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MHR 301 C5 bb.ppt

MGMT5

Planning and Decision Making

discuss the benefits and pitfalls of planning

describe how to make a plan that works

discuss how companies can use plans at all management levels, from top to bottom

explain the steps and limits to rational decision making

explain how group decisions and group decision-making techniques can improve decision making

Planning

discuss the benefits and pitfalls of planning

describe how to make a plan that works

discuss how companies can use plans at all management levels, from top to bottom

Planning is choosing a goal and developing a method or strategy to achieve that goal.

Benefits of Planning

Intensified effort

Persistence

Direction

Creation of task strategies

Managers and employees put forth greater effort when following a plan.

Planning leads to persistence, that is, working hard for long periods. In fact, planning encourages persistence even when there may be little chance of short-term success.

The third benefit of planning is direction. Plans encourage managers and employees to direct their persistent efforts toward activities that help accomplish their goals and away from activities that don’t.

The fourth benefit of planning is that it encourages the development of task strategies. In other words, planning not only encourages people to work hard for extended periods and to engage in behaviors directly related to goal accomplishment, it also encourages them to think of better ways to do their jobs.

Finally, perhaps the most compelling benefit of planning is that it has been proven to work for both companies and individuals.

Pitfalls of Planning

Impedes change and prevents or slows adaptation

Creates a false sense of certainty

Detachment of planners

How To Make a
Plan That Works

Setting Goals

S.M.A.R.T. Goals

Specific
Measurable
Attainable
Realistic
Timely

Developing Commitment to Goals

Goal commitment
the determination to achieve a goal

Set goals collectively

Make the goal public

Obtain top management’s support

Developing Effective Action Plans

An action plan lists…

Specific steps (how)
People (who)
Resources (what)
Time period (when)

…for accomplishing a goal

Tracking Progress

Proximal goals and distal goals

Performance feedback

Proximal goals are short-term goals or subgoals, whereas distal goals are long-term or primary goals. The idea behind setting proximal goals is that achieving them may be more motivating and rewarding than waiting to reach far-off distal goals. Proximal goals are less intimidating and more attainable than distal goals, which often feel like biting off more than you can chew. Proximal goals enable you to achieve a distal goal one little piece at a time.

The second method of tracking progress is to gather and provide performance feedback. Regular, frequent performance feedback allows workers and managers to track their progress toward goal achievement and make adjustments in effort, direction, and strategies. Proper action on performance feedback can keep you from failing to adapt, one of the pitfalls of planning.

Effects of Goal Setting,
Training, and Feedback on
Safe Behavior in a Bread Factory

Exhibit 5.2 shows the impact of feedback on safety behavior at a large bakery company. During the baseline period, workers in the wrapping department, who measure and mix ingredients, roll the bread dough, and put it into baking pans, performed their jobs safely about 70 percent of the time (see 1 in Exhibit 5.2). The baseline safety record for workers in the makeup department, who bag and seal baked bread and assemble, pack, and tape cardboard cartons for shipping, was somewhat better at 78 percent (see 2). The company gave workers 30 minutes of safety training, set a goal of 90 percent safe behavior, and then provided daily feedback (such as a chart similar to Exhibit 5.2). Performance improved dramatically. During the intervention period, safely performed behaviors rose to an average of 95.8 percent for wrapping workers (see 3) and 99.3 percent for workers in the makeup department (see 4), and never fell below 83 percent. In this instance, the combination of training, a challenging goal, and feedback led to a dramatic increase in performance. The importance of feedback can be seen in the reversal stage, when the company quit posting daily feedback on safe behavior. Without daily feedback, the percentage of safely performed behaviors returned to baseline levels—70.8 percent for the wrapping department (see 5) and 72.3 percent for the makeup department

(see 6).

Maintaining Flexibility

Options-based planning
keep options open by making, small simultaneous investments in many alternative plans.

Slack resources
a cushion of resources, like extra time or money, that can be used to address and adapt to unanticipated changes.

Because action plans are sometimes poorly conceived and goals sometimes turn out not to be achievable, the last step in developing an effective plan is to maintain flexibility. One method of maintaining flexibility while planning is to adopt an options-based approach.

Planning from
Top to Bottom

Planning works best when the goals and action plans at the bottom and middle of the organization support the goals and action plans at the top of the organization. In other words, planning works best when everybody pulls in the same direction. Exhibit 5.3 illustrates this planning continuity, beginning at the top with a clear definition of the company vision and ending at the bottom with the execution of operational plans.

Starting at the Top

Strategic plans
make clear how the company will serve customers and position itself against competitors in the next 2 to 5 years
Purpose statement
a statement of a company’s purpose or reason for existing
Strategic objective
a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possess a finish line and a time frame.

Bending in the Middle

Tactical plans
specify how a company will use resources, budgets, and people to accomplish specific goals related to its strategic objective
time frame: 6 months to 2 years

Management by Objectives (MBO)
discuss possible goals
collectively set goals
jointly develop tactical plans
meet regularly to review progress

Management by objectives is a management technique often used to develop and carry out tactical plans.

Finishing at the Bottom

Operational plans

Single-use plans
Standing plans
policies
procedures
rules and regulations
Budgets

Lower-level managers are responsible for developing and carrying out operational plans, which are the day-to-day plans for producing or delivering the organization’s products and services. Operational plans direct the behavior, efforts, and priorities of operative employees for periods ranging from 30 days to 6 months.

Single-use plans deal with unique, one-time-only events. Unlike single-use plans that are created, carried out, and then never used again, standing plans can be used repeatedly to handle frequently recurring events. Policies indicate the general course of action that company managers should take in response to a particular event or situation. Procedures are more specific than policies because they indicate the series of steps that should be taken in response to a particular event. Rules and regulations are even more specific than procedures because they specify what must or must not happen and often describe precisely how a particular action should be performed.

Budgeting is quantitative planning because it forces managers to decide how to allocate available money to best accomplish company goals.

What Is Rational Decision Making?

explain the steps and limits to rational decision making

5. explain how group decisions and group decision-making techniques can improve decision making

Decision making is the process of choosing a solution from available alternatives. Rational decision making is a systematic process in which managers define problems, evaluate alternatives, and choose optimal solutions that provide maximum benefits to their organizations.

Steps to Rational Decision Making

Define the problem

Identify decision criteria

Weight the criteria

Generate alternative courses of action

Evaluate each alternative

Compute the optimal decision

Define the Problem

Existing state

Desired state

A problem exists when there is a gap between a desired state (what is wanted) and an existing state (the situation you are actually facing).

Identify Decision Criteria

The standards used to guide judgments and decisions.

Weight the Criteria

Absolute comparisons

Relative comparisons

Absolute comparisons are when each criterion is compared to a standard or ranked on its own merits.

Another method uses relative comparisons, in which each criterion is compared directly to every other criterion.

Absolute Weighting of Decision Criteria for a Car Purchase

Relative Comparison of
Home Characteristics

Exhibit 5.5 shows six criteria that someone might use when buying a house. Moving across the first row, we see that the time of the daily commute has been rated more important (−1) than school system quality; less important (+1) than having an in-ground pool, sun room, or a quiet street, and just as important as the house being brand new (0). Total weights, which are obtained by summing the scores in each column, indicate that the daily commute and school system quality are the most important factors to this home buyer, while an in-ground pool, sun room, and a quiet street are the least important.

Generate Alternative
Courses of Action

After identifying and weighting the criteria that will guide the decision-making process, the next step is to identify possible courses of action that could solve the problem.

The idea is to generate as many alternatives as possible.

Evaluate Each Alternative

The next step is to systematically evaluate each alternative against each criterion.

The key is to use information to systematically evaluate each alternative against each criterion.

Criteria Ratings Used to Determine the Best Location for a New Office

Compute the Optimal Decision

(rating for criterion A) x (weight for criterion A)

(rating for criterion B) x (weight for criterion B)

(rating for criterion C) x (weight for criterion C)

etc.

Limits to Rational Decision Making

In theory, fully rational decision makers maximize decision by choosing the optimal solution.

In practice, limited resources make it nearly impossible to maximize decisions.

Whereas maximizing is choosing the best alternative, satisficing is choosing a “good enough” alternative. In reality, however, the manager’s limited time, money, and expertise mean that only a few alternatives will be assessed against a few decision criteria.

Advantages of Group
Decision Making

Groups do a better job than individuals at

Defining the problem
Generating alternative solutions

Pitfalls of Group
Decision Making

Groupthink
occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution

Takes considerable time

Strong willed members

Groupthink is most likely to occur under the following conditions:

• The group is insulated from others who might have different perspectives.

• The group leader begins by expressing a strong preference for a particular decision.

• The group has no established procedure for systematically defining problems and exploring alternatives.

• Group members have similar backgrounds and experiences.

Structured Conflict

C-type (cognitive) conflict
focuses on problem- and issue-related differences of opinion
willingness to examine, compare, reconcile differences to produce the best possible solution
A-type (affective) conflict
emotional reaction that can occur when disagreements become personal
hostility, anger, resentment, distrust, cynicism, apathy

Creating C-Type Conflict

Devil’s advocacy

Generate a potential solution

Assign a devil’s advocate to criticize and question the solution

Present the critique of the potential solution to key decision makers

Gather additional relevant information

Decide whether to use, change, or not use the originally proposed solution

Creating C-Type Conflict

Nominal Group Technique

Begins with group quiet time
Each member shares one idea at a time with the group
Group discusses the pros and cons of each idea
Group members independently rank ideas presented
Idea with highest average rank is selected

Creating C-Type Conflict

Delphi Technique

A group of experts respond to questions and to each other until reaching agreement

Creating C-Type Conflict

Brainstorming/Electronic Brainstorming

The more ideas the better
All ideas are acceptable
Other members’ ideas should be used to come up with even more ideas
Criticism or evaluation of ideas is not allowed

REELTOREAL

Inside Man

Does this scene show strategic or tactical planning?
What pieces of the planning type does it specifically show? Give examples from the scene.
Do you expect this plan to succeed? Why or why not?

