be sent if you have completed all four unit examinations and submitted all four writing assignments.

Submitting Your Final Examination

Final Examinations can be submitted by mail, fax or online through the student portal.

After you have completed your exam, you or your proctor can fax it to the grading department at (714) 547-1451 or mail it to the university. When faxing exams, please do not resize your fax.

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For online submissions, once you have logged into the student portal, click on the testing tab and then choose either proctored final or non- proctored final. If your final exam was sent to your proctor, then he or she will have to enter a password that was issued to them on the proctor instruction sheet for the course.

Online final exam submissions must be completed in one session; you cannot save answers and go back to your exam later. We recommend that you complete your final exam on paper first, then transfer the answers to your online answer sheet.

Proctors

The university requires that all final examinations except elective courses be completed under the supervision of a proctor.

A proctor can be anyone EXCEPT an immediate family member, someone who resides with you or a current/former CCU student.

The purpose of the proctored final examination is to verify that you are, in fact, the person who is enrolled in the course of study. It is also to verify that you are completing the final examination without the aid of any outside assistance.

During the proctored final examination, you may use your textbook and any notes you have taken during the completion of your unit examinations. Your designated proctor will verify your identity and that you have completed the final examination without any outside assistance.

Receiving Your Examination Grades

After your examinations are scored, a grade report will be mailed to you or you may arrange to have your grade e-mailed to you. You may also check your grades on the coast connection student portal. Grades are normally posted and available for review within five business days.

Most students receive their grades by regular mail within two weeks after the university receives their examination.

If you do not receive a grade report within two weeks, please contact the testing department and a duplicate grade report will be sent to you.

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BAM 550 Leadership

Your Overall Grade Point Average (G.P.A.)

In addition to receiving a passing grade for each course, all students must maintain a required overall G.P.A. in order to graduate. Undergraduate students need an overall G.P.A. of 2.0 (C) on a 4.0 scale. Graduate and doctoral students need an overall G.P.A. of 3.0 (B) on a 4.0 scale.

A = 4 grade points B = 3 grade points C = 2 grade points D = 1 grade point F = 0 grade points

Students who do not meet the overall G.P.A. requirement by the end of their program must pay the current cost of tuition to repeat courses until they improve their overall G.P.A.

Overall course grades of “F” will be displayed on your degree plan and count as 0 units completed. You must pay to retake these courses.

Doctoral students must repeat any courses in which the overall course grade is a “D” or “F”.

Be sure to keep a copy of all work you submit to the university.

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If you have any questions about how to proceed through the course or regarding any California Coast University policies and procedures, the easiest way to get help is to e-mail or phone the university.

University office hours are Monday through Friday from 8:30 a.m. to 4:00 p.m., Pacific Standard Time.

California Coast University

925 N. Spurgeon Street, Santa Ana, California 92701 Phone: (714) 547-9625 Fax: (714) 547-5777 Test Answer Sheet Fax Line: (714) 547-1451

Email: [email protected]

Don’t forget: You are not alone! We are here to help you achieve your dream!

BA M

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Syllabus

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Learning Objectives

The learning objectives for this course are listed below:

Chapter 1: Who Is A Leader And What Skills Do Leaders Need?

1. Analyze the five key elements of leadership. 2. Examine the importance of managerial leadership skills. 3. Compare and contrast the trait and behavioral leadership theories. 4. Evaluate the interrelationships among the levels of leadership analysis. 5. Scrutinize the interrelationships between trait and behavioral leadership theories and contingency theories.

Chapter 2: Leadership Traits and Ethics

1. Examine the universality of traits of effective leaders. 2. Evaluate why the trait of dominance is so important for managers to have. 3. Compare and contrast Theory X and Theory Y, the Pygmalion effect, and self-concept. 4. Analyze how attitudes are used to develop four leadership styles. 5. Compare the three levels of moral development.

Chapter 3: Leadership Behavior and Motivation

1. Compare and contrast between the University of Michigan and Ohio State University leadership models. 2. Examine the three content motivation theories. 3. Analyze the major similarities and differences among the three process motivation theories. 4. Evaluate the major differences among content, process, and reinforcement theories.

Chapter 4: Contingency Leadership Theories

1. Differentiate between behavioral and contingency leadership theories. 2. Analyze the contingency leadership theory variables. 3. Examine the path-goal leadership model styles and variables. 4. Distinguish the major similarities and differences between the behavioral and contingency leadership theories. 5. Compare and contrast four major differences among the four contingency leadership models.

Chapter 5: Influencing—Power, Politics, Networking, and Negotiation

1. Differentiate position power and personal power. 2. Examine how power and politics are related. 3. Analyze how money and politics have a similar use. 4. Evaluate the relationships among negotiation and conflict, influencing tactics, power, and politics.

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Chapter 6: Communication, Coaching, and Conflict Skills

1. Examine the message-sending and message-receiving process. 2. Analyze two common approaches to getting feedback and explain why they don’t work. 3. Differentiate criticism and coaching feedback. 4. Consider the steps in initiating conflict resolution model.

Chapter 7: Leader-Member Exchange and Followership

1. Assess the evolution of dyadic theory. 2. Analyze the main focus of team building from a leader–follower perspective. 3. Evaluate the LMX theory. 4. Examine the ways a leader should delegate.

Chapter 8: Team Leadership and Self-Managed Teams

1. Examine the advantages and disadvantages of working in teams. 2. Analyze the role that a team leader can play in creating an effective team. 3. Evaluate the three parts of conducting effective meetings. 4. Differentiate conventional and self-managed teams.

Chapter 9: Charismatic and Transformational Leadership

1. Examine charismatic leadership 2. Differentiate transformational and transactional leadership. 3. Analyze the four behavior dimensions associated with transformational and charismatic leader behaviors. 4. Compare the basis of stewardship and servant leadership.

Chapter 10: Leadership of Culture, Ethics, and Diversity

1. Examine the power of culture in the strategy execution process. 2. Differentiate symbolic and substantive leadership actions for shaping organizational culture. 3. Analyze the four types of culture commonly found in organizations. 4. Evaluate the varying ways organizations can help foster an ethical work environment. 5. Compose the key factors that can enhance and support a pro-diversity culture.

Chapter 11: Strategic Leadership and Change Management

1. Analyze the strategic management process. 2. Examine the relationship between corporate goals and strategies. 3. Scrutinize the change management process using the three-stage model of change. 4. Evaluate some of the major reasons for resisting change.

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Chapter 12: Crisis Leadership and the Learning Organization

1. Examine why crisis leadership competence is an important consideration when hiring new leaders. 2. Analyze the importance of pre-crisis planning. 3. Compose five or more attributes that can be used to describe the learning organization. 4. Differentiate the traditional organization from the learning organization. 5. Examine the role of leadership in creating a learning organization.

Syllabus

BAM 550 Leadership

Lencioni, Patrick. Overcoming the Five Dysfunctions of a Team: A Field Guide for Leaders, Managers, and Facilitators. San Francisco: Jossey-Bass, 2005. Print.

Pink, Daniel H. Drive: The Surprising Truth about What Motivates Us. New York, NY: Riverhead, 2009. Print.

Rath, Tom, and Barry Conchie. Strengths Based Leadership: Great Leaders, Teams, and Why People Follow. New York: Gallup, 2008. Print.

Suggested Online Readings

Forbes Magazine on Leadership www.forbes.com/leadership

CEO.com – News and Best Practices for Leaders www.ceo.com

Center for Creative Leadership www.ccl.org

Online Management Magazine http://www.strategy-business.com

Table of Contents

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Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii - xxi

Unit One Chapter 1: Who Is a Leader and What Skills Do Leaders Need. . . . . . . . . 1

Chapter 2: Leadership Traits and Ethics. . . . . . . . . . . . . . . . . . . . . . . . . 12

Chapter 3: Leadership Behavior and Motivation. . . . . . . . . . . . . . . . . . . 23

Unit 1 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Unit 1 Examination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Unit 1 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Unit Two

Chapter 4: Influencing: Power, Politics, Networking, and Negotiation. . . . 42

Chapter 5: Contingency Leadership Theories. . . . . . . . . . . . . . . . . . . . . 54

Chapter 6: Communication, Coaching, and Conflict Skills. . . . . . . . . . . . 66

Unit 2 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Unit 2 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Unit 2 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Unit Three

Chapter 7: Leader-Member Relations and Followership. . . . . . . . . . . . . . 86

Chapter 8: Team Leadership and Self-Managed Teams . . . . . . . . . . . . . . 97

Chapter 9: Charismatic and Transformational Leadership . . . . . . . . . . . . 110

Unit 3 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

Unit 3 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Unit 3 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

Unit Four Chapter 10: Leadership of Culture, Ethics, and Diversity. . . . . . . . . . . . . 130

Chapter 11: Strategic Leadership and Change Management . . . . . . . . . . 143

Chapter 12: Crisis Leadership and the Learning Organization. . . . . . . . . . 155

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Unit 4 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

Unit 4 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Unit 4 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

Final Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Final Exam Scheduling Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

Objectives

Instructions to Students

BAM 550 Leadership

Chapter One Who is a Leader and What Skills do Leaders Need?

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Analyze the five key elements of leadership.

2. Examine the importance of managerial leadership skills.

3. Compare and contrast the trait and behavioral leadership theories.

4. Evaluate the interrelationships among the levels of leadership analysis.

5. Scrutinize the interrelationships between trait and behavioral leadership theories and contingency theories.

• Read pages 2 - 31 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

The chapter begins with discussing why leadership is important and its varying definitions. The three managerial leadership skills and the ten roles that managerial leaders perform are then discussed. The three levels of leadership analysis are explained, which serves as a framework for the remaining chapters. Finally, the chapter details the four major leadership paradigms that have developed over the years.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

behavioral leadership theories:

contingency leadership theories:

evidence-based management (EBM):

integrative leadership theories:

interpersonal skills:

Leadership:

leadership paradigm:

Summary

BAM 550 Leadership

The success of individual careers and the fate of organizations are determined by the effectiveness of leaders’ behavior. Leadership is considered crucial for success, and some researchers have argued that it is the most critical ingredient. Chief executive officers (CEOs) understand that they can’t run companies on their own; the secret is to foster a leadership mentality throughout the organization. Well-publicized corporate failures have brought home the critical role that leadership plays in the success or failure of almost every aspect of the profit and not-for-profit environment. Leadership is the influencing process of leaders and followers to achieve organizational objectives through change.

Leadership is part of a manager’s job. However, there are managers who are not effective leaders. There are also nonmanagers who have great influence on managers and peers. Therefore, the terms manager and leader are not used interchangeably. The term manager means a person who has a formal title and authority. The term leader means a person who may be either a manager or a non- manager. A leader always has the ability to influence others; a manager may not. Thus, a leader is not necessarily a person who holds some formal position such as a manager.

A follower is a person who is being influenced by a leader. A follower can be a manager or a nonmanager. Good followers are not “yes people” who simply follow the leader without giving input that influences the leader. In short, effective leaders influence followers, and their followers influence them. The qualities needed for effective leadership are the same as those needed to be an effective follower.

Leadership involves influencing followers to bring about change toward a desired future for the organization. To be an effective leader and follower you must be open to change. The people who advance in organizations are those who are willing to take a risk and try new things. Effective leaders and followers enjoy working with people and helping them succeed. Research, experience, and common sense all point to a direct relationship between a company’s financial success and its commitment to leadership practices that treat people as assets.

Effective leaders are not simply born or made, they are born with some leadership ability and develop it. If leaders are born and skills could not be developed, leading business schools would not be teaching leadership, you would not be taking this course, and major corporations would not spend millions of dollars on leadership training each year.

The three levels of analysis of leadership theory are individual, group, and organizational. The individual level of analysis of leadership theory focuses on the individual leader and the relationship with individual followers. The individual level can also be called the dyadic process. Dyadic theories view leadership as a reciprocal influencing process between the leader and the follower. There is an implicit assumption that leadership effectiveness cannot be understood without examining how a leader and follower influence each other over time. The second level of analysis of leadership theory focuses on the relationship between the leader and collective group of followers. This level is also called group process. Group process theories focus on how a leader contributes to group effectiveness. The third level of analysis of leadership theory focuses on the organization. This level is also called organizational process. Organizational performance in the long run depends on effectively adapting to the environment and acquiring the necessary resources to survive, and on whether the organization uses an effective transformation process to produce its products and services.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. The key elements of leadership include all of the following EXCEPT:

a. influence. b. leaders−followers. c. change. d. personality.

2. According to a survey of recruiters, the three most important attributes that they seek are __________.

a. communication and interpersonal skills b. ability to work well in a team. c. analytical and problem-solving skills d. All of the above.

3. Most employees are promoted to their first management position primarily because of their __________ skills.

a. interpersonal b. Team-related c. Decision-making d. technical

4. Leaders perform the _________ role when they represent the organization or department in legal, social, ceremonial, and symbolic activities.

a. figurehead b. leader c. liaison d. negotiator

5. The one of three of Mintzberg’s _________ roles which take corrective action when necessary, allocate resources, and negotiate routine and non-routine transactions is __________.

a. decisional b. conceptual c. informational d. spokesperson

Self Test

BAM 550 Leadership

6. Levels of analysis constitute __________.

a. a useful way of classifying leadership theory b. the most common approach to problem solving in organizations c. Frederick Taylor’s most lasting contribution to management theory d. None of the above.

7. The interrelationship among the levels of leadership analysis is true for all the following EXCEPT:

a. Individual performance affect group and organizational performance. b. Group performance affect organizational performance. c. Group and organizational performance affect the performance of the individual. d. Neither the group nor organizational performance affect individual performance.

8. Mintzberg’s ten managerial roles is an example of __________.

a. group level of analysis b. organizational level of analysis c. behavioral leadership theory d. a leadership paradigm

9. Contingency leadership theories attempt to explain the appropriate leadership style based on the __________.

a. leader, followers, and situation b. leader, manager, and subordinates c. leader, mentor, and entrepreneur d. individual, group, and situation

10. Evidence-based management (EBM) is an application of __________.

a. decision models to reward systems b. national cultures to determine the assignment of subordinates to specific tasks c. the findings of empirical research to the practice of leadership d. judicious, measured amounts of rewards and punishments on the basis of employee performance

Critical Analysis

The critical analysis questions are designed to help you gain a deeper understanding of the subject matter, develop an increased ability to apply what you have learned and integrate this knowledge into a greater understanding and appreciation for your field of study. Completion of the following questions will help you outline your answers and organize your thoughts within an appropriate framework. These practice questions will not be graded but you should apply the same analytical skills and writing proficiencies that you will need for the writing assignments. We suggest writing your answers on another piece of paper and comparing your results to the suggested answers at the end of this chapter to help you identify any areas you need to review.

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Examine the major similarities and differences between the trait and behavioral leadership theories.

2. Analyze how the shift in paradigm from management to leadership can possibly help— and hurt—the management profession.

3. Distinguish the decisional managerial leadership roles.

Answer Keys

Key Term Definitions

BAM 550 Leadership

behavioral leadership theories: Attempt to explain distinctive styles used by effective leaders or to define the nature of their work.

contingency leadership theories: Attempt to explain the appropriate leadership style based on the leader, followers, and situation.

evidence-based management (EBM): Decisions and organizational practices are based on the best available scientific evidence.

integrative leadership theories: Attempt to combine the trait, behavioral, and contingency theories to explain successful, influencing leader–follower relationships.

interpersonal skills: Involve the ability to understand, communicate, and work well with individuals and groups through developing effective relationships

Leadership: The influencing process of leaders and followers to achieve organizational objectives through change.

leadership paradigm: A shared mindset that represents a fundamental way of thinking about, perceiving, studying, researching, and understanding leadership.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. D

2. D

3. D

4. A

5. A

6. A

7. D

8. C

9. A

10. C

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine the major similarities and differences between the trait and behavioral leadership theories.

The similarity between the trait and behavioral leadership theories is that they are both universal theories, or they are seeking one best leadership style for all situations. The difference is the approach to determining leadership effectiveness. Trait theory attempts to explain personal characteristics of effective leaders, whereas behavioral theory attempts to explain what leaders actually do on the job.

2. Analyze how the shift in paradigm from management to leadership can possibly help— and hurt—the management profession.

The shift in paradigm from management to leadership can help the management profession because it places an emphasis on the people side of the job, which has been shown to increase organizational performance. It can hurt the profession if people do not realize that there is overlap between the two paradigms and simplistically stereotype people as either managers or leaders. A successful organization needs both managers and leaders.

3. Distinguish the decisional managerial leadership roles.

The decisional leadership roles include entrepreneur, disturbance handler, resource allocator, and negotiator. Leaders perform the entrepreneur role when they innovate and initiate improvements. Leaders perform the distrubance-handler role when they take corrective action during crisis or conflict situations. Leaders perform the resource-allocator role when they schedule, request authorization, and perform budgeting activities. Leaders perform the negotiator role when they represent their organizational unit during routine and nonroutine transactions that do not include set boundaries (such as only one price and term of a sale/purchase for a product/service or pay of an employee).

Notes

BAM 550 Leadership

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Two Leadership Traits and Ethics

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine the universality of traits of effective leaders.