The 2006 crime thriller Inside Man features Denzel Washington as a tough NYPD hostage negotiator. He finds himself in a high-stakes cat-and-mouse game with a clever bank robber (Clive Owen), who confuses and outwits the police at every turn. Bank robber Dalton Russell is holding 50 people hostage in the vault of the Manhattan Trust Bank building, and Detective Frazier is determined to get them out alive, but the movie’s tagline—”It looked like the perfect bank robbery. But you can’t judge a crime by its cover”—tells us this there is more going on than it seems. In this scene, Captain John Darius (Willem Dafoe) updates Detective Frazier on what is happening inside the bank.

REELTOREAL

Plant Fantasies

1. Did Plant Fantasies owner Teresa Carleo follow the rational decision-making process to launch Plant Fantasies? Explain.

2. List an example of a programmed decision at Plant Fantasies. Identify a nonprogrammed decision at Plant Fantasies.

Plant Fantasies

Teresa Carleo, owner of Plant Fantasies, is the gardener for such well-known New York City properties as the Trump Organization, John Jay College, and Jack Resnick & Sons. In landscaping, success often boils down to big decisions over little details. While some decisions involve plant colors and types, others involve complex negotiation with people, such as when Plant Fantasies builds designs created by outside landscape architects. Despite Carleo’s confidence in her own decision making, the Plant Fantasies owner understands the benefits of empowering others. But regardless of who makes decisions, Carleo expects all her employees to share her high standards for quality.

MHR 301 C7 bb.ppt

MGMT5

Innovation and Change

explain why innovation matters to companies

discuss the different methods that managers can use to manage innovation in their organizations effectively

discuss why not changing can lead to organizational decline

discuss the different methods that managers can use to better manage change as it occurs

Organizational Innovation

explain why innovation matters to companies

discuss the different methods that managers can use to manage innovation in their organizations effectively

Organizational innovation is the successful implementation of creative ideas in an organization. Creativity, which is a form of organizational innovation, is the production of novel and useful ideas. In the first part of this chapter, you will learn why innovation matters and how to manage innovation to create and sustain a competitive advantage. In the second part, you will learn about organizational change, which is a difference in the form, quality, or condition of an organization over time. You will also learn about the risk of not changing and the ways in which companies can manage change.

Technology Cycles

Begins with the birth of a new technology…

…ends when that technology reaches limit and dies.

S-Curves and
Technological Innovation

Early in a technology cycle, there is still much to learn, so progress is slow, as depicted by point A on the S-curve. The flat slope indicates that increased effort (i.e., money, research and development) brings only small improvements in technological performance. Fortunately, as the new technology matures, researchers figure out how to get better performance from it. This is represented by point B of the S-curve in Exhibit 7.1. The steeper slope indicates that small amounts of effort will result in significant increases in performance. At point C, the flat slope again indicates that further efforts to develop this particular technology will result in only small increases in performance. More importantly, however, point C indicates that the performance limits of that particular technology are being reached. In other words, additional significant improvements in performance are highly unlikely.

After a technology has reached its limits at the top of the S-curve, significant improvements in performance usually come from radical new designs or new performance-enhancing materials (point C). In Exhibit 7.1, that new technology is represented by the second S-curve. The changeover or discontinuity between the old and new technologies is represented by the dotted line. At first, the old and new technologies will likely coexist. Eventually, however, the new technology will replace the old technology. When that happens, the old technology cycle will be complete, and a new one will have started.

Innovation Streams:
Technology Cycles over Time

We define innovation streams as patterns of innovation over time that can create sustainable competitive advantage. Exhibit 7.2 on the next page shows a typical innovation consisting of a series of technology cycles. Recall that a technology cycle begins with a new technology and ends when that technology is replaced by a newer, substantially better technology. The innovation stream in Exhibit 7.2 shows three such technology cycles.

An innovation stream begins with a technological discontinuity, in which a scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function. Technological discontinuities are followed by a discontinuous change, which is characterized by technological substitution and design competition. Technological substitution occurs when customers then purchase new technologies to replace older technologies. Discontinuous change is also characterized by design competition, in which the old technology and several different new technologies compete to establish a new technological standard or dominant design. Discontinuous change is followed by the emergence of a dominant design, which becomes the new accepted market standard for technology. Dominant designs emerge in several ways. One is critical mass, meaning that a particular technology can become the dominant design simply because most people use it. Dominant designs can also emerge through independent standards bodies.

Emergence of Dominant Design

There are winners and losers
technological lockout

Signals a shift from design experimentation and competition to incremental change

Managing Innovation

During discontinuous change, companies must find a way to anticipate and survive technological changes.

Companies must also manage incremental change and innovation.

Components of Creative
Work Environments

Work is challenging when it requires effort, demands attention and focus, and is perceived as important to others in the organization.

Organizational encouragement of creativity occurs when management encourages risk taking and new ideas, supports and fairly evaluates new ideas, rewards and recognizes creativity, and encourages the sharing of new ideas throughout different parts of the company. Supervisory encouragement of creativity occurs when supervisors provide clear goals, encourage open interaction with subordinates, and actively support development teams’ work and ideas. Work group encouragement occurs when group members have diverse experience, education, and backgrounds and the group fosters mutual openness to ideas; positive, constructive challenge to ideas; and shared commitment to ideas.

Freedom means having autonomy over one’s day-to-day work and a sense of ownership and control over one’s ideas. Numerous studies have indicated that creative ideas thrive under conditions of freedom.

To foster creativity, companies may also have to remove impediments to creativity from their work environments. Internal conflict and power struggles, rigid management structures, and a conservative bias toward the status quo can all discourage creativity. They create the perception that others in the organization will decide which ideas are acceptable and deserve support.

Experiential Approach

Assumes that innovation is occurring within a highly uncertain environment; the key to fast product innovation is to use innovation, flexible options, and hands-on experience.

Design iteration
Product prototype
Testing
Milestones
Multifunctional teams

The experiential approach to innovation has five aspects: design iterations, testing, milestones, multifunctional teams, and powerful leaders.

An iteration is a repetition. So a design iteration is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype. A product prototype is a full-scale working model that is being tested for design, function, and reliability. Testing is a systematic comparison of different product designs or design iterations. Companies that want to create a new dominant design following a technological discontinuity quickly build, test, improve, and retest a series of different product prototypes. Milestones are formal project review points used to assess progress and performance. Multifunctional teams are work teams composed of people from different departments. Multifunctional teams accelerate learning and understanding by mixing and integrating technical, marketing, and manufacturing activities. By involving all key departments in development from the start, multifunctional teams speed innovation through early identification of new ideas or problems that would typically not have been generated

or addressed until much later.

Compression Approach

Assumes that innovation is a predictable process, that incremental innovation can be planned, and that compressing the time it takes to complete steps can speed up innovation.

Generational change
Supplier involvement
Shorten the time of individual steps
Overlapping steps

Most planning for incremental innovation is based on the idea of generational change. Generational change occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version.

Because the compression approach assumes that innovation can follow a series of preplanned steps, one of the ways to shorten development time is through supplier involvement. Delegating some of the preplanned steps in the innovation process to outside suppliers reduces the amount of work that internal development teams must do. Plus, suppliers provide an alternative source of ideas and expertise that can lead to better designs.

Another way to shorten development time is simply to shorten the time of individual steps in the innovation process.

In a sequential design process, each step must be completed before the next step begins. But sometimes multiple development steps can be performed at the same time. Overlapping steps shorten the development process by reducing delays or waiting time between steps.

Organizational Change

discuss why not changing can lead to organizational decline

4. discuss the different methods that managers can use to better manage change as it occurs

The Risk of Not Changing

Organizational declines occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal and external pressures that threaten their survival.

Blinded stage
Inaction stage
Faulty action stage
Crisis stage
Dissolution stage

In the blinded stage, decline begins because key managers fail to recognize the internal or external changes that will harm their organizations. This blindness may be due to a simple lack of awareness about changes or an inability to understand their significance. It may also come from the overconfidence that can develop when a company has been successful.

In the inaction stage, as organizational performance problems become more visible, management may recognize the need to change but still take no action. The managers may be waiting to see if the problems will correct themselves. Or, they may find it difficult to change the practices and policies that previously led to success. Possibly, too, they wrongly assume that they can easily correct the problems, so they don’t feel the situation is urgent.

In the faulty action stage, faced with rising costs and decreasing profits and market share, management will announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits. In other words, rather than recognizing the need for fundamental changes, managers assume that if they just run a tighter ship, company performance will return to previous levels.

In the crisis stage, bankruptcy or dissolution (i.e., breaking up the company and selling its parts) is likely to occur unless the company completely reorganizes the way it does business. At this point, however, companies typically lack the resources to fully change how they run their businesses. Cutbacks and layoffs will have reduced the level of talent among employees. Furthermore, talented managers who were savvy enough to see the crisis coming will have found jobs with other companies, often with competitors.

In the dissolution stage, after failing to make the changes needed to sustain the organization, the company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors. At this point, a new CEO may be brought in to oversee the closing of stores, offices, and manufacturing facilities, the final layoff of managers and employees, and the sale of assets.

Forces

Change forces
lead to differences in the form, quality, or condition of an organization over time

Resistance forces
caused by self-interest, misunderstanding, and distrust

Resistance to Change

Self-interest

Misunderstanding and distrust

General intolerance for change

Resistance to change is caused by self-interest, misunderstanding and distrust, and a general intolerance for change. People resist change out of self-interest because they fear that change will cost or deprive them of something they value.

People also resist change because of misunderstanding and distrust; they don’t understand the change or the reasons for it, or they distrust the people—typically management—behind the change. Resistance isn’t always visible at first, however. Some of the strongest resisters may initially support the changes in public, nodding and smiling their agreement, but then ignore the changes in private and do their jobs as they always have.

Resistance may also come from a generally low tolerance for change. Some people are simply less capable of handling change than others. People with a low tolerance for change feel threatened by the uncertainty associated with change and worry that they won’t be able to learn the new skills and behaviors needed to successfully negotiate change in their companies.

Organizational Change Process

Unfreezing

Change intervention

Refreezing

Unfreezing is getting the people affected by change to believe that change is needed. During the change intervention itself, workers and managers change their behavior and work practices. Refreezing is supporting and reinforcing the new changes so that they stick.

Managing Resistance to Change

Educate employees
Communication change-relate d information
Have those affected by change participate in planning and implementing
Let employees discuss and agree on who will do what after change
Coercion

Mistakes Managers Make

Not establishing a great enough sense of urgency
Not creating a powerful enough coalition
Lacking a vision
Undercommunicating the vision by a factor of 10
Not removing obstacles to the new vision
Not systematically planning for and creating short-term wins
Declaring victory too soon
Not anchoring changes in the corporation’s culture

Change Tools and Techniques

Results-driven change

supplants emphasis on activity with focus on quickly measuring and improving results

General Electric Workout

three-day meeting that generates solutions to specific business problems

The General Electric workout is a special kind of results-driven change. The “workout” involves a three-day meeting that brings together managers and employees from different levels and parts of an organization to quickly generate and act on solutions to specific business problems. On the first morning, the boss discusses the agenda and targets specific business problems that the group will solve. The boss then leaves, and an outside facilitator breaks the group (typically 30 to 40 people) into five or six teams and helps them spend the next day and a half discussing and debating solutions. On day three, in what GE calls a “town meeting,” the teams present specific solutions to their boss, who has been gone since day one. As each team’s spokesperson makes specific suggestions, the boss has only three options: agree on the spot, say no, or ask for more information so that a decision can be made by a specific, agreed-upon date.

General Steps for Organizational Development Intervention

Organizational development is a philosophy and collection of planned change interventions designed to improve an organization’s long-term health and performance. Organizational development takes a long-range approach to change; assumes that top management support is necessary for change to succeed; creates change by educating workers and managers to change ideas, beliefs, and behaviors so that problems can be solved in new ways; and emphasizes employee participation in diagnosing, solving, and evaluating problems. As shown in Exhibit 7.5, organizational development interventions begin with the recognition of a problem. Then, the company designates a change agent to be formally in charge of guiding the change effort. This person can be someone from the company or a professional consultant. The change agent clarifies the problem, gathers information, works with decision makers to create and implement an action plan, helps to evaluate the plan’s effectiveness, implements the plan throughout the company, and then leaves (if from outside the company) after making sure the change intervention will continue to work.

Different Kinds of Organizational Development Interventions

Organizational development interventions are aimed at changing large systems, small groups, or people. More specifically, the purpose of large system interventions is to change the character and performance of an organization, business unit, or department. Small group intervention focuses on assessing how a group functions and helping it work more effectively to accomplish its goals. Person-focused intervention is intended to increase interpersonal effectiveness by helping people become aware of their attitudes and behaviors and acquire new skills and knowledge. Exhibit 7.6 describes the most frequently used organizational development interventions for large systems, small groups, and people.

REELTOREAL

Field of Dreams

When someone suggests an idea to you that you don’t completely understand, how open are you to considering it?
Which character is the most resistant to the idea of changing the farm into a ball field? Why?
Which characters demonstrate the most creativity and vision?

In the classic 1989 film Field of Dreams, Ray Kinsella (Kevin Costner), while working in his Iowa cornfield, hears a voice that says, “If you build it, he will come.” Ray concludes that “he” is legendary “Shoeless Joe” Jackson (Ray Liotta), a Chicago White Sox player suspended for rigging the 1919 World Series. With the support of his wife Annie (Amy Madigan), Ray jeopardizes his farm by plowing under a cornfield and creating a modern baseball diamond in its place. Shoeless Joe soon arrives, followed by the rest of the suspended players. This charming fantasy film, based on W. P. Kinsella’s novel Shoeless Joe, shows the rewards of pursuing a dream. In this clip, Ray’s brother-in-law Mark (Timothy Busfield) insists that they will have to start farming on the field again if they’re going to make enough money to avoid foreclosure on their property, but Ray’s daughter Karin (Gaby Hoffmann) suggests another idea.

REELTOREAL

Holden Outerwear

Identify the type of change that Holden’s leaders are managing on a daily basis.
What resistance has Holden encountered while introducing innovative garment designs? How was it able to overcome that resistance?

Holden Outerwear

Founded in 2002 by professional snowboarder Mikey LeBlanc, Holden Outerwear has given traditional baggy outerwear a complete style make-over. Unlike ski-apparel brands that focus on utility at the expense of looking good, Holden pants and jackets possess features that are inspired by runway brands like Marc Jacobs and G-Star, as Holden is always looking to bring new elements of style to the slopes. Holden has the attention of everyone in its industry. Retailers wait anxiously to see LeBlanc’s newest collections, and competitors from Burton and Salomon to Bonfire and Walmart borrow heavily from Holden’s collections. LeBlanc doesn’t worry too much about the rampant plagiarism that goes on in his industry. As he sees it, imitation is the highest form of flattery. Plus, Holden’s business is based on finding the next big thing. When it comes to style, Holden is the leader, never the follower.

MHR 301 C10 bb.ppt

MGMT5

Managing Teams

explain the good and bad of using teams

recognize and understand the different kinds of teams

understand the general characteristics of work teams

explain how to enhance work-team effectiveness

Why Use Work Teams?

explain the good and bad of using teams

recognize and understand the different kinds of teams

The Advantages of Teams

Teams improve…

Customer satisfaction
Product and service quality
Product development speed and efficiency
Employee job satisfaction
Cross-training
Decision making

The Disadvantages of Teams

Initially high turnover

Social loafing

Groupthink

Minority domination

Factors That Encourage People to Withhold Effort in Teams

The presence of someone with expertise.
The presentation of a compelling argument.
Lacking confidence in one’s ability to contribute.
An unimportant or meaningless decision.
A dysfunctional decision-making climate.

1. The presence of someone with expertise. Team members will withhold effort when another team member is highly qualified to make a decision or comment on an issue.

2. The presentation of a compelling argument. Team members will withhold effort if the arguments for a course of action are very persuasive or similar to their own thinking.

3. Lacking confidence in one’s ability to contribute. Team members will withhold effort if they are unsure about their ability to contribute to discussions, activities, or decisions. This is especially so for high-profile decisions.

4. An unimportant or meaningless decision. Team members will withhold effort by mentally withdrawing or adopting a “who cares” attitude if decisions don’t affect them or their units, or if they don’t see a connection between their efforts and their team’s successes or failures.

5. A dysfunctional decision-making climate. Team members will withhold effort if other team members are frustrated or indifferent or if a team is floundering or disorganized.

When to Use Teams and
When Not to Use Teams

The question is not whether to use teams, but when and where to use teams for maximum benefit and minimum cost.

First, teams should be used when there is a clear, engaging reason or purpose for using them. Too many companies use teams because they’re popular or because the companies assume that teams can fix all problems. Teams are much more likely to succeed if they know why they exist and what they are supposed to accomplish and more likely to fail if they don’t. Second, teams should be used when the job can’t be done unless people work together. This typically means that teams are needed when tasks are complex, require multiple perspectives, or require repeated interaction with others to complete. If tasks are simple and don’t require multiple perspectives or repeated interaction with others, however, teams should not be used. Third, teams should be used when rewards can be provided for teamwork and team performance. Rewards that depend on team performance rather than individual performance are the key to rewarding team behaviors and efforts. You’ll read more about team rewards later in the chapter, but for now it’s enough to know that if the type of reward (individual versus team) is not matched to the type of performance (individual versus team), teams won’t work.

Autonomy

The degree to which workers have the discretion, freedom, and independence to decide how and when to accomplish their jobs.

Teams can be classified in a number of ways, such as permanent or temporary, functional or cross-functional. However, studies indicate that the amount of autonomy possessed by a team is the key difference among teams.

Team Autonomy Continuum

Exhibit 10.2 shows how five kinds of teams differ in terms of autonomy. Moving left to right across the autonomy continuum at the top of the exhibit, traditional work groups and employee involvement groups have the least autonomy, semi-autonomous work groups have more autonomy, and, finally, self-managing teams and self-designing teams have the most autonomy. Moving from bottom to top along the left side of the exhibit, note that the number of responsibilities given to each kind of team increases directly with its autonomy. Let’s review each of these kinds of teams and their autonomy and responsibilities in more detail.