2. Evaluate why the trait of dominance is so important for managers to have.

3. Compare and contrast Theory X and Theory Y, the Pygmalion effect, and self-concept.

4. Analyze how attitudes are used to develop four leadership styles.

5. Compare the three levels of moral development.

• Read pages 32 - 68 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

The focus of this chapter is on leadership traits, which includes ethics. This chapter will allow you to gain a better understanding of personality traits, which help explain why people do the things they do. We begin by learning about personality traits of leaders and the personality profile of effective leaders. Next we learn how attitudes affect leadership. The chapter ends with a discussion of ethics in leadership.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

attitudes:

ethics:

moral justification:

personality:

self-concept:

traits:

Summary

BAM 550 Leadership

Traits are distinguishing personal characteristics. Personality is a combination of traits that classifies an individual’s behavior. Personality is developed based on genetics and environmental factors. Personality profiles identify individuals’ stronger and weaker traits.

Personality profiles are used to categorize people as a means of predicting job success. High conscientiousness is a good predictor of job performance, whereas people who are unstable tend to have poor job performance. People who are high in openness to experience tend to lead innovation to improve organizational performance.

The Big Five Model of Personality categorizes traits into the dimensions of surgency, agreeableness, adjustment, conscientiousness, and openness to experience. The surgency personality dimension includes leadership and extraversion traits. The agreeableness personality dimension includes traits related to getting along with people. The adjustment personality dimension includes traits related to emotional stability. The conscientiousness personality dimension includes traits related to achievement. The openness-to-experience personality dimension includes traits related to being willing to change and try new things.

Ethics are the standards of right and wrong that influence behavior. Right behavior is considered ethical, and wrong behavior is considered unethical. Business ethics and ethics codes guide and constrain everyday business conduct. Research studies have reported a positive relationship between ethical behavior and leadership effectiveness. Values and ethics are essential to running a successful business. Our ethical behavior is related to our individual needs and personality traits.

Moral development refers to understanding right from wrong and choosing to do the right thing. There are three levels of personal moral development. At the first level—preconventional—you choose right and wrong behavior based on your self-interest and the consequences (reward and punishment). With ethical reasoning at the second level—conventional—you seek to maintain expected standards and live up to the expectations of others. At the third level— postconventional— you make an effort to define moral principles regardless of leader or group ethics. When we use unethical behavior, we often justify the behavior to protect our self-concept so that we don’t have a guilty conscience or feel remorse. Moral justification is the thinking process of rationalizing why unethical behavior is used.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. Which of the following is NOT a major reason for executive derailment?

a. They use a bullying style viewed as intimidating, insensitive, and abrasive. b. They are viewed as being cold, aloof, and arrogant. c. They betray personal trust. d. They undermanage.

2. The manager of an engineering consulting firm is extraverted and gets along well with others. In addition, she has managed multiple projects at a time—often under stressful circumstances—but has still maintained her equanimity and seen projects through to completion “with a firm hand.” This manager is displaying __________.

a. surgency, agreeableness, and adjustment b. conscientiousness and surgency c. openness to experience and surgency d. None of the above.

3. Which of the following regarding emotional intelligence (EI) is TRUE?

a. EI is the ability to work well with people. b. An offshoot of EI is IQ (intelligence quotient). c. IQ outweighs EI when it comes to personal achievement. d. There are five components of EI.

4. High energy with determination is categorized as the Big Five dimension of _________.

a. surgency b. agreeableness c. conscientiousness d. openness to experience

5. _________ refers to the positive or negative attitudes people have about themselves.

a. Self-concept b. Self-confidence c. Self-efficacy d. Self-focus

Self Test

BAM 550 Leadership

6. If the leader typically is afraid to make decisions, is unassertive, and is self-blaming when things go wrong, the leader is displaying a __________ self-concept.

a. Theory Y positive b. Theory Y negative c. Theory X positive d. Theory X negative

7. All of the following affect ethical behavior EXCEPT:

a. personality traits. b. attitudes. c. leader−follower relations. d. the situation.

8. The three levels of moral development are:

a. preconventional, conventional, and post-conventional. b. pre-ethical, ethical, and post-ethical. c. bad choice, neutral, and good choice. d. undeveloped, developed, and well developed.

9. Lower-level managers at the conventional level of moral development tend to __________.

a. be autocratic toward others b. use a leadership style similar to those of higher-level managers c. be visionary d. be committed to serving others

10. As a leader or manager, it is important for you to know what influences ethical and unethical behavior. Which of the following is (are) likely to encourage unethical behavior?

a. highly competitive and unsupervised situations b. the absence of a formal ethics policy or code of ethics c. when ethical behavior is punished d. a and b only

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Examine which personality traits are more closely related to ethical and unethical behavior.

2. Compare and contrast Theory X and Theory Y, the Pygmalion effect, and self-concept.

3. Analyze whether a leader should have a dominant need for achievement to be successful.

Answer Keys

Key Term Definitions

BAM 550 Leadership

attitudes: Positive or negative feelings about people, things, and issues.

ethics: The standards of right and wrong that influence behavior.

moral justification: The thinking process of rationalizing why unethical behavior is used.

personality: A combination of traits that classifies an individual’s behavior

self-concept: The positive or negative attitudes people have about themselves.

traits: Distinguishing personal characteristics.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. D

2. A

3. A

4. A 5. A 6. B 7. C 8. A 9. B 10. D

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine which personality traits are more closely related to ethical and unethical behavior.

Leaders with surgency (dominance) personality traits have two choices: to use power for personal benefit or to use socialized power. To gain power and to be conscientious with high achievement, some people will use unethical behavior; also, irresponsible people often do not perform to standard by cutting corners and other behavior which may be considered unethical. An agreeableness personality sensitive to others can lead to following the crowd in either ethical or unethical behavior; having a high self-concept tends to lead to doing what the person believes is right and not following the crowd’s unethical behavior. Emotionally unstable people and those with external locus of control are more likely to use unethical behavior. People open to new experiences are often ethical. People with positive attitudes tend to be more ethical than those with negative or work attitudes about ethics.

2. Compare and contrast the Theory X and Theory Y, the Pygmalion effect, and self-concept.

The concept of Theory X and Theory Y is similar to the Pygmalion effect, because both theories focus on the leader’s attitude about the followers. The Pygmalion effect extends Theory X and Theory Y attitudes by including the leader’s expectations and how he or she treats the followers, using this information to explain and predict followers’ behavior and performance. In contrast, Theory X and Theory Y focus on the leader’s behavior and performance. Both approaches are different from self-concept because they examine the leader’s attitudes about others, whereas self-concept relates to the leader’s attitude about him- or herself. Self-concept is also different because it focuses on how the leader’s attitude about him- or herself affects his or her behavior and performance.

3. Analyze whether a leader should have a dominant need for achievement to be successful.

Answers will vary. To be effective, leaders generally need to have a moderate need for achievement. People with a high need for achievement tend to seek individual achievement, and when they are not interested in being a leader, there is the chance for personalized power and derailment.

Notes

BAM 550 Leadership

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Three Leadership Behavior and Motivation

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Compare and contrast between the University of Michigan and Ohio State University leadership models.

2. Examine the three content motivation theories.

3. Analyze the major similarities and differences among the three process motivation theories.

4. Evaluate the major differences among content, process, and reinforcement theories.

• Read pages 69 - 110 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

Your leadership style and your ability to motivate yourself and others will affect your career success and the organization’s performance. So how can you, as a leader, motivate followers to go beyond mediocrity to become committed organizational citizens? That is what this chapter is all about. We will discuss four behavioral leadership models and seven motivation theories.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

equity theory:

expectancy theory:

goal setting theory:

leadership style:

motivation:

Reinforcement theory:

Summary

BAM 550 Leadership

By the late 1940s, most of the leadership research had shifted from the trait theory paradigm to the behavioral theory paradigm, which focuses on what the leader says and does. Although the behavioral leadership theory made major contributions to leadership research, it never achieved its goal of finding one best style.

The University of Iowa leadership studies identified two basic leadership styles: the Autocratic leadership style and the Democratic leadership style. The autocratic leader makes the decisions, tells employees what to do, and closely supervises workers. The democratic leader encourages participation in decisions, works with employees to determine what to do, and does not closely supervise employees. The autocratic and democratic leadership styles are often placed at opposite ends of a continuum; thus a leader’s style usually falls somewhere between the two styles. The Iowa studies contributed to the behavioral movement and led to an era of behavioral rather than trait research. With the shift in paradigm from management to leadership, the leadership style of effective managers is no longer autocratic, but more democratic.

Leadership research was conducted at Ohio State and the University of Michigan at about the same time during the mid-1940s to mid-1950s. These studies were not based on prior autocratic and democratic leadership styles, but rather sought to determine the behavior of effective leaders. The University of Michigan Leadership Model identifies two leadership styles: job-centered and employee centered. The job-centered style has scales measuring two job-oriented behaviors of goal emphasis and work facilitation. Job-centered behavior refers to the extent to which the leader takes charge to get the job done. The employee-centered style has scales measuring two employee- oriented behaviors of supportive leadership and interaction facilitation. Employee-centered behavior refers to the extent to which the leader focuses on meeting the human needs of employees while developing relationships.

Motivation is anything that affects behavior in pursuing a certain outcome. The pursuit of happiness and satisfaction is fundamental to motivation. Through the motivation process, people go from need to motive to behavior to consequence to satisfaction or dissatisfaction. Some need or want motivates all behavior. However, needs and motives are complex: we don’t always know what our needs are, or why we do the things we do. Like traits, motives cannot be observed; however, you can observe behavior and infer what the person’s motive is (attribution theory). There is no single, universally accepted theory of how to motivate people or how to classify the theories. In the following sections, you will learn about content motivation theories, process motivation theories, and reinforcement theory.

The need to balance is a currently a hot topic because of the ascent of matrixed organizations working around the clock due to a global marketplace and with the reengineered, downsizing, right-sizing world that focuses on how to get more done with fewer people. Successful leaders use socialized power and strive to meet the needs of people and the organization to create a win-win situation for all stakeholders. Two major things organizations are doing to help employees meet their personal needs are providing on-site day care centers—or giving employees information to help them find good day care—and offering flextime.

Empirical research studies have found that feedback and social reinforcers (praise) may have as strong an impact on performance as pay. Giving praise develops a positive self-concept in employees and leads to better performance—the Pygmalion effect and self-fulfilling prophecy. Praise is a motivator (not maintenance) because it meets employees’ needs for esteem and self-actualization, growth, and achievement. Giving praise creates a win-win situation. It is probably the most powerful, simplest, least costly, and yet most underused motivational technique there is.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. According to the Ohio State University studies on leadership styles, the leadership style that emphasizes task completion is _________.

a. initiating structure b. democratic leadership c. consideration d. autocratic leadership

2. The Leadership Grid identifies all of the following leadership styles EXCEPT:

a. impoverished. b. authority-compliance. c. country-club. d. end-of the road.

3. Which of the following is NOT one of the contributions of behavioral leadership theory?

a. The manager does not have to perform both production and people functions. b. It led to the shift in paradigm to contingency leadership theory. c. Organizations need both production and people leadership. d. Task and relationship behavior tend to correlate strongly with subordinate performance.

4. The manager of a multinational firm operating in a developing country noticed that local employees had, at length, recently met their physiological and safety needs. According to the hierarchy of needs theory, the next level of motivation would be met by the promise of __________.

a. pay related to piecework b. heightened security c. vacation days d. a group picnic

5. The process of building motivators into the job itself by making it more interesting and challenging is known as __________.

a. job enlargement b. job enrichment c. job enhancement d. None of the above.

Self Test

BAM 550 Leadership

6. __________ theory proposes that people are motivated when their perceived inputs equal outputs.

a. Equity b. Reinforcement c. Expectancy d. Goal-setting

7. _________ refers to the person’s perception of his or her ability to accomplish an objective.

a. Expectancy b. Instrumentality c. Valence d. Capability

8. _________ is one of the most replicated and influential management theories.

a. Rewards b. Goal setting c. Promotions d. Reinforcement

9. Fines and demotions are examples of which type of reinforcement?

a. positive b. avoidance c. punishment d. extinction

10. All of the following are steps in the giving praise model EXCEPT:

a. tell the employee exactly what was done correctly. b. tell the employee why the behavior is important. c. make general statements. d. encourage repeat performance.

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Examine the similarities and differences between the University of Michigan and Ohio State University leadership models.

2. Analyze the major similarities and differences among the three process motivation theories.

3. Differentiate content, process, and reinforcement theories.

Answer Keys

Key Term Definitions

BAM 550 Leadership

equity theory: Proposes that people are motivated when their perceived inputs equal outputs.

expectancy theory: Proposes that people are motivated when they believe they can accomplish the task, they will get the reward, and the rewards for doing the task are worth the effort.

goal setting theory: Proposes that specific, difficult goals motivate people.

leadership style: The combination of traits, skills, and behaviors leaders use as they interact with followers.

motivation: Anything that affects behavior in pursuing a certain outcome.

Reinforcement theory: Proposes that through the consequences for behavior, people will be motivated to behave in predetermined ways.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. A

2. D

3. D

4. D

5. B

6. A

7. A

8. B

9. C

10. C

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine the similarities and differences between the University of Michigan and Ohio State University leadership models.

The University of Michigan and Ohio State University leadership models are similar because they are both based on the same two distinct leadership behaviors, although the models use different names for the two behaviors. The models are different because the University of Michigan model identifies two leadership styles based on either job- or employee-centered behavior. The Ohio State University model states that a leader uses high or low structure and consideration, resulting in four leadership style combinations of these two behaviors.

2. Analyze the major similarities and differences among the three process motivation theories.

The similarity among the three process motivation theories includes their focus on understanding how employees choose behaviors to fulfill their needs. However, they are very different in their perceptions of how employees are motivated. Equity theory proposes that employees are motivated when their perceived inputs equal outputs. Expectancy theory proposes that employees are motivated when they believe they can accomplish the task and the rewards for doing so are worth the effort. Goal-setting theory proposes that achievable, difficult goals motivate employees.

3. Differentiate content, process, and reinforcement theories.

Content motivation theories focus on identifying and understanding employees’ needs. Process motivation goes a step farther to understand how employees choose behavior to fulfill their needs. Reinforcement theory is not as concerned about employee needs; it focuses on getting employees to do what managers want them to do through the consequences provided by managers for their behavior. The use of rewards is the means of motivating employees.

Notes

BAM 550 Leadership

Unit 1 Examination Instructions

The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit One Examination

Before beginning your examination, we recommend that you thoroughly review the textbook chapters and other materials covered in each unit and follow the suggestions in the mastering the course content section of the syllabus.

This unit examination consists of objective test questions as well as a comprehensive writing assignment selected to reflect the learning objectives identified in each chapter covered so far in your textbook.

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

BAM 550 Leadership

Unit 1 Examination

BAM 550 Leadership

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. The leader−follower relationship represents the influence __________.

a. of the leader on the follower b. of the follower on the leader c. of the leader on the group d. between the leader and the follower

2. _________ is the process of a leader communicating ideas, gaining acceptance of them, and motivating followers to support and implement the ideas through change.

a. Leadership b. Influence c. Management d. Guidance

3. Which of the following is a managerial role category?

a. interpersonal b. intrapersonal c. informational d. a and c only

4. Which of the following is categorized as one of Mintzberg’s the informational leadership roles, which is becoming increasingly important because of rapid technological changes?

a. negotiator b. liaison c. monitor d. resource-allocator

5. The three levels of analysis of leadership theory include all of the following EXCEPT:

a. individual. b. group. c. behavioral. d. organizational.

Unit 1 Examination

BAM 550 Leadership

6. Much of the current research at the ________ level focuses on how top level managers can influence organizational performance.

a. group b. individual c. organizational d. conceptual

7. The leadership paradigm that assumes leaders are born, not made, is _________ theory.

a. trait b. behavioral c. integrative. d. contingency

8. A successful sales manager was promoted to being CEO of a large conglomerate. Shortly afterward, the manager decided that his/her style of leadership was inappropriate and altered the way he/she practiced leading. This is an example of _________.

a. contingency leadership b. performing the figurehead role c. organizational learning d. None of the above.

9. Research has found that managers who had derailed tend to have __________.

a. worked too hard, then burned out b. displayed a lack of trust in their subordinates c. relied on only one contemporary leadership theory d. been overly ambitious

10. Which of the following is NOT a trait of high conscientiousness?

a. organization b. extraversion c. conformity d. credibility

11. Self-confidence is best categorized as the _________ Big Five dimension.

a. adjustment b. agreeableness c. surgency d. conscientiousness

Unit 1 Examination

BAM 550 Leadership

12. Emotional intelligence is related to which of the following Big Five personality dimensions?

a. surgency b. openness to experience c. adjustment d. conscientiousness

13. The Leader Motive Profile (LMP) includes a __________.

a. high need for achievement b. moderate need for power c. low need for achievement d. high need for power

14. “If you want something done right, do it yourself,” is an example of _________ attitude.

a. Theory X b. Theory Y c. Theory Z d. XYZ Profile

15. Ethics is defined as __________.

a. the standards of right and wrong that influence behavior b. creating a win-win situation for all stakeholders c. adhering to legal limits d. what top management thinks is right

16. The process of blaming one’s unethical behavior on others is known as __________.

a. distortion of consequences b. displacement of responsibility c. attribution of blame d. diffusion of responsibility

17. According to the University of Iowa studies on leadership styles, a democratic leader __________.

a. closely supervises workers b. makes the decisions c. tells employees what to do d. None of the above.

Unit 1 Examination

BAM 550 Leadership

18. The _________ leader strives to maintain a friendly atmosphere without regard for production.

a. middle-of-the-road b. authority-compliance c. country-club d. impoverished

19. All of the following are levels of needs in the hierarchy of needs theory EXCEPT:

a. physiological. b. safety. c. social. d. psychological.

20. Which of the following scholars of motivation theory would argue for loading a job with opportunity for advancement, substantial responsibility, and likelihood of recognition?

a. B. F. Skinner b. Frederick Herzberg c. Abraham Maslow d. David McClelland

21. To motivate employees with a high n Aff, you should do all of the following EXCEPT:

a. try to include them in decision making. b. delegate responsibility for orienting and training new employees to them. c. give them lots of praise and recognition. d. let them work alone.

22. Last year the sales team was worst in its company, having been outperformed by six other teams. This year, the new team manager believes that the team might make a third-place finish if he sets difficult, challenging goals for them. This is an example of which of the following motivational theories?

a. expectancy theory b. hierarchy of needs theory c. goal-setting theory d. reinforcement theory

Unit 1 Examination

BAM 550 Leadership

23. The manager who believes that employees work harder if they get a written reprimand as soon as they slow down at work is attempting to practice __________.

a. expectancy theory b. hygienic motivation c. intrinsic motivation d. reinforcement

24. As a manager who practices reinforcement theory, you know that __________ is the least effective method in motivating employees to do a good job.

a. positive reinforcement b. avoidance reinforcement c. extinction d. punishment

25. Each of the following questions is answered by either content, process, or reinforcement theories EXCEPT:

a. “What needs do employees have that should be met on the job?” b. “How do employees choose behavior to fulfill their needs?” c. “What personality traits cause people to behave in certain ways?” d. “What can managers do to get employees to behave in ways that meet the organizational objectives?”

Unit 1 Examination

BAM 550 Leadership

Writing Assignment for Unit One

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Word count is NOT one of the criteria that is used in assigning points to writing assignments. However, students who are successful in earning the maximum number of points tend to submit writing assignments that fall in the following ranges:

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

1. List and define the leadership theory paradigms.

2. Identify similarities and differences among Theory X and Theory Y, the Pygmalion effect, and self-concept.

3. Discuss similarities and differences between the Ohio State University Leadership Model and the Leadership Grid.

You Can Do It

BAM 550 Leadership

You have just completed Unit 1 of this course.

You are off to a great start!

Keep up the good work!

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Four Contingency Leadership Theories

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Differentiate between behavioral and contingency leadership theories.

2. Analyze the contingency leadership theory variables.

3. Examine the path-goal leadership model styles and variables.

4. Distinguish the major similarities and differences between the behavioral and contingency leadership theories.

5. Compare and contrast four major differences among the four contingency leadership models.

• Read pages 111 - 146 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

Both the trait and behavioral leadership theories were attempts to find the one best leadership style in all situations. In the late 1960s, it became apparent that there is no one best leadership style in all situations. Managers need to adapt different leadership styles, as leadership success requires adapting leadership styles to meet the situation. Thus, contingency leadership theory became the third major leadership paradigm (chapter 1), and the leadership styles used in its models are based on the behavioral leadership theories. Although there are no new leadership models, researchers continue to try to better understand and predict which leadership styles are the most appropriate in a given situation. In this chapter, we discuss theories versus models, the contingency theory factors, and the need for global contingency leadership.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

contingency leadership model:

descriptive leadership models:

leadership continuum model:

leadership model:

prescriptive leadership models:

substitutes for leadership:

Summary

BAM 550 Leadership

For a leader to be effective, there must be an appropriate fit between the leader’s behavior and style and the followers and the situation. Recall from Chapter 1 that contingency leadership theories attempt to explain the appropriate leadership style based on the leader, followers, and situation. Different individuals and groups also prefer different leadership styles. Leaders display a range of behavior in different situations because leadership is largely shaped by contextual factors that not only set the boundaries within which leaders and followers interact, but also determine the demands and constraints confronting the leader.

More companies are now looking for graduates with an international openness and flexibility who can master the complexity of the global economy. William Ouchi found that Japanese firms were managed and led differently than U.S. organizations. Ouchi combined practices of U.S. and Japanese companies in what he called Theory Z.

In 1951, Fred E. Fiedler began to develop the first situational leadership theory. It was the first theory to specify how situational variables interact with leader personality and behavior. He called the theory “Contingency Theory of Leader Effectiveness.” The contingency leadership model is used to determine if a person’s leadership style is task- or relationship-oriented, and if the situation (leader–member relationship, task structure, and position power) matches the leader’s style to maximize performance.

The first major factor in using Fielder’s model is to determine whether your dominant leadership style is task-motivated or relationship-motivated. To determine leadership style, using Fiedler’s model, you must complete the least preferred coworker (LPC) scales. The LPC essentially answers the question, “Are you more task-oriented or relationship-oriented?” The two leadership styles are (1) task and (2) relationship.

Based on the contingency leadership model, Fiedler teamed up with J. E. Garcia to develop cognitive resources theory (CRT). CRT is a person-by-situation interaction theory in which the person variables are leader intelligence and experience, and the situational variable is stress, experienced by leaders and followers. CRT has important implications for leader selection and for situational management. Fiedler recommends a two-step process for effective utilization of leaders: (1) recruiting and selecting individuals with required intellectual abilities, experience, and job-relevant knowledge, and (2) enabling leaders to work under conditions that allow them to make effective use of the cognitive resources for which they were hired. Despite the critics, Fiedler’s contingency leadership model and cognitive resources theory are considered the most validated of all leadership theories by some scholars.

Robert Tannenbaum and Warren Schmidt also developed a contingency theory in the 1950s. They stated that leadership behavior is on a continuum form from boss-centered to subordinate-centered leadership. Their model focuses on who makes the decisions. Tannenbaum and Schmidt identified some major styles the leader can choose from. Exhibit 4.5 is an adaptation of their model. The leadership continuum model is used to determine which one of seven styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) in order to maximize performance. Although the leadership continuum model was very popular, it did not undergo research testing like the contingency leadership model. One major criticism of the model is that the three factors to consider when selecting a leadership style are very subjective. In other words, determining which style to use, and when, is not clear in the model.

Summary

BAM 550 Leadership

The path-goal leadership theory was developed by Robert House. House intended to reconcile prior conflicting findings concerning task- and relationship-oriented leader behavior. His theory specified a number of situational moderators of relationships between task- and person-oriented leadership and their effects. House attempted to explain how the behavior of a leader influences the performance and satisfaction of the followers (subordinates).

The path-goal leadership model is used to select the leadership style (directive, supportive, participative, or achievement-oriented) appropriate to the situation (subordinate and environment) to maximize both performance and job satisfaction. Note that path-goal leadership theory is based on motivation theories of goal setting and expectancy theory. The leader is responsible for increasing followers’ motivation to attain personal and organizational goals. Motivation is increased by (1) clarifying the follower’s path to the rewards that are available, or (2) increasing the rewards that the follower values and desires. Path clarification means that the leader works with followers to help them identify and learn the behaviors that will lead to successful task accomplishment and organizational rewards.

Self Test

BAM 550 Leadership

1. A _________ is an example for use in a given situation.

a. leadership theory b. leadership model c. contingency theory d. None of the above.

2. Fiedler believed that one’s leadership style is a reflection of __________.

a. heredity b. personality c. behavior and personality d. heredity and behavior

3. Which of the following is used to determine which one of seven styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation in order to maximize performance?

a. contingency leadership model b. normative leadership model c. path-goal leadership model d. leadership continuum model

4. Unlike other contingency leadership models, the path-goal leadership model does not have a _________ trait.

a. followers b. leader c. situation d. behavior

5. _________ leadership is appropriate when the followers do not want autocratic leadership, have internal locus of control, and follower ability is high.

a. Directive b. Supportive c. Participative d. Achievement-oriented

Self Test

BAM 550 Leadership

6. In the normative leadership model, the __________ leadership style lets the group diagnose the problem and make the decision within stated limits.

a. consult group b. facilitate c. delegate d. decide

7. The characteristics of the decisions made in the time-driven model are ___________.

a. consult, participate, delegate b. leader, follower c. focus, value, orientation d. expertise, competence, knowledge

8. __________ leadership models tell the user exactly which style to use in a given situation.

a. Directive b. Prescriptive c. Descriptive d. Normative

9. A characteristic of followers that can substitute for leadership is __________.

a. closely knit, cohesive work groups b. invariant methodology c. clarity d. professional orientation

10. Closely knit, cohesive work groups __________.

a. can make a leadership style unnecessary or redundant b. tend to have high turnover c. improve a leader’s motivational performance d. None of the above.

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Differentiate a theory from a model.

2. Analyze the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories.

3. Examine the contingency leadership theory variables.

Answer Keys

Key Term Definitions

BAM 550 Leadership

contingency leadership model: Used to determine if a person’s leadership style is task- or relationship-oriented, and if the situation (leader–member relationship, task structure, and position power) matches the leader’s style to maximize performance.

descriptive leadership models: They identify contingency variables and leadership styles without specifying which style to use in a given situation.

leadership continuum model: Used to determine which one of seven styles to select, based on the use of boss-centered versus subordinate-centered leadership, to meet the situation (boss, subordinates, situation/time) in order to maximize performance.

leadership model: An example for emulation or use in a given situation.

prescriptive leadership models: They tell the user exactly which style to use in a given situation.

substitutes for leadership: Include characteristics of the subordinate, task, and organization that replace the need for a leader or neutralize the leader’s behavior.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. B

2. C

3. D

4. B

5. B

6. C

7. C

8. B

9. D

10. A

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Differentiate a theory from a model.

A leadership theory is an explanation of some aspect of leadership; theories have practical value because they are used to better understand, predict, and control successful leadership. The leadership theory explains the variables and leadership styles to be used in a given contingency situation. A leadership model is an example for emulation or use in a given situation. The leadership model is a short summary of the theory to be used when selecting the appropriate leadership style for a given situation.

2. Analyze the major difference between behavioral and contingency leadership theories, and explain the behavioral contribution to contingency theories.

Behavioral theories attempt to determine the one best leadership style for all situations. Contingency leadership theories contend that there is no one best leadership style for all situations. Behavioral theories contributed to contingency theories because their basic leadership styles are used in contingency leadership models.

3. Examine the contingency leadership theory variables.

The contingency leadership variables used to explain the appropriate leadership style are the leader, followers, and situation. The leader factor is based on personality traits, behavior, and experience. The followers factor is based on capability and motivation. The situational factor is based on task, structure, and environment.

Notes

BAM 550 Leadership

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Five Influencing: Power, Politics, Networking and Negotiation

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Differentiate position power and personal power.

2. Examine how power and politics are related.

3. Analyze how money and politics have a similar use.

4. Evaluate the relationships among negotiation and conflict, influencing tactics, power, and politics.

• Read pages 147 - 189 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

Besides excellent work, what does it take to get ahead in an organization? To climb the corporate ladder, you will have to influence people—to gain power, play organizational politics, network, and negotiate to get what you want. These related concepts are the topics of this chapter. Recall from our definition of leadership (Chapter 1) that leadership is the “influencing” process of leaders and followers to achieve organizational objectives through change. Leaders and followers influence each other because we are all potential leaders. Influencing is so important that it is called the essence of leadership. Influence has a direct effect on organizational performance and your career success. In essence, this chapter focuses on leadership behavior by explaining how leaders influence others at the individual level of analysis.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

coercive power:

connection power:

expert power:

information power:

legitimate power:

negotiating:

networking:

power:

Summary

BAM 550 Leadership

Power is the leader’s potential influence over followers. Because power is the potential to influence, you do not actually have to use power to influence others. Often it is the perception of power, rather than the actual use of power, which influences others. Power is based on certain qualities or capabilities, but power itself is transactional and flows out of relationships, real or perceived. There are two sources of power: position power and personal power. Position power is derived from top management and it is delegated down the chain of command. Personal power is derived from the followers based on the leader’s behavior. Charismatic leaders have personal power. The two sources of power are relatively independent, yet they have some overlap. As a manager, it is best to have both position power and personal power.

Reward power is based on the user’s ability to influence others with something of value to them. A leader’s power is strong or weak based on his or her ability to punish and reward followers. An important part of reward power is having control over resources, such as allocating expense and budget funds.

When employees do a good job, they should be rewarded. When dealing with higher-level managers and people over whom you have no authority, you can use the exchange influencing tactic by offering some type of reward for helping you meet your objective. The incentive for exchange can be anything of value.

Coercive power is appropriate to use in maintaining discipline and enforcing rules. Coercion is effective when applied to a small percentage of followers under conditions considered legitimate by most of them. When leaders use coercion on a large scale against followers, it undermines their authority and creates a hostile opposition that may seek to restrict their power or to remove them from office. Employees tend to resent managers’ use of coercive power.

Referent power is based on the user’s personal relationship with others. It is also called the personal appeals influencing tactic based on loyalty and friendship. Leaders can also use the inspirational appeals influencing tactic. The leader appeals to the follower’s values, ideals, and aspirations, or increases self-confidence by displaying his or her feelings to appeal to the follower’s emotions and enthusiasm. New managers frequently depend on employees who have expertise in how the organization runs and know how to get things done politically. Expert power is essential to employees who are working with people from other departments and organizations.

Information power is based on the user’s data desired by others. Information power involves access to vital information and control over its distribution to others. Distortion of information includes selective editing to promote only your position, giving a biased interpretation of data and even presenting false information. Distortion of information is an ethical issue.

Management has a political dimension. Just as the nine influencing tactics are used within the seven types of power, these tactics are also used in organizational politics. Politics is the process of gaining and using power. A positive way to view politics is to realize that it is simply a medium of exchange. Like money, politics in and of itself is inherently neither good nor bad. Politics is simply a system of getting what we want. In our economy, money is the medium of exchange (tangible currency); in an organization, politics is the medium of exchange (political behavior).

The best way to advance in your career is by networking to learn about new opportunities. More people find jobs through networking than all the other methods combined. Networking is also used for other reasons, including developing a business, job satisfaction, enhanced performance, salary,

Summary

BAM 550 Leadership

power, and promotions. Networking is not about asking everyone you know for a job. Networking is about building professional relationships through effective communications. Power, politics, and networking have the same thing in common: building relationships to help you meet your objectives.

The task of self-assessment can help to clarify your skills, competencies and knowledge. Self– assessment can also give your insight into your transferable skills and the criteria that are important to you in a new job. Although many tools exist to assess skills and preferences, a simple list with priorities can suffice to clarify your talents and the characteristics of an ideal new career or job. Power, politics, networking, and negotiating are all forms of influencing. When influencing, it pays to be ethical. Power is neither good nor bad; it’s what you do with it. Power is unethical (personalized power) when used to promote your self-interest at the expense of others. It is ethical when it is used to help meet organizational objectives and those of its members, as well as get what you want (socialized power). In general, truly successful people take the time to help others. Ethics of telling the truth, or not lying to the other party or being lied to, is an issue you will face in negotiation. There is a difference between not giving information that is not asked for and lying to the other party. To be a successful negotiator, people have to trust you to do business with you. When you are influencing others, try to use the stakeholders’ approach to ethics by creating a win-win situation for relevant parties affected by the decision.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. You, as an employee and not a manager in your organization, can have _________ power while your manager can potentially have both types of power.

a. position b. personal c. organizational d. earned

2. To get people in a good mood, the _________ influencing tactic may be used by being friendly and praising others before you ask them for what you want.

a. personal appeals b. ingratiation c. consultation d. inspirational appeals

3. Which of the following statements regarding coercion is false?

a. Coercive power is appropriate to use in maintaining discipline and enforcing rules. b. There has been a general increase in use of coercion by all types of leaders. c. Without coercive power, employees may not take you seriously and ignore your requests. d. Coercion is effective when applied to a small percentage of followers under conditions considered legitimate by most of them.

4. To increase your expert power, __________.

a. project a positive self-concept b. take all the training and educational programs your organization provides c. keep up with the latest technology d. All of the above.

5. The process of gaining and using power is __________.

a. politics b. reciprocity c. networking d. a coalition

Self Test

BAM 550 Leadership

6. To accomplish objectives, a manager who uses political behavior that creates obligations and develops alliances, often using the word “favor” in their requests, is using __________.

a. politics b. reciprocity c. networking d. coalition building

7. The first step of the networking process is to __________.

a. develop your network b. perform a self-assessment and set goals c. create your one-minute self-sell d. conduct networking interviews

8. An appropriate amount of time for a networking interview is __________ minutes.

a. 2 b. 10 c. 20 d. 60

9. The most appropriate time for developing options and trade-offs in the negotiation process is during __________.

a. negotiations b. the planning stage c. postponement d. project closeout

10. In negotiation, when the other party postpones a decision, this __________.

a. tends to diminish trust b. is used as a way to play mind games with the other party c. may be followed by your attempt to create urgency d. is a signal for you to use the hard sell

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Analyze the differences among legitimate, reward, coercive, and referent power.