The smallest amount of autonomy is found in traditional work groups, where two or more people work together to achieve a shared goal. In these groups, workers are responsible for doing the work or executing the task, but they do not have direct responsibility or control over their work. Workers report to managers who are responsible for their performance and have the authority to hire and fire them, make job assignments, and control resources.

Employee involvement teams, which have somewhat more autonomy, meet on company time on a weekly or monthly basis to provide advice or make suggestions to management concerning specific issues such as plant safety, customer relations, or product quality. Though they offer advice and suggestions, they do not have the authority to make decisions. Membership on these teams is often voluntary, but members may be selected because of their expertise. The idea behind employee involvement teams is that the people closest to the problem or situation are best able to recommend solutions.

Semi-autonomous work groups not only provide advice and suggestions to management but also have the authority to make decisions and solve problems related to the major tasks required to produce a product or service. Semi-autonomous groups regularly receive information about budgets, work quality and performance, and competitors’ products. Furthermore, members of semi-autonomous work groups are typically cross-trained in a number of different skills and tasks. In short, semi-autonomous work groups give employees the authority to make decisions that are typically made by supervisors and managers. That authority is not complete, however. Managers still play a role, though much reduced compared to traditional work groups, in supporting the work of semi-autonomous work groups. In semi-autonomous work groups, managers ask good questions, provide resources, and facilitate performance of group goals.

Self-managing teams differ from semi-autonomous work groups in that team members manage and control all of the major tasks directly related to production of a product or service without first getting approval from management. This includes managing and controlling the acquisition of materials, making a product or providing a service, and ensuring timely delivery.

Self-designing teams have all the characteristics of self-managing teams, but they can also control and change the design of the teams themselves, the tasks they do and how and when they do them, and the membership of the teams.

Special Kinds of Teams

Cross-functional teams

Virtual teams

Project teams

Cross-functional teams are intentionally composed of employees from different functional areas of the organization. Virtual teams are groups of geographically and/or organizationally dispersed coworkers who use a combination of telecommunications and information technologies to accomplish an organizational task. Project teams are created to complete specific, one-time projects or tasks within a limited time.

Managing Work Teams

understand the general characteristics of work teams

4. explain how to enhance work-team effectiveness

Work Team Characteristics

Team norms

Team cohesiveness

Team size

Team conflict

Stages of team development

Team Norms

Informally agreed-on standards that regulate team behavior.

Regulate the everyday actions that allow teams to function effectively
Teams with negative norms influence team member to engage in negative behaviors

Team Cohesiveness

The extent to which team members are attracted to a team and motivated to remain in it.

Make sure that all team members are present at team activities.
Create additional opportunities for teammates to work together.
Engage in nonwork activities.
Make employees feel they are part of a special organization.

Cohesive groups have a better chance of retaining their members. As a result, cohesive groups typically experience lower turnover. In addition, team cohesiveness promotes cooperative behavior, generosity, and a willingness on the part of team members to assist each other. When team cohesiveness is high, team members are more motivated to contribute to the team because they want to gain the approval of other team members.

Team Size

In very large teams, members find it difficult to get to know one another, and team can splinter into subgroups.

Very small groups may lack diversity and knowledge found in large teams.

For most teams, the right size is between 6 to 9 people.

What signs indicate that a team’s size needs to be changed? If decisions are taking too long, if the team has difficulty making decisions or taking action, if a few members dominate the team, or if the commitment or efforts of team members are weak, chances are the team is too big. In contrast, if a team is having difficulty coming up with ideas or generating solutions, or if the team does not have the expertise to address a specific problem, chances are the team is too small.

Team Conflict

Cognitive conflict
members disagree because of different experiences and expertise

Affective conflict
results in hostility, anger, resentment, distrust, cynicism, apathy

Emphasizing c-type conflict is not enough

Cognitive conflict is strongly associated with improvements in team performance, whereas affective conflict is strongly associated with decreases in team performance. Why does this happen? With cognitive conflict, team members disagree because their different experiences and expertise lead them to different views of the problem and solutions. Indeed, managers who participated on teams that emphasized cognitive conflict described their teammates as “smart,” “team players,” and “best in the business.” They described their teams as “open,” “fun,” and “productive.” One manager summed up the positive attitude that team members had about cognitive conflict by saying, “We scream a lot, then laugh, and then resolve the issue.” Thus, cognitive conflict is also characterized by a willingness to examine, compare, and reconcile differences to produce the best possible solution. By contrast, affective conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy. Managers who participated on teams that emphasized affective conflict described their teammates as “manipulative,” “secretive,” “burned out,” and “political.” Not surprisingly, affective conflict can make people uncomfortable and cause them to withdraw and decrease their commitment to a team. Affective conflict also lowers the satisfaction of team members, may lead to personal hostility between coworkers, and can decrease team cohesiveness.

Having a Good Fight

Work with more, not less, information
Develop multiple alternatives to enrich debate
Establish common goals
Inject humor into the workplace
Maintain a balance of power
Resolve issues without forcing a consensus

Stages of Team Development

Forming is the initial stage of team development. This is the getting-acquainted stage in which team members first meet each other, form initial impressions, and try to get a sense of what it will be like to be part of the team. Some team norms will be established during this stage as team members begin to find out what behaviors will and won’t be accepted by the team. During this stage, team leaders should allow time for team members to get to know each other, set early ground rules, and begin to set up a preliminary team structure.

Conflicts and disagreements often characterize the second stage of team development, storming. As team members begin working together, different personalities and work styles may clash. Team members become more assertive at this stage and more willing to state opinions. This is also the stage when team members jockey for position and try to establish a favorable role for themselves on the team. In addition, team members are likely to disagree about what the group should do and how it should do it. Team performance is still relatively low, given that team cohesion is weak and team members are still reluctant to support each other. Since teams that get stuck in the storming stage are almost always ineffective, it is important for team leaders to focus the team on team goals and on improving team performance. Team members need to be particularly patient and tolerant with each other in this stage.

During norming, the third stage of team development, team members begin to settle into their roles as team members. Positive team norms will have developed by this stage, and teammates should know what to expect from each other. Petty differences should have been resolved, friendships will have developed, and group cohesion will be relatively strong. At this point, team members will have accepted team goals, be operating as a unit, and, as indicated by the increase in performance, be working together effectively. This stage can be very short and is often characterized by someone on the team saying, “I think things are finally coming together.” Note, however, that teams may also cycle back and forth between storming and norming several times before finally settling into norming.

In the last stage of team development, performing, performance improves because the team has finally matured into an effective, fully functioning team. At this point, members should be fully committed to the team and think of themselves as members of a team and not just employees. Team members often become intensely loyal to one another at this stage and feel mutual accountability for team successes and failures. Trivial disagreements, which can take time and energy away from the work of the team, should be rare. At this stage, teams get a lot of work done, and it is fun to be a team member. But the team should not become complacent. Without effective management, its performance may begin to decline as it passes through the stages of de-norming, de-storming, and de-forming.

Setting Team Goals and Priorities

Increasing a team’s performance is inherently more complex than just increasing one person’s performance.

Challenging team goals affect how hard team members work.

Stretch Goals

Extremely ambitious goals that workers don’t know how to reach.

Teams must have a high degree of autonomy
Teams must be empowered with control over resources
Structural accommodation
Bureaucratic immunity

Structural accommodation is giving teams the ability to change organizational structures, policies, and practices if doing so helps them meet their stretch goals.

Bureaucratic immunity occurs when teams no longer have to go through the frustratingly slow process of multilevel reviews and sign-off s to get management approval before making changes.

Selecting People

Individualists
put their own welfare and interests first
Collectivists
put group interests ahead of self
Team level
the average level of ability, experience, personality, or any other factor on a team
Team diversity
variances or differences in ability, personality, or any other factor on a team

The Team Player Inventory

Team Training

Interpersonal skills

Decision making skills

Problem solving skills

Conflict resolution skills

Technical training

Organizations that create work teams often underestimate the amount of training required to make teams effective. This mistake occurs frequently in successful organizations where managers assume that if employees can work effectively on their own, they can work effectively in teams. In reality, companies that use teams successfully provide thousands of hours of training to make sure that teams work.

Most commonly, members of work teams receive training in interpersonal skills. Interpersonal skills, such as listening, communicating, questioning, and providing feedback, enable people to have effective working relationships with others. Because of teams’ autonomy and responsibility, many companies also give team members training in decision-making and problem-solving skills to help them do a better job of cutting costs and improving quality and customer service. Many organizations also teach teams conflict resolution skills. “Teams at Delta Faucet have specific protocols for addressing conflict. For example, if an employee’s behavior is creating a problem within a team, the team is expected to work it out without involving the team leader. Two team members will meet with the problem team member and work toward a resolution. If this is unsuccessful, the whole team meets and confronts the issue. If necessary, the team leader can be brought in to make a decision, but . . . it is a rare occurrence for a team to reach that stage.” Firms must also provide team members with the technical training they need to do their jobs, particularly if they are being cross-trained to perform all of the different jobs on the team. Cross-training is less appropriate for teams of highly skilled workers. For instance, it is unlikely that a group of engineers, computer programmers, and systems analysts would be cross-trained for each other’s jobs.

Team Compensation

Skill-based pay
pay employees for learning additional skills or knowledge

Gainsharing
companies share the financial value of performance gains with their workers

Nonfinancial rewards
vacations, T-shirts, awards, certificates

When people first get put into team-based organizations, they really balk at being paid for how well the team does. It sounds illogical to them. It sound like their individuality and their sense of self-worth are being threatened. Consequently, companies need to carefully choose a team compensation plan and then fully explain how teams will be rewarded.