2. Examine the steps in the networking process.

3. Differentiate inspirational appeal and personal appeal influencing.

Answer Keys

Key Term Definitions

BAM 550 Leadership

coercive power: The use of coercive power involves punishment and withholding of rewards to influence compliance. It is also called the pressure influencing tactic.

connection power: Based on the user’s relationships with influential people.

expert power: Based on the user’s skill and knowledge.

information power: Based on the user’s data desired by others.

legitimate power: Based on the user’s position power, given by the organization. It is also called the legitimization influencing tactic.

negotiating: A process in which two or more parties are in conflict and attempt to come to an agreement.

networking: The process of developing relationships for the purpose of socializing and politicizing.

power: The leader’s potential influence over followers.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. B

2. B

3. B

4. D

5. A

6. B

7. B

8. C

9. B

10. C

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Analyze the differences among legitimate, reward, coercive, and referent power.

Legitimate, reward, and coercive power are all related. A leader with position power usually has the power to reward and punish (coercive). However, a person with referent power may or may not have position power to reward and punish, and the leader influences followers based on relationships.

2. Examine the steps in the networking process.

The first step in the networking process is to perform a self-assessment to determine accomplishments and to set goals. Second, create a one-minute self-sell that quickly summarizes history and career plans and asks a question. Third, develop a written network list. Fourth, conduct networking interviews to meet your goals. Finally, maintain your network for meeting future goals.

3. Differentiate inspirational appeal and personal appeal influencing.

With inspirational appeal, the leader appeals to the follower’s values, ideals, and aspirations, or increases self-confidence by displaying his or her feelings to appeal to the follower’s emotions and enthusiasm. With personal appeal influencing, the leader appeals to the loyalty and friendship of the followers.

Notes

BAM 550 Leadership

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Six Communication, Coaching, and Conflict Skills

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine the message-sending and message-receiving process.

2. Analyze two common approaches to getting feedback and explain why they don’t work.

3. Differentiate criticism and coaching feedback.

4. Consider the steps in initiating conflict resolution model.

• Read pages 190 - 238 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

Interpersonal skills are as important as technical skills. Leadership success is based on interpersonal skills, and the focus of this chapter is on three important interrelated parts of interpersonal skills; they are communication, coaching, and conflict skills. Interpersonal skills can be developed. We begin with sending and receiving communications because it is the foundation for coaching and managing conflict. We also discuss feedback as it relates to both communication and coaching. Based on this foundation, you will learn how to coach followers and then how to manage conflicts.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

360-degree feedback:

arbitrator:

coaching:

Communication:

conflict:

feedback:

mediator:

mentoring:

paraphrasing:

Summary

BAM 550 Leadership

Communication is the process of conveying information and meaning. True communication takes place only when all parties understand the message (information) from the same perspective (meaning). Your ability to speak, read, and write will have a direct impact on your career success. There is a positive relationship between communication competency and leadership performance. An important part of a manager’s job is to give instructions, which is sending a message. As a manager, how well you give instructions directly affects your ability to motivate your employees, as well as their satisfaction with your supervisory leadership.

The steps in the oral message-sending process are: (1) develop rapport; (2) state your communication objective; (3) transmit your message; (4) check the receiver’s understanding; and (5) get a commitment and follow up. With oral communications, the key to successfully understanding the message is listening. In fact, failure to listen is one of the top five reasons leaders fail. Most people are really not good listeners. Listening is the process of giving a speaker your undivided attention. Analyzing is the process of thinking about, decoding, and evaluating the message. Poor listening occurs in part because people speak at an average rate of 120 words per minute, while they are capable of listening at a rate of over 500 words per minute. The ability to comprehend words more than four times faster than the speaker can talk often results in minds wandering.

Feedback is the process of verifying messages and determining if objectives are being met. Questioning, paraphrasing, and allowing comments and suggestions are all forms of feedback that check understanding. Feedback motivates employees to achieve high levels of performance. Mutual understanding of the meaning of the message must exist for communication to take place. The best way to make sure communication has taken place is to get feedback from the receiver of the message through questioning and paraphrasing. Paraphrasing is the process of having the receiver restate the message in his or her own words. If the receiver of the message can answer the questions or paraphrase the message, communication has taken place.

Coaching is the process of giving motivational feedback to maintain and improve performance. As a means of improving performance, organizations are training their managers to be coaches and this trend is expected to continue because coaching boosts performance.

Employees with overly critical managers tend to develop the attitude of, “My manager doesn’t care about me or appreciate my work, so why should I work hard to do a good job?” The major difference between criticism and coaching feedback is that coaching feedback is based on a good, supportive relationship; it is specific and descriptive; and it is not judgmental criticism. Coaching is often based on the employee doing a self-assessment of performance. Criticism makes employees feel like losers; praise and coaching feedback makes them feel like winners.

Attribution theory is used to explain the process managers go through in determining the reasons for effective or ineffective performance and deciding what to do about it. The reaction of a manager to poor performance has two stages. First, the manager tries to determine the cause of the poor performance, and then he or she selects an appropriate corrective action. Managers tend to attribute the cause of poor performance by certain employees to internal reasons (ability and/ or motivation) within their control, and poor performance by other employees to external reasons (resources) beyond their control.

Mentoring is a form of coaching in which a more-experienced manager helps a less-experienced protégé. Thus, the ten tips for coaching apply to mentoring. However, mentoring includes more than coaching and it is more involved and personal than coaching. The formal mentor is usually at

Summary

BAM 550 Leadership

a higher level of management and is not the protégé’s immediate manager. The primary responsibility is to coach the protégé by providing good, sound career advice and to help develop leadership skills necessary for a successful management career. Research studies have found that mentoring results in more career advancement and job satisfaction for the protégé.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. The process of conveying information and meaning is __________.

a. organization b. understanding c. communication d. decoding

2. The first step in the oral message-sending process is __________.

a. state your communication objective b. develop rapport c. transmit your message d. check the receiver’s understanding

3. The message-receiving process includes ___________.

a. listening, analyzing, and checking understanding b. listening, paraphrasing, and analyzing c. listening, analyzing, and following up d. listening, analyzing, and giving feedback

4. Which of the following is a component of analyzing?

a. thinking b. watching nonverbal cues c. taking notes d. avoiding distractions

5. The purpose of 360-degree feedback is to __________.

a. network with as many stakeholders or coworkers as possible b. take the informal methods of improving communication and formalize them c. receive performance evaluations from many people d. close the feedback loop and continue to the next stage of the strategy process

6. Feedback should generally be given as soon as possible ___________.

a. with appropriate flexibility b. in order for rewards and punishments to have the highest impact c. before you forget to give it d. because learning is maximized while emotions are running high

Self Test

BAM 550 Leadership

7. Though Chris has an intense desire and is well trained, she may still lack ___________.

a. ability b. motivation c. resources d. goals

8. _________ exists when disagreement and opposition support the achievement of organizational objectives.

a. Functional conflict b. Dysfunctional conflict c. Friction d. A dilemma

9. The avoiding conflict style creates a _________ situation because the conflict is not resolved.

a. win-lose b. lose-lose c. win-win d. None of the above.

10. The __________ conflict style user attempts to resolve the conflict through assertive, give-and-take concessions.

a. collaborating b. avoiding c. accommodating d. negotiating

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Examine two common approaches to getting feedback.

2. Differentiate between criticism and coaching feedback.

3. Analyze why criticism doesn’t result in positive feedback.

Answer Keys

Key Term Definitions

BAM 550 Leadership

360-degree feedback: Based on receiving performance evaluations from many people.

arbitrator: A neutral third party who makes a binding decision to resolve a conflict.

coaching: The process of giving motivational feedback to maintain and improve performance.

Communication: The process of conveying information and meaning.

conflict: Exists whenever people are in disagreement and opposition.

feedback: The process of verifying messages and determining if objectives are being met.

mediator: A neutral third party who helps resolve a conflict.

mentoring: A form of coaching in which a more experienced manager helps a less experienced protégé.

paraphrasing: The process of having the receiver restate the message in his or her own words.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. C

2. B

3. A

4. A 5. C

6. A

7. C

8. A

9. B

10. D

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine two common approaches to getting feedback.

The first common approach to getting feedback is to send the entire message and to assume that the message has been conveyed with mutual understanding. The second approach is to give the entire message followed by asking, “Do you have any questions?” Feedback usually does not follow because people have a tendency not to ask questions. There are at least four good reasons why people do not ask questions: receivers feel ignorant, receivers are ignorant, receivers are reluctant to point out the sender’s ignorance, and receivers have cultural barriers.

2. Differentiate between criticism and coaching feedback.

Criticism is feedback that makes a judgment about behavior being wrong. Coaching feedback is based on a supportive relationship and offers specific and descriptive ways to improve performance. Criticism focuses on pointing out mistakes, while coaching feedback focuses on the benefits of positive behavior.

3. Analyze why criticism doesn’t result in positive feedback.

Criticism usually results in four things happening to people being criticized: (1) They become defensive and justify their behavior, or they blame it on someone or something. (2) They don’t really listen to so-called constructive feedback. (3) They are embarrassed and feel bad about themselves, or they view themselves as losers. (4) They begin to dislike the task or job, as well as the critic.

Notes

BAM 550 Leadership

Unit 2 Examination Instructions

The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Two Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

BAM 550 Leadership

Unit 2 Examination

BAM 550 Leadership

Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. A leadership model _________.

a. is an explanation of some aspect of leadership b. has practical value c. is used when selecting the appropriate leadership style for a given situation d. explains the variables and leadership styles to be used in a given contingency situation

2. The most powerful determinant of overall situational favorableness is __________.

a. task structure b. locus of control c. position power d. leader−member relations

3. Which of the following best represents a situation in which a task-oriented leadership style should be used?

a. A leader with weak power has good relations with a repetitive task worker. b. A leader with weak power has good relations with a nonrepetitive task worker. c. A leader with strong power has poor relations with a repetitive task worker. d. A leader with weak power has poor relations with a repetitive task worker.

4. Before selecting one of the seven leadership styles on the leadership continuum, the leader must consider which one of the following variables?

a. the situation b. the leader’s personality c. the followers’ preferred style for the leader d. All of the above.

5. Based on the situational factors, the _________ leadership style provides high structure.

a. directive b. supportive c. participative d. achievement-oriented

6. All seven questions in the normative leadership model ___________.

a. are always answered in the same order for important decisions b. need not always be answered for certain decisions c. are based on scientific research d. can be nullified in the case of low employee motivation

Unit 2 Examination

BAM 550 Leadership

7. All of the following are substitutes for leadership EXCEPT:

a. characteristics of followers. b. characteristics of the task. c. characteristics of the organization. d. characteristics of the leader.

8. A characteristic of the organization that can substitute for leadership is ___________.

a. closely knit, cohesive work groups b. invariant methodology c. training d. intrinsic satisfaction

9. Most day-to-day manager-employee interactions are based on _________ power.

a. legitimate b. reward c. coercive d. referent

10. The use of referent power is appropriate for __________.

a. higher-level managers b. experts c. people with no position power d. people with no personal power

11. Distortion of information includes ___________.

a. giving a biased interpretation of data b. presenting false information c. selective editing d. All of the above.

12. To increase connection power, __________.

a. develop a network of information sources and gather information from them b. follow the guidelines for using the coalition influencing tactic c. project a positive self-concept d. All of the above.

Unit 2 Examination

BAM 550 Leadership

13. Because of political behavior, __________.

a. most important decisions are made by coalitions outside of the formal meeting in which the decision is made b. coalitions tend to break down over time c. reciprocity is hard to establish due to lack of trust in organizations d. None of the above.

14. Your one-minute self-sell should do all of the following EXCEPT:

a. identify your career field and key results you’ve achieved. b. give the listener a sense of your background. c. provide the direction of your next job. d. identify your specific salary requirements.

15. __________ is a process in which two or more parties are in conflict and attempt to come to an agreement.

a. Problem solving b. Decision making c. Negotiating d. Influencing

16. During negotiations, which of the following should you do?

a. Ask questions to focus on meeting your needs. b. Develop rapport and focus on the person. c. Ask for something in return. d. You make the first offer to get the advantage.

17. As a general rule, to send difficult and unusual messages, use ___________.

a. detailed written communication channels b. phone calls c. rich oral channels d. face-to-face oral channels

18. Which of the following is NOT a step in the oral message-sending process?

a. develop rapport b. state your communication objective c. transmit your message d. check the receiver’s commitment

Unit 2 Examination

BAM 550 Leadership

19. ___________ is the process of giving the speaker your undivided attention.

a. Listening b. Analyzing c. Checking understanding d. Paraphrasing

20. Which of the following is NOT one of the guidelines you should use when getting feedback on messages?

a. ask questions b. be aware of nonverbal communication c. verify the message d. be open to feedback

21. Which of the following is NOT one of the coaching guidelines?

a. give praise and recognition b. make feedback timely, but flexible c. focus on the person, not the behavior d. develop a supportive working relationship

22. Having employees assess their own performance is a part of ___________.

a. mentoring b. analyzing c. conflict resolution d. coaching

23. Which of the following is typically NOT a mentor?

a. family b. higher-level managers c. immediate managers d. peers

24. Which of the following is true about the avoiding conflict style?

a. should never be used b. does not result in resolution of the conflict c. often results in solving the problems d. should be used if continuing the confrontation may result in retaliation or physical harm

Unit 2 Examination

BAM 550 Leadership

25. The _________ conflict style user assertively attempts to jointly resolve the conflict with the best solution agreeable to all parties.

a. forcing b. collaborating c. accommodating d. negotiating

Unit 2 Examination

BAM 550 Leadership

Writing Assignment for Unit Two

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. State the major difference between behavioral and contingency leadership theories and explain the behavioral contribution to contingency theories.

2. Explain the differences between position and personal power.

3. Identify two common approaches to getting feedback and explain why they don’t work.

You Can Do It

BAM 550 Leadership

With Unit 2 complete, you are half way through the course.

Take a break and reward yourself

for a job well done!

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Seven Leader-Member Relations and Followership

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Assess the evolution of dyadic theory.

2. Analyze the main focus of team building from a leader– follower perspective.

3. Evaluate the LMX theory.

4. Examine the ways a leader should delegate.

• Read pages 239 - 275 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

In this chapter, you will explore the intricate nature of work-based relationships, particularly the relationship that forms between a leader and a follower. The relationship that develops between a follower and the leader does influence the follower’s job satisfaction, commitment, and performance. Often, one of the reasons given for why employees quit their jobs is the lack of a good working relationship with the leader. In fact, there is ample evidence from the literature showing that a high leader–member exchange (LMX) relationship does indeed enhance follower organizational commitment and decreases their likelihood of quitting the job. We will also discuss the evolution of dyadic theory, from vertical dyadic linkage (VDL) theory, to leader–member exchange (LMX) theory and to team–member exchange (TMX) theory. Then we will turn our attention to followership, an often ignored but relevant component of the leadership process. The last section of the chapter covers delegation, including a model that can help you develop your delegation skills.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

alienated follower:

conformist follower:

delegation:

dyad:

follower:

in-group:

ingratiation:

self-efficacy:

Summary

BAM 550 Leadership

A dyad is defined as the individualized relationship between a leader and each follower in a work unit. The three stages of evolution in the dyadic approach are vertical dyadic linkage theory (VDL), leader–member exchange theory (LMX), and team-member exchange theory. VDL theory focuses on the heterogeneity of dyadic relationships, arguing that a single leader will form different relationships with different followers. With a select subset of their members, leaders develop positive social exchanges (influence without authority), and with others, leaders develop only formal authority relationships (influence based primarily upon authority). These relationships do lead to the formation of in-groups and out-groups.

Leader–member exchange (LMX) is defined as the quality of the exchange relationship between an employee and his or her supervisor. The underlying assumption of LMX theory is that leaders or superiors have limited amounts of social, personal, and organizational resources and, as a result, tend to distribute them among followers selectively. Leaders do not interact with all followers equally, which ultimately results in the formation of LMXs that vary in quality.

Team-member exchange (TMX), is defined as a team member’s social exchanges with peers in terms of the mutual exchange of ideas, support, camaraderie, and feedback. Differentiated leadership inevitably leads to questions of fairness in team leadership as some members (more than likely those in the out-group) may feel that they are not being treated fairly. Procedural fairness is the perception among team members that they are treated fairly, and distributive fairness is the perception that they have been rewarded fairly. Team effectiveness and cohesion is affected when team members feel that they are unfairly treated either by the team leader or by other teammates. Effective team leadership is about ensuring that procedures and outcomes are fair to all members.

In high-quality LMX relationships, followers tend to receive better social support, more resources, and more guidance for career development. The relationship is characterized by greater follower input in decision making and greater negotiating latitude. Low-quality LMX relationships are characterized by less support, more formal supervision, and little or no involvement in decision making.

Self Test

BAM 550 Leadership

Multiple Choice Questions (Circle the correct answer)

1. Which of the following is NOT one of the three stages of evolution in the dyadic approach?

a. vertical dyadic linkage theory b. leader−member exchange theory (LMX) c. team member exchange theory d. All of the above.

2. The higher the quality of an LMX relationship, _________.

a. the higher the performance of the organization b. the more successful the manager c. the more resources that the follower receives d. All of the above.

3. An organization faced a sudden crisis as it found that a major client was considering dropping the organization’s services. A new employee agreed to work through the weekend in order to provide the client with improved services as leadership worked to save the relationship. What is a likely result of this episode?

a. The employee will get a raise. b. The employee will get more opportunities for responsibility. c. Leadership will boast about the employee to the client. d. None of the above.

4. One possible approach to minimizing the bias in LMX relationship is to __________.

a. use a different instrument to measure the quality of the relationship other than the LMX-7 scale b. train and encourage leaders to maintain high-quality LMX relationships with all followers, not just a few c. promote those who consistently score high in their performance evaluations d. pay less attention to in-group members and more attention to out-group members

5. Follower-influencing characteristics include all of the following EXCEPT:

a. power position. b. gender and status. c. locus of control. d. education and experience.

Self Test

BAM 550 Leadership

6. People with a(n) _________ locus of control believe that they are “masters of their own destiny” and can influence people and events in their workplace.

a. internal b. external c. neutral d. optimal

7. Which of the following has resulted from the higher educational level of the work environment?

a. an increasing proportion of workers in out-groups b. a preference for a more decentralized, participative style of management c. more employees with an external locus of control d. a decreasing need for delegation

8. Which of the following may be delegated?

a. technical matters b. routine tasks c. personal matters d. a and b only e. a, b and c only

9. Which of the following should NOT be delegated?

a. paperwork b. personnel issues c. routine tasks d. employees’ problems

10. As a guideline for effective leader feedback, during the post-feedback session the leader should do all of the following EXCEPT:

a. conduct a performance evaluation on the employee. b. show desire to be of help to the follower. c. build the follower’s self-confidence. d. follow up to ensure implementation of the action steps.

Critical Analysis

Critical Analysis / Case Study Problems

BAM 550 Leadership

1. Analyze the three factors whose combined effect influences LMX relationships.

2. Examine the strengths and limitations of LMX theory.

3. Effective leader evaluation and feedback involves before, during, and after steps in the process. Evaluate some recommended activities during each step.

Answer Keys

Key Term Definitions

BAM 550 Leadership

alienated follower: Someone who is low on involvement yet is high on critical thinking.

conformist follower: Someone who is high on involvement but low on critical thinking.

delegation: The process of assigning responsibility and authority for accomplishing objectives.

dyad: Defined as the individualized relationship between a leader and each follower in a work unit.

follower: Defined as someone who is being influenced by a leader.

in-group: Includes followers with strong social ties to their leader in a supportive relationship characterized by high mutual trust, respect, loyalty, and influence.

ingratiation: The effort to appear supportive, appreciative, and respectful.

passive follower: Someone who is neither high on critical thinking nor involvement.

self-efficacy: Defined as a person’s beliefs in his or her capabilities to produce at a certain level of performance.

Answers to Self Test

Answer Keys

BAM 550 Leadership

1. A

2. C

3. B 4. B 5. B 6. A 7. B 8. D

9. B

10. A

Solutions Guide

Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Analyze the three factors whose combined effect influences LMX relationships.

LMX relationships can be influenced by the combining effects following three factors: (1) Follower attributes—attributes such as commitment, trust, respect, and loyalty will influence leaders to show support, delegate more, allow followers more discretion in conducting their work, and engage in open communication with followers. (2) Leader/ follower perceptions and self-identities—the leader’s first impressions of a group member’s competency plays an important role in defining the quality of the relationship. (3) Situational factors—factors such as managerial resources, leader’s span of control, and relationship life-cycle stage do influence the type of LMX relationship that develops

2. Examine the strengths and limitations of LMX theory.

The fact that LMX focuses on the relationship between the leader and each follower is important because early leadership studies (such as the Great Man Theory of leadership) focused on the leader and ignored the follower, as if leaders alone were responsible for organizational success. It emphasizes the importance of forming positive relationships with followers and how this in turn influences their behavior. A major limitation of LMX is measurement difficulty. LMX theory deals with attitudes and perceptions of individuals—two issues that are often difficult to quantify and measure. For this reason, recent research efforts on LMX have focused on instrumentation of the theory. The ways in which the attributes of high-quality LMX relationships have been defined and measured have varied somewhat from study to study.

3. Effective leader evaluation and feedback involves before, during, and after steps in the process. Evaluate some recommended activities during each step.

The leader needs to think very carefully not only about what to say but also how it is going to be said. That’s why it is good to break down the process into “before,” “during,” and “after” steps. We call the before step prefeedback. Here, a leader should remind him- or herself to maintain calm and professionalism, even if the subordinate is not, and to get all the facts about the subordinate’s performance so the evaluation is not based on inaccurate information. During the evaluation and feedback session itself, the leader should try to establish rapport, state the task expectations and the follower’s actual performance, help follower identify reasons for gaps in performance, and involve the follower in suggesting corrective behaviors (feedback). The post-evaluation and feedback session should include activities such as follow-up to ensure adherence to change plan, offering to be of assistance if needed, and helping to build follower’s confidence that it can be done.

Notes

BAM 550 Leadership

Objectives

Instructions to Students

BAM 550 Leadership

Chapter Eight Team Leadership and Self-Managed Teams

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine the advantages and disadvantages of working in teams.

2. Analyze the role that a team leader can play in creating an effective team.

3. Evaluate the three parts of conducting effective meetings.

4. Differentiate conventional and self-managed teams.

• Read pages 276 - 321 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

BAM 550 Leadership

The focus of this chapter is on how organizations can develop and use effective teams to achieve organizational goals. The first half of the chapter focuses on the team concept. We will explore the increasing use of teams into the organization structure, different types of teams, the advantages and disadvantages of teams, characteristics of effective teams, and the role of team leaders. The second half of the chapter focuses on self-managed teams. We discuss the nature of self-managed teams (SMT), the difference between SMTs and conventional teams, the benefits of using SMTs, improving their effectiveness, and the challenges of implementation.

Key Terms

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

cross-functional team:

distributed leadership:

functional team:

groupthink:

self-managed teams (SMTs):

team:

teamwork:

virtual team:

Summary

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BAM 550 Leadership

Teams offer the best opportunity for better organizational performance in the form of increased productivity and profits. The synergistic benefits of teamwork are such that members of a team working cooperatively with one another can achieve more than working independently. Teams have become the basic unit of empowerment—large enough for the collective strength and synergy of diverse talents and small enough for effective participation and bonding. Increasingly, employers are looking for applicants who possess teamwork knowledge, skills, and abilities. Not all team efforts have resulted in success. In some cases, the use of teams has resulted in such negative outcomes as increased costs, stress, and lower group cohesion.

A group is a collection of individuals who interact primarily to share information and to make decisions that enable each member to perform within his or her area of responsibility. A team is a unit of interdependent individuals with complementary skills who are committed to a common purpose and set of performance goals and to common expectations for which they hold themselves accountable.

Team effectiveness is a model consisting of three components: (1) task performance—the degree to which the team’s output (product or service) meets the needs and expectations of those who use it; (2) group process—the degree to which members interact or relate in ways that allow the team to work increasingly well together over time; and (3) individual satisfaction—the degree to which the group experience, on balance, is more satisfying than frustrating to team members. Team learning is the collective acquisition, combination, creation, and sharing of knowledge.

Team leaders must manage not just the work, but also team member relations across diverse functional and cultural boundaries. Effective team leadership requires a shift in mindset from differentiated leadership to team-based leadership. The team leader must model the behavior that he or she desires. Team leadership is also about creating a team culture that supports the team’s goals and operational strategies. Being an effective team leader requires social skills. When a leader or a team member can leverage his social skills to obtain resources for the team, he or she is said to possess social capital.

A functional team is a group of employees belonging to the same functional department, such as marketing, R&D, production, human resources, or information systems, who have a common objective. A cross-functional team is made up of members from different functional departments of an organization who are brought together to perform unique tasks to create new and nonroutine products or services. The cross-functional team offers many potential benefits including: greater interaction, cooperation, coordination, information sharing, and cross-fertilization of ideas among people from different functional areas. A virtual team is one whose members are geographically distributed, requiring them to work together through electronic means with minimal face-to-face interaction. Self-managed teams (SMTs) are relatively autonomous teams whose members share or rotate leadership responsibilities and hold themselves mutually responsible for a set of performance goals assigned by higher management.

Leadership is about making decisions. In a hierarchical command and control structure, the leader is the key decision maker. The followers are there to implement the leader’s decisions. More and more, organizations are finding out that this top-down decision-making model does not work well in a team-oriented organization. For work teams to be effective, leaders must relinquish some of the decision-making responsibilities and allow team members to participate in the process. The Normative Leadership Model has a time-driven and development-driven decision tree that enables the user to select one of five leadership styles appropriate for the situation in order to maximize decision outcomes. Leaders who employ the “facilitate” and “delegation” leadership styles allow

Summary

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greater team participation in decision making.

In self-managed teams, decision-making authority is left up to the individual members who make up the team. Proponents argue that autonomy in the form of shared control over critical task- related decisions does enable SMTs to perform better than conventional teams. With autonomy, members feel invested in the process and are dedicated to accomplishing the stated goals. Self- managed teams go by many different names: self-directed, self-leading, self-maintaining, and self- regulating teams. This quest to maximize the human potential represents the essence or rationale for the self-managed team concept. In distributed leadership, multiple leaders take complementary leadership roles in rotation within the same SMT, according to their area of expertise or interest.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. __________ is an understanding and commitment to group goals on the part of all team members.

a. Goal congruence b. Teamwork c. Team cohesion d. Social loafing

2. Social loafing is likely to result when __________.

a. teams are extremely cohesive b. individual effort is not recognized and assessed c. there is a lack of motivation within the team d. individual-level performance appraisal occurs

3. Norms get formed through __________.

a. critical events b. symbols c. both critical events and symbols d. neither critical events nor symbols

4. Team cohesion is increased when __________.

a. team members agree on a common purpose and direction b. there is low team efficacy c. the organization discourages interteam competition for rewards d. the quality of interpersonal relations is moderately good

5. All of the following are key success factors for effective cross-functional teams EXCEPT:

a. organize at the right size. b. develop consensus around a common vision or mission as well as goals that focus on organizational outcomes. c. ensure effective leadership and top management support. d. implement individual-based performance measures, feedback, and reward systems.

Self Test

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6. The team-centered decision-making model is preferred when ___________.

a. relevant information and expertise is found in a few select individuals b. participation is needed to obtain necessary commitment c. concentrating power in a single individual helps the team d. popular decisions need to be made

7. It is recommended that leaders play the role of __________ at meetings.

a. director b. facilitator c. advisor d. consultant

8. ___________ distract the group during a meeting from the agenda items, tend to change the subject, and often like to complain.

a. Talkers b. Wanderers c. Bored people d. Arguers

9. Which of the following is NOT a benefit of self-managed teams?

a. a sense of belonging and ownership in one’s work b. a decreased likelihood of social loafing and groupthink c. greater employee participation d. reduced operational costs because of reductions in managerial ranks and greater efficiencies

10. The self-managed team ___________ is the external leader of a self-managed team, whose job is to create optimal working conditions so team members take on responsibilities to work productively and solve complex problems on their own.

a. facilitator b. leader c. champion d. director

Critical Analysis

Critical Analysis / Case Study Problems

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1. Examine the methods for improving self-managed team effectiveness.

2. Analyze the challenges of implementing effective self-managed teams.

3. Distinguish the seven characteristics of effective teams.

Answer Keys

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Key Term Definitions

BAM 550 Leadership

cross-functional team: Composed of members from different functional departments of an organization who are brought together to perform unique tasks to create new and nonroutine products or services.

distributed leadership: Multiple leaders take complementary leadership roles in rotation within the same SMT, according to their area of expertise or interest.

functional team: A group of employees belonging to the same functional department, such as marketing, R&D, production, human resources, or information systems, who have a common objective.

groupthink: When members of a cohesive group tend to agree on a decision not on the basis of its merit but because they are less willing to risk rejection for questioning a majority viewpoint or presenting a dissenting opinion.

self-managed teams (SMTs): Self-managed teams as relatively autonomous teams whose members share or rotate leadership responsibilities and hold one another mutually responsible for a set of performance targets assigned by top management.

Team: A unit of interdependent individuals with complementary skills who are committed to a common purpose and set of performance goals and to common expectations, for which they hold themselves accountable.

teamwork: An understanding and commitment to a common goal on the part of all team members.

virtual team: Members are geographically distributed, requiring them to work together through electronic means with minimal face-to-face interaction.

Answers to Self Test

Answer Keys

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1. B

2. B

3. C

4. A 5. D

6. B

7. B

8. B

9. B

10. A

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine the methods for improving self-managed team effectiveness.

Senior management has the principal responsibility to create the right environment in which self-managed teams can grow and thrive. This involves undertaking activities to ensure that the whole organization has a changed culture, structure, and climate to support SMTs. This requires providing sufficient responses to questions such as whether the SMT has sufficient autonomy to perform its task and has access to information; whether conditions have been created in which authority can shift between members to appropriately match the demands of their task; and whether SMT participants are motivated, stimulated, and supported in a fashion that breaks down walls and creates unity of purpose and action.

Management must have a well thought-out vision of the way in which SMTs will fit into the scheme of the entire organization; allow time after training for the team members to bond with one another and form team skills; provide adequate training so team member skills and experiences match task requirements; provide objective goals, incentives, and appropriate infrastructure; ensure that the organization has the necessary resources to commit to this kind of change (not only in time but also in money and people); and create a sense of empowerment, so SMTs take ownership of what they are doing and how they are going to do it.

2. Analyze the challenges of implementing effective self-managed teams.

Many of the challenges of implementing SMTs stem from the difficulties of transitioning from a traditional command-and-control work environment to self-managed teams. Team-building experts contend that managers who have become accustomed to traditional, autocratic management and jaded at management fads that come and go may resist or undermine a team approach. Even among members of the nonmanagerial ranks, the transition to SMTs has as much potential for frustrations and problems as it does for managers. This is usually due to unfamiliarity with the new structure and new routines, and adjusting to team responsibilities. Team members must learn new behaviors, like putting aside differences in order to make decisions that benefit the team. The need to adapt to a new working environment in which the definition of teamwork requires a personal, cultural, and behavioral adjustment may be too much for some members and thus lead to personality and behavior conflicts. Thus, the greatest challenge may lie in setting and enforcing new behavioral expectations, made necessary by the absence of a traditional leader and the presence of new employee rights and responsibilities.

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

3. Distinguish the seven characteristics of effective teams.

The seven characteristics of effective teams are: (1) team norms, (2) team leadership, (3) team cohesiveness and interdependence, (4) team composition, (5) team structure, (6) organizational support, and (7) creativity driven. Team norms influence how a team’s members perceive and interact with one another, approach decisions, and solve problems; they guide team members’ behavior. Teams need effective leaders who will monitor the progress of the team to make sure that the team does not go off track, go too far or not far enough, lose sight of its goal, or become bogged down by conflict. Effective teams have high levels of cohesion and independence. Highly cohesive teams are characterized by high group potency and strong self-efficacy.

Members of highly effective teams are more interactive and dependent on one another to get tasks done. Effective teams must have the appropriate mix of complementary skills, knowledge, and ability to successfully realize the team’s objectives. Effective teams have structures that provide team members with broad participation in decision making. Effective teams have strong support from top management. Management support, both tangible and intangible, is critical for team success. It is management’s responsibility to create a work climate that supports and rewards teamwork. Finally, effective teams are also characterized by higher levels of creativity.

Notes

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Objectives

110

Instructions to Students

BAM 550 Leadership

Chapter Nine Charismatic and Transformational Leadership

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine charismatic leadership.

2. Differentiate transformational and transactional leadership.

3. Analyze the four behavior dimensions associated with transformational and charismatic leader behaviors.

4. Compare the basis of stewardship and servant leadership.

• Read pages 322 - 355 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

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In this chapter, we will start by discussing charismatic leadership and its importance. Then, we will discuss transformational leadership and take an integrated perspective where we examine issues common to both charismatic and transformational leadership. The chapter concludes with the related topics of stewardship and servant leadership.

Key Terms

112

The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

BAM 550 Leadership

personal meaning:

personalized charismatic leader (PCL):

stewardship:

vision:

Summary

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BAM 550 Leadership

Charisma is a social construct between the leader and follower in which the leader offers a transformative vision or ideal that exceeds the status quo and then convinces followers to accept this course of action, not because of its rational likelihood of success, but because of their implicit belief in the extraordinary qualities of the leader. The locus of charismatic leadership focuses on one question: what is the basis of charisma? This question centers on the debate over whether charisma is primarily the result of the situation or social climate facing the leader, the leader’s extraordinary qualities, or a combination of the situation and the leader’s qualities.

Many people agree that charisma can be a double-edged sword capable of producing both positive and negative outcomes. One method for differentiating between positive and negative charisma is in terms of the values and personality of the leader. The key question for determining classification is whether the leaders are primarilyoriented toward their own needs or the needs of followers and the organization. The socialized charismatic leader (SCL) is one who possesses an egalitarian, self-transcendent, and empowering personality and uses charisma for the benefit of others. The personalized charismatic leader (PCL) is one who possesses a dominant, self-centered, self-aggrandizing and narcissistic personality and uses charisma for self glorification.