REELTOREAL

Failure to Launch

Do you think Kit and Ace make a good team? How well do they work together to first shoot the bird and then save it?
Is there a clear leader? Who is making most of the decisions in this scene?
Is there any evidence of team conflict?

In the 2006 romantic comedy Failure to Launch, Matthew McConaughey plays Tripp, a thirty-five-year-old confirmed bachelor who lives a great life in a nice house—his parents’. Whenever a woman starts getting too serious about him, Tripp brings them home to see his childhood bedroom. It’s his surefire way of getting rid of clingy girlfriends without ever having to break up with them. His mother Sue (Kathy Bates) and father Al (Terry Bradshaw) are desperate to get Tripp out of the house, so they hire Paula (Sarah Jessica Parker), who specializes in detaching grown children from their families. In this scene, Paula’s quirky roommate Kit (Zooey Deschanel) enlists Tripp’s friend Ace (Justin Bartha) in getting rid of a bird that has been making too much noise outside her window.

REELTOREAL

Holden Outerwear

What type of team did Nikki Brush participate in when she was a freelancer?What type of team does she participate in as a full-time employee at Holden?
What are the advantages and disadvantages of using teams at Holden? What can managers do to help avoid the disadvantages?
What steps do the leaders of Holden take to insure that their workgroups have high levels of cohesion?

Holden Outerwear

At Holden Outerwear, it’s all about teamwork. Founder Mikey LeBlanc believes that teamwork is critical to the company’s position as an innovation leader. Holden’s use of teams is something that emerged out of necessity. For much of the company’s brief history, managers worked independently on design projects. But as the company grew, LeBlanc needed more designers, and he began looking to outside freelancers for help. Nikki Brush, a design and development manager at Holden, remembers when she was first brought on as a freelancer. Today she is a full time manager at the company. The switch from freelancer to in-house manager has been positive for Nikki Brush, although her role on the team has changed. Even so, she is happier working inside the firm. Not only does she now know where Holden is going, but she helps set the course.

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MGMT5

Motivation

explain the basics of motivation

use equity theory to explain how employees’ perceptions of fairness affect motivation

use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation

explain how reinforcement theory works and how it can be used to motivate

describe the components of goal-setting theory and how managers can use them to motivate workers

discuss how the entire motivation model can be used to motivate workers

What Is Motivation?

1. explain the basics of motivation

Motivation Is…

The set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.

The Basics of Motivation

Effort and performance

Need satisfaction

Extrinsic and intrinsic rewards

How to motivate with the basic model of motivation

A Basic Model of Work
Motivation and Performance

Exhibit 13.1 shows a basic model of the relationship of work motivation and performance. The first thing to notice about Exhibit 13.1 is that it displays a basic model of work motivation and performance. In practice, it’s almost impossible to talk about one without mentioning the other. Not surprisingly, managers often assume motivation to be the only determinant of performance when they say things such as “Your performance was really terrible last quarter. What’s the matter? Aren’t you as motivated as you used to be?” In fact, motivation is just one of three primary determinants of job performance.

Effort and Performance

Job Performance =
Motivation x Ability x Situational Constraints

In this formula, job performance is how well someone performs the requirements of the job. Motivation, in this formula, is effort, the degree to which someone works hard to do the job well. Ability is the degree to which workers possess the knowledge, skills, and talent needed to do a job well. And situational constraints are factors beyond the control of individual employees, such as tools, policies, and resources that have an effect on job performance. Since job performance is a multiplicative function of motivation times ability times situational constraints, it will suffer if any one of these components is weak. Does this mean that motivation doesn’t matter? No, not at all. It just means that all the motivation in the world won’t translate into high performance when an employee has little ability and high situational constraints. So, even though we will spend this chapter developing a model of work motivation, it is important to remember that ability and situational constraints affect job performance as well.

Need Satisfaction

Needs
the physical or psychological requirements that must be met to ensure survival and well-being
A person’s unmet need creates an uncomfortable, internal state of tension that must be resolved.
People are motivated by unmet needs
Managers must learn what those unmet needs are, and address them.
Once a need is met, it no longer motivates.

Adding Need
Satisfaction to the Model

Needs are the physical or psychological requirements that must be met to ensure survival and well-being. As shown on the left side of Exhibit 13.2, a person’s unmet need creates an uncomfortable, internal state of tension that must be resolved.

Predictions of Need Theories

Maslow
needs are arranged in a hierarchy from low to high; people are motivated by their lowest unsatisfied needs

Alderfer
people can be motivated by more than one need at a time

McClelland
the degree to which particular needs motivate varies from person to person

“What Leads to Effort?”

Higher-order needs will not motivate as long as lower-order needs remain unsatisfied.

It’s difficult to predict which higher-order needs will motivate employees’ behavior.

The relative importance of the various needs may change over time.

Extrinsic and Intrinsic Rewards

Extrinsic rewards
tangible and visible to others and are given to employees contingent on the performance of specific tasks or behaviors

Intrinsic rewards
the natural rewards associated with performing a task or activity for its own sake

Which types of rewards are most important to workers in general? A number of surveys suggest that both extrinsic and intrinsic rewards are important. One survey found that the most important rewards were good benefits and health insurance, job security, a week or more of vacation (all extrinsic rewards), interesting work, the opportunity to learn new skills, and independent work situations (all intrinsic rewards). And employee preferences for intrinsic and extrinsic rewards appear to be relatively stable. Studies conducted over the last three decades have consistently found that employees are twice as likely to indicate that important and meaningful work matters more to them than what they are paid.

Adding Rewards
to the Model

Motivating with the Basics

Start by asking people what their needs are

Satisfy lower-order needs first

Expect peoples needs to change

As needs change and lower-order needs are satisfied, create opportunities for employees to satisfy higher-order needs

How Perceptions and Expectations Affect Motivation

2. use equity theory to explain how employees’ perceptions of fairness affect motivation

3. use expectancy theory to describe how workers’ expectations about rewards, effort, and the link between rewards and performance influence motivation

Equity Theory

People will be motivated at work when they perceive that they are being treated fairly. In particular, equity theory stresses the importance of perceptions. So, regardless of the actual level of rewards people receive, they must also perceive that, relative to others, they are being treated fairly.

Motivating to
Increase Effort

The basic components of equity theory are inputs, outcomes, and referents. Inputs are the contributions employees make to the organization. They include education and training, intelligence, experience, effort, number of hours worked, and ability. Outcomes are what employees receive in exchange for their contributions to the organization. Outcomes include pay, fringe benefits, status symbols, and job titles and assignments. And, since perceptions of equity depend on comparisons, referents are others with whom people compare themselves to determine if they have been treated fairly. Usually, people choose to compare themselves with referents who hold the same or similar jobs or who are otherwise similar in gender, race, age, tenure, or other characteristics.

Forms of Inequity

Underreward
when you are getting fewer outcomes relative to your inputs than the referent

Overreward
when you are getting more outcomes relative to your inputs than the referent

Reacting to Inequity

Decreasing or withholding inputs

Increasing outcomes

Rationalize or distort inputs to outcomes

Changing the referent

Employees may leave

Adding Equity
Theory to the Model

Exhibit 13.4 shows that perceived inequity affects satisfaction. In the case of underreward, this usually translates into frustration or anger; with overreward, the reaction is guilt. These reactions lead to tension and a strong need to take action to restore equity in some way. At first, a slight inequity may not be strong enough to motivate an employee to take immediate action. If the inequity continues or there are multiple inequities, however, tension may build over time until a point of intolerance is reached, and the person is energized to take action.

Motivating with Equity Theory

Start by looking for and correcting major inequities

Reduce employees’ inputs

Make sure decision-making processes are fair
distributive justice
procedural justice

Equity theory focuses on distributive justice, the degree to which outcomes and rewards are fairly distributed or allocated. However, procedural justice, the fairness of the procedures used to make reward allocation decisions, is just as important.

Expectancy Theory

People will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they will be offered attractive rewards.

Components of Expectancy Theory

Motivation = Valence 5 Expectancy 5 Instrumentality

Valence is simply the attractiveness or desirability of various rewards or outcomes. Expectancy theory recognizes that the same reward or outcome—say, a promotion—will be highly attractive to some people, will be highly disliked by others, and will not make much difference one way or the other to still others. Expectancy is the perceived relationship between effort and performance. When expectancies are strong, employees believe that their hard work and efforts will result in good performance, so they work harder. By contrast, when expectancies are weak, employees figure that no matter what they do or how hard they work, they won’t be able to perform their jobs successfully, so they don’t work as hard. Instrumentality is the perceived relationship between performance and rewards. When instrumentality is strong, employees believe that improved performance will lead to better and more rewards, so they choose to work harder. When instrumentality is weak, employees don’t believe that better performance will result in more or better rewards, so they choose not to work as hard.

Adding Expectancy
Theory to the Model

Exhibit 13.5 incorporates the expectancy theory variables into our motivation model. Valence and instrumentality combine to affect employees’ willingness to put forth effort (i.e., the degree to which they are energized to take action), while expectancy transforms intended effort (“I’m really going to work hard in this job”) into actual effort. If you’re offered rewards that you desire and you believe that you will in fact receive these rewards for good performance, you’re highly likely to be energized to take action. However, you’re not likely to actually exert effort unless you also believe that you can do the job (i.e., that your efforts will lead to successful performance).