Transformational leadership serves to change the status quo by articulating to followers the problems in the current system and a compelling vision of what a new organization could be. Transactional leadership seeks to maintain stability within an organization through regular economic and social exchanges that achieve specific goals for both the leaders and their followers.

Despite some obvious differences between charismatic and transformational leadership theories, there is much that is common between the two. More often than not, the qualities that describe effective charismatic leaders are not different from those that describe effective transformational leaders. Also, the influencing behaviors of charismatic leaders are not that different from those of transformational leaders.

Proponents of stewardship and servant leadership view the leader as a steward and servant of the people and the organization. Stewardship and servant leadership represent a shift in the leadership paradigm toward followers. It is the view that leadership has less to do with directing other people and more to do with serving other people. Stewardship is an employee-focused form of leadership that empowers followers to make decisions and have control over their jobs. Servant leadership is leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally. Stewardship and servant leadership describe leaders who lead from positions of moral influence, not power, and are very follower-centered. At the core of servant leadership is self-sacrificing love of others without regard to what one might receive in return. An effective steward leader creates the environment for team empowerment where decision making is highly decentralized. At the core of servant leadership is self-sacrifice for others without regard to what one might receive in return. The servant leader operates from the viewpoint that we all have a moral duty to one another and that as leaders, we have to both serve and lead. Leadership is seen as an opportunity to serve at the ground level, not to lead from the top. It is a leadership approach that is centered on a strong service orientation and moral–spiritual grounding.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. The Greek word charisma means ___________.

a. “extraordinary quality.” b. “divinely inspired gift.” c. “exceptional ability.” d. “attribute of wisdom.”

2. The theoretic issue of the locus of charismatic leadership asks whether ____________.

a. charismatic leaders are born or made b. the precondition is in the followers’ mind or in the leader’s mind c. the vision is the compelling factor or if the energy and personal charm is the compelling factor d. the leadership phenomenon stems more from the leader’s qualities or the situation facing the leader

3. The __________ charismatic leader is one who possesses an egalitarian, self-transcendent, and empowering personality.

a. socialized b. individualized c. personalized d. None of the above.

4. Personalized charismatic leaders ___________.

a. are more relationship-oriented than other leaders b. tend to have work groups that are more cohesive and team oriented c. are usually perceived as less manipulative than others d. do not use their power for socially beneficial causes

5. Transactional leaders are described as all of the following EXCEPT:

a. structured. b. passive. c. reward-oriented. d. influential.

Self Test

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6. ___________ is the ability to imagine different and better conditions and the ways to achieve them.

a. Vision b. Charisma c. Followership d. Personal meaning

7. In terms of leadership, which of the following characteristics should a vision have?

a. Idealized view of the future, which is better than the present. b. Distinction between the status quo and the way things cannot be. c. Should help followers accept present realities. d. Synthesis of similar ideas, values and problems.

8. Transformational leaders ___________.

a. are usually few in number in organizations b. are most likely to emerge in the throes of a crisis c. can emerge from different levels of the organization d. usually come from higher-level management

9. Leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally, is known as ___________.

a. servant leadership b. stewardship c. charismatic leadership d. transformational leadership

10. The key to successful servant leadership is based on all of the following guiding principles EXCEPT:

a. service over self-interest. b. earning and keeping others’ trust. c. decentralized decision making and power. d. helping others discover their inner spirit.

Critical Analysis

Critical Analysis / Case Study Problems

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1. Examine Max Weber’s conceptualization of charisma.

2. Analyze the behavioral qualities that differentiate charismatic from noncharismatic leaders.

3. Examine the locus of charismatic leadership.

Answer Keys

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Key Term Definitions

BAM 550 Leadership

personal meaning: The degree to which people’s lives make emotional sense and to which the demands confronted by them are perceived as being worthy of their energy and commitment.

personalized charismatic leader (PCL): One who possesses a dominant, self-centered, self- aggrandizing and narcissistic personality and uses charisma for self-glorification.

servant leadership: Leadership that transcends self-interest to serve the needs of others, by helping them grow professionally and personally.

stewardship: An employee-focused form of leadership that empowers followers to make decisions and have control over their jobs.

vision: The ability to imagine different and better conditions and the ways to achieve them.

Answers to Self Test

Answer Keys

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1. B

2. D

3. A

4. D

5. D

6. A

7. A

8. C

9. A

10. C

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

1. Examine Max Weber’s conceptualization of charisma.

Weber used the term charisma to explain a form of influence based on follower perceptions that the leader is endowed with the gift of divine inspiration, not a traditional or legal mandate of authority. This gift of divine inspiration is the force behind a charismatic leader’s ability to focus society’s attention on both the crisis it faces and the leader’s vision for a new and better future. According to Weber, charismatic individuals emerge as leaders during times of great social crisis and inspire people to do more than they would under normal circumstances.

2. Analyze the behavioral qualities that differentiate charismatic from noncharismatic leaders.

The attraction of charisma to leaders is believed to depend on four behavior attributes. 1) Dissatisfaction with status quo. The discrepancy between charismatic and noncharismatic leaders is such that the former is very much opposed to the status quo and strives to change it, while the latter essentially agrees with the status quo and strives to maintain it. For the charismatic leader, the more idealized or discrepant the future goal is from the present status quo, the better. And the greater the gap from the status quo, the more likely followers will attribute extraordinary vision to the leader. 2) Compelling nature of the vision. Effective articulation of the vision is measured in terms of what is said (content and context) and how it is said (oratorical skills). Effective communication skills are an imperative in the successful articulation of a compelling vision and maintenance of a leadership role. Through verbal and nonverbal means, charismatic leaders communicate their self-confidence, convictions, and dedication in order to give credibility to what they advocate. 3) The use of unconventional strategies for achieving desired change. The charismatic leader’s expertise lies in using unconventional means to transcend the existing order. Follower perceptions of the leader’s revolutionary and unconventional qualities evoke sentiments of adoration, especially when the leader’s activities exemplify acts of heroism involving personal risk and self-sacrificing behavior. Thus, the behavior of the noncharismatic leader is conventional and conforming to existing norms while that of the charismatic leader is unconventional and counter to the norm. 4) A realistic assessment of resource needs and other constraints for achieving desired change. Charismatic leaders are also very good strategists. They understand the need to perform a realistic assessment of environmental resources and constraints affecting their ability to effect major change within their organization. They are sensitive to the capabilities and emotional needs of followers, and they understand the resources and constraints of the physical and social environment in which they operate. There is a high need to align organizational strategies and capabilities to ensure a successful transformation.

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

BAM 550 Leadership

3. Examine the locus of charismatic leadership.

The question scholars have entertained since Weber’s conception of charisma is whether charisma is a function of the prevailing social climate, the leader’s extraordinary qualities, or an interaction between the two. Supporters of the view that charismatic leadership could not take place unless the society were in a tumultuous, unstable situation argue that without a crisis and followers’ need for change, a leader’s charismatic qualities would be hard to notice or appreciate. Therefore, the locus of charismatic leadership is the status of the society. Opponents argue that charismatic leadership is primarily the result of leader attributes, not the situation. They argue that without strong leader characteristics (such as vision, exceptional communication skills, trustworthiness, self-confidence, and focus on empowering others), leaders like Martin Luther King, Jr., or Gandhi would never have emerged as leaders of their respective followers, regardless of the situation. Finally, there is an emerging view that charismatic leadership is a convergence of follower perceptions and reactions influenced by leader characteristics and the prevailing social situation.

Notes

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Unit 3 Examination Instructions

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The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Three Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

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Unit 3 Examination

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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. In Vertical Dyadic Linkage Theory, leaders mostly use reward, as well as legitimate and coercive power, to influence __________.

a. in-group members b. out-group members c. effective followers d. pragmatic followers

2. To build a real team, the leader should __________.

a. make sure everyone is competent b. use the in-group to help c. form a relationship with each member d. know follower expectations

3. The most commonly used instrument for defining and measuring the quality of relationships is the ___________.

a. Myers−Briggs scale b. personality profile c. LMX-7 scale d. VDL instrument

4. The ___________ follower is someone who is high on involvement but low on critical thinking.

a. alienated b. conformist c. passive d. pragmatic

5. Because one of your employees, Angela, functions well in self-managed teams, likes to initiate change, and is willing to put herself at risk for the best interest of the organization, she is a(n) ___________ follower.

a. passive b. effective c. alienated d. conformist

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6. Which of the following is a determinant of follower influence?

a. relative power position b. locus of control c. education and experience d. All of the above.

7. Which of the following has resulted from the higher educational level of the work environment?

8. Which of the following should NOT be delegated?

a. technical matters b. routine tasks c. employees’ problems for training purposes d. performance appraisals e. a, b and c

9. Which of the following statements regarding groups and teams is TRUE?

a. Group members have shared responsibilities. b. The leadership style in a team tends to be very hierarchical. c. Groups focus on individual performance and goals. d. A team is characterized by a mentality of “what’s in it for me?”

10. Which of the following is NOT one of the components of team effectiveness?

a. knowledge management b. individual satisfaction c. group process d. task performance

11. Team cohesion is increased when __________.

a. team members agree on a common purpose and direction b. external parties give high praise and recognition for the team’s success c. the organization encourages and motivates teams to compete with each other for rewards d. All of the above.

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12. Team leader activities that can help to enhance team creativity include all the following EXCEPT:

a. matching people with the right assignments. b. ensuring the availability of adequate time, money, and other resources for the team. c. protecting against “creativity blockers.” d. functional fixedness.

13. ___________ teams are relatively autonomous teams whose members share or rotate leadership responsibilities and hold themselves mutually responsible for a set of performance goals assigned by higher management.

a. Functional b. Cross-functional c. Virtual d. Self-managed

14. A disadvantage of team-centered decision making is that it can ___________.

a. be self-serving and contrary to the best interests of the organization b. end up being a poor compromise rather than an optimal solution c. take longer than decisions made alone by a manager d. All of the above.

15. The part of a meeting that covers agenda items __________.

a. should be the shortest part of the meeting b. need not be recorded in the minutes, as the agenda is already published c. dispenses with Robert’s Rules to save time and encourage creativity d. should allow for some flexibility of time

16. In a self-managed team, __________.

a. a leader provides the team with direction and maintains control over work-related issues b. individual accountability is a significant responsibility c. members develop specialized skills d. members take responsibility for outlining how they will achieve the team’s objectives

17. Which of the following is true of charisma?

a. It has been called “a fire that ignites followers.” b. It is found solely in the leader as a psychological phenomenon. c. It is relational in nature. d. It is a social relationship between the leader and the follower.

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18. Which of the following is NOT a quality of charismatic leaders?

a. high risk orientation b. minimum internal conflict c. emotional power base d. self-promoting personality

19. Research suggests that leaders can enhance their charismatic qualities by __________.

a. developing skills to create a vision b. taking greater risks c. developing an optimistic and energetic personality d. All of the above.

20. Vision is the __________.

a. ability to imagine different and better conditions b. ways to achieve the different and better conditions c. rallying cry of a movement or cause d. All of the above.

21. Charisma is __________.

a. found in all transformational leaders b. totally, situationally determined c. relational in nature d. a psychological phenomenon

22. Leadership that empowers followers to make decisions and have control over their jobs is called ___________.

a. servant leadership b. followership c. stewardship d. None of the above.

23. The biggest difference between servant leadership and stewardship is that __________.

a. servant leadership calls for the highest level of selflessness b. servant leaders lead from positions of moral influence c. stewardship is more follower-centered d. None of the above.

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24. The absence of which of the following principles make stewardship inoperable?

a. reward assumption b. strong teamwork orientation c. service over self-interest d. decentralized decision making and power

25. Which of the following is true about stewardship and servant leadership?

a. They place the focus on serving instead of leading. b. They are related to charismatic and transformational leadership because they emphasize empowerment of followers or accomplish organizational goals. c. They believe that leadership has more to do with placing others’ needs above the needs of the leader. d. All of the above.

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Writing Assignment for Unit Three

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. Explain the cycle that leads to the Pygmalion effect.

2. Briefly discuss some of the potential benefits and drawbacks of using self-managed teams.

3. Distinguish between charismatic and transformational leadership.

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Unit 3 is done! You’re close to the finish line and we’re cheering you on to victory!

Objectives

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Instructions to Students

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Chapter Ten Leadership of Culture, Ethics, and Diversity

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine the power of culture in the strategy execution process.

2. Differentiate symbolic and substantive leadership actions for shaping organizational culture.

3. Analyze the four types of culture commonly found in organizations.

4. Evaluate the varying ways organizations can help foster an ethical work environment.

5. Compose the key factors that can enhance and support a pro-diversity culture.

• Read pages 356 - 392 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

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In this chapter we examine issues of organizational culture, ethics, and diversity—and the leader’s role in shaping them. Regardless of the type of business or the size, organizations that consistently achieve outstanding results share a common characteristic—they all have what we call a high- performing culture. Organizations with high-performing cultures have an unmistakable profile that sets them apart from average performers—a profile that includes distinctive characteristics of a strong corporate culture, a reputation for ethical leadership, and a talented and diversified workforce. The three main topics featured in this chapter are organizational culture, ethics, and diversity.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

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adaptive culture:

bureaucratic culture:

collectivism:

competitive culture:

culture:

diversity:

ethics:

ethnocentrism:

glass ceiling:

ombudsperson:

whistle-blowing:

Summary

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Culture is the aggregate of beliefs, norms, attitudes, values, assumptions, and ways of doing things that is shared by members of an organization and taught to new members. Culture gives meaning to each individual’s membership in the workplace and, in so doing, defines the organization’s essential nature. Organizational culture gives identity to an organization. It is described by some as a “shared mental model” or the “social glue” that holds an organization together. Culture creation is a slowly evolving process that can come from within the organization or be imposed from outside. A culture is sustained as each successive generation of leaders and followers embraces and passes it to the next through mechanisms such as stories, artifacts, rituals, slogans, symbols, and special ceremonies.

A deeply rooted culture that is well matched to strategy and external environmental trends is a strong recipe for successful strategy execution, while a weak or “shallow-root” culture can become an obstacle to successful strategy execution. In this context, culture serves two important functions in organizations: (1) it creates internal unity, and (2) it helps the organization adapt to the external environment.

Organizational cultures vary widely in the extent to which they are woven into the fabric of the organization’s practices and behavioral norms. The strength of any culture depends on the degree to which these norms and practices are widely shared and strongly held throughout the organization. A weak culture symbolizes a lack of agreement or shared mind-set on key values and norms. A strong culture symbolizes a strong agreement or shared mind-set on key values and norms, with leaders playing a key role. Strong cultures are generally associated with high performance and weak cultures are generally associated with low performance. High-performing cultures create an atmosphere in which there is constructive pressure to be the best. When an organization performs consistently at or near peak levels, over time, the pursuit of excellence becomes a way of life and a key part of the culture.

There are four types of culture commonly found in organizations. The cooperative culture represents a leadership belief in strong, mutually reinforcing exchanges and linkages between employees and departments. The adaptive culture represents a leadership belief in active monitoring of the external environment for emerging opportunities and threats and adapting to them. The competitive culture represents a leadership mind-set that encourages and values a highly competitive work environment. The bureaucratic culture represents a leadership mind-set that values order, stability, status, and efficiency.

Ethics are the standards of right and wrong that influence behavior. An ethics ombudsperson is a single person entrusted with the responsibility of acting as the organization’s conscience. Whistle blowing is employee disclosure of illegal or unethical practices on the part of the organization. Some of the tools available for creating and maintaining an ethical work environment include creating a code of ethics, an ethics committee, training programs and disclosure mechanisms.

Authentic leadership emphasizes a transparent and high-quality exchange relationship between leaders and followers. Authentic leadership increases follower organizational citizenship behavior, job satisfaction, and retention. Because authentic leaders are consistent in their behavior, followers know what to expect from their leader and what is expected of them. Leader authenticity leads to higher levels of identification with the leader.

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Demographic diversity is any characteristic that serves as a basis for social categorization and self- identification. Demographic characteristics include age, gender, race, ethnicity, religion, and sexual orientation. The latest census revealed an increasing number of Hispanics, African-Americans, and Asians in the U.S. workforce. For the first time, four distinct generations comprise today’s workforce—the Traditionalists (1900–1945), the Baby Boomers (1946–1964), the Generation Xers (1965–1980), and the Millennials (1981–2000). Different generations have different attitudes and values, making the job of managing a team of mixed generations challenging, to say the least. There is a growing interest in adding diversity management competency as part of leadership development programs.

Left unmanaged, workforce diversity is more likely to damage morale, increase turnover, and cause communication difficulties and ultimately conflict. Heterogeneity in teams can reduce intra-group cohesiveness, resulting in conflicts and misunderstandings which, in turn, can negatively impact employee satisfaction, citizenship behavior, and turnover. A leader in a diverse work unit may spend more of his or her time and energy dealing with interpersonal conflicts than trying to achieve organizational objectives.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. Which of the following statements regarding culture is true?

a. Not every organization has a culture. b. Culture is recognized as a source of competitive advantage. c. Culture is the generalized beliefs or behaviors that are considered by an individual or a group to be important. d. An organization’s culture primarily determines the way that employees respond to one another and to its external and internal environments.