Motivating with Expectancy Theory

Systematically gather information to find out what employees want from their jobs

Take specific steps to link rewards to individual performance in a clear and understandable way

Empower employees to make decisions if management really wants them to believe that their hard work and effort will lead to good performance

How Rewards and Goals Affect Motivation

explain how reinforcement theory works and how it can be used to motivate

describe the components of goal-setting theory and how managers can use them to motivate workers

6. discuss how the entire motivation model can be used to motivate workers

Reinforcement Theory

Behavior is a function of its consequences, behaviors followed by positive consequences will occur more frequently, and behaviors followed by negative consequences, or not followed by positive consequences, will occur less frequently.

Reinforcement
Reinforcement contingencies
Schedule of reinforcement

Reinforcement is the process of changing behavior by changing the consequences that follow behavior. Reinforcement has two parts: reinforcement contingencies and schedules of reinforcement. Reinforcement contingencies are the cause-and-effect relationships between the performance of specific behaviors and specific consequences. For example, if you get docked an hour’s pay for being late to work, then a reinforcement contingency exists between a behavior (being late to work) and a consequence (losing an hour’s pay). A schedule of reinforcement is the set of rules regarding reinforcement contingencies that specifies which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered.

Adding Reinforcement
Theory to the Model

Exhibit 13.6 incorporates reinforcement contingencies and reinforcement schedules into our motivation model. First, notice that extrinsic rewards and the schedules of reinforcement used to deliver them are the primary method for creating reinforcement contingencies in organizations. In turn, those reinforcement contingencies directly affect valences (the attractiveness of rewards), instrumentality (the perceived link between rewards and performance), and effort (how hard employees will work).

Components of Reinforcement Theory

Positive reinforcement

Negative reinforcement

Punishment

Extinction

Positive reinforcement strengthens behavior (i.e., increases its frequency) by following behaviors with desirable consequences. Negative reinforcement strengthens behavior by withholding an unpleasant consequence when employees perform a specific behavior. Negative reinforcement is also called avoidance learning because workers perform a behavior to avoid a negative consequence. By contrast, punishment weakens behavior (i.e., decreases its frequency) by following behaviors with undesirable consequences. Extinction is a reinforcement strategy in which a positive consequence is no longer allowed to follow a previously reinforced behavior. By removing the positive consequence, extinction weakens the behavior, making it less likely to occur.

Schedules for Delivering Reinforcement

Continuous

Intermittent
fixed interval
variable interval
fixed ratio
variable ratio

A schedule of reinforcement is the set of rules regarding reinforcement contingencies such as which behaviors will be reinforced, which consequences will follow those behaviors, and the schedule by which those consequences will be delivered.

With continuous reinforcement schedules, a consequence follows every instance of a behavior. For example, employees working on a piece-rate pay system earn money (consequence) for every part they manufacture (behavior). The more they produce, the more they earn. By contrast, with intermittent reinforcement schedules, consequences are delivered after a specified or average time has elapsed or after a specified or average number of behaviors has occurred.

Intermittent
Reinforcement Schedules

As Exhibit 11.10 shows, there are four types of intermittent reinforcement schedules. Two of these are based on time and are called interval reinforcement schedules; the other two, known as ratio schedules, are based on behaviors.

With fixed interval reinforcement schedules, consequences follow a behavior only after a fixed time has elapsed. For example, most people receive their paychecks on a fixed interval schedule (e.g., once or twice per month). As long as they work (behavior) during a specified pay period (interval), they get a paycheck (consequence). With variable interval reinforcement schedules, consequences follow a behavior after different times, some shorter and some longer, that vary around a specified average time. On a 90-day variable interval reinforcement schedule, you might receive a bonus after 80 days or perhaps after 100 days, but the average interval between performing your job well (behavior) and receiving your bonus (consequence) would be 90 days. With fixed ratio reinforcement schedules, consequences are delivered following a specific number of behaviors. For example, a car salesperson might receive a $1,000 bonus after every 10 sales. Therefore, a salesperson with only 9 sales would not receive the bonus until he or she finally sold a 10th car. With variable ratio reinforcement schedules, consequences are delivered following a different number of behaviors, sometimes more and sometimes less, that vary around a specified average number of behaviors. With a 10-car variable ratio reinforcement schedule, a salesperson might receive the bonus after 7 car sales, or after 12, 11, or 9 sales, but the average number of cars sold before receiving the bonus would be 10 cars.

Motivating with Reinforcement Theory

Identify, measure, analyze, intervene, evaluate

Don’t reinforce the wrong behaviors

Correctly administer punishment at the appropriate time

Choose the simplest and most effective schedule of reinforcement

Identify means singling out critical, observable, performance-related behaviors. These are the behaviors that are most important to successful job performance. In addition, they must also be easily observed so that they can be accurately measured. Measure means determining the baseline frequencies of these behaviors. In other words, find out how often workers perform them. Analyze means studying the causes and consequences of these behaviors. Analyzing the causes helps managers create the conditions that produce these critical behaviors, and analyzing the consequences helps them determine if these behaviors produce the results that they want. Intervene means changing the organization by using positive and negative reinforcement to increase the frequency of these critical behaviors. Evaluate means assessing the extent to which the intervention actually changed workers’ behavior. This is done by comparing behavior after the intervention to the original baseline of behavior before the intervention.

Goal-Setting Theory

People will be motivated to the extent that they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

A goal is a target, objective, or result that someone tries to accomplish.

Components of Goal-Setting Theory

Goal specificity

Goal difficulty

Goal acceptance

Performance feedback

Goal specificity is the extent to which goals are detailed, exact, and unambiguous. Specific goals, such as “I’m going to have a 3.0 average this semester,” are more motivating than general goals, such as “I’m going to get better grades this semester.” Goal difficulty is the extent to which a goal is hard or challenging to accomplish. Difficult goals, such as “I’m going to have a 3.5 average and make the Dean’s List this semester,” are more motivating than easy goals, such as “I’m going to have a 2.0 average this semester.” Goal acceptance, which is similar to the idea of goal commitment discussed in Chapter 4, is the extent to which people consciously understand and agree to goals. Performance feedback is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal.

Adding Goal-Setting
Theory to the Model

How does goal setting work? To start with, challenging goals focus employees’ attention (i.e., direction of effort) on the critical aspects of their jobs and away from unimportant areas. Goals also energize behavior. When faced with unaccomplished goals, employees typically develop plans and strategies to reach those goals. Goals also create tension between the goal, which is the desired future state of affairs, and the place where the employee or company is now, meaning the current state of affairs. This tension can be satisfied only by achieving or abandoning the goal. Finally, goals influence persistence. Since goals only go away when they are accomplished, employees are more likely to persist in their efforts in the presence of goals. Exhibit 13.8 incorporates goals into the motivation model by showing how they directly affect tension, effort, and the extent to which employees are energized to take action.

Motivating with Goal-Setting Theory

Assign employees specific, challenging goals

Make sure workers truly accept organizational goals

Provide frequent, specific, performance-related feedback

REELTOREAL

Friday Night Lights

This chapter defines motivation as “the set of forces that initiates, directs, and makes people persist in their efforts to accomplish a goal.” Does Mike Winchell show the characteristics of this definition early in the sequence? Do you expect him to show any of the characteristics after the sequence ends and he returns to the team?
How does Coach Gaines try to motivate his QB? Do you think his approach is effective?
Apply the various parts of goal-setting theory to this sequence. Which parts of that theory appear in the sequence?

In the small town of Odessa, Texas, everyone lives for Friday nights when the high school football team, the Permian Panthers, takes the field. The town is proud of their Panthers, led by quarterback Mike Winchell (Lucas Black) and superstar tailback Boobie Miles (Derek Luke), and they’re used to winning. They expect a state championship and nothing less. When Boobie suffers a career-ending injury in the first game of the season, the team isn’t sure they can win without him. But Coach Gary Gaines (Billy Bob Thornton) isn’t ready to give up yet. In this scene, Coach visits the home of his QB Mike Winchell and tries to motivate him, even though it seems like all hope for the Panthers is lost.

REELTOREAL

Living Social Escapes

1. Which needs in Maslow’s hierarchy are most important to the employees who work for LivingSocial Escapes, and how can managers use this information to develop a highly motivated workforce?

2. According to equity theory, how might a LivingSocial Escapes guide react if he or she feels underpaid or unappreciated?

3. What outcomes or rewards possess high valence for managers and guides who work at LivingSocial Escapes?

LivingSocial Escapes

LivingSocial Escapes, which offers a range of outdoor excursions, demands high commitment from employees. When hiring new workers, founder BramLevy offers only the most basic outline of job responsibilities. “Think about the brand and what we’re trying to develop,” Levy tells new recruits. “Now take it and formulate what you think will be best and run with it.” The employees must then come up with creative ideas, and execute them. Though demanding, this approach to motivation has great benefits for employees, since employees can share in the financial rewards—even part time guides get special bonuses if trips are profitable.

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MGMT5

Leadership

explain what leadership is

describe who leaders are and what effective leaders do

explain Fiedler’s contingency theory

describe how path-goal theory works

explain the normative decision theory

explain how visionary leadership (i.e., charismatic or transformational leadership) helps leaders achieve strategic leadership

What is Leadership?

1. explain what leadership is

2. describe who leaders are and what effective leaders do

Leadership is the process of influencing others to achieve group or organizational goals.

Leaders vs. Managers

Doing the right thing
“What should we be doing?”
Vision, mission, goals, objectives
Challenge the status quo
Long-term view
Expand people’s options and choices
Inspire and motivate people to find their own solutions
Concerned with ends, what gets done

Doing things right
“How can we do what we’re already doing better?”
Productivity and efficiency
Preservers of status quo
Short-term view
Limit others’ choices
Sole problems so that others can do their work
More concerned with means, how things get done

Leadership Traits

Trait theory
effective leaders possess a similar set of traits or characteristics

Leaders are different from followers in:
drive
desire to lead
honest/integrity
self-confidence
emotional stability
cognitive ability
knowledge of the business

Traits are relatively stable characteristics such as abilities, psychological motives, or consistent patterns of behavior. Trait theory is also known as the “great person” theory because early versions of the theory stated that leaders are born, not made. In other words, you either have the right stuff to be a leader, or you don’t. And if you don’t, there is no way to get it.

Drive refers to high levels of effort and is characterized by achievement, motivation, initiative, energy, and tenacity. In terms of achievement and ambition, leaders always try to make improvements or achieve success in what they’re doing. Successful leaders also have a stronger desire to lead. They want to be in charge and think about ways to influence or convince others about what should or shouldn’t be done. Honesty/integrity is also important to leaders. Honesty, being truthful with others, is a cornerstone of leadership. Without it, leaders won’t be trusted. When leaders are honest, subordinates are willing to overlook other flaws. Integrity is the extent to which leaders do what they say they will do. Leaders may be honest and have good intentions, but if they don’t consistently deliver on what they promise, they won’t be trusted. Self-confidence, or believing in one’s abilities, also distinguishes leaders from nonleaders. Self-confident leaders are more decisive and assertive and are more likely to gain others’ confidence. Moreover, self-confident leaders will admit mistakes because they view them as learning opportunities rather than a refutation of their leadership capabilities. This also means that leaders have emotional stability. Even when things go wrong, they remain even-tempered and consistent in their outlook and in the way they treat others. Leaders who can’t control their emotions, who become angry quickly or attack and blame others for mistakes, are unlikely to be trusted. Leaders are also smart. Leaders typically have strong cognitive abilities. This doesn’t mean that leaders are necessarily geniuses—far from it. But it does mean that leaders have the capacity to analyze large amounts of seemingly unrelated, complex information and see patterns, opportunities, or threats where others might not see them. Finally, leaders also know their stuff, which means they have superior technical knowledge about the businesses they run. Leaders who have a good knowledge of the business understand the key technological decisions and concerns facing their companies. More often than not, studies indicate that effective leaders have long, extensive experience in their industries.

Leadership Behaviors

Initiating structure

Consideration

Initiating structure is the degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. A leader’s ability to initiate structure primarily affects subordinates’ job performance.

Consideration is the extent to which a leader is friendly, approachable, and supportive and shows concern for employees. Consideration primarily affects subordinates’ job satisfaction.

Blake/Mouton Leadership Grid

The Blake/Mouton leadership grid is shown in Exhibit 14.1. Blake and Mouton used two leadership behaviors, concern for people (i.e., consideration) and concern for production (i.e., initiating structure), to categorize five different leadership styles. Both behaviors are rated on a 9-point scale, with 1 representing “low” and 9 representing “high.” Blake and Mouton suggest that a “high-high,” or 9, 9 leadership style is the best. They call this style team management because leaders who use it display a high concern for people (9) and a high concern for production (9). By contrast, leaders use a 9, 1 authority-compliance leadership style when they have a high concern for production and a low concern for people. A 1, 9 country club style occurs when leaders care about having a friendly, enjoyable work environment but don’t really pay much attention to production or performance. The worst leadership style, according to the grid, is the 1, 1 impoverished leader, who shows little concern for people or production and does the bare minimum needed to keep his or her job. Finally, the 5, 5 middle-of-the-road style occurs when leaders show a moderate amount of concern for both people and production. Is the team management style, with a high concern for production and a high concern for people, the best leadership style? Logically, it would seem so. Why wouldn’t you want to show high concern for both people and production? Nonetheless, nearly 50 years of research indicates that there isn’t one best leadership style. The best leadership style depends on the situation. In other words, no one leadership behavior by itself and no one combination of leadership behaviors works well across all situations and employees.

Situational Approaches to Leadership

explain Fiedler’s contingency theory

describe how path-goal theory works

5. explain the normative decision theory

After leader traits and behaviors, the situational approach to leadership is the third major method used in the study of leadership. We’ll review three major situational approaches to leadership—Fiedler’s contingency theory, path-goal theory, and Vroom and Yetton’s normative decision model. All assume that the effectiveness of any leadership style, the way a leader generally behaves toward followers, depends on the situation.

According to situational leadership theories, there is no one best leadership style. But, one of these situational theories differs from the other three in one significant way. Fiedler’s contingency theory assumes that leadership styles are consistent and difficult to change. Therefore, leaders must be placed in or “matched” to a situation that fits their leadership style. By contrast, the other situational theories assume that leaders are capable of adapting and adjusting their leadership styles to fit the demands of different situations.

Fiedler’s Contingency Theory

In order to maximize work group performance, leaders must be matched to the right leadership situation.

Leaders are effective when the work group they lead performs well.
Leaders are generally unable to change their leadership styles, and they will be more effective when their styles are matched to the proper situation.
The favorableness of a situation permits the leader to influence the behavior of group members.

Least Preferred Coworker

Leadership style = the way that leaders generally behave toward their followers.

Leadership styles are tied to leaders’ underlying needs and personalities.

Relationship-oriented

Task-oriented

People who describe their LPC in a positive way (scoring 64 and above) have relationship-oriented leadership styles. By contrast, people who describe their LPC in a negative way (scoring 57 or below) have task-oriented leadership styles.

Situational Favorableness

The degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members.

Leader-member relations

Task structure

Position power

In highly favorable situations, leaders find that their actions influence followers. But in highly unfavorable situations, leaders have little or no success influencing the people they are trying to lead.

The most important situational factor is leader-member relations, which refers to how well followers respect, trust, and like their leaders. When leader-member relations are good, followers trust the leader and there is a friendly work atmosphere. Task structure is the degree to which the requirements of a subordinate’s tasks are clearly specified. With highly structured tasks, employees have clear job responsibilities, goals, and procedures. Position power is the degree to which leaders are able to hire, fire, reward, and punish workers. The more influence leaders have over hiring, firing, rewards, and punishments, the greater their power.

Situational Favorableness

Exhibit 14.2 shows how leader-member relations, task structure, and position power can be combined into eight situations that differ in their favorability to leaders. In general, Situation I, on the left side of Exhibit 14.2, is the most favorable leader situation. Followers like and trust their leaders and know what to do because their tasks are highly structured. Also, the leaders have the formal power to influence workers through hiring, firing, rewarding, and punishing them. Therefore, in Situation I, it’s relatively easy for a leader to influence followers. By contrast, Situation VIII, on the right side of Exhibit 14.2, is the least favorable situation for leaders. Followers don’t like or trust their leaders. Plus, followers are not sure what they’re supposed to be doing because their tasks or jobs are highly unstructured. Finally, leaders find it difficult to influence followers without the ability to hire, fire, reward, or punish the people who work for them. In short, it’s very difficult to influence followers given the conditions found in Situation VIII.

Matching Leadership
Styles to Situations

Relationship-oriented leaders with high LPC scores were better leaders (i.e., their groups performed more effectively) under moderately favorable situations. In moderately favorable situations, the leader may be liked somewhat, tasks may be somewhat structured, and the leader may have some position power. In this situation, a relationship-oriented leader improves leader-member relations, which is the most important of the three situational factors. In turn, morale and performance improve. By contrast, as Exhibit 12.6 shows, task-oriented leaders with low LPC scores are better leaders in highly favorable and unfavorable situations. Task-oriented leaders do well in favorable situations where leaders are liked, tasks are structured, and the leader has the power to hire, fire, reward, and punish. In these favorable situations, task-oriented leaders effectively step on the gas of a well-tuned car. Their focus on performance sets the goal for the group, which then charges forward to meet it. But task-oriented leaders also do well in unfavorable situations where leaders are disliked, tasks are unstructured, and the leader doesn’t have the power to hire, fire, reward, and punish. In these unfavorable situations, the task-oriented leader sets goals, which focus attention on performance and clarify what needs to be done, thus overcoming low task structure. This is enough to jump-start performance even if workers don’t like or trust the leader.

People with moderate LPC scores, who can be somewhat relationship-oriented or somewhat task-oriented, tend to do fairly well in all situations because they can adapt their behavior. Typically, though, they don’t perform quite as well as relationship-oriented or task-oriented leaders whose leadership styles are well matched to the situation.

Leaders and Situations

Fiedler assumes leaders to be incapable of changing their leadership styles.

The key − matching leaders to situations…

…or teaching leaders how to change situational favorableness

Path-Goal Theory

Leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment.

Leader behavior must be a source of immediate or future satisfaction for followers.

Leaders must complement, not duplicate the characteristics of followers’ work environments.

Path-Goal Theory

In contrast to Fiedler’s contingency theory, path-goal theory assumes that leaders can change and adapt their leadership styles. Exhibit 14.4 illustrates this process, showing that leaders change and adapt their leadership styles contingent on their subordinates or the environment in which those subordinates work.