2. Abaco Corporation uses social events to reinforce examples of its values, sees employees as their top asset, have a strong link between performance and rewards and constructively encourages excellence. What type of culture do they have?

a. strong b. weak c. hierarchical d. national

3. All of the following are symbolic leadership actions for shaping culture EXCEPT:

a. creating a strategy−culture fit. b. celebrating achievements. c. matching organizational structure to culture. d. leaders serving as role models.

4. Written values statements ___________.

a. have the advantage of explicitly stating the company’s position on ethical and moral issues b. serve as a building block in the task of culture creation and maintenance c. serve as benchmarks for judging both company policies and actions and individual conduct d. All of the above.

5. You have been hired as CEO of Lugar Industries and have been asked to change the organizational culture. Because your company operates in a quickly changing environment, you need to have a culture which encourages employees to respond quickly to changes, to take risks, innovate, and have the authority to make quick decisions to take advantage of opportunities and to avoid risks. Based on these conditions, you, as CEO, want a(n) __________ culture.

a. adaptive b. cooperative c. bureaucratic d. competitive

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6. __________ are generalized beliefs or behaviors that are considered by an individual or a group to be important.

a. Values b. Ethnocentrism c. Stereotypes d. Ethics

7. A single person entrusted with the responsibility of acting as the organization’s conscience is called a(n) ___________.

a. ombudsperson b. mentor c. whistle blower d. None of the above.

8. The United States has a culture where the majority of the population tolerate risk and are relatively comfortable with uncertainty and unpredictability. Which of Hofstede’s dimensions of national culture does this describe?

a. uncertainty avoidance b. long-term orientation c. bureaucratic d. None of the above.

9. You plan to work abroad and want to work in a culture where leaders and followers interact on several levels. Which one of the following countries should you consider?

a. Mexico b. France c. Japan d. Germany

10. ___________ describes a culture that emphasizes assertiveness and a competitive drive for money and material objects.

a. Femininity b. Masculinity c. Individualism d. Collectivism

Critical Analysis

Critical Analysis / Case Study Problems

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1. Examine the two important functions culture serves in organizations.

2. Analyze the four types of culture commonly found in organizations.

3. Examine some of the major obstacles often encountered in trying to achieve full diversity.

Answer Keys

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Key Term Definitions

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adaptive culture: Represents a leadership belief in active monitoring of the external environment for emerging opportunities and threats and adapting to them.

bureaucratic culture: Represents a leadership mind-set that values order, stability, status, and efficiency.

collectivism: The state of mind wherein the values and goals of the group—whether extended family, ethnic group, or company—are primary.

competitive culture: Represents a leadership mind-set that encourages and values a highly competitive work environment.

culture: The aggregate of beliefs, norms, attitudes, values, assumptions, and ways of doing things that is shared by members of an organization and taught to new members.

diversity: The inclusion of all groups at all levels in an organization.

ethics: The standards of right and wrong that influence behavior.

ethnocentrism: The belief that one’s own group or subculture is naturally superior to other groups and cultures.

glass ceiling: Defined as an invisible barrier that separates women and minorities from top leadership positions.

ombudsperson: A single person entrusted with the responsibility of acting as the organization’s conscience.

whistle-blowing: An employee disclosure of illegal or unethical practices on the part of the organization.

Answers to Self Test

Answer Keys

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1. B

2. A

3. A

4. D

5. A

6. A

7. A

8. A

9. D

10. B

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

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1. Examine the two important functions culture serves in organizations.

An organization’s culture determines the way that it responds to changes in its external and internal environments. The two important functions served by culture are directly tied to this concept. They are: (1) that culture creates internal unity, and (2) that culture helps the organization adapt to the external environment. Culture provides a value system in which to operate, and when all employees buy into such a value system, there is internal unity. Culture determines how the organization responds to changes in its external environment. Appropriate cultural values can ensure that the organization responds quickly or proactively to emerging trends, rather than reacting.

2. Analyze the four types of culture commonly found in organizations.

The cooperative culture is found in organizations that operate in dynamic environments, yet emphasize an internal strategic focus. The belief is that empowering, respecting, rewarding, and trusting employees is the key to capitalizing on external opportunities. The adaptive culture is also found in organizations that operate in dynamic environments; however, the organization’s strategic focus is external. Solutions for responding to external opportunities and threats are sought both inside and outside the firm. These organizations pursue outsourcing, strategic alliances, downsizing, and any other options that are available. The adaptive and cooperative cultures are often referred to as cultures of innovation, for their flexibility and creativity in responding to environmental changes. The competitive culture is associated with organizations operating in a stable environment with an external strategic focus. Competitive cultures are common in mature markets in which the emphasis is on the achievement of specific targets (such as market share, revenue growth, and profitability). Last but not least is the bureaucratic culture associated with organizations that operate in stable environments with an internal strategic orientation. The bureaucratic culture emphasizes strict adherence to set rules, procedures, and authority lines. Organizations with bureaucratic cultures are highly structured and efficiency-driven. Change is slow in bureaucratic cultures.

3. Examine some of the major obstacles often encountered in trying to achieve full diversity.

Leaders often face a number of personal and organizational obstacles to achieving full diversity. The most prevalent are:

Stereotypes and Prejudice—This is perhaps the most prevalent obstacle to achieving diversity in many organizations. Prejudice is the tendency to form an adverse opinion without just cause about people who are different from the mainstream in terms of their gender, race, ethnicity, or any other definable characteristic. It is an assumption, without evidence, that people who are not part of the mainstream culture are inherently inferior, less competent at their jobs, and less suitable for leadership positions.

Solutions Guide

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Ethnocentrism—Ethnocentrism is the belief that one’s own group or subculture is naturally superior to other groups and cultures. Ethnocentrism is an obstacle to diversity because it tends to produce a homogeneous culture, a culture where everyone looks and acts the same and shares the same set of values and beliefs.

Policies and Practices—A third obstacle to diversity is embedded in organizational policies and practices that work against maintaining a diverse workforce. The leader must perform an audit of the organization to determine if existing policies, rules, procedures, and practices work against minorities. Policies regarding human resource management issues such as hiring, training, promotion, compensation, and retirement or layoffs must be examined to make sure that minorities are not unfairly treated by actions taken in these areas.

The Glass Ceiling—The fourth obstacle to diversity is the presence of the glass ceiling. The glass ceiling is an invisible barrier that separates women and minorities from top leadership positions.

Unfriendly Work Environment—Minorities and women may be excluded from social activities in or out of the office, which often leads to feelings of alienation and despair. This in turn often leads to job dissatisfaction and high turnover among minority groups.

Notes

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Objectives

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Instructions to Students

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Chapter Eleven Strategic Leadership and Change Management

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Analyze the strategic management process.

2. Examine the relationship between corporate goals and strategies.

3. Scrutinize the change management process using the three-stage model of change.

4. Evaluate some of the major reasons for resisting change.

• Read pages 393 - 427 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

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To succeed in the era of hypercompetition, globalization, environmental changes, and technological revolution, it is imperative that organizations act smart and fast. Strategists must respond quickly to marketplace demands for immediate action. This is where the need for effective strategic planning comes into play. The focus of this chapter is on strategic leadership and the strategic management process and change leadership.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

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core competence:

executive intuition:

learning anxiety:

mission statement:

organizational change:

organizational identity:

strategic management:

achieve organizational goals:

strategy:

value:

Summary

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It is the responsibility of top managers to monitor the organization’s internal and external environments, build company resources and capabilities, track industry and competitive trends, spot emerging market opportunities, identify business threats, and develop a vision for the future that followers can believe in. This series of activities makes up a major part of what is known as strategic leadership. Strategic leadership is a person’s ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization. It is a process of providing the direction and inspiration necessary to create and implement a firm’s vision, mission, and strategies to achieve organizational objectives. Strategic leadership must involve managers at the top, middle, and lower levels of the organization. However, of these three managerial classifications, top-level managers (strategists) are clearly held responsible for the organization’s near-term performance, as well as for creating conditions that will ensure the organization’s future survival. A strategic leader can choose to concentrate decision-making power at the executive level or spread it throughout the organization. Each approach has implications on follower motivation and commitment.

Strategic decisions often fail due to decision-maker blunders. The one held responsible when strategic decisions fail is the CEO and his or her senior leadership team. Senior executives fail when their strategic vision for the organization favors their personal interests and not enough of their constituents’ and organization’s interests; they use failure-prone practices; they engage in or condone unethical conduct; they pay little or no attention to productivity, quality, and innovation; or they allocate time and money unwisely. One study cites the loss of market focus as a leading cause of business failures. A loss of market focus results in missed opportunities. A market-focused company ensures that its managers continuously focus and re-focus critical organizational resources on the ever-changing portfolio of market opportunities that create long-term value for all stakeholders.

Failures have also been attributed to the fact that leaders, in the rush to make key decisions, have relied too much on intuition to the exclusion of rational analysis. Executive intuition is the instinctive ability to identify weak signals in the environment and respond without the benefit of concrete facts and information. While some see this as too risky, others argue that intuitive decisions are needed in highly volatile, globally competitive business environments in which time is of the essence. Many experts now believe that strategic decision making requires a balance of intuition and rationality.

Another reason why strategic leadership can derail is due to ethical and moral lapses in judgment. The ultimate goal of the strategic leader should be to build sustainable integrity programs into the strategic management framework that encourage positive self-regulation of ethical behavior as a matter of routine within the organization. This will not happen unless the leader also demonstrates integrity. Integrity impacts the credibility and reputation of the strategic leader.

Effective strategists are said to perform four primary responsibilities: (1) conceptualize the organization’s vision, mission, and core values; (2) oversee the formulation of objectives, strategies, policies, and structures that translate vision, mission, and core values into business decisions; (3) create an environment and culture for organizational learning and mutual exchange between individuals and groups; and (4) serve as steward and role model for the rest. All of these activities fall under the domain of the strategic management framework. Strategic management is the set of decisions and actions used to formulate and implement specific strategies that will achieve a competitively superior fit between the organization and its environment, so as to achieve organizational goals.

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A basic distinction between strategic leadership and strategic management is that strategic leadership envisions where the organization would like to be in five to ten years, while strategic management focuses on how to achieve the vision.

Organizational change is defined as an alteration in an organization’s alignment with its external environment. Examples of change efforts include process improvement or re-engineering, restructuring, business acquisitions or mergers, business contractions or expansions, new technologies, a new organizational culture, or a change in leadership. Change can be transformational or incremental, and sometimes an incremental change can emerge or amplify into a much larger and radical change than was anticipated. In some cases, radical change may require a redefinition of an organization’s vision and mission, and consequently a shift in the organization’s objectives and strategies.

A key first step in managing change is to identify and analyze the need for change before embarking on any implementation plan. A comprehensive analysis that gives a clear and accurate assessment of prevailing conditions in the organization’s internal and external environments should be a prerequisite step before any change in the management process is initiated.

Ultimately, the role of the leader is to implement change that results in better organizational performance; however, the question has always been how to do it effectively and successfully, given the stress, discomfort, and dislocation associated with it. The change management process enhances the chances of successful change implementation and the likelihood that more people will support and commit to the change effort rather than resist it. It is a tool, or the means to get to the end result.

Effective change agents/leaders create psychological safety for followers by recognizing the existence of learning anxiety and reducing it by providing ample opportunities for training and education. Focused education and training can be the difference between success and failure in implementing change. To manage change is to manage the learning process.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. Which of the following is considered to be a leading cause of business failures?

a. the loss of market focus b. the use of failure-prone practices c. unwise allocation of time and money d. unethical conduct

2. SWOT analysis includes all of the following EXCEPT:

a. senses. b. weaknesses. c. opportunities. d. threats.

3. A clear and inspiring vision serves all of the following functions EXCEPT:

a. facilitates decision making b. gives meaning to work c. establishes a standard of excellence d. distinguishes the organization from other similar enterprises

4. A _________ is an integrated, overarching plan of how an organization will achieve its objectives.

a. strategic vision b. mission statement c. strategy d. core competence

5. __________ has been described as the most important and difficult step of the strategic management process.

a. Implementation b. Motivation c. Evaluation d. Leadership

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6. __________ anxiety is the feeling that unless an organization makes a change, it is going to be out of business or fail to achieve some important goals.

a. Learning b. Organizational c. Survival d. Functional

7. Which of the following is NOT a phase of the eight-stage model for planned organizational change?

a. train and empower followers to act on the vision b. focus on long-term accomplishments and reward performance c. consolidate gains by changing the culture, systems, policies, and structures to align with the new vision d. institutionalize the change in the organizational culture

8. In the three stage model of change, the _________ phase is the same as Kotter’s step of establishing a sense of urgency.

a. unfreezing b. changing c. refreezing d. visioning

9. Effective change leaders __________.

a. use coercion to effect change b. redirect resistance in ways that can support change c. overcome resistance by detailed contingency planning d. All of the above.

10. Resistance to change as a(n) ____ state focuses on the frustration of those affected by the change because of the fear of loss and a fear of the unknown.

a. cognitive b. emotional c. behavioral d. All of the above.

Critical Analysis

Critical Analysis / Case Study Problems

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1. Analyze the role of strategic leadership in the strategic management process.

2. Examine the importance of a vision and a mission statement.

3. Distinguish the key elements of the strategic management process.

Answer Keys

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Key Term Definitions

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core competence: A capability that allows an organization to perform extremely well in comparison to competitors.

executive intuition: The instinctive ability to respond to problems without the benefit of concrete facts and information

learning anxiety: The prospect of learning something new in itself.

mission statement: An enduring statement of purpose that distinguishes one organization from other similar enterprises.

organizational change: Defined as an alteration in an organization’s alignment with its external environment.

organizational identity: The members’ consensual understanding of “who we are as an organization” that emerges from that which is central, distinctive, and enduring to the organization as a whole.

strategic management: The set of decisions and actions used to formulate and implement specific strategies that are aligned with the organization’s capabilities and its environment, so as to achieve organizational goals.

strategy: An integrated, overarching plan of how an organization will achieve its objectives.

value: The ratio of benefits received to the cost incurred by the customer.

Answers to Self Test

Answer Keys

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1. A 2. A

3. D

4. C

5. A

6. C

7. B

8. A

9. B

10. B

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

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1. Analyze the role of strategic leadership in the strategic management process.

Strategic leaders establish organizational direction through vision and strategy. They are responsible for analyzing the organization’s environment, considering how it may be different in the future, and setting a direction everyone can believe in and work toward. Strategic leaders must then craft the organization’s mission, which includes its core values and purpose for existence. Strategy formulation is the leader’s responsibility: he or she must guide the selection among alternative plans and choose the best option for translating goals and objectives into action. The final step is strategy implementation and evaluation. Successful completion of the strategic management process and the attainment of superior organizational performance is not a chance occurrence. It is determined by the decisions and actions that strategic leaders take during the process.

2. Examine the importance of a vision and a mission statement.

Many organizations develop both a vision and a mission statement. Whereas the vision statement answers the question, “What do we want to become?” the mission statement answers the question, “What is our business?” Both the vision and mission statements ensure unanimity of purpose within the organization and make important statements about “who the firm is” and “what it wants to become” to outside stakeholders. In other words, reaching agreement on formal mission and vision statements can greatly facilitate the process of reaching agreement on an organization’s strategies, objectives, and policies. Organizational success depends on reasonable agreement on these issues.

3. Distinguish the key elements of the strategic management process.

The strategic management process begins with the strategist’s vision. This is a vision statement of where the organization wants and needs to be in the future, given the nature of the environment in which it exists. The vision statement answers the question, “What does the organization want to or aspire to become?” The vision statement lays the foundation for the development of a mission statement that reflects the organization’s core values, beliefs, culture, and purpose. The mission statement answers the question, “What is the organization’s purpose?” It identifies the scope of an organization’s operations in product/service and market terms. Next, long-term or corporate goals define specific out comes that an organization seeks to achieve in order to realize its mission. The last of the building blocks that lead to the strategy formulation stage is the environmental audit. This is an analysis of the internal and external environment to identify organizational strengths and weaknesses and environmental threats and opportunities. It is performed prior to strategy formulation. Strategy formulation specifies the strategies for achieving an organization’s objectives. Strategy implementation takes place through the basic organizational architecture that make things happen. The final phase, strategy evaluation, involves comparing expected outcomes with actual results after the implementation phase.

Notes

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Objectives

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Instructions to Students

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Chapter Twelve Crisis Leadership and the Learning Organization

Learning Objectives

Upon successful completion of this chapter, you should be able to:

1. Examine why crisis leadership competence is an important consideration when hiring new leaders.

2. Analyze the importance of pre-crisis planning.

3. Compose five or more attributes that can be used to describe the learning organization.

4. Differentiate the traditional organization from the learning organization.

5. Examine the role of leadership in creating a learning organization.

• Read pages 428 - 461 of your textbook

• Reference: Leadership: Theory, Application, & Skill Development by Lussier and Achua, 5th edition, 2013

Overview

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Crises are indeed damaging to an organization if not properly managed. In a crisis, revenue, profits, and stock prices can plummet while operating costs escalate, causing both short- and long-term financial losses. A crisis that is mismanaged can also damage an organization’s reputation and diminish consumer confidence in the organization and in some cases lead to its demise altogether. The first half of this chapter discusses crisis leadership in depth. The second half of the chapter focuses on the important topic of organizational learning and knowledge management. The learning organization is one that emphasizes creativity, innovation, and knowledge creation as a way of maintaining its competitiveness.