Leadership Styles

Directive

Supportive

Participative

Achievement-oriented

Directive leadership involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations. Supportive leadership involves being approachable and friendly to employees, showing concern for them and their welfare, treating them as equals, and creating a friendly climate. Supportive leadership is very similar to considerate leader behavior. Supportive leadership often results in employee satisfaction with the job and with leaders. This leadership style may also result in improved performance when it increases employee confidence, lowers employee job stress, or improves relations and trust between employees and leaders. Participative leadership involves consulting employees for their suggestions and input before making decisions. Participation in decision making should help followers understand which goals are most important and clarify the paths to accomplish them. Furthermore, when people participate in decisions, they become more committed to making them work. Achievement-oriented leadership means setting challenging goals, having high expectations of employees, and displaying confidence that employees will assume responsibility and put forth extraordinary effort.

Subordinate Contingencies

Perceived ability

Experience

Locus of control
internals vs. externals

Perceived ability is simply how much ability subordinates believe they have for doing their jobs well. Subordinates who perceive that they have a great deal of ability will be dissatisfied with directive leader behaviors. Experienced employees are likely to react in a similar way. Since they already know how to do their jobs (or perceive that they do), they don’t need or want close supervision. By contrast, subordinates with little experience or little perceived ability will welcome directive leadership. Locus of control is a personality measure that indicates the extent to which people believe that they have control over what happens to them in life. Internals believe that what happens to them, good or bad, is largely a result of their choices and actions. Externals, on the other hand, believe that what happens to them is caused by external forces beyond their control. Accordingly, externals are much more comfortable with a directive leadership style, whereas internals greatly prefer a participative leadership style because they like to have a say in what goes on at work.

Environmental Contingencies

Task structure

Formal authority system

Primary work group

Task structure is the degree to which the requirements of a subordinate’s tasks are clearly specified. When task structure is low and tasks are unclear, directive leadership should be used because it complements the work environment. When task structure is high and tasks are clear, however, directive leadership is not needed because it duplicates what task structure provides. Alternatively, when tasks are stressful, frustrating, or dissatisfying, leaders should respond with supportive leadership. The formal authority system is an organization’s set of procedures, rules, and policies. When the formal authority system is unclear, directive leadership complements the situation by reducing uncertainty and increasing clarity. But when the formal authority system is clear, directive leadership is redundant and should not be used. Primary work group refers to the amount of work-oriented participation or emotional support that is provided by an employee’s immediate work group. Participative leadership should be used when tasks are complex and there is little existing work-oriented participation in the primary work group. When tasks are stressful, frustrating, or repetitive, supportive leadership is called for.

Path-Goal Theory:
When to Use Directive,
Supportive, Participative, or Achievement-Oriented Leadership

Normative Decision Theory

Helps leaders decide how much employee participation (from none to letting employees make the entire decision) should be used when making decisions.

Normative Theory, Decision
Styles, and Levels of
Employee Participation

Unlike nearly all of the other leadership theories discussed in this chapter, which have specified leadership styles, the normative decision theory specifies five different decision styles, or ways of making decisions. (Refer back to Chapter 5 for a more complete review of decision making in organizations.) As shown in Exhibit 14.6, those styles vary from autocratic decisions (AI or AII) on the left, in which leaders make the decisions by themselves, to consultative decisions (CI or CII), in which leaders share problems with subordinates but still make the decisions themselves, to group decisions (GII) on the right, in which leaders share the problems with subordinates and then have the group make the decisions. GE Aircraft Engines in Durham, North Carolina, uses the normative approach to decision making. According to Fast Company magazine, “At GE/Durham, every decision is either an ‘A’ decision, a ‘B’ decision, or a ‘C’ decision. An ‘A’ decision is one that the plant manager makes herself, without consulting anyone.” Plant manager Paula Sims says, “I don’t make very many of those, and when I do make one, everyone at the plant knows it. I make maybe 10 or 12 a year.” “B” decisions are also made by the plant manager, but with input from the people affected. “C” decisions, the most common type, are made by consensus, by the people directly involved, with plenty of discussion. With “C” decisions, the view of the plant manager doesn’t necessarily carry more weight than the views of those affected.”

Normative Theory
Decision Rules

Exhibit 14.7 lists the decision rules that normative decision theory uses to increase the quality of a decision and the degree to which employees accept and commit to it. The quality, leader information, subordinate information, goal congruence, and problem structure rules are used to increase decision quality. For example, the leader information rule states that if a leader doesn’t have enough information to make a decision on his or her own, then the leader should not use an autocratic style. The commitment probability, subordinate conflict, and commitment requirement rules shown in Exhibit 14.7 are used to increase employee acceptance and commitment to decisions.

The quality, leader information, subordinate information, goal congruence, and problem structure rules are used to increase decision quality. For example, the leader information rule states that if a leader doesn’t have enough information to make a decision on his or her own, then the leader should not use an autocratic decision style. The commitment probability, subordinate conflict, and commitment requirement rules shown in Exhibit 14.7 are used to increase employee acceptance and commitment to decisions. For example, the commitment requirement rule says that if decision acceptance and commitment are important and the subordinates share the organization’s goals, then you shouldn’t use an autocratic or consultative style. In other words, if followers want to do what’s best for the company and you need their acceptance and commitment to make a decision work, then use a group decision style and let them make the decision. As you can see, these decision rules help leaders improve decision quality and follower acceptance and commitment by eliminating decision styles that don’t fit the particular decision or situation they’re facing. Normative decision theory, like path-goal theory, is situational in nature.

Normative Decision Theory Tree for Determining Level of Participation in Decision Making

The abstract decision rules in Exhibit 14.7 are framed as yes/no questions, which makes the process of applying these rules more concrete. These questions are shown in the decision tree displayed in Exhibit 14.8. You start at the left side of the tree and answer the first question, “How important is the technical quality of this decision?” by choosing “high” or “low.” Then you continue by answering each question as you proceed along the decision tree until you get to a recommended decision style.

Strategic Leadership

6. explain how visionary leadership (i.e., charismatic and transformational leadership) helps achieve strategic leadership

Strategic leadership is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a positive future for an organization.

Visionary Leadership

Creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting.

Charismatic Leadership

The behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship with followers.

Articulate a clear vision for the future that is based on strongly held values or morals
Model those values by acting in a way consistent with the vision
Communicate high performance expectations to followers
Display confidence in followers’ abilities to achieve the vision

Ethical and
Unethical Charismatics

Ethical charismatics provide developmental opportunities for followers, are open to positive and negative feedback, recognize others’ contributions, share information, and have moral standards that emphasize the larger interests of the group, organization, or society. Unethical charismatics control and manipulate followers, do what is best for themselves instead of their organizations, want to hear only positive feedback, share information that is only beneficial to themselves, and have moral standards that put their interests before everyone else’s.

Transformational Leadership

Generates awareness and acceptance of a group’s purpose and mission and gets employees to see beyond their own needs and self interests for the good of the group.

Components of Transformational Leadership

Charismatic leadership or idealized influence

Inspirational motivation

Intellectual stimulation

Individualized consideration

Charismatic leadership or idealized influence means that transformational leaders act as role models for their followers. Because transformational leaders put others’ needs ahead of their own and share risks with their followers, they are admired, respected, and trusted, and followers want to emulate them. Thus, in contrast to purely charismatic leaders (especially unethical charismatics), transformational leaders can be counted on to do the right thing and maintain high standards for ethical and personal conduct. Inspirational motivation means that transformational leaders motivate and inspire followers by providing meaning and challenge to their work. By clearly communicating expectations and demonstrating commitment to goals, transformational leaders help followers envision the future, as one must to do from the organizational vision or mission. In turn, this leads to greater enthusiasm and optimism about the future. Intellectual stimulation means that transformational leaders encourage followers to be creative and innovative, to question assumptions, and to look at problems and situations in new ways even if their ideas are different from the leader’s. Individualized consideration means that transformational leaders pay special attention to followers’ individual needs by creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication, and being good listeners.

Transactional Leadership

Based on an exchange process in which followers are rewarded for good performance and punished for poor performance.

REELTOREAL

Doomsday

Assess the behavior of both Major Sinclair and Michael Canaris. Which leadership traits does their behavior show?
Does this film sequence show any aspects of charismatic and transformational leadership? Draw some examples from the sequence.

In the futuristic action thriller Doomsday, the “Reaper Virus” strikes the British Isles in 2007 and devastates the population in Scotland. Authorities go to desperate lengths to quarantine it, sealing off the borders and not allowing anyone to enter or leave the country. Social decay spreads, and cannibalistic behavior develops among the few remaining survivors. When the Reaper Virus reemerges in 2032, this time in London, England, classified satellite images show signs of life in Glasgow and Edinburgh. In this scene, Major Eden Sinclair (Rhona Mitra) is given the task of going into the city to find the scientist who they hope may have the cure for the virus. If she can’t find him in time, she is told, “then you needn’t bother coming back.”

REELTOREAL

Camp Bow Wow

1. Does Camp Bow Wow CEO Heidi Ganahl possess qualities associated with contemporary leadership?

2. In what way is Heidi Ganahl’s leadership charismatic and visionary? Give examples.

3. Where does Heidi Ganahl’s leadership fall on the Leader-ship Grid discussed in the chapter? Explain.

Camp Bow Wow

While consistency and conformity are critical to the success of any chain, Camp Bow Wow seeks creative input from the franchisees who bought in to the system. To maintain a standard business template while encouraging fresh ideas, founder Heidi Ganahl keeps a door open for anyone who wants to meet and offer feedback. The policy has produced many visible improvements to the company, such as the new Tea Cup Pup Lounge, a play zone for small dogs. Since franchise companies attract hundreds of independent business owners into the system, Ganahl has to work with many strong leaders, which requires two-way cooperation and respect. She also has to manage personal relationships and keep every individual focused on business.