Key Terms

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The key terms listed below are terms with which you should be familiar. Write your definition below each item. Check your answers at the end of this chapter.

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crisis:

discontinuous change:

learning organization:

organizational knowledge:

press kit:

press release:

Summary

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A crisis is a low-probability, high-impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly. Strategic crisis leadership requires three things: 1. using environmental monitoring techniques to identify events that could trigger crises in the future; 2. integrating crisis management into the strategic management process so it remains a regular part of the overall strategy-evaluation process. Regardless of the nature of the crises, what they all have in common is the stress and pressure they place on key organizational resources and systems. Any crisis has the potential for damaging a firm’s reputation, credibility, integrity, and financial position.

Strong and effective leadership is imperative to organizational survival when a crisis hits. During a crisis, a leadership style that might have been appropriate under normal situations may not work in a crisis. How the leader behaves or reacts during a crisis can have a negative or positive effect on followers. Leadership training for organizational crises should involve exposure to various learning approaches such as modeling, simulations, or learning from others (mentorship) who have experienced crises or narrowly avoided failure. Training and development programs should emphasize traits of effective crises leaders such as decisiveness, self-confidence, communication, and problem solving. These traits are what some experts describe as crisis management competencies.

Effective crisis management depends on planning and people. Proper preparation and management can: reduce the duration of a crisis, enhance or retain a corporation’s image and reputation, and secure future profitability. Having a standing crisis response team increases an organization’s ability to respond to a crisis immediately and effectively. A crisis response team should involve a good mix of representatives from all sectors of the organization. Senior leaders must develop comprehensive training programs for crisis-response team personnel and engage them in frequent drills that simulate actual crisis situations. An effective crisis team functions as one unit with one voice under a single unit command.

Leaders must be able to communicate quickly and effectively during crises. Effective pre-crisis planning should have designated who will speak for the organization in the event of a crisis. This avoids both the mistake of putting out mixed messages from multiple sources and potential power struggles over jurisdiction. Four questions that often emerge after a crisis are: What happened? How did it happen? What are you doing to address this crisis? What are you going to do to ensure it never happens again? Providing honest and accurate answers to these questions is the essence of effective crisis communication. Another potential problem during crisis communication is the seniority level of the person representing the organization. The level of seniority demonstrates to the public the seriousness with which the incident is viewed.

By all accounts, most organizations today operate in environments characterized by continuous change, and for some, the level of change is discontinuous. Discontinuous change occurs when anticipated or expected changes bear no resemblance to the present or the past. In stable, less turbulent environments, organizations focus on being efficient and on achieving stated objectives through highly structured command systems with strong vertical hierarchies and specialized jobs. In a much more turbulent environment characterized by discontinuous change, this traditional organizational form is being replaced by the learning organizational form. A simple distinction between the traditional organization and the learning organization is one word—culture. The culture of the traditional organization is oriented toward the individual and rewards are individualized. There is a mindset that there is a “right way” to do things, and only when that way is followed will the organization be successful. Because the traditional organization is efficiency-driven, deviating from standard operating procedures is frowned upon and mistakes are viewed as a symptom of poor performance.

Self Test

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Multiple Choice Questions (Circle the correct answer)

1. Which of the following is (are) crises with which organizations may need to respond?

a. natural disasters b. terrorist attacks c. human error disasters d. All of the above.

2. Pre-crisis planning entails all of the following components EXCEPT:

a. appointing a crisis leader b. assessing risk c. analyzing the environment d. creating a crisis response team

3. The crisis leader shares the risk chart created during risk assessment and ranking during the __________ step of the risk assessment process.

a. risk identification b. risk reduction c. crisis management d. crisis prevention

4. The press kit __________.

a. is a package of information about a company b. should include a specific press release related to the current incident c. should be distributed to the media when a crisis breaks d. All of the above.

5. A __________ organization is one that is skilled at creating, acquiring, transferring knowledge, and modifying behavior to reflect new knowledge and insights.

a. traditional b. learning c. diverse d. dynamic

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6. Explicit or tacit knowledge is ___________.

a. highly personal b. strongly rooted in action c. the instinct and intuition that an experienced practitioner possesses d. expressed in a system of rules

7. All of the following are characteristics of learning organizations EXCEPT:

a. flat horizontal structure b. centralized decision making c. adaptive culture that encourages continuous improvement and change d. strategy is a collaborative effort within the organization and with other companies

8. Which of the following is NOT one of the guidelines for enhancing organizational learning?

a. broaden employees’ scope of reference b. encourage systems thinking c. create a shared vision for learning d. create a climate in which experimentation is encouraged

9. In a learning organization, incentives and rewards should be?

a. invisible, almost, unnoticeable, to avoid morale problems b. large, to encourage innovation and learning c. visible to others d. a and b only

10. How is creative thinking and innovation encouraged in a learning organization?

a. Encourage employees to consider possibilities that do not exist. b. Encourage employees to research and learn from some of the best in the industry. c. Provide large and visible rewards for successful ideas and innovations. d. All of the above.

Critical Analysis

Critical Analysis / Case Study Problems

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1. Analyze why crisis leadership competence is an important consideration when hiring new leaders.

2. Examine the five-step process for crisis risk assessment.

3. Differentiate traditional organization and the learning organization.

Answer Keys

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Key Term Definitions

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crisis: A low-probability, high-impact event that threatens the viability of the organization and is characterized by ambiguity of cause, effect, and means of resolution, as well as by a belief that decisions must be made swiftly.

discontinuous change: Occurs when anticipated or expected changes bear no resemblance to the present or the past.

learning organization: Skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge and insights.

organizational knowledge: The tacit and explicit know-how that individuals possess about products, services, systems, and processes.

press kit: A package of information about a company, including names and pictures of its executives, a fact sheet, and key milestones in the company’s history.

press release: A printed statement that describes how an organization is responding to a crisis and who is in charge.

Answers to Self Test

Answer Keys

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1. D

2. C 3. B

4. D 5. B

6. D

7. B

8. A

9. D

10. D

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

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1. Analyze why crisis leadership competence is an important consideration when hiring new leaders.

Crises are inevitable. It is not a question of “if” a crisis will happen, but “when.” A crisis can inflict severe damage to an organization if not properly managed. In a crisis, stock prices plummet and operating costs escalate, causing both short- and long-term financial losses. A crisis that is mismanaged can also damage an organization’s reputation and diminish consumer confidence in the organization’s mission or, in some cases, can lead to its demise altogether. As the economy limps on and speculation of it sliding into a recession builds, the real prospect exists that many corporations are going to face a crisis of survival. Rising oil prices, the housing downturn, the subprime crisis, the credit crunch, and talk of possible inflation and recession are all ingredients that could stymie even the best-prepared CEOs.

2. Examine the five-step process for crisis risk assessment.

The five-step process for risk assessment consists of: (1) risk identification, (2) risk assessment and ranking, (3) risk reduction strategies, (4) crisis prevention simulations, and (5) crisis management. In step one, crisis team members begin by first identifying the worst-case incidents that could have severe consequences on people, the organization’s financial position, or its image. This process is described as risk identification and results in the creation of a risk chart. Next, these incidents are analyzed and ranked. During the risk reduction step, the crisis leader shares the risk chart created during risk assessment and ranking with team members or larger audiences, and they begin debating and formulating strategies for countering each crisis or threat. The fourth step in the risk assessment process is crisis prevention. Here, tests and simulations are conducted to test employees under pressure. The fifth step of risk assessment is crisis management. A team is assembled and ready to respond in the event of a real crisis.

3. Differentiate traditional organization from the learning organization.

The traditional, efficiency-driven organization has a bureaucratic structure (a tall pyramid), starting with the CEO at the top and everyone else functionally organized in layers below. Decision making is centralized at the top of the hierarchy, which controls and coordinates all functional units throughout the organization. To ensure reliable and predictable results, tasks are rigidly defined and broken down into specialized jobs. Strict formal rules and procedures for performing each task are enforced. Though repetitive, boring, and unchallenging, it is an efficient way to keeping the production line running smoothly. An elaborate formal system of reporting allows leaders to closely monitor work operations and maintain efficient, steady performance. This formal system is a powerful tool for controlling information and often acts as a filter in determining what information leaders decide to pass down to lower-level employees.

Solutions Guide

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Suggested Solutions - Critical Analysis / Case Study Questions

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By contrast, in learning organizations the vertical structure is abandoned for a flat, horizontal structure. The horizontal structure is constituted around work flows or processes rather than functional specialties. To encourage innovation and creativity in meeting current challenges, learning organizations are designing tasks that are much looser, free flowing, and adaptive. Few strict rules and procedures prescribe how things should be done. The term organic has been used to describe this type of organization. Responsibility and authority are decentralized to lower-level workers, empowering them to think, experiment, create, learn, and solve problems at their level.

Notes

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Unit 4 Examination Instructions

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The Unit Examination

The unit examination contains 25 multiple choice questions, as well as a writing assignment.

Your grade on the examination will be determined by the percentage of correct answers. The university utilizes the following grading system:

A = 90% – 100% correct B = 80% – 89% correct C = 70% – 79% correct D = 60% – 69% correct F = 59% and below correct

4 grade points 3 grade points 2 grade points 1 grade point 0 grade points

Completing Unit Four Examination

Additional detailed information on completing the examination, writing standards and how to submit your completed examination may be found in the syllabus for this course.

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Unit 4 Examination

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Multiple Choice Questions (Enter your answers on the enclosed answer sheet)

1. The strength of any culture depends on __________.

a. the leader’s relationship with his or her followers b. the degree to which a set of norms and values are widely shared and strongly held throughout the organization c. how diverse the organization is d. how much the organization embraces change

2. A strong culture by itself is not a guarantee of success unless it is also aligned to ___________.

a. the external environment b. strategy c. leadership d. All of the above.

3. The strongest sign that management is truly committed to creating a new culture is by ___________.

a. celebrating achievements b. replacing old-culture members who are unwilling to change with a “new breed” of employees c. interacting face-to-face with rank-and-file d. recruiting as many diverse employees as possible

4. A competitive culture is characterized by a(n) ___________ strategic focus and a(n) ___________ environment.

a. internal; stable b. external; unstable c. internal; unstable d. external; stable

5. The most critical value for leaders to possess is ___________.

a. honesty b. ethics c. kindness d. All of the above.

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6. All of the following countries have collectivistic cultures EXCEPT:

a. Japan. b. Mexico. c. Great Britain. d. Greece.

7. You plan to work abroad and want to work in a culture where leaders and followers interact on several levels. Which one of the following countries should you consider?

a. Mexico b. France c. Japan d. Germany

8. Which of the following is considered to be an obstacle to diversity?

a. ethnocentrism b. policies and practices c. unfriendly work environment d. All of the above.

9. Effective strategic leaders are skilled at ___________.

a. building a highly effective, efficient, and motivated team of employees b. finding and sustaining competitive advantage by building core competencies and selecting the right markets in which to compete c. being an effective communicator d. All of the above.

10. External factors in a firm’s strategic environment which have a potential negative impact are called ____________.

a. hindrances b. weaknesses c. alarms d. threats

11. Value is ___________.

a. the ratio of benefits received to the cost incurred by the customer b. what differentiates an organization from its competitors in the industry c. a capability that allows an organization to perform extremely well in comparison to others d. defined as the “quantification of luxury”

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12. Core competencies are a source of competitive advantage when they are ____________.

a. not easily sustainable b. hard to imitate c. rare d. All of the above.

13. All of the following are strategies that leaders can use to effectively manage change EXCEPT:

a. keep the process transparent b. have a plan for dealing with resistance c. stay the course in spite of perceived difficulties d. form a coalition of supporters and experts in the field before implementing the change process

14. The force-field model and the eight-stage model of planned organizational change differs with respect to the ___________.

a. importance assigned to persuasion b. importance assigned to the leader c. likelihood of success d. implementation phase

15. The changing phase of the three stage model of change includes which of Kotter’s eight steps for implementing change?

a. Establish a sense of urgency. b. Develop a compelling vision. c. Empower employees to act on the vision. d. All of the above.

16. To reduce employees’ resistance to change, change agents need to pay attention to the five Ps, which include ___________.

a. price b. proof c. purpose d. b and c only

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17. An effective crisis management plan is one that is ___________.

a. supported by training and periodic drill sessions b. coordinated and controlled across levels and units of the organization c. upgraded frequently d. All of the above.

18. It is generally believed that within ___________ of becoming aware that a crisis situation may exist, company officials must be prepared to issue an initial statement to the media and other key stakeholder groups.

a. 24 hours b. 30 minutes c. an hour d. 48 hours

19. Which of the following is an internal source of organizational learning?

a. customers b. competitors c. Academic publications d. employees

20. Tacit knowledge is acquired from ___________.

a. manuals regarding an organization’s culture b. databases acquired from other sources c. intuition based on experience d. genetics

21. Which of the following is a characteristic of a learning organization?

a. strategy is formulated from the top and passed down b. formal systems of communication tied to the vertical hierarchy with lots of filters c. stable environment d. loose, flexible, and adaptive roles

22. The traditional organization is based on the bureaucratic model that emphasizes ________.

a. highly formalized systems b. a rigid, closed culture c. specialized tasks d. All of the above.

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23. Benchmarking ___________.

a. allows a company to imitate the best practices of others b. is a leader strategy c. yields a comparative advantage d. is not recommended to develop creative thinking skills

24. In creating a learning organization culture, there must be a culture which is conducive to individual and team learning, which ___________.

a. has team learning b. encourages self-initiated activity c. does not need support from leaders d. a and b only

25. Which of the following should exist in a learning organization culture?

a. providing employees opportunities to solve problems b. broadening employees’ frames of reference to enhance learning c. sharing knowledge to encourage creative ideas d. None of the above.

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Writing Assignment for Unit Four

• Responses must be submitted as a MS Word Document only, typed double-spaced, using a standard font (i.e. Times New Roman) and 12 point type size.

Undergraduate courses: 350 - 500 words or 1 - 2 pages. Graduate courses: 500 - 750 words or 2 - 3 pages. Doctoral courses: 750 - 1000 words or 4 - 5 pages.

Plagiarism

Please answer ONE of the following:

• Include your name, student number, course number, course title and unit number on each page of your writing assignment (this is for your protection in case your materials become separated).

• Begin each writing assignment by identifying the question number you are answering followed by the actual question itself (in bold type).

• Use a standard essay format for responses to all questions (i.e., an introduction, middle paragraphs and conclusion).

1. Distinguish between symbolic and substantive leadership actions for shaping organizational culture.

2. Discuss people- and task-centered recommendations for minimizing resistance to change.

3. Describe the role of leadership in creating a learning organization.

You Can Do It

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Congratulations! You have completed Unit 4.

Now let’s sharpen our pencils for the Final Exam.

We are confident you will do well.

Final Examination Instructions

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About the Final Examination

After you have successfully completed all of the unit examinations and writing assignments, it will be time for you to take the final examination.

The final examination will be provided by student services only after you have completed all four unit examinations and submitted all four writing assignments.

Scheduling a Final Examination

Final examination requests can be submitted via U.S. mail, online through the coast connection student portal or by calling the testing department at (714) 547-9625.

A final exam scheduling form may be found on the following page. Please fill out all required fields and mail it to the university.

If you would like to put in a final exam request online, log in to your student account at www.calcoastuniv.com and choose the testing link, then select final exam scheduling.

Final exams will only be sent if you have completed all four unit examinations and submitted all four writing assignments.

Submitting Your Final Examination

Final examinations can be submitted by mail, fax or online through the student portal.

After you have completed your exam, you or your proctor can fax it to the grading department at (714) 547-1451 or mail it to the university. When faxing exams, please do not resize your fax.

For online submissions, once you have logged into the student portal, click on the testing tab and then choose either proctored final or non proctored final. If your final was sent to your proctor, he or she will have to enter a password that was issued to them on the proctor instruction sheet for the course.

Online final exam submissions must be completed in one session; you can not save answers and go back to your exam later. We recommend that you complete your final exam on paper first, then transfer the answers to your online answer sheet.

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Final Exam Scheduling Form

The university requires a certain number of final examinations to be completed under the supervision of a proctor. At the time you enrolled or reinstated into your program, you were given the total number of proctored final examinations required for your degree program. If this final examination is to be proctored, please provide information on your designated proctor. Otherwise, please complete the student and course information section only and submit this form with your unit four writing assignment.

Date _____________________________ Student I.D. ______________________________________________

Student Name ________________________________________________________________________________

Address ______________________________________________________________________________________

City __________________________________________________ State _________________________________

Zip Code ________________ Country ____________________________________________________________

E-Mail Address _______________________________________________________________________________

Daytime Telephone _____________________________ Evening Telephone _____________________________

Course Information:

Course Number ___________ Course Title _______________________________________________________

Please send the Final Examination to:

Proctor’s Name _______________________________________________________________________________

Proctor’s Relationship to Student ________________________________________________________________

Street Address _______________________________________________________________________

City ______________________________ State _________________ Zip Code __________________________

Country __________________________________ Email Address ___________________________

Daytime Telephone _________________________ Evening Telephone _________________________________

Student’s Signature ________________________________________________________________________

